This study examined the role of small scale business in the economic development of Etsako West “Local Government Area with a focus on Bendel Super Market, Auchi Edo State. The researcher adopted a survey method in gathering data and information for the study. Information was also gathered from commentary sources: the text books, News papers, Journal and other related sources. The concept of small scale industry the types, the activities, the benefits and the needs for small scale industries are very central in the economic development of Etsako West Local Government  Area. This study concludes great there is the need to support the surviving of small scale business because of their numerous contributions to the economic development of Etsako West Local Government Area.   



Title page

Certification         ---      ---      ---      ---      ---      ----     ---      ---                i

Dedication ---      ---      ---      ---      ---      ----     ---      ---                ii

Acknowledgement         ---      ---      ---      ---      ---      ---                iii

Table of Contents          ---      ---      ---      ---      ---      ----     ---                iv

Abstract      ---      ---      ---      ---      ---      ----     ---      ---                vi


1.1            Background to the Study        ---      ---      ---      ---      ---                1       

1.2            Statement of the Problem        ---      ---      ---      ---      ---                2

1.3            Research Questions       ---      ---      ---      ---      ---                3

1.4            Objective of the Study---         ---      ---      ---      ----     ---                3

1.5            Statement of  Hypotheses ---   ---      ---      ---      ---                4       

1.6            Scope of the Study---     ---      ---      ---      ----     ---                4

1.7            Significances of the Study---    ---      ---      ---      ---                5       

1.8            Limitation of the study---        ---      ---      ---      ----     ---                6

1.9            Operational Definitions of Terms --- ---      ---      ---                7


2.1     Introduction  --     ---      ---      --       ---      ----     ---                9       

2.2      The Review         ---      ---      ---      ---      ---      ---                10     

2.3     Summary of the Review  ---    ---      ---      ---      ---                23



3.1     Introduction ---     ---      ---      --       ---      ---      ---                24

3.2     Research Design---         ---      ---      ---      ---      ---                25

3.3     Population of the Study ---      ---      ---      ---      ---                25

3.4     Sample/Sampling Techniques ---      ---      ---      ---                25

3.5     Instrumentation ---                  ---      ---      ---      ---      ---                26     

3.6     Methods of Data Collection ---         ---      ---      ---      ---                27

3.7     Method of Data Analysis        ---      ---      ---      ---      ---                27


4.1     Introduction ---     ---      ---      ---      ---      ---      ---                29

4.2     Data Presentation  and Interpretation -      ---      ---      ---                29     

4.3     Test of Hypotheses       ---      ---      ---      ---      ---                35     

4.4     Discussion of Findings ---       ---      ---      ---      ---                39     


5.1     Introduction ---     ---      ---      ---      ---      ---      ---                40     

5.2     Summary of Findings ---         ---      ---      ---      ---      ---                40       

5.3     Conclusion ---      ---      ---      ---      ---      ---      ---                40

5.4     Recommendations         ---      ---      ---      ---      ---      ---                41       




1.1     Background to the Study

Small scale enterprises are household application which consist of various business practices like the sole trading, partnership and private companies. These types of companies form the bedrock of most developing economic. Most of them however do not employ any form of paid labour. They were found largely in a variety of manufacturing lines such as shoes making, weaving, food processing, tailoring etc. 

In 1970, the federal ministry of industries defines small scale enterprise as an industry employing about one to five persons and which total do not exceed one hundred and fifty thousand naira in machinery and equipment. The central bank of Nigeria in 1980 defined small scale  business as an enterprise whose annual turnover ranges between N25,000 to N50, 000.

1.2     Statement of the Problem

Small scale industries in Nigeria today are faced with a lot of problems. Despite the unique position occupied by small scale industries in the development of an industrial economy, these business are characterized by:

(i)                Poor Organization:- This is hinged on the inability  of manager to property put together human and materials resources.

(ii)             Lack of Inadequate Capital:- As a result of low capital income of the people.

(iii)           Uncontrolled Growth:- Every business desires growth which must be planned and controlled.

(iv)           Poor Location:- Making choice of an ideal location for a  business is very critical  to  its success.

