SMALL SCALE INDUSTRY IN NIGERIA: THE FINANCING QUESTION
A critical review of the most recent literatures on labour turnover and productivity was done. It was revealed that there is a significant relationship between labour turnover rates and labour performance. And that labour turnover affects company productivity level. But, welfare services in another way affect labour turnover rate. Also, the finding shows that productivity measurement has significant relationship with the company performance and growth.
But despite the inherent disadvantages associated with labour turnover, it is also been use to maintain profitability during slimmer period. This study examines its implication on Nigeria organizations, using Evans medical plc as a case – study.
Four hypotheses were formulated to test the relationship between labour turnover and productivity, performance and welfare service, and how measurement of productivity affects the growth and company performance. Questionnaires were formulated based on the hypothesis and data were also collected from the company. The data were analyzed using simple percentage technique, chi- square and trend graph.
It was recommended that labour turnover should be minimized as it affects the growth of the company and other additional cost associated with it.
It was recommended that labour turnover should be minimized to the barest minimum as it affects the growth of the company and other additional cost associated with us.
1.0 BACKGROUND TO THE STUDY
For both developing and developed countries small-scale firms play important roles in the process of industrialization and economic growth. Apart from increasing per capital income and output, small scale industry create employment opportunities, enhance regional economic balance, and promote effective resource utilization. However the seminal role played by small scale industries not withstanding its development in every where constrained by inadequate funding and poor management. The unfavourable macro economic environment has also been identified as one of the major constraints which most times encourage financial institutions to be risk-averse in funding small-scale industries. The reluctance on the part financial institution to fund small-scale industries can be explained by the insufficient capital base of banks and information that often exists between small-scale enterprises and lending institutions.
However, it is fundamental that the bedrock of any business organization, and sources of financial available to them. In this research study, we are going to deviate from the general aspect of small-scale industries and the problems and prospects of financing small-scale industries in Nigeria or they have been recognized as the veritable engine to economic growth and development. Umar (1997:15) in his own words, stated that “In Nigeria, as in many other developing countries financing and encouraging the establishment of small-scale enterprises have been crucially recognized as a viable approach for stimulating employment development, particularly, in a situation of rapid growing labour force and inadequate economic growth.