University of Nigeria Research Publications

OKAFOR, Pete-Rok Amandi

Aut

hor

PG/MBA/93/18214

Title

The Contributions of Selected Small-Scale Manufacturing Firms to the Economic development of Onitsha South L. G. A.

Facu

lty

Business Administration

D

epar

tmen

t

Management

Dat

e November, 1995

Sign

atur

e

DEPARTMENT OF I"rAN.4 GJ$'1mT

FACULTY OF BUSINESS ADKII'1ISTRATTON

UNIVERSITY OF NIGERIA,

EEUGU CAPiPUG .

CERTIPICATION :

ORAFOR, PETER A M A N D I , a pos t graduate s t u d e n t i n t h i s

department - Department 08 Management with R e g i s t r a t i o n

Number ~ ~ / ~ ~ ~ / 9 3 / 1 8 3 1 4 h a s s a t i s f a c t o r i l y completed

t h e requirements f o r t h e award of Masters i n Business

Adimin i s t r a t ion i n Management. The work, as conta ined

i n t h & s resea rch , i s or ig ina l . and has no t been

submit ted, e i t h e r i n p a r t o r f u l l f o r any o t h e r Diploma

o r Degree of t h e o r any o t h e r Unive r s i ty ,

T h i s s c h o r l a r l y v;ork i s dedicatee t o

George S. Okafor (ESQ) and L n t h o n y C. Okafor

(Esq) who v,ere i ~ y z a d e m i c s b o n s o r s ~t

J m i o r S e m i m r y a n d U n i v e r s i t y l e v e l s

r e s p e c t i v e l y .

I wish t o e x p r e s s my profound g r a t i t u d e t o C h i c f P.C. Unmka

hose l e c t u r e s , z z d e m i c s u p e r v i s i o n and ~ o n t i . , i b u t i o n s were

commendable f a c t o r s Lo t h e s u c c e s s l ' u l c o m p l e t i o n o f ithis ,;reject.

I w i s h t o show a p p r e c i a l i o n f o r t h e u!;;ii.oye~~ s u p p o r t

v:hich k e p t on coming from my mother , b -o ~ h e ~ s , c ~ s t e 1 . s ancl c l o s e

f r i e n d s t h r o u . h o u i t h e < h o r n y d a y s o f i n t e n s i v e academic pro,rammes

and o t h e r eni;n, e n c n t s .

Moreove, , I remc;in e t e r n a l l y b r a t e f u l t o t i - o se l ~ c t u r e r s

f r o x t h i s f a c u l i y a n c f a c u l t y of' management s c i e f i c e t a t t h e

Xnamdi Azik iwe U ~ i v e i E;: t y , Awka who j o i n t l y develoyeci my

i n t e l l e c t u a l apzr. t i ; , ~ a i vihich h e l p e d me t o become b a t h 2 m a s t e r

o f b u s i n e . s a d m i n i s t i - z t i o n ( M B A ) 2nd m;ster o f k u b l i c a c i m i n i s t r a -

t i o n (MPA) r e s p c c Live ly .

I would a l s o rcmember t h e c o - o p e r a t i o n oi ' t h e l i b r a i* ims

i'rom b o t h u n i v e r s i t i e s ~ h o of fe l sed me acces:, L O i h e r e l e y a n t

m a t e r i a l .

F o r t h e d e c e n t t b p i n g , I t h a n k Miss P r e c i o u s Xzea j abu

t ; : ,~ Miss Hope Z z e l:,!io c a r e f u l l y a i l , d t l l i g e n t l y t y p e d t h e

m m u ~ c r i p t .

C h i tsha - South Local Government Area; hat: only few errt.etprcneu,rg ' , ,

are investing in small.+pzale manufacturing firmsl The a v a l l s b l e ::;, + ones have contributed to increase in productivity, and emPlbyment .,

. . ' ' opportunities to the young school .leavers. These firms also he$?.,,-,:.: .. ' i to develop and train manpower in different sectors of . the, Fqcal-.,,.:,., 1 . I ,

I . .

Government economy- Tiley also offer technical and management , - $ . ? L? ! ,, \ :<.

orientation to young graduates who might later be' selfcemployed :. <!;, .t ' r , '. ,

within the area. Is t < -6. , L 1 - .

I ' , I

t . In carrying out this study, twenty-one firms were at random. These firms were divided into two parts: I1Xw and population @*Ytl While population HXt l includes t w e n t Y - f q u ~ , ~ ~ ~ ' , $ ~ . small-scale firms, population "Yn consists of large

f i rrna for comparative purposes. Moreover, Tuckman forpular was

. a p p l i e d in determining the number of respondents* ' C

> .

2 n Z 5 p . a - 2 ' , I

I 8

n P sample size b

' I

z P 1.96 confidence interval 2 $

, i 1 *:,* ,i p = 0.94 probability of success

, g 3 OIQG probability of fallure I

e E 0.05 standard error of estimate ' 8

Theref re. the 7' n F 3.96 2

. 3

sample size for population *'XIg \

?., .... , .: ,

(Om94 x .OmOG) ,, .' /,,, . ' . ' ? , ; . , , I > . ' 3.6864 x 0.0564 .,.,;.: :, ,,+*. :>:J;. :

*' 2 ": " \ - ' 7 ' ' , , > . . . - .-., ..:!:!, ;,Tci;f:!<;<:~ 0.9s. . , , , ,, . . . ,,, , t , . ,,..:-; '.". ,

. , , " , .. , ,<;:",p;. : J

, ' 0 QQ2.5 , , , . ,. . I . , . . , - f . ,:=' 'j , . . . ., . ;, , ,, ., , , ,.. .. , . , ,:;;, : .: ,,, . .: , ,: ". '. ': d 1

b . . , ,. .( : :i: , ,, ?$$ -. , 0 . 8 3 , . :, :, , ' ,: : ; ''.L \. , ',. ,:, .~'''"~?j',/$j

. , 1 ,

.;,, , . s . , .~ .,.. : ; * , i ~ , + , : ,, .. . , ,,,,. ., ,:,; . '.....' :""(,:.j

! ' 8 , , . , . : . . . 8 , , '

,,#. . . . - 8 . , ,,,, .,;. ; , ,:;$.; ::$+! :: :,> 4

I, ' . . , . .. ., "4:. "4 . . I ,:!,I. ;. I : : . . .. . The samg Tuckrnan formul a r w a s : appl ic4 in detrrnlnlng the,j,:;,~j+&,:i,l

sample size for population,' "YWr .

.. . In a d d i t i o n , t o g a t h e r r e l e v a n t , a c c u r a t e d a t a a n d f i r s t - h a n d ':'-:

' a t

i n f o r m a t i o n , b o t h s t r u c t u r e d oral i n t e r v i e w a n d u e s t i o n n a i r e we- I 7 . .,. .,.<* /. '. u s e d by t h e r e s e a r c h e r -

d e b - , b < -

M o r e o v e r , t h i s r e s e a r c h s t u d y made' some important d&ssovcf$qs, ;'. b 3 , , t , A ~ , t ; $

?he study revealed t h e t among the n u m e r o u s f&$ona why peop l s _ iga++~l , , I : " ,; 1 pi:,:

i n t o small - s c a l e firms, t h a t t h e desire t o become o n e s ~ w n beanlb. : 't. ' 1

i$ uppermost i n t h e minds of t h e e n t e f p r e n e u r s m If also rgvea1,gd.: .$.::?+. ' CL,L,r$)*$

t h a t local e n t e r p r e n e u r s find i t d i f f i c u l t to o b t a i n loans'?anar:*:.) , , b I i .- . u . *?pr,tb$<{;, , 8

t a x - h o l i d a y s from t h e commercial banks and local g ~ v e r ~ n m e n f ' . - ,a, 2 :. l'* s'-

t h o r i t y r e s p e c t i v e l y . I n s p i t e of t h e s e s h o r t - c o m i n g s , t h e s + " f l r P & , .'i

s t i l l ' e n g a g e i n social r e s p o n s i b i l i t i e s w i t h i n t h e l o c a l g ~ v c r n t y ~ ~ k : : , .

rea acal

t a n t r e v e l ' 1

t h e area ; of i m p r ~ v ~ r n e ~ f ,.; in:-,: . , I

. . , !. ...:!: ? . . $ '

a . . . . . ... : .. , :,.i,,,,+ +) . . . .

, . , ..:,r,, .t.,.,++;>

. ., ,. , , .?; .. ! ,. .. , .s . . . . , . ' ..-. '. , y : $ . .. . ,v,,. i::!

. ' . , . . , ! . 7.: . /

T I T L E FAGE

AF'PROVAL F A G E

D E D I C A T I O N

1 . 1 BACKGROUND TO 'l'IiE STUDY

1 . 2 S T A T E M E N T O F FROBLEM

1 . O B J E C T I V E S OF TKE STUDY . . 1. 4 S C O P E O F Ti!;< STUDY . . 1.5 SIGNIFICAXCE CT; THE STUDY . . 1. 6 RESEARCH H Y F G T I I E S I S . .