(v)             Wrong pricing:- In fixing price on products to generate the desire profit, the  business owner must understand how much it costs to make market and deliver their products and services.

Furthermore, most small scale business are faced with problem of research and development.  

1.3     Objective  of the Study

The main purpose of this study is to examine the various ways which could serve as the lead way for small scale business to contribute towards the development of Nigeria economy.  Bearing in mind that this form of business increases the gross domestic product of a country and provide revenue for the government in form of taxes, this study is aimed at unveiling the importance of small scale business hidden talents and develop individual skills so as to be more creative.

1.4     Research Question

1.       Is the problem of management in small scale business as a result of poor planning, organizing, controlling and co-ordinating their activities.

2.       The problem of financing in small scale business arise from adequate use of funds.

3.       Is the problem of research and development in small scale business due to inadequate forecast?

1.5              Statement of  Hypotheses

For the purpose of a depth study, the research adopted the following hypothesis stated in a null and alternative formal.

Ho:  Small scale business are not faced with the problem of poor organization.

Hi:  Small scale business are actually faced with the problem of poor organization.

Ho:  Inadequate capital would not deter small scale industries from growth.

Hi:   Inadequate capital for small scale business to operate makes it difficult for     them to grow.

1.6     Scope of the Study

This study covers the contributions, functions activities of small scale industries. Basically, the activities of small scale businesses focus on four areas.

(a)              Extraction of raw materials which are used by other organization for further production.

(b)             The conversation of the raw materials extracted into finished product.

(c)              The section market out this finished product to consumers through adverts, personal selling and other propaganda.

(d)             Provision of services such as banking, insurance, commerce e.t.c.

1.7     Significance of the Study

There are quantitative importance of small scale enterprises which necessitate and makes it possible for them to exist in spirit of obvious competitive odds from large scale enterprise.  They could be firms play an important role.

Several of these social and economic values are discussed briefly in the section. Nigeria economic system is characterized by freedom of opportunity. A part from a few industries left to be run by government (public corporation) with a view to alienating the suffering which the general public would encounter, assuming these are left in the hands of bourgeoisie, every individual has the right to initiate and established his /her own business either as a limited liability company everyone has the right to elect one’s employer and an employer has the right to employ anyone he chooses.  

Only few barriers have been placed before individual inspiring to business entrepreneurship. Notable among these especially in manufacturing sector distinct from the serviced sector, is the legislature protocol. With ambition and other necessary prerequisite one can set up a small firm.

This means that freedom of opportunity may be a freedom of failure as well as the earn profit; freedom of opportunity not guarantee success. Nevertheless, this freedom has made it possible for small scale enterprise, in recent time.


1.8     Limitation of the Study

In any research, there must have to be problems that will be encountered by researcher. These problems are brought in to high to enable future researcher take note. 

Secrecy is the first problem faced by the researcher. Organization and individuals tend to see questionnaire and interview as a means of obtaining information from them which might be used to tax them and which their competitors can use to plot their downfall, or use to plot strategies against them.

The study was also committed by the problem of finance lot of money have been spent on printing of questionnaires  interview guide and coupled with this transportation problem, to and from the case study. This is because the researcher do go there at times and discover that the respondent is  on seat and even when he is no  seat, he might ask you to go and come back at other time especially when he is busy.




1.9     Operational Definition of Terms

Small:  It is a given quantity of measurement of a given number.

Business: It can be describe as an act of creating goods and services for profit motive. Or any economic activity that provides goods and services to satisfy human wants.

Enterprise: It can be defined as industrious/ creating goods and services precisely anything that sells in enterprising.

Assets:  According to oxford advanced learner’s dictionary “assets is a business thing of value, especially property, that a person or company owns, which can be used or sold to pay debts.

Development: A conscious effort of the government to bring about change in the economic variables.

Infrastructure: It can defined as all kinds of such as power, water supply, transportation, communication monetary, institutions, research establishments, education,, health, information and social welfare institutions.

Small Scale Business: According to industrial policy act of Nigeria. Small scale business are does with the total investment of between N 100,00 and  N200,000 exclusive of land but including working capital.

Unveiling: To bring to light.

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