Solving Unemployment Problem Through The Establishment Of Small Scale Industries

1.1 INTRODUCTION AND BACKGROUND OF THE STUDY
To adequately appreciate how unemployment could be solved through the establishment of small-scale businesses in Aguata Local Government Area of Anambra State, there arose the need for an attempt at defining unemployment as well as small-scale business and later interwove both for the purpose of research.
Hornby (1974), in his revised and updated oxford Advanced Dictionary of current English defines this social evil, unemployment, as the state of being unemployed and amount of unused labour. On the other hard, small-scale business has been defined by Peter Ejiofor 91989), in his book Foundations of business Administration as those enterprises that have relatively little capital investment, that produce in small quantities and as a result control a small share of the market, that employ not more than fifty (50) workers in which management/marketing and entrepreneurial functions are vested in the proprietor. However, there is no definition of small-scale industry that is accepted universally. The definitions vary from one country to another. Even in a country, the definitions may differ from state to state and from institution to institution. Definitions are usually based on the level of economic development of the particular economy and purpose of the definition.
However, there are standard adopted by people who defined small-scale industry. In the opinion of Broom Longenecker (1983), the definitions are not rigidly fixed since people adopt different standards for different purpose with some of the standards being number of employees, asset size, volume of scales etc. generally accepted as a sound criterion is investment in fixed capital.
Also, Mr. Ejiofor P. (1989) sees small-scale business as a relative term because according to him, what may be regarded as a small-scale business can be large-scale to another. To him, the yardstick for measuring what constitutes a small-scale business will include the following:
1. The size of the business: Since they are small in nature, most of them are usually small in size and occupies a small share of the market.
2. Type of management: They are characterized by one man management, it is owner domination i.e. there is fusion of ownership and control. The owner manager participates actively in all levels of decision making and day to day management and operation of the firm.
3. Information flow: This is are sided, that is to say, from the owner to his workers. Feedback is not encouraged.
4. Insufficient accounting records: They have little or no accounting records; consequently banking or credit facilities from financial institutions are hardly availed to it.
5. Sole proprietorship: They are usually piloted by sole proprietors who hardly want to go into partnership with others.
6. Cheap labour: Most of the owners employ apprentice whom they can pay at a cheaper rate.
7. Small scale outlay: Due to its nature and size, they usually have small investable capital to run the business. Some examples of small-scale businesses are poulty, farming, fashion designing, hair dressing, small-scale trading/processing of agricultural produce like garri, yam flour, maize flour, palm oil, palm wire tapping, groundnut and banana hawking etc, gold/black something, came chairs/basket making, dyeing smelting works, leather works, making of farm tools like hoes, matchets and knives, production of cooking utensils like pots, kettles etc. wood carving, carpentry weaving, automobile, electronics repairs, photographic works and other cottage industries employing small time artisans.
According to Yakassi (1990), over the years, there
has been controversy over the definition of small scale industry, which has lead to the following diverse definitions.
The central Bank of Nigeria defines small-scale industry as any industry “whose annual turnover doe not exceed N500,000.00 for commercial banks or capital investment not exceeding N2 million and turnover up to N5 million for Merchant Banks.
The NERFUN (National Economic Reconstruction Fund) defines small scale business as any enterprise requiring not more than N5 million excluding land to start operations, whereas the medium scale enterprise is any business requiring between N5 Million and N10 million, also excluding land to start up.
The FEDERAL MINISTRY OF INDUSTRIES defines small scale industry as a manufacturing processing or service enterprise whose capital investment does not exceed N250,000 on machinery and equipment only.
The definition is to lay down the parameters under which an industrialist may take advantage of various incentives created by the government for the growth of the small scale industries, such incentives include the granting of loans, machinery, equipment and raw materials.
The importance of small scale industries to the survival of the nations economy can no longer be waived. They have involve from the subsistence level of the pre-indegenisation period to a position of importance in the country’s industrial process.
Therefore, the authorities should not relent on the efforts of making small scale industries assume their role in the economy.

1.2 STATEMENT OF THE PROBLEM
In the present day Nigeria, the society has been afflicted with high level of unemployment problems. This accounts largely for the vices that have bedeviled the country today such as obtaining by false pretence or advanced fraud popularly known as “419”, burglarly, robbery, bribery and corruption and other social ills. It is common knowledge that graduates produced by various institutions of higher learning and other highly skilled professionals hardly ever find suitable employment opportunities in Nigeria today. Youth corpers for instance on passing out, roam the streets in futile efforts to secure employment.