1 . ? 2 E S E N i C H Q U E S T I O N S . . 1 . 8 D E F I N I T I O K S 0:' TEE B A S I C C O N C E P T S

' ' T Y P E S O F S E A L L - S C A L E MmUFACTUI?ITTG F I L M S c - . ,

iii

PAGES - ------

TE,S:'I ?.iC Y!iE HYPOTHESIS

C_H_A_P_3 -mg -----------

XRQQU_C_T_I_oN ------------

1 1 B&c_KERo_U_NI!-TO-TH_E-STYDY -----------------------

The c o n t r i b u t i o n s o f t h e smal l - sca le manufac tu r ing f i r m s

t o t h e mcio-economic development o f alvanced and i n d u s t r i a l i s e d

n a t i o n s a r e overwhelming. T h i s a c c o u n t s why America, J a p m ,

B r i t a i n and o t h e r economical ly v i a b l e n a t i o n s s t i l l encourage

s m a l l - s c a l e m a n u f a c t u r i n g f i r m s (S . S.M.F. ) i n t h e i r economy.

I n N i g e r i a and w i t h b i s t o O n i t s h a S o u t h Local Government

Area, small-scal e m a n u f a c t u r i n g f i r m s have a l s o c o n t r i b u t e d

immensely t o m r d s s o l v i n g t h e problems o f g radua te unemployment,

p r o v i s i o n o f consumer goads at a+:' ! d a b l e p r i c e s , pwment o f

f i n a c i a l o b l i g a t i o n s and s o c i a l r e s p o n s i b i l i t i e s t h a t t h e

p u b l i c i s e x p r e s s i n g g rea t concern o v e r t h e problems t h a t a r e

m i l i t a t i n g a g a i n s t t h e i r e f f e c t i v e performance. According t o

Obeleagu- N z e l i b e (1990) .

D e s p i t e dl1 these c o n t r i b u t i o n s , the genera l economic

c o n d i t i o n i n the c o u n t r y i s very unfavourable t o t h e

m a l l - s c a l e b u s i n e s s owner. The h i g h i n t e r e s t r a t e

and t h e f i n a n c i a l i n s t i t u t i o n s t s t r i n g e n t r e q u i r e m e n t s

i n s e c u r i n g l o a n s have a lmos t squeezed t h e s m a l l

s c a l e b u s i n e s s o u t o f bus iness .

Fd nce t h e developnent o f m a l l - s c a l e manufac tu r ing i n

Nigeria, b o t h t h e pas t and p r e s e n t goaerment h a e sunk huge

mu dnt .--C : Z L J T L " ~ 091. programmes which have s n G I- . , c d e b u s i o e s s

u n d e r t o n e . Such programmes a r e Graduate E n t r e p r e n e u r a l

Develop:, len~ Programme (G.E. D.P. ), t h e N a t i o n a l ; ; l r e c t o r a t e o f

2

Employment ( N . D.E. ) ,. fund for* s m a l l - s c a l e i n d u s t r i e s (,F. U. S. S. 1 9 .

The government i s much more p a r t i c u l a r abou t t h e s m a l l - s c a l e

manufac tu r ing f i r m a because of t h e i r m u l t i - f a c e t e d c o n t r i b u t i o a s

t o w a r d s t h e socio-economic development. This is normal ly

o r c h e s t r a t e d i n tts award o f t a x - h o l i d a y s and s u b s i d i e s . 11

a d d i t i o n , . asst N i g e r i a n a u t h o r a and management e x p e r t s have alse

d i s c u s s e d t h e v a r i o u s r a m i f i c a t i o n s of s m e l l - s c a l e maklufacturimg

f i r m s which have l e d t e t h e i r e s t a b l i s h m e n t s by a few

e n t r e p r e n e u r s i n O n i t s h a - South l o c a l government a r e a . I t

t h e r e f o r e , hecomes v i t a 3 t o take s t a c k o f t h e i r per formances

a n d c e s l t r i b u t i o n s towards t h e economic dev.elopmerat o f Omitsha

S ~ u t h l o c a l government a r e a in t h e f a c e o f env;ironmeprtal

t u rbn lenca .

1 2 ~AZZMENT-OF-PROBLEn -------------------

Few l a r g e s c a l e i n d u s t r i e s s u c h as Premie r Brewer ies PLC,

l i f e Brewer ies and Coca-cola B s t t l l n g Company o p e r a t i n g i n

O n i t s h a - South l o c a l government a r e a have ach ieked l i t t l e

towards t h e economic development o f t h e a r e a . I n t e r v i e w s w i t b

s o r e o r g a n i s a t i s n a l p a r t i c i p a n t s r e v e a l e d t h a t t h e s e b i g

a r g a n i s a t i o a s a r e more pre-occupied w i t h o u t s i d e image-making

and s e c i a l r e s p o n s i b i l i t i e s and t h e r e f o r e canno t pay adequa te

a t t e n t i o n t o t h e j r immediate t a s k enr i renmenta . This lack ef

impressive achievement could be a k t r i b u t e d t o t h e i r

c a p i t a l - I n t e n s i v e n a t u r e g i v e n t h e l o c a l government ' s human,

m a t e r i a l and f i n a n c i a l r e s o u r c e s c a p a c i t y . Economic a n a l y s t s

h a r e s t a t e d t h a t large s c a l e i n d u s t r i e s have no t achieved u p

t o f i f t e e n p e r c e n t (15%) i n l o c a l rtm m a t e r i a l s s o u r c i n g

i n s t e a d t h e y a r e f o r e i g n exchange g u z z l e r s . The n e g a t i v e

i m p l i c a t i o n s o f t h e s e i n t h e t o t a l i t y o f t h e socio-economic

development o f t h e f o c a l l o c a l governurent a r e a , a re numerous,

These menace a l s o a f f e c t t h e e n t i r e N i g e r i a ' s economic

deaeloprnent,

A s a r e s u l t o f t h e s e weaknesses o f l a r g e - s c a l e i n d u s t r i e s ,

government h a s dec ided t o promote s m a l l - s c a l e i n d u s t r i e s a s a

s t r a t e g y f o r t h e economic a d s o c i a l development . Howewer, t h e

a u t h o r observ,ed d u r i n g h i s i n d u s t r i d t r a i n i n g (I.T.) t h a t a l l

t h o s e p remises were o n l y p q e r - m r k and gymics t o deceive t h e

l o c a l masses, This i s one of t h e r e a s o n s why some o f t h e

s m a l l - s c a l e manufac tu r ing f i r m s i n t h e area a r e now g r a d u a l l y

f o l d i n g up,

Small-scale manufac tu r ing f i r m s have reduced t o t h e

b a r e s t minimum t h e l e v e l o f unemployment in t h e area. Most

young g radua tes a n d o t h e r school le,:vel.s have been obsolved i n

t h e s e firms. By SG doing t h e problems o f over populaLion and

j uveni l e d e l i n q u e n c i e s have been curbed Ojo ( 1982) S t a t e s :

The smal l - sca le m a n u f a c t u r i n g f i r m s c r e a t e

employment o p p o r t u n i t i e s . I n m a y l o c a l

government a-eas, p o p u l a t i o n i s i n c r e a s i n g

at a r a p i d r a t e and t h e b u l k i s engaged i n

a g r i . c u l t u r e . More and more hands from

a g r i c u l t u r e i n t o t h e smal l - sca le manufac tu r ing

will h e l p t o curb unemployment.

Althouch t h e s rnd l - ccz l e manufac'lur : iig has made some

4

c o n t r i b u t i o n s i n t h e a r e a o f employment, t h e l o c a l government

has not come up w i t h p o l i c i e s t o a s s i s t t h e i r o p e r a t i o n s .

Second ly , s m a l l - s c a l e manufac tu r ing g e n e r a t e s i n d u s t r i a l

e x p e r i e n c e among workers and h e l p s i n d e a e l o p i n g and d i f f u s i n g

s k i l l s i n t h e l o c a l government l a b o u r f o r c e . With t h e s e

i n d u s t r i a l e x p e r i e n c e and s k i l l s t h e workers can comfor tab ly

work i n l a r g e and complex manufac tu r ing f i r m s . However, Okafor ( 1992) s t a t e s :

"No government i n N i g e r i a ha s come up w i t h a we l l -

s t r u c t u r e d and b e n e f i t i n g I n d u s t r i a l T r a i n i n g Scheme f o r b t h

g r a d u a t e s and undergraduates . T h i s a c c o u n t s f o r t h e n a i v e t y

and l a c k o f p r a c t i c a l s k i l l s which o u r g r a d u a t e s e x h b i t i n

t h e i r work p l a c e s i n t h e i r f i r s t s i x months i n t h e ~ r g a n i s a t i o n s " .

S m a l l - s c a l e manufactur ing f i r m s p r o v i d e t h e s e consumer

goeds i t e m s t h a t b i g i n d u s t r i e s cannot produce i n l a r g e

q u a n t i t i e s . For example, t h e b a k e r i e s l a c a t e d a t v a r i o u s p o i n t s

i n t h e a r e a s e r v e t h e needs o f t h e i n h a b i t a n t s . Thus t h e

s m a l l - s c a l e manufac tu r ing f i r m s f i l l t h e vacum c r e a t e d i n t h e

manufac tu r ing o f e s s e n t i a l goods needed by t h e people . For

example, w e have t h e g a r r i p r o c e s s i n g i n d u s t r i e s , ACHUBA BREAD

INDUSTRIES, and kNEX TISSUE INDUSTRY LTD. l o c a t e d w i t h i n t h e

l o c a l government a r e a t o produce t h e much needed food i t e m s i n

l a r g e q u a n t i t i e s and t h e r e f o r e , nugument fami ly e f f o r t s i n t h e

p r o d u c t i o n o f g a r r i t h u s f e e d i n g t h e populace. Where a r e t h e

much shou ted s u b s i d i e s a n d t a - ! - to l ldays f o r t h e s m a l l - s c a l e

i n d u s t r i e s ? What e f f o r t s i s t .he l o c a l government making

towards e n c o u r a g i n g t h e s e s m a l l - s c a l e f i r m s ?

