Role of Small Scale Industries in Economic Development of Nigeria : Current School News

Role of Small Scale Industries in Economic Development of Nigeria

Filed in Current Projects, Economics Project Topic by on October 20, 2020

Role of Small Scale Industries in Economic Development of Nigeria

INTRODUCTION

The relative importance of small scale industries in advanced and developing countries like Nigeria has led to a reconsideration of the role of Small Scale Enterprises in the economy of nations.

The development of many countries is often measured by such indices as the level of industrialization, modernization, urbanization,

gainful and meaningful employment for all those who are able and willing to work, income per capital, equitable distribution of income, and the welfare and quality of life enjoyed by the citizenry.

There is no doubt that small scale industries exist in most economic environment.

The historical background of small and medium scale industries in Nigeria can be traced back to 1946 when the essential paper No. 24 of 1945 on “A Ten year plan of development and welfare of Nigeria 1946 was presented. Small and Medium Scale Enterprise is an all-time necessity.

INTRODUCTION

Statement of the problem       

Nigeria has been plagued with multifaceted problems ranging from low capacity utilization, massive graduates unemployment, poverty, insecurity, collapse of infrastructural facilities and poor macroeconomic policy management (Odubanjo,2000).

No doubt, Nigeria is blessed with abundant human and natural resources which could have been harnessed for its growth and development.

However, with enduring corruption, monoculture nature of the economy and the dominant role of the public sector, the country lost open opportunities for growth and sustainable development(Modesty,2013).

Government initiated numerous programmes and policies for SMEs development but there is a limit to which government alone can promote sustainable economic development (Ogbonnaya,2011).

This necessitated the government to adopt economic reform programmes to switch from capital intensive and large scale industrial projects which was based on the philosophy of import substitution strategies to Small and Medium Scale Enterprises

which invariably have better prospects for developing domestic economy thereby generating the required goods and services that will propel the economy towards development.

It is due to this problem that this study will examine the role of small scale industries in economic development of Nigeria.

Reference

Ricardo, David (1937). The principles of Political Economy and Taxation. London. p. 73.

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