THE ROLE OF THE FEDERAL GOVERNMENT OF NIGERIA IN THE PROMOTION OF SMALL AND MEDIUM SCALE BUSINESSES
INTRODUCTION
Small scale business constitute an important component of the Nigerian industrial sector. The importance of this
sector cannot be over emphasized, especially in a typical developing country like ours where the level of youth
unemployment is rising beyond control. Hence small scale industries generate employment opportunities per unit of
capital investment because they are generally more labour intensive which are more capital in nature. A large scale
industry that cost
N20million for instance,
may employ a mere 70
(seventy) workers or less.
Where as a small scale
industry that cost just
N150,000 (one hundred and fifty thousand naira) may employ about 20-30 workers.
Small scale business specialized in the production and marketing of various products and services ranging from food,
beverages, drinks/sachet water, cosmetics, spare parts and many others.
Kilby (1969) acknowledge the diversity of terms of the degree of specialization and division of labour and the quantity
of raw materials and output and the character of markets being served by small scale businesses. As a result the bulk
of Nigerian business falls within the small scale business which account for over 80% of the number of enterprises in
the country. (Ekunna 1992 Pg.160)
Several number of small scale business are successful while other fail or are staggering for survival due to poor
background management, lack of qualified manpower, poor capital base, lack of marketing research and appropriate
technology and credit rating among banks and other lenders. These problems continue to militate against the
establishment, survival and growth of small scale business in Nigeria. Although successful government in Nigeria
have been emphasizing on the importance of small scale business and have established institutional support agencies to facilitate industrialization. However, small scale business still operate in uncertainty and are faced with serious obstacles, this raises the questions of whether the federal government is actually up to the responsibility in the promotion of small scale business in Nigeria.
THE ROLE OF THE FEDERAL GOVERNMENT OF NIGERIA IN THE PROMOTION OF SMALL AND MEDIUM SCALE BUSINESSES