1.3 PURPOSE OF THE STUDY
The general objective/aim of this study is to identify some of the major small scale businesses in Aguata Local Government Area with a view to unveil how far, if at the setting up of these businesses has alleviated the unemployment problems of the study area. The available manpower for providing the required employment is also under study.

1.4 SCOPE OF THE STUDY
This research work is limited to Aguata Local Government Area of Anambra State and the unemployment level is also considered which the establishment of small scale businesses seriously eradicates.

1.5 RESEARCH QUESTION
1. Has the establishment of small scale business helped in solving the unemployment problem in Aguata Local Government of Anambra State?
2. Has the employment provision resulting from the establishment of small scale business actually affected the standard of living of people (Indigenes)?
3. Has the establishment of small scale business succeeded in Combing out high level of social vices in Aguata Local Government.

1.6 RESEARCH HYPOTHESIS
With reference to the objectives of this study which is to identify some of the major small scale business in Aguata Local Government Area with a view to unveil how fare if at all the setting up of these businesses has alleviated the unemployment problems, the following hypothesis were formed.
H0: Small scale industries have not helped in solving unemployment problems.
H1: It has helped to solve unemployment problems.
H0: There has not been a remarkable growth in the development of the study area.
H1: There has been a remarkable growth in development level.
H0: Government has not been a hindrance to the establishment of small scale industries.
H1: Government has been a hindrance to the establishment of small scale industries.
H0: There has not been any reduction in crime rate.
H1: There has been reduction in crime rate.

1.7 SIGNIFICANCE OF THE STUDY
This study investigates the impact of the establishment of small scale business on the unemployment status of the Nigerian economy and Aguata Local Government Area in particular. The establishment of small scale industries through the length and breadth of the country could pacify the hingering problem of finding places for our rural job seekers.
This research work tries to know whether or not the establishment of small scale business in the study area could decrease the unemployment problems of the study area.
In addition, it is aimed that this study will help to proffer solutions to the unemployment problems in Aguata Local Government Area of Anambra State in particular and the Nigerian society at large. It does appear that if jobs could be provided for the unemployed, this could have a positive impact in the reduction of crime rate in our society. Also, the basic standard of living of the people will be expected to improve.

1.8 LIMITATION OF THE STUDY
There were a lot of constraints in gathering information for this research work but the major constraints are as follows:
TIME: In respect of the theoretical and practical work, the time allowed for this project was short. Besides, this was carried out with other academic assignments.
FINANCE AND HIGH COST OF TRANSPORTATION
Due to problems posed by limited finance and increase in transport fare, it was not possible for me to visit many libraries to carry out the needed library research.

1.9 DEFINITION OF TERMS
The general aim of having these terms defined is to enable the reader to know the meanings of these words if by any means he/she do not know them before with regards to this research work, and a situation where the reader has not come across any of them before, it tends to be of immense help.
SMALL SCALE BUSINESS: oxford paper back dictionary 91979) defined it as an industry, which can be carried out in the home. In pre-colonial Nigeria, according to Ejifor P., it is a relative term, because what is regarded as small scale business by a person may mean large scale business to another.
The Nigerian Bank for commerce and Industries 9NBCI) for the purpose of its revolving loan scheme for small scale industries, defined it as those investing not more than N500,000.00 (excluding the cost of land but including working capital).
Nevertheless, the Bank’s official definition since 1985 has been firms whose capital cost does not exceed N750,000.00 (including working capital but excluding land).
UNEMPLOYMENT: The state of being unemployed, one who has no work to do regardless of his qualifications. Our graduates are good examples.
ENTREPRENEURSHIP: This is an individual who has the ability to see and evaluate business opportunities, gathering the necessary resources to take advantage of them and initiate appropriate action to ensure success. This could equally be defined as one who undertakes an enterprise e.g a contractor, an organizer of musicals and other entertainment.
ARTISAN: A person who does manual job in order to make both ends meet.
DATA: These are facts given, from which others may be inferred, e.g data collected by a researcher for the research work.
RESPONDENTS: They are people who correspond with the filling of the researcher in obtaining his or her results, as regards his aims.
THE STUDY AREA: They are usually chosen for research (examination). Aguata Local Government Area is the study area with regards to this research and it is located at the Northern part of Anambra State in Nigeria. It was carved out along with others during the local government reforms of 1976. the study area falls within the tropical rain forest zone of West Africa. The natives engage mostly in farming for subsistence and most of them are petty traders and artisans.
Majority of them are business at Onitsha Main Market. The study area has fairly good network of roads and it comprises of fourteen (14) towns, the people are endowed with rich culture and a mixture of Christianity and peganism is prevalent in the area. The indigenous language is Igbo. It was also observed that the population size is 330, 492 (1991 census)