I n a d d i t i o n , t h e e x i s t e n c e o f s m a l l - s c a l e m a n u f a c t u r i n g

f i r m s makes f o r improved s t a n d a r d s o f l i v i n g i n t h e a r e a .

The goods and s e r v i c e s p r o v i d e d by t h e s e f i r m s are

compara t iwe ly c h e a p e r t h a n t h o s e o f t h e l a r g e b u s i n e s s

o r g a n i s a t i o n s . Both t h e r i c h and poor i n t h e area c a n a f f o r d

t o buy t h e i r p r o d u c t s t h e r e b y i n c r e a s i n g t h e i r l i v i n g

s t a n d a r d s . Okwor ( 1 9 9 3 ) s t a t e s t h a t t h e s m a l l - s c a l e

e n t r e p r e n e u r a l a c t i v i t i e s hare c o n t r i b u t e d i n no small measu re

t o w a r d s t h e improvement o f t h e l i v i n g s t a n d a r d s o f o u r r u r a l

d w e l l e r s .

I n o r d e r t o make t h e i r p r o d u c t s a v a i l a b l e , m a n u f a c t u r i n g

f i r m s make u s e o f raw m a t e r i a l s which a r e b o t h l o c a l l y

s o u r c e d and i ~ p o r t c d . T h e s e a c c o r d i n g t o Imaga (1995) a r e

u s u a l c o n s t a n t s i n t h e p r o d u c t i o n p r o c e s s e s as c a n be

i l l u s t r a t e d w i t h t h e r 2 w €!ebb-Douglas p r o d u c t i o n F u n c t i o n :

Q = a L & K1-&

Where:

Q - r e p r e s e n t s o u t p u t

L - r s p r e s e n t s l a b o u r

K - r e p r e s e n t s c a p i t a l

llafl and l l a l p h a l f a r e t h e u s u a l c o n s t a n t s i n t h e

p r o d u c t i o n p r o c e s s e s .

p ,,,A ... n z t e r i a l s p rocu . r eaen t i s a g r e a t pro'r1t.m t o t h e small

sca1.e m a n u f a c t u r i n g f i r m s . High exchange r a t e and i n f l a t i o n s

i l l ? h e c o u n t r y d f e c t them a l v e r s l y . T h e c o n t i n u e d d e t o r i a t i o n

o f t h n Naira a n d i t t s t r a n s m i s s i o n e f f ec t ; :bn t h e economy i n t h e

6

areas o f i n f l i r t i o n mzke t h e c o s t o f bo th impor ted a d l o c a l

raw mater ia l s t o s h o o t up. For rau m a t e r i a l s , t h e c o s t

problem was most f e l t ; accord ing t o t h e m a n u f a c t u r e r s '

A s s s c i a t i o n o f N i g e r i a (M.A.N. )

Between J u l y and December, 1988, c o s t of

impor ted raw m a t e r i a l s s h o t up by a s

a r e r a g e o f 58% e v e r what i t was i n 1987.

T h i s i s on t o p o f t h e 229%jump a l r e a d y

a t t a i n e d by December, 1992,

It was t h e c o n v i c t i o n o f t h e Manufac tu re r s A s s o c i a t i o n o f

N i g e r i a t h a t t h e d e x a l u a t i o n o f Naira r a i s e d t h e p r o f i l e o f

t h e p r i c e s o f machinery and raw m a t e r i a l s f a r beyond t h e r e a c h

o f small a d medium s c a l e i n d u s t r i e s , More i m p o r t a n t l y i t i s

a lways d i f f i c u l t f o r smal l - sca le e n t r e p r e n e u r s t o s e c u r e

enough c a p i t a l s and l a b o u r f o r e f f i c i e n t p roduc t iwe a c t i v i t i e s .

Commercial banks are net ready t o lend. According t o The

Nigeria E n t r e p r e n e u r ( 1987) :

Banks have i n s i s t e d t h a t t h e i r r e l u c t a n c y t o

l e n d t o t h e smal l - sca le i n d u s t r i a l i s t s i s

in fo rmed by t h e l a t t e r ' s l a c k o f manager ia l

s k i l l s and t h e i r l a c k o f f i n a n c i a l a c c o u n t i n g

s k i l l s i n a d d i t i o n t o t h e i r i n a b i l i t y te

p r o v i d e adequa te c o l l a t e r a 1 s e c u r i t i e s .

Sometimes, when t h e l o a n s a re p a n t e d t h e y a r e d i v e r t e d t o

o t h e r purposes o t h e r t h a n t h o s e ?or which t h e y were g r a n t e d .

I t i s q u i t e u n f o r t u n a t e t h a t ,;avernment h a s not

7

promulga ted a bye-law p r o h i b i t i n g s u c h anomally c o n s i d e r i n g

t h e p o s i t i v e i m p a c t s o f t h e s m a l l - s c a l e m a n u f a c t u r i n g f i r m s

i n t h e soc io-economic deve lopment o f t h e area.

These e x p o s i t i o n s show t h a t t h e r e a r e p reponde rance o f

p r o b l e m s f a c i n g t h e s m a l l - s c a l e m a n u f a c t u r i n g f i r m s i n t h e

On i t sha -Sou th l o c a l government area. T h e r e f o r e , i t becomes

i m p e r a t i v e t o c a r r y o u t t h i s s t u d y w i t h a view t o a s s e s s i n g

t h e c o n t r i b u t i o n s o f t h e s m a l l - s c d e nianufac t u r i n g f i r m s i n

t h e face o f al l t h e s e problems.

1.3. gBJ~CTI_y~,$-Q_F-Tg_E-STU_D~ .......................

The o b j e c t i v e o f t h i s s t u d y i s t o a p p r a i s e t h e

c o n t r i b u t i o n s o f t h e m a l l - s c a l e m a n u f a c t u r i n g f i r m s i n t h e

economic development o f O n i t s h a - S o u t h l o c a l government area .

T h i s o v e r r i d d i n g o b j e c t i v e o f t h e s t u d y c o u l d be

a p p r e c i z t e d by f i n d i n g o u t t h e c o n t r i b u t i o n s o f t h e s e f i r m s i n

t h e a r e a s o f employment o p p o r t u n i t i e s , new p r o d u c t i d e a

g e n e r a t i o n , . d e c , u a t e s u ~ p l y o f goods md s e r v i c e s , e n v i r o n m e n t d .

p r o t e c t i o r , a d s t o p p ~ e o f t h e v i c i o u s c y c l e o f p o v e r t y which

a r e t h e c h a r a c t e r i s t i c s o f t h i s l o c a l government a r e a a n d N i g e r i a

a t l a r g e .

Second ly , t h e s t u d y w i l l d e t e r m i n e t h e b a s i c a r e a s o f need

and p rob lems f s c i n g t h e s m a l l - s c a l e m a n u f a c t u r i n g f i r m s and

t h e r e f o r e , p r e v e n t i n g them from a t t a i n i n g t h e i r soc io-economic

o b j e c t i v e s .

T h i r d l v r t o d e t e r m i n e i f t h e s m d l - s c a l e m m u f a c t u r i n g

f i r m s are -ix!-t.??,a3le s t r a t e g y f o r r e s t r u c t u r i n , f : i i> economy o f

t h e foca? rovernmcnt x c a .

8

F i n a l l y , t h e s t u d y w i l l mdte s u g g e s t i o n s and

r ecommenda t ions i n f o r m e d by t h e o b s e r v a t i o n s and t h e

i n v e s t i g a t i o n s c o n d u c t e d as a way o f p a v i n g way f o r t h e

e f f e c t i v e per formance o f t h e s m a l l - s c a l e manu f a c t u r i n g f i r m s

i n t h e O n i t s h a - S o u t h l o c a l government area .

SCOPE OF TFE STUDY 1-40 ------------------ ------------------

The s c o p e o f t h i s s t u d y i s l i m i t e d t o O n i t s h a s o u t h . From

t h i s l o c a l government a r e a , small s c a l e m a n u f a c t u r i n g f i r m s w i t h

d i f f e r e n t t y p e s o: p r o d u c t s were s e l e c t e d f o r s t u d y . T h e s e a r e

ANEX TISSUE INDUSTRIES ONITSKA, ACHUBA BREAD INDUSTRY, MAP0

FROOF INDUSTRY, Block-making, Dozie p l a s t i c s , and M a r t i n a c l a y

a n d M e t a l P o t I n d u s t r y .

T h e s e s m a l l - s c a l e m a n u f a c t u r i n g f i r m s have b e e n c a r e f u l l y

c h o s e n as t h e i r o p e r a t i o n s w i t h i n t h e i r r e s p e c t i v e t a s k

e n v i r o n m e n t s w i l l h e l p t o make t h e c r i t i c a l a p p r a i s a l o f t h e i r

c o n t r i b u t i o n s a n d more i m p o r t a n t l y make a c o n c l u s i v e

g e n e r a l i s a t i o n . The f o c a l o r g a n i s a t i o n s have a d m i r a b l e

management sys t em a n d o p e r a t e t e c h n o l o g y t h a t w i l l h e l p t h e

s t u d y o f t h i s n a t u r e .

