1.1            Background to the Study

1.2            Statement of the Problems

1.3            Objectives of the Study

1.4            Research Questions

1.5            Statement Of Hypotheses

1.6            Scope Of The Study

1.7            Significance of the Study

1.8            Limitations of the Study


2.1            Introduction

2.2            The Concept of Small-Scale Enterprises



2.3            Sources of Capital for Small Scale Business in Nigeria

2.4            Small-Scale Enterprise And National Development

2.5            Measurement/Assessment Of Small Scale Business/Enterprise

2.6            Some Challenges Facing Small Scale Business


3.1            Introduction

3.2            Research Design

3.3            Population of the Study

3.4            Sample/Sampling Techniques

3.5            Instrumentation

3.6            Method of data Collection

3.7            Method Of Data Analysis



4.1                 Introduction

4.2                 Data Presentation

4.3     Data Analysis

4.4     Test of Hypotheses

4.4     Discussion of Findings



5.1     Summary

5.2     Conclusion

5.3     Recommendations

Appendix I






1.9            Background to the Study

A business whether small, medium, large, simple, complex, private and public, etc are regarded as the driving force of economic growth, job creation, liberalization of the economy, amass excess revenue, unemployment and poverty level reduction in developing countries. They have been the means through which accelerated economic growth and repaid industrialization have been achieved Obadan, (2010). While the contributions of small businesses to development are greatly acknowledged, entrepreneurs face many obstacles that limit their long-term survival and development. Research on small-business development has shown that the rate of failure in the developed world. Scholars have indicated that starting a business is a risky venture and warn that the chances of small-business owners making it past the five-year mark are very slim. They should develop both long-term and short term strategies to guard against failure. Jhingan, (2006); Todaro and Smith (2006).

In respect of the foregoing, Ayozie (2011) in his paper presentation concurred that small and medium enterprises have contributed greatly to Nigerian development by the provision of employment, marketing of goods and services and the growth and the development of the rural areas. It has also brought about the growth of indigenous entrepreneurship in Nigeria. Puclio (2000) described twelve (12) reasons for the scientific study of creativity, among them contribution to effective leadership and discovering new and better ways of solving problems the effective use of human resources and the rapid growth of competition in business and industry.

1.10       Statement of the Problems

All over the world, there is no gain saying that there is no country where government alone can provide employment for her citizenry. It is the basis of this single fact that Small-Scale industries come into close the gap created by the inability of the government to cater for all her graduates from all various training institutions.

Coming home to our situation in Nigeria, it is very apparent that as a result of the economic malady pervading the nation recently, this has been embargo on employment in Nigeria. Consequent upon this ugly situation, unemployment has become the order of the day. This has resulted to incredible increase in crime rate, such as robbery, stealing, breaking and entering, today worst kidnapping etc this really drew my attention to this research work.

1.11       Objectives of the Study

The major objectives of this study is to explore the contribution of Small-Scale industries to economic growth in Nigeria. Other specific objectives are:

1.                 To find out whether Small-Scale industries would equally improve the economic growth in Nigeria.

2.                 To determine the challenges of Small-Scale industries in Nigeria.

3.                 To verify whether the development of Small-Scale industries would provide employment opportunities in Nigeria.

4.                 To create awareness on the importance of Small-Scale industries in Nigeria economy.

1.12       Research Questions

The research questions formulated in this study are stated below.

5.     Would Small-Scale industries improve the economic growth in Nigeria?

6.     What are the challenges of Small-Scale industries in Nigeria?

7.     Would the development of Small-Scale industries provide employment opportunities in Nigeria?

8.     Would Small-Scale industries reduce the rate of crime in Nigeria?

1.13       Statement Of Hypotheses

Hypothesis I

Ho: Small-Scale industries would not improve economic growth in Nigeria.

Hi: Small-Scale industries would improve economic growth in Nigeria.

Hypothesis II

Ho: Small-Scale industries would not provide employment opportunity in Nigeria.

Hi: Small-Scale industries would provide employment opportunity in Nigeria.

1.14       Scope Of The Study

The study shall cover areas such as the concept of small scale industries, small scale industries as a tool for national development, the prospect of small scale industries in Nigeria and the challenges of small scale industries in Nigeria.



1.15       Significance of the Study

The study is of great significance as it will help to reveal the importance of small scale industries in Nigeria. The study will also serve as source of reference to those who may have an in-depth interest in carrying out a similar research topic.

1.16       Limitations of the Study

The study focuses on the contribution of small scale enterprises in promoting the economic growth in Nigeria. The case study is narrowed to selected business organization, Auchi Edo State.

During the study some challenges were encountered, especially the challenges of retrieving the questionnaires distributed to the chosen case study and the challenges of findings the relevant materials for the study.

1.17       Operational Definition of Terms

The following definition of terms enhance the understanding of the study.

Corporations: These are private or public limited companies. Shareholders in a company are protected by limited liability.

Partnership: This is a form of business where two or more persons act in partnership by coming together as the firm, and using the name in which the business in transacted. Partnerships in Nigerian ordinary partnership meaning that members have unlimited liability.

Private Enterprise: This is a person who enters business working for himself/herself. The sole trades puts in the capital to start the business which is usually small, thought he/she may employ others.

Public Enterprise: A public enterprise is a business organization wholly or partly owned by the state and controlled through a public authority.


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