Role of Small Scale Enterprises in Industrialization of Enugu State

Abstract

Small Scale Manufacturing Firm, Small Firm, which is a part of small scale enterprises, under the aegis of right framework of industrialisation process, can take this country to an appreciable level of industrialisation. Evidence abound where small firm contributed much to industrialisation in other countries. This presupposes that a study of this kind, Role of Small Scale Enterprises in Industrialisation of Enugu State, is needed to highlight these roles they play in economic development especially by the Small Scale Manufacturing Firm. This study therefore sought to know whether small firm can accelerate the pace of industrialisation and dispersal of industries by (i) generating substantial employment to the grassroots, (ii) promoting industrial initiative and entrepreneurship within the populace, (iii) developing and increasing export trade and finally, (iv) highlighting the challenges that militate against small firms. The researcher adopted cross-sectional survey research design. The population of the study was 520 workers of 49 small firms selected within Nsukka metropolitan city. The study made use of only the primary data. A sample size of 226 was determined using Taro Yamane’s formula. The four hypotheses formulated were tested at 0.05% level of significance. The primary data analysis was done using simple percentage tables and tables of ranks, means and standard deviations. The tests of hypotheses were carried out using the following statistical techniques: Analysis of Variance was used for hypotheses 1, 2, and 4, while the Z – test was used for hypothesis 3. The findings show that there are contributions made by small firms in the area of employment generation, though not significant. It is observed too that the proprietors are relatively slow in embracing the dynamism found in today’s technology. Promotion of export is still relegated to the background. Challenges that undermine the growth of small firms are within Enugu. Though, this is not significant. In conclusion, it has been identified that the small manufacturing firms could be used as a tool that can help in advancing the pace of industrialisation in Enugu State. We therefore recommend that government support programme be intensified and a counter monitoring team be set up to follow up all the policy implementation in Enugu. Export processing zones should be used to sensitize and encourage export in all the zones in Nigeria in a more vigorous way. Finally the real industrialists should be identified and followed one on one to avoid a blanket approach of supportive programmes which had been the problem of wrong people getting the package from the government.