I n f a c t , t h e main f e a t u r e s o f t h e s e f a c t o r i e s t h a t

c h a r a c t e r i s e d them t o be graded a s s m a l l - s c a l e e n t e r p r i s e s are

t h e mode o f t h e i r . p r o d u c t i o n , t h e number o f t h e i r employees and

t h e i r c a p i t a l base " i n t e r al.iatl. Most o f t h e s m a l l - s c a l e

m a n u f a c t u r i ng f i r m s unde r s ~ u d y h a v c below f i f t y w o r k e r s and

o p e r a t e w i t h i n t h e c a p i t a l ranee as h a s b e e n s t i p u l a t e d by t h e

government e d j c t s and t h e c e n t r a l bank o f N i g e r i a . Fo r t h e

9

c e n t r a l bank, a s m a l l - s c a l e b u s i n e s s ( m a n u f a c t u r i n g f i r m s )

i s an e n t e r p r i s e whose a n n u a l t u r n o v e r r a n g e s between

i!l25,OOO t o H500,OOO. However, i t i s good t o o b s e r v e t h a t as

c h a n g e s i n t h e b u s i n e s s env i ronmen t come and go, t h e r e a r e

a d j u s t m e n t s i n t h e s e amounts.

The s t u d y i n v e s t i g a t e s t h e c o n t r i b u t i o n s o f t h e s e f o c a l

e n t e r p r i s e s on t h e economic deve lopment o f t h e Omitsha-South

l o c a l government a r e a . T h i s i s a c h i e v e d by examining t h e i r

c o n t r i b u t i o n s i n t h e a r e a o f employment, p roduc t deve lopment

and q u a l i t y , f i n a n c i a l s e r v i c e s r e n d e r e d t o t h e a r e a , h e a l t h y

p romot ions and t h e g e n e r a l i m p a c t s o n t h e s t a n d a r d o f l i v i n g .

F i n a l l y , t h e s t u d y examines t h e p r o b l e m s o f t h e s m a l l - s c a l e

m a n u f a c t u r i n g f i r m i n t h i s l o c a l government t h e i r numerous

c o n t r i b u t i o n s n o t w i t h s t a n d i n g .

I G N I F I C A N C E OF THE STUDY 1.5. s==-----===========----== Among t h e v e h i c l e s o f soc io-economic development i n

O n i t s h a - Sou th l o c z l government a r e a , s m a l l - s c a l e manu f a c t u r i n b

f i r m s rank h i g h e s t . The common s t a t e m e n t , lli?ome was n o t b u i l t

i n a day" h a s b e e n made m a n i f e s t i n t h e c o n t r i b u t i o n s o f t h e

s m a l l - s c a l e b u s i n e s s e s and f i r m s t o t h e soci-o-economic

deve lopmen t s o f t h e w e s t e r n m r l d .

( a ) The s i g n i f i c a n c e o f t h i s s t u d y w i l l e n a b l e t h e l o c a l

government t o d e s i g n e f f e c t i v e programnes t o enhance

t h e o p e r a t i o n s o f t h e sma l l . - s ca l e n i anu fac tu r ing f i r m s

i n t!le s e a , having know? t k e : a r ~ a s D!' s e e d o f t h e

s l c i i l - s c a l e m a n u f a c t u r i n g f i r m s .

) T: :.;i 11 a?_si? l l e l p t h e government t o se:,i 11 Inore

10

e f f e c t i v e ways o f making use o f t h e s e r v i c e s o f t h e

s m a l l - s c a l e m a n u f a c t u r i n g f i r m s i n t h e economic

deve lopmen t o f t h e area,

T h i s s t u d y w i l l h e l p t o s t i m u l a t e t h e i n t e r e s t s o f t h e

unemployed t o e x p l o i t t h e employment o p p o r t u n i t i e s

p r o v i d e d by t h e sma l l - s a l e m a n u f a c t u r i n g f i rms .

T h i s s t u d y w i l l also be o f use t o young e n t r e p r e n e u r s

r e t i r e d c i v i l ae r t ran ts and l a i d off employees who have

s a v e d some money and may wish t o i n v e s t i n a s m a l l - s c a l e

f i r m s ,

I t w i l l a l s o be a v a l u a b l e s o u r c e o f i n f o r m a t i o n t o

f u t u r e r e s e a r c h e r s and i n s t i t u t i o n s o f h i g h e r l e a r n i n g

and c e n t r e s f o r manpower t r a i n i n g and deue lopmen t . The

end p r o d u c t o f t h e s e i n f o r m a t i o n i s t h e economic

deve lopmen t o f O n i t s h a - s o u t h l o c a l government a r e a .

More i m p o r t a n t l y , as t h e s t u d y f o c u s e s on e x i s t i n g

i n d u s t r i e s , i t w i l l be o f paramount i m p o r t a n c e t o

managers and s m a l l - s c a l e m a n u f a c t u r i n g f i r m owner s i n t h e

areas o f i n v e n t o r y c o n t r o l and b u s i n e s s o p e r a t i o n s .

1.6. EXXJ?CH-HYPQTHESJS -------------------

T h i s r e s e a r c h work i s b e i n g guided by the f o l l o w i n g

h y p o t h e s i s w i t h a v iew t o m o i d i n g unnecessary d i g r e s s i o n s .

There i s no s i g n i f i c a n t d i f f e r e n c e between t h e o p i n i o n o f

t h o s e who h o l d t h a t :

( 1 ) 0 % a l l - s c a l e :i~t;,lluf'a~t u r i n g f i m s do n o t

c o n t r i b u t e t;ov:n:-,!;r: ?.he r e d u c t . i o n o f unemployment

problem i n Oi:.' : . : - k : ~ s o u t h l o c a l government xe i . 2

and t h o s e who do not s y m b o l i c a l l y pu t : HO: D = 0.

H I : There i s a s i g n i f i c a n t d i f f e r e n c e between t h e

o p i n i o n o f t h o s e who h o l d t h a t s m a l l - s c d e

manufac tu r ing f i r m s do n o t c o n t r i b u t e towards t h e

r e d u c t i o n of unemployment problem i n O n i t s h a s o u t h

l o c a l government a r e a and t h o s e who do not

s y m b o l i c a l l y pu t : H I : D # 0

2. HO: There i s no d i f f e r e n c e between t h e o p i n i o n s o f the

s t a f f o f t h e f o u r s m a l l - s c a l e manufactur ing f i r m s

abou t t h e e f f o r t s o f t h e b u s i n e s s towards t h e

env i ronmenta l p r o t e c t i o n of t h e O f i t s h a s o u t h

l o c a l g o ~ e r n m e n t area.

S y m b o l i c a l l y pu t : HO: P I = P2 = P3 - - P4 H I : There i s a s i g n i f i c a n t d i f f e r e n c e between t h e

o p i n i o n s o f t h e s t a f f o f f o u r smal l - sca le

manufac tu r ing f i ~ r n s a b o u t t h e e f f o r t s o f t h e

b u s i n e s s e s towards t h e e n r i r o n m e n t a l p r o t e c t i o n o f

O n i t s h a Sou th l o c a l government area.

S y m b o l i c a l l y pu t : HI = P I # P2 f P3 #

3. HO: There i s no s i g n i f i c a n t d i f f e r e n c e between t h e

o p i n i o n s o f t h e s m d l - s c a l e manufac tu r ing f i rm

owners and t h o s e o f t h e 1 x g . e - s c d e manufac tu r ing

ov!ners about t h e c o n t r i b u t i n s o f t h e s:: iall-scale

m a y u f a c t c r i n g f i r m s o n t h e economic devel-op:liert o f

Oni t sha-So u t h l o c a l government area.

Syrnk,r,15d:ally s t a t e d : 1.10 : PI = P2.

H I : T h e r e i s a s i g n i f i c a n t d i f f e r e n c e between t h e o p i n i o n s

o f t h e s m a l l - s c a l e m a n u f a c t u r i n g f i r m s owners and t h o s e

o f t h e l a r g e - s c a l e m a n u f a c t u r i n g f i r m s owner s o n t h e

c o n t r i b u t i o n s o f t h e s m a l l - s c a l e m a n u f a c t u r i n g f i r m s on

t h e economic deve lopment o f On i t sha -Sou th l o c a l government

area.

S y m b o l i c a l l y s t a t e d : H I : PI f p2.

4. . H o I . S m a l l - = a l e m a n u f a c t u r i n g f i r m s do n o t h e l p t o r e d u c e

w a s t e i n t h e economy o f O n i t s h + S o u t h l o c a l government

area.

H I : S m a l l - s c a l e rnanufactur i .ng f i r m s h e l p t o r e d u c e waste

i n t h e economy o f On i t sha -Sou th l o c a l government a r e a .

Why do e n t r e p r e n e u r s v e n t u r e i n t o s m a l l - s c a l e m a n ~ f a c t u r i n g

f i r m s .

'!!hat a r e t h e s o u r c e s o f fund open t o a s m a l l - s c a l e owners .

110 s m a l l - s c a l e m a n u f a c t u r i n g owners l i v e up t o government

e x p e k t a t i - o n s i n term^ o f payment o f t a x e s and o t h e r s o c i a l

r e s p o n s i b i l i t k e s .

30 s r c a l l - s c a l e f i r m s c c n t r i b u t e e f f e c t i v e l y t o env i ronmen t -

a l p r o t e c t i o n .

!<ow f a r do s m a l l - s c a l e manufact ~ r i n ; , f i r m s c o n t r i b u t e

tovizrds s o l v i rig unemploylrierit p r c 'hienis.

