Roles of small-scale enterprises on the economic development of Nigeria
Roles of small-scale enterprises on the economic development of Nigeria: The case of small-scale enterprises in iwo, Osun state
A small scale enterprise is a business that is not large, in terms of its size, scope of operation, financial involvement and the workforce involved. Most small scale enterprises are owned by one entrepreneur. Sometimes a small scale enterprise is said to be a firm that is independently owned and operated and which is not dominant in its
field of operation. In general, we should recognize that a small scale business must have few employees, limited capital investment and small scale operation (Nicholas, 1997). The role of small scale enterprises in the development of both the urban and rural areas of Nigeria cannot be over-emphasized. According to Oshagbemi (1983), small scale businesses have the potentiality to reduce the rate of unemployment in Nigeria and thus to contribute to the Gross Domestic Product (GDP) and economic growth of the nation.
The industrialized nations which have attained technological advancement today owe their present position to the establishment of small scale industries in the past; with these small scale businesses at the epi-center of their technological take off and self-reliance. In the commercial world, there are numerous kinds of business
undertakings; this varies from private enterprises to public corporations.
A small scale enterprise is defined as a business that is independent, small in size and often localized. Most small scale businesses are operated by private individuals or groups of individuals (Onuoha, 1944). Time and time again, the relevance of small scale enterprises in the growth of a nation has been proven. There is, therefore, the
need for a clarion call to spur the government to actively taking part in this revolution and consequently bring to limelight the development that comes with these measures.
1.1 Background to the Study
Too little attention has been paid to the benefits to be derived from helping small enterprises grow. This attitude arose partly amongst both the citizens and government and mainly from the very nature of the small business which made it difficult for its impact to be felt in the economy. The latent contributions that small businesses can make are now attracting recognition. This awareness is manifest in the ever-increasing number of Nigerians who daily strive to put up their ideas and abilities to effective use [by starting a small business] ventures.
Evidence around the world indicates that small scale enterprise provides an effective means of stimulating indigenous entrepreneurship, enhancing greater employment opportunities per unit of capital invested and aiding the development of technology. Through their wide dispersal, they provide an effective means of mitigating
rural-urban migration and resource utilization. Furthermore, by producing intermediate products for use In large scale enterprises, small businesses contribute to the strengthening of industrial linkages.
Accordingly, due to the recognition of the roles of small businesses, the Nigerian government has since 1970 initiated programmes for the assistance of small businesses, especially, in the areas of finance, extension and advisory services including, training and provision of infrastructures. All these are designed to enhance the development of small businesses. Successive governments in Nigeria have shown great interest in the
financing of small businesses by establishing specialized banks and other credit agencies/schemes to provide customized funding.
1.2 Statement of the problem