6. What a r e t h e m a o r p rob lems b e s e t i n g s m a l l - s c a l e

m a n u f a c t u r i n g f i r rns i n O n i t s h a - S o u t h l o c a l government

a - e a which p r e v e n t them from p e r f o r m i n g o p t i m a l l y .

7. How much i n t e r e s t s do t h e i n h a b i t a n t s show i n t h e l o c a l l y

made goods and s e r v i c e s .

8. Does t h e l o c a l government a u t h o r i t y o f f e r adequate s u p p o r t

f o r t h e e f f e c t i v e per formance o f t h e f i r m s .

9 . How do t h e s m a l l - s c d e m a n u f a t b r i n g o w n e r s v i e w t h e e f f o r t s

o f t h e government towards t h e i r b u s i n e s s .

10. Are t h e r e chances o f s u r v i v a l o f t k . e se f i r m s i n t h e

O n i t s h a - S o u t h l o c a l government a r e a owing t o t h e c o n s t a n t

c h a n g e s i n t h e env i ronmen t and t e c h n o l o g y .

1 1 . Whzt a r e t h e c o n t r i b u t i o n s o f t h e f i r m s t a t h e soc io-economic

development o f t h e area.

To a v o i d a n b h i q u i t y , s h a r p e n t h e r e s e a r c h f o c u s and i n

o r d e r t o c a r r y t h e r e a d e r s a l o n g t h e sal;ie pa: t h , i t i s n e c e s s a r y

t o d e f i n e t h e c o n c e p t s t h a t bea r d i r e c t l y o n t h e r e s e a r c h t o p i c .

T h e s e d e f i n i t i o n s a r e c o n t e x t u a l ( S t r u c t u r a l ) ; t hey a r e n o t

f a r f rom t h e i r l ex ic la l i n t e r p r e t a t i o n s . Those key words are

C o n t r i b u t i o n , S m a l l - s c a l , M a n u f a c t u r i n g , f i r m s , Mani l factur ing

f i r m s , Economy arid Development.

1. CONTRIBUTION: A c c o r d i n g t o Oxford Advanced L e a r n e r ' s

D i c t i o n a r y o f C u r r e n t E n g l i s h (1974) , i s t o j o i n w i t h o t h e r s

i n g i v i n g h e l l , , i:i::zey, t o a common c a u s e f o r a purpose .

SMALL - SCALE: Accord ing t o t h e v iews o f Obeleagu N z e l i b e

( 1 9 9 0 ) , s m a l l - s c a l e b u s i n e s s can be d e f i n e d based o n

p a r a m e t e r s s u c h as t h e i n s t a l l e d c a p a c i t y u t i l i s a t i o n ,

o u t p u t , employment, c a p i t a l , t y p e o f i n d u s t r y o r o t k e r

c r i t e r i a wh ich have more r e l e v a n c e t o t h e i n d u s t r i a l

p o l i c i e s o f t h e n a t i o n .

MANUFACTURTNG: Imaga ( 1 9 9 5 ) i s o f t h e view t h a t manufac tu r -

i n g p r o c e s s e s miqy be e x t r a c t i v e , a n a l y t i c a l , s s n t h e t i c

o r f a b r i c a t i n g .

FIRM: A f i r m i s a b a s i c p r o d u c t i n g u n i t which d e t e r m i n e s

t h e q u a n t i t y t o produce o f a g i v e n commodity o r commodit ies .

I n a d d i t i o n , O j o (1982) d e f i n e s a f i r m as a t e c h n i c a l

u n i t engaged i n t h e p r o d u c t i o n o f goods and s e r v i c e s .

KARUFACTIIRIKG IXDUSTRY ( F I R E ) : T h i s i s a f i r m o r b u s i n e s s

o r g a n i s a t i o n which combine rav m a i e r i a l s t o produce new

p r o d u c t s .

ECOI?OMV: A c c o r d i n g t o Oxford Advanced L e a r n e r ' s D i c t i o n a r y

o f C u r r e n t E n g l i s h (1974) i s a s i n s t a n c e o f avo idance o f

w a s t e of' money, s t r e n g h t o r anyth in t i , e l s e o f v,lue.

l?FVELOr71ENT: T h i s i s a n y t h i n g t h a t can b r i n g abou t growth

j.n income. I t i s a g r a d u a l u n f o l d j n g s t a g e o f advancement .

Development i s t h e a c t o r p r o c e s s o f d e v e l o p i n g , u n f o l d i n g ,

a i;radual r;rc;vi:th o r a d v ~ ~ c e m e c t t h r o u g h p r o g r e s s i v e c h n g e s .

S y n t h e s i z i n g t h e rnemings o f t h e s e c o n c e p t s , t h i s r e s e a r c h

to ; i c rrleafis : ,$; j n . o f a l l \ l ie c a n t r i b u t i o n s J f six&.! j--- "c&e

m a n u f a c t u r i n g ,":im?ls i n t h e economic g r o w t h and deve1o;imect

o f C n i tsh:;-.';n;.::.h l!;c::.!. ;;overnment area :in t h e face :.I t' i c.;it:..; s t e r i t

env i r an ;nen t ; i . :jrlti tt,c];rlc,loyJcd chan;;;es. C o n t r i b ~ t .i:'s ::{.;;: : j

t h e e n t i r e g m u t o f t h e p o l i t i c a l , s o c i a l , e d u c a t i o n a l ,

economic: t o men t ion but four .

1 . W i l l i a n B e n t o , Encyclopaedia ~ r i t a n i c a (No 8) E n c y c l o p e d i a

B r i t a n i c a I n c , London 1970 P. 618.

2. Source : I n t e r v i e w w i t h Ch ie f A. Egeagwu, Chairman and

Panaging D i r e c t o r ANNEX TISSLiE I n d u s t r i e s l t d ,

I n d u s t r i a l Layout , A t a n i Road Oni t sha .

3. The Webster R e f e r e n c e D i c t i o n a r y o f t h e E n g l i s h Language,

D e l a i r P u b l i s h i n g Comy:any I n c . L 'ni ted S t a t e s o f America,

1983 P. 56.

4. Anambra S t a t e M i n i s t r y o f F inance and Economic Dedelopment,

S t a t i s t i c s D i v i s i o n G a z z e t t e s , 1979.

5. Obeleagy - N z e l i b e , C.G. BUSINESS STATISTICS

Theory anti ~ p p i i c a t i o n s

Optimal P u b l i s h e r s Enugu, 1995.

There a r e many d e f i n t i o n s o f s m a l l - s c a l e m a l i u f a c t u r i n g

f i r m s as t h e r e a r e r e s e a r c h e r s and p r a c t i o n e r s i n t h a t f i e l d

o f s tudy . T h i s l a c k o f consensus i s as a r e s u l t o f d i f f e r e n c e s

i n g e o - c u l t u r a l and economic s i t u a t 5 o n s among n a t i o n s . Even

i n t h e same Co:,ntry, c h a n g e s i n economic env i ronmen t and

t e c h n o l o g y have made i t i m p o s s i b l e f c r a p a r t i c u l a r d e f i n i t i o n

t o remain v a l i d f o r a few number o f yea r s .

Small B u s i n e s s used t o be d e f i n e d by t h e l e v e l o f c a p i t a l

a n d hhe number o f w o r k e r s employed. Today such d e f i n i t i o n

a r e o t i o s e s i n c e t h e y i g n o r e t h e l b v e l o f t e c h n o l o g y employed.

T h i s i s because i t i s p o s s i b l e f o r computer r o b b o r t s and few

t e c h n i c i a n s t o 'man' an i n d u s t r i a l u n d e r t a k i n g i n t o which a

b i l l i o n Raira have b e e n i n v e s t e d . Eze (1991) s t a t e s t h a t t h e

ncmbcr o f hum21 b e i n g s d i r e c t l y , et1:ployed reil iains a r e l e v a n t

c r i t e r i o n for . i d e n t i f y i n , t h e s c a l e o f an i n d u s t r i a l o p . e r a t i o n .

T h e Anmbra S t a t e e d i . c t No 1 o f 1376 d e f i n e d a s i n a l l - s c a l e

i n d ~ s t r y a s a :nanu f ac t urint , ,:-roccs:.ing o r s e r v i c e i n d ~ s t r y

x i t h a c a ~ j i l t i ' l . ; n v e s t m e n t o f up t o one hundred and f i f t y Naira

(W 150.00) in r m c h i n e r y aqd e q u i ; x e n t . Wowever, t h i s d e f i n i t i o n

i s s i l e n t i n t h e number o f p a i d l a b o m embloyed. A c c o r d i n g

t3 X a k u , a r n , l l - s c a l e i .ndui: try is d e f i n e d as o n e t o t a l a s s e t s

a r e l e s s than f'j-fLy t h o ~ : s a n d gSaira ( E 5 0 , 0 0 0 > a d emkloying

i ; s s t h a n i'j-;'? , , - - : ' u l l - t i x e i m r k e r s . is,c:c:;)r~tli.n,; t o t h e C e n t r a l

17

Bank o f R i g e r i z t s d e f i n i t i o n s c i t e d by Ogundipe, a s m a l l

s c a l e i n d u s t r y are t h o s e p r o j e c t s which t h e i r aznual t u r n o v e r

d o e s n o t exceed f i m hundred thousand Naira (Ea500,OOO) o r

Cap itd. i n v e s t m e n t n o t e x c e e d i n g t w o m i l l i o n N i r a (~a2 ,000 ,000)

T h i s l s k o f consensus o n t h e g e n e r a l l y a c c e p t a l e

d e f i n i t i o n o f m a l l - s c a l e m a n u f a c t u r i n g f i r m , us made more

complex by a a t t e m p t t o answer t h e q u e s t i o n : How b i g i s s m a l l ?

One would c o n s i d e r Achuba Bread i n d u s t r y a uSmallll m a n u f a c t u r i n g

f i r m when compared t o ANEX T i s s u e I n d u s t r y . Howev.er, ANEX

T i s s u e I n d u s t r y cou ld be small when compz-ed t o Dozie P l a s t i c s

I n d u s t r y , To t h i s end, O b e l e e u - N z e l i b e (1990) o b s e r v e s t h a t

t h e c o n t r o v e r s y a r i s e s t h e n as t o where t o drav a l i n e between

"Big" and "Smalllf? Eze (1991) s u p p o r t s t h i s a s s e r t i o n by

a r g u i n g t h & where t o draw t h e l i n e i s some what a r b i t r a r y

s i n c e t h e r e a r e s e v e r a l f a c t o r s which r e l a t e t o b i g n e s s and

s m a l l n e s s and th t . o n l y r e l i z b l e ya rd s t i c k now depends more o n

t h e l e v e l o f t echno logy d o p t e d .

Accord ing t o Okafor , F r a n c i s i.n h i s pape r , p l a n n i n g a d

Management o f s m a l l b u s i n e s s f 1 , a N i g e r i a n m a n u f a c t u r i n g f i r m i s

p r o n e t o sma l l s c a l e o p e r & i o n s whenever i t :

(1) bas .a l o c a l i s e d market f o r i t s p r o d u c t s

( 2 ) r e q u i r e s low i n i t i a l c a p i t a l i n v e s t m e n t

(3) r e l i e s o n very s i m p l e and e a s i l y a d a p t a b l e p r o c e s s

d e f i n i t i o n zpFear;-, ; , .~bl.guous because l a r g e b u s i n e s s cm ioc;ll;ise x a r k e t f o r i t s ur ' . l ( . d~ Li: a n d r e l y on e z i l y n d a p t ~ b l e ,,r cbc, :,t

f i r m s employing q~ t o tvm hundred w o r k e r s m q j be regarded

as small. But i n R i v e r s S t a t e , B i g e r i a , . supabod i s regarded

as a b i g e n t e r p r i s e even though t h e number o f workers on i t s

p q y r o l l .my r,ot be up t o two hundred. According t o

Ekoenyong (1989): caparison o r d i f f e r e n t i d i o n ijs t h e r e f o r e

b e s t made w i t h i n a c o u n t r y and between b u s i n e s s e s t a b l i s h m e n t s

i n t h e d i f f e r e n t s e c t o r s o f t h e economy. Based o n t h i s , we can

s a y t h a t t h e o i l e c t o r i s a b i g b u s i n e s s whereas MaPo PROOF

INDUSTRY i s a s m a l l m a u f a c t u r i n g f i rm.

I n d i a views s m a l l - s c a l e f i r m s as;

a e s t a b l i s h m e n t w i t h i n v e s t m e n t

i n p l a n t and machinery no t

exceed ing RS 10 Lakhs 4

However, N e t h e r l a d s government l a y i n g e m p h s i s o n management

p r o c e s s e s d e f i n e s s m a l l s c a l e f i r m s as o n e i n which t h e

man,wer p e r s o n d l y pe r fo rms a l l t h e f u n c t i o n s o f management

w i t h o u t t d c i n g p a r t i n t h e p r o d u c t i o n p rocesses .

To save t h e r e s e a r c h e r s , p r a c t i o n e r s and t h e s t u d e n t s

o f s m a l l - s c a l e f i r m s t h e t r o u b l e o f c o n t i n u e d s e a r c h f o r a

g l o b a l d e f i n i t i o n , t h e United N a t i o n s I n d u s t r i e s Development

O r g a n i s a t i o n (U.R.I.D.O.) h a s come up w i t h some b a s i c

a t t r i b u t e s t h a t must be i n t h e background o f any d e f i n i t i o n :

1. Ownership and management a r e u s u a l l y ves ted i n t h e

same i .ndivi .dual(s) - t h a t i s t h e management i s n o t

independen t , and t h e managers a r e u s u d l y a l s o t h e

owners.

2. The s m d . l business c o n t r o l s a small share O F t h e . . :.!ler.e;'or,e, c o n s t i t u t e s a l i t t l e qii:??. 2

i n t h e l a r g e s i z e market .

C a p i t a l i s made a v a i l a b l e by t l ie owner and p o l i c y

d e c i s i o n s are i n t h e hand o f t h e i n d i v i d u a l o r s m a l l

g r o u p o f e n t r e p r e n e u r s .

The a r e a o f o p e r a t i o n i:; l o c a l i s e d and w o r k e r s and

owners c o n c e n t r a t e i n t h e l o c a l community. O f c o u r s e ,

=me do have b r a n c h e s i n o t h e r towns b u t most o f

such b r a n c h e s s e r v e mom a,; cl?lwrvl;s

The owner p a r t i c i p a t e s v e r y a c t i a e l y i n a l l d e c i s i o n

mzking o n a day- by-dw o p e r a t i o n a l b z s i s , w i t h a h i g h

d e g r e e o f r i g i d c o n t r o l .

The above d e f i n i t i o n is based o n pa ramete r s s u c h as t h e

i n s t a l l e d c a p a c i t y u t i l i s a t i o n , o u t p u t , employment and c a p i t a l

t y p e o f i n d u s t r y v h i c h hare r e l e v a n c e t o t h e i n d u s t r i a l p o l i c i e s

o f t h e ndion.

2,2. CONCEPT OF SMALL- SCALE NANUFACTURING F I R M S I N T H E ***==============================================

NIGERIAN ECONOMY. ---- ------------- ---- --------------

According t o Eze ( l g S ) l ) , "To be r e a l i s t i c we s h o u l d go

t o t h e bases and r e d e f i n e s c a l e o f i n d u s t r i a l u n d e r t a k i n g s

w i t h i n t h e contexl :of t h e p r e s e n t Nige r i an economyw The l e v e l

o f c a p i t a l ~dxivolved as b a s i s f o r c l a s s i f i c a t i o n w i l l t d r e

i n t o c o n s i d e r a t i o n s t i m e and p l x e . What; i s todqy l a r g e

b u s i n e s s can pa s s f o r s m a l l b u s i n e s s i n f u t u r e and what i s i n

%,-;..ria will p a s as l a r g e b u s i n e s s ma3; be r e g a r d e d as small

I r j kierica. I f we assume t h a t t h e d o l l x i s s o r e s t a b l e t h a n

i ! . i ~ I ; a i r a exchange r a t e wi se , we csi.1 aci':ine t h e c z t e g o r i e s i n I r j r,-i ..., c. of tihe do l . l a r s . These fluctu&tlor!..: =e as a r e s u l t o f

changes i n economic env i ronmen t a d i n s t a b i l i t y i n t h e

exchange rate. However, t h e o f f i c i a l d e f i n i t i o n o f small s c a l e

m a n u f a c t u r i n g f i r m i s f l e x i b l e a d broad. The N i g e r i a n Bank

f o r Commerce and I n d u s t r y d e f i n e s small s c a l e b u s i n e s s

e n t e r p r i s e as f i r m s o r c o m p m i e s w i t h a s s e t s ( i n c l u d i n g

working c a p i t a l b u t e x c l u d i n g l a n d ) n o t e x c e e d i n g H750,000 a d

p a i d employment up t o f i f t y p e r s o n s s u c h an e s t a b l i s h m . e n t must

b e who l ly N i g e r i a ou.:nc:r' ( a l l compznies i n s c h e d u l e 1 o f t h e

1977 N i g e r i a E n t e r p r i s e s P r o m o t i o n Decree) Cbeleagu - N z e l i b e ( 1 9 9 0 ) Maintauns:

h l anu fac tu r ing u n i t s e x c e e d i n g t h e l i m i t o f

i n v e s t m e n t a c ? employment as s t a t e d above may

s t i l l be c o n s i d e r e d a s m a l l - s c a l e b u s i n e s s i f

t h e o u t p u t i s r e l a t i v e l y small c o m p a r e d t o

p r e v a l e n t s i z e s o f p l a n t s and t h e t e c h n o l o g y

i s f a i r l y l a b o u r i n t e n s i v e .

The F e d e r z l K i n i s t r y o f I n d u s t r y p r i o r t o S t r u c t u r a l A d j u s t n e a t

r r o g r a n x e ( 1986) and I n t e r n a t i o n a l F o r e i g n Exchange Market

d e f i n e d s m d . 1 - s c a l e m a n u f a c t u r i n g b u s i n e s s as a;;y m a n u f a c t u r i n g

p r o c e s s o r s e r v i c e i n d u s t r y w i t h c z p i t d i n v e s t u e n t o f n o t

more thar! Z150 ,000 i n p l a n t and machinery . However, as t i a e

I,n,,,., ... . . o n , t h e s t r u c t u r d A d j u s t m e n t Progranme has r e a d j u s t e d

t h e m8'clr:;urn c q ! i t a l l e v e l o f s m a l l - s c a l e b u s i n e s s from

IT 7 --8 -. .-.,?!!? '.o S'590,OOO. T h i c d e f i n i t i o n o r t h e n;axirnum l e v e l

(, f. - . .-,- ; + . .,? .i. s xves tmen t kc t s as t h e ~ u i d i n g pr; , .c l .p ie t o l e n d e r s ,

c-:L:, > c :, :s,2i-Lo;.; , % - : . ,. ::cd gav,;.rli!nenli j.n t h e clar;sific:;t:i!,r: GJ' b u s i n e s s

.. . , ::e.,!ium a;? . s a $ l . Oshumbiy i j p . ..: : j . j.nt o .-z-: F i.

(1989) r e p o r t s t h a t from t h e f e d e r a l g o v e r n m e n t ' s new i n d u s t r i a l

p o l i c y , a s m a l l s c a l e b u s i n e s s i s t h a t w i t h a t o t a l i n v e s t m e n t

n o t e x c e e d i n g P 2 , 0 0 0 , 0 0 0 e x c l u d i n g l a d b u t i n c l u d i n g workini;

c a p i t d . A m a j o r p o i n t g a i n s t t h i s d e f i n i t i o n i s t h a t w h i l e

a c e i l i n g i s e r e c t e d beyond which a s m a l l b u s i n e s s m q y n o t be

s o rega-ded , no f l o o r i s p r o v i d e d a g a i n s t ~ h i c h t h e s m a l l - s c d e

m a n u f a c t u r i n g f i r m m q be wi igh ted . To s t i p u l a L e t h e minimum.

m o u n t i s v e r y d i f f i c u l t because d i f f e r e n t s i z e s o f m a u f a c t u r i n g :

f i r m s , f l u c t u a t i o n s i n t h e exchange r a t e and t h e n t h e g e n e r a l

economic t u r b u l e n c e i n t h e g l o b a l N i g e r i a economy. More

i m p o r t a n t l y , m o d i f i c a t i o n s i n t h e d e f i n i t i o n w i l l c o n t i n u e so

l o n g EG t h e r e a r e changes i n t h e f i n a n c i a l economy.

2.3. TYPE:,CS_(Ir- SM&GSC_AL_E-M~~uFACTu~~~G-~_I; '&_S ----------------------------------------

Nanufac t u r i n g p r o c e s s e s can be c l a s s i f i e d i n t o e x t r a c t i v e ,

a n a l y t i c a l , s y n t h e t i c o r f a b r i c a t i n g . E x t r a c t i s g p r o c e s s e s

(Imaga 1995) r e f e r t o t h e p r o d u c t i o n o f v d u a b l e m a t e r i a l s t h r o u g h

removing such r;w m a t e r i a l s from l a d , sea o r air. The

ex:racti.oxl o f o i l fron; lZId by t h e d r i l l i n g c o r n p a i e s e x m p l e

S h e l l i n N i g e r i a i:. a t y p i c & exarnple o f a m a n u f a c t u r i n g

th rough e x t r a c t i o n . The e x t r a c t i o n o f o i l from p d m k e r n e l i s

an e x m p l e o f m a l l s ca le manufac tu r ing .

The b r e a k i n g up o f crude o i l o r such compounds i n t o v a r i o u s

u s e f u l components i s r e f e r e d t o a an A n a l y t i c & p r o c e s s .

Examy l c , o i l refineries at various t e m p e r a t u r e s p roduce p e t r o l ,

k e r o s i n e by a n a l y t i c a l p r o c e s s e s . I n a d d i t i o n , a a n a l y t i c &

p r o c e s s c o u l d m&e p5l.m o i l uticier c e r t a i n tes ipera t u r e s become

u s e f u l i n g r e d i e n t f o r t h e p r o d u c t i . o n o f v e g e t a b l e o i l o r bociy

cream o :. ED*.

a n t h e t i c p r o c e s s o f p r o d u c t i o n i n v . o l u e s p u t t i n g m A e r i a l s

t o g e t h e r t o make f i n i s h e d p r o d u c t . M a n u f a c t u r i n g o f a s b e s t o s

r o o f i n g s h e e t s 'hich i n v o l v e s t h e s y n t h e s i z i n g o f z b e s t o s

f i b r e s and sortie m i x t u r e o f cement. S i m i l a r l y t h e p r o d u c t i o n o f

a number o f components i n c l u d i n g f u r , w o l a d o t h e r f i b r e s

and o r f a b r i c s .

F a b r i c a t i o n i n v o l v e s t h e chang ing o f t h e shape 0:. form o f

a m a t e r i a l f rom one t o m o t h e r . For example, b o t h d u m i n i u m

and polymer p r o d u c t s c o u l d be f a b r i c a t e d i n t o c h a i r s , c o n t a i n e r s ,

t a b l e s and i n t h e case o f a luminium i n t o s l i d i n g doors.

Moreover , shoe-making i s a l s o i n c l u d e d i n t h e f a b r i c a t i n g

s e c t i o n o f t h e m a n u f a c t u r i n g f i r m s ,

The d e s i r e o f most developing c o u n t r i e s such as N i g e r i a i s

t o have a s e l f - r e l i a n t and r e s i l i e n t economy capab le o f

g e n e r a t i n g an i n t e r n a l l y s e l f - = s t a i n i n g growth. For many

Years back, d e v e l o p i n g c o u n t r i e s have been e x p o r t e r s o f raw

m a t e r i a l s and i m p o r t e r s o f f i n i s h e d manufac tu r ing goods f r o m

advanced and i n d u s t r i a l i sed m e t r o p o l i s which never f avoured o u r

economy. Having ga ined p o l i t i c a l independence , these c o u n t r i e s

want t o t r ans fo rm t h e i r economies q u i c k l y i n o rde r t o z h i e v e

economic independence as w e l l . Hence, t h e smal l - sca le

m a n u f a c t u r i n g boom. The N i g e r i a f s d i r e c t i o n o f p u b l i c p o l i c y

has been t h e c r e a t i o n o f a s u i t a b l e economic and s o c i a l

envi ronment f o r t h e e s t a b l i s h m e n t and o p e r a t i o n o f m a l l - s c a l e

b u s i n e s s . Inegbenebor (1989) s t a t e s :

Under such favo u rab l e condi t i o n s , . t h e o r i e s

o f economic development sugges t t h a t a

r a p i d growth would occur provided t h e

a v a i l a b l e r e s o u r c e s are c o m p e t e n t l y harnessed

arid u t i l i e d f o r t h e p r o d u c t i o n o f food

and s e r v i c e s .

I n a f r e e e n t e r p r i s e economy t h i s r o l e i s a s s i g n e d t o t h e

s m a l l - s c a l e m a u f a c t u r i n g firm-omers.

I n addi. t i o n , B u r n e r s t i n e r ( 13'79) enumerated ti le major

reaso n s why peop le go i n t o anal 1 - s a l e bus iness .

1 . A s t r o n g d e s i r e t o be ones o m nizster , independen t , n o t

t a k i n g o r d e r s from o t h e r s an:, ritl.yi.ng on ones ovm h a b i t .

-7 The chance t o vork at somct 2 I Ilk; n a e en j o y s i n s t e a d o f

a s e t t l i n g f o r second o r t h i r d b e s t because o f a d e s i r e f o r

s e c u r i t y i n t h e form o f a r e g u l a r s t e a d y income.

The f e e l i n g tha t o n e would l i k e t o opera te a t o n e s

own pace.

A y e a r n i n g f o r r e c o g n i t i o n and p r e s t i g e and t h e

o p p o r t u n i t y t o earn f a r more than one ever c o u l d

work ing f o r o the r s .

A p o w e r f u l d r i v e t o az:c.umulate wea l th and t h e

o p p o r t u n i t y t o earn f a r more than one e v e r c o u l d

working f o r o t h e r s .

D i s c o v e r i n g o f an o p p o r t u n i t y tha t o t h e r s hare

o v e r l o o k e d .

The c h a l l e n g e o f p u t t i n g o n e s r e s o u r c e s and s k i l l s

a g a i n s t t h e environment .

Eze (1971) agrees w i t h t h i s a s s e r t i o n tha t i f we work f o r

o u r s e l v e s t h e r e i s no one t o t e l l u s what t o do, how, t o do o t ,

when, where o r f o r &om. Moreover, Okmr (1993) c i t i n g

O b e l g u - R z e l i b e (1990) b e l i e v e s t h a t i n d d i t i o n t o Ysheer

q u e s t f o r s t a t u s " and independence, o n e s d e s i r e t o own h i s own

b u s i n e s s m q j a l s o d e r i v e f r o n h i s l o n g i n g t o escape t h e

f r u s t r a t i o n s i n h e r e n t i n w r k i n g f o r o the r s . However,.

B a r n e r s t i n e r ( 19 7 9 ) obse rves t h a t b e i n g i n ones b u s i n e s s b r i n g s

w i t h i t t h e c o r o l l z r i e s o f l o n g h o u r s o f work, p o s s i b l e l o s s o f

cap itd. f nvestment , g o n y o f m i s s i n g r e g u l a r income t o mention

b u t th ree .

The small manufactur ing f i r m s have b e i n g i n t h e f o r e f r o n t

i n the war a g a i n s t N i g e r i a ' s economic mala ise w i t h s p e c i a l

r e f e r e n c e t o O n i t s h a - m u t h l o c a l govenment area.

P r e s i d e n t Eabangida (1989) b u d i e t speech o r c h e s t r a t e d adequate

a t t e n t i o n t o t h e m a l l - s c a l e f i rms. D e s p i t e a l l these

government e f f o r t s t o a s s i s t t h i s s e c t o r o f t h e economy these

f i r m are s t i l l beset with a number o f problems r a n g i n g from

s h o r t e e o f f a c t o r s o f product ion , , poor i n f r a s t r u c t u r e s , p o o r

management, l z k o f & e q u a t e f i n a n c e m&.keting problem,

q u a l i t y a d s t a n d a r d , f a c t o r y accommodation t o m e bu t seven

which: m i l i t a t e a g a i n s t e f f e c t i v e o p e r a t i o n o f t h e s e f i r m s i .n

t h e area.

The l i t e r a t u r e o n t h e problems o f small f i r m s i n Oni thsa

s o u t h l o c a l government a rea emphasize t h e l a c k o f c a p i t a l as t h e

p r i n c i p a l c o n s t r a i n t a g a i n s t t h e i r e f f e c t i v e o p e r a t i o n .

Accord ing t o Masha ( 1 9 8 0 ) v i r t u a l l y d l t h e o t h e r problems

c o n f r o n t i n g mal l s c a l e f i r m i n t h e area emanate from la=k o f

f i n a n c e s i n c e f o r him f i n a n c i a l c o n s t r a i n t s p r e v e n t smal l - sca le

i n d u s t r i e s f rom producing e f f i c i e n t l y because o f s h o r t a g e o f

working c a p i t a l . The f i n a n c i a l problem w i l l be examined i n t h i s

r e s e a r c h from t h r e e persp e c t i v e s : v i a t h e government,, t n e

commercid b n k s and t h e i a d u s t r i a l i st s. On t h e genera l p o l i . c i e s

o t t h e f i n a n c i a l i n s t i t i ~ t i . a n s and commercial banks, they a r c not

p r e p a r e d t o c a t e r f o r t h e ~ p e c i a l p rob lems i n v o l v e d i n

27

~ o l l & e r a l s . Onwuka ( 1 9 8 3 ) a g r e e s wi th t h i s a s s e r t i o n by

p o i n t i n g o u t t h a t b a s i c a l l y lack o f s e c u r i t y h i n d e r s t h e

a b i l i t y o f i n d u s t r i e s t o o b t a i n l o a s . He added t h e s e c u r i t i e s

den;anded by banks are o f t e n t o o high t h a t m a l l - s c a l e

i n d u s t r i d i s t s are u n a b l e t o f u r n i s h them.

On t h e p s t o f government I R O (1992) says :

% a l l - s c a l e i n d u s t r i e s are s t a r v e d o f

ft inds m d where f u n d s z e a v a i l a b l e ,

t h e y are a l l o c a t e d o n "man know manH b a s i s

i n s t e s d o f o n t h e v i a b i l i t y o f t h e i n d u s t r i e s .

Al s3 most o f t h e budgeted f u n d s f o r m a l l - s c a l e manufac tu r ing

f i r m s found t h e i r way i n t o t h e p o c k e t s o f larrge s c a l e i n d u s t r i a -

lists due t o p o l i t i c a l and economic i n t e r e s t . Aghara (1982) i n

h i s a r t i c l e V i n a n c i n g p rob lems f a c i n g s m a l l - = a l e i n d u s t r i a l i s t s

emphasized t h a t t h e i n a d e q u a t e pa t ronage from t h e l o c a l

government posses a l i m i t a t i o n t o the f i n a n c i n g o f s m a l l - s c a l e

i n d u s t r i e s .

On t h e par t o f t h e e n t r e p r e n e u r s , they do n o t under take

e f f e c t i ve f i n a n c i n g t e c h n i c p e s m d i n most c a s e s a v a i l a b l e

f u n d s a re misap p r o p r i a t e d . Eze j e l u (1992) s u p p o r t s t h i s

a s s e r t i o n vhen he s a i d t h & d i v e r s i o n o f funds i s p r e v a l e n t

among m a e o f o u r businessmen, The f u n d s a r e d i v e r t e d t o

p r o p e r t y development, purchase o f luxury c a r s i n s t e a d o f

u s i n g them f o r the purpose f o r vhich they were ob ta ined ,

Vie o p e r a t i o n s o f m a l l m a u f a c t u r i n g f i r m s have a l s o

b e e n a! 7 e c t ed by l o c a l government ' s unconcerned p o l i c y

c l ~ n c c r . I l u d i n g t o the c o n t i n u e d esca la t io! : o i p roduc t ion c o s t s

i n 1 r e According t o t h e Manufac tu re r s A s s o c i a t i o n 0 f

N i g e r i a ( M . A . N . ) :

Unit cos t r o s e o n t h e average o f 48%

above t h e i r l e v e l f o r the c o r r e s p o n d i n g p e r i o d

o f 1987. The r i s e i n 1987 was 49% above t h a t

o f 19 86.

M.A.N. a l s o n o t e s t k h :

i n n q ~ y i n s t a n c e s . . . t he i n c r e a s e i n 1988

i n r e s p e c t o f some p z t i c u l a r i t e m s were

cons ide red t o be far above t h e

quoted ave rage o f 48%

These e s c a l a t i o n s have been due t o c o n t i n u e d d e t e r i o r a t i o n o f

Naira and consequen t i n f l a t i o n i n t h e coun t ry . For i m p o r t e d

r a w m a t e r i a l , t he problem o f cos t o f p r o d u c t i o n i s i n t e n s e .

Between J u l y and December 19 88

c o s t o f impor ted raw m a t e r i a l s s h o t up

by a average o f 58% over what

i t was i n 1987, T h i s i s o n t o p o f t h e

22975 jump d r e a d y a t t a i n e d by December 1989

The rnanufactur.ers A s s o c i a t i o n o f Ni .ge r i a (1I'I.A.N.) a l s o n o t e d

t h a t d e v a l u a t i o n o f Naira r a i s e d t h e p r o f i l e o f t h e p r i c e s o f

machinery arid raw m a t e r i a l s f a r beyond t h e reach o f small a d

medium s c a l e firms. These problems have l e d t o t h e p r o d u c t i o n

o f p o o r q u a l i t y and s t a n d a r d i s e d p r o d u c t s though wi th h igh

s e l l i n g p r i ces .

'n) k o 1 ; h e r pr -ohlcm i s rnanageri i l . !-i;c S U C C B S S o r failure o f

cl.a~y rnc't'lufact,ur.ing e n t e r p r i - s e s depends or! t h e managerial sccumen

(.-: -.- ..'. !- b i t,c4 by r.!,e manager/ managerneifi t 7 % ; . !::a st o f 01.1r ;d#3-:::;lt>?':,:

' 7 - , . .,.:!,j lx,;jnt,j.n~ i n . t e c h n o l o g i c d :;:: , ::i;a;agc-:;.ial k.novile5t;.e

29

as t h e y a e t o combine i n themse lves a l l t h e r e s p o n s i b i l i t i e s

and f u n c t i o n s o f management - p r o d u c t i o n , d e s , f i n a n c e and

r e s e a r c h . According t o Ekpenyong ( 1 9 8 9 ) :

P r o p r i a t o r f s i . n a b i l i t y t o s u p e r v i s e worke r s

i . n o r d e r t o make t h e b e s t uEe of ' M o u r

and m a t e r i a l s a n d t h e r e b y i n c r e a s e

p r o d u c t i v i t y =d improve upon c p a l i t y

p r o d u c t s , t h e i r c o e r c i v e a t t i t u d e and t h e

t endency t o d i spense e f f o r t and a t t e n t i o n

a r e some o t h e r major management problems

found m o n g s m a l l - s c a l e f i rms-owners i n N i g e r i a

S i n c e most m a a g e r s c a n n o t a f f o r d t h o s e s e r v i c e s , t h e f i r m

m q remzin weak and backward,

The small f i r m i n d u s t r i a l i s t s a l s o face problem o f

a c q u i s i t i o n of s u i t a b l e f a c t o r y p remises , As t h e r e i s and

a c u t e s h o r t a g e o f r e n t e d x c o m o d a t i o n , e n t r e p r e n e u r s must pay

f o r t h e c o n s t r u c t i o n o f t h e i r f x t o r y b u i l d i n g s ,

Ekpenyong (1989) i s o f t h e view t h a t t h e p rocedure f o r z c q u i s i n g

a s u i t a b l e p l o t and g e t t i n g u t i l i t i e s such as w a t e r , p o w r and

gas i s g e n e r a l l y more d i f f i c u l t f o r a small thm f o r a l a r g e

s c a l e i n d u s t r i a l i s t s .

Smal I. scz l e i n d u s t r i a l i s t s a r e unaware o f the impor tance

o f stzindzrd and q u a l i t y , They l a c k t h e equipment f o r q u a l i t y

c o n t r o l ;aci t e s t i n g . I n p z k a g i n g mal l e n t e r p r i s e s a r e

back:t;c;rd c-!g;sa-ed t o l a r g e fi-\ms. They have r ~ e i t h e r t n e

r e m u r c ~ s : :>c' t . r a i n n i n g t o p r e s e n t t h e i r wares w i t h p r o p e r

consunlr. - . , 1 a1 . a p e n y o n g ( 1989) sumrnari ses ' i . 1 ' p roblem

by sayi.1.; :

30

T h e r e i s h a - d l y any p r o d u c t d i f f e r e n t i a t i o n

among those i n t h e same i n d u s t r y o r c r a f t

t h e i r l i m i t e d and some t imes i m p r o v i s e d

t e c h n o l o g y i s 2 a t l y r e s p o n s i b l e f o r t h i s , bu t

i t seems t h a t t h e i r low l e v e l s o f e d u c a t i o n

and r i g i d c o p y i n g o f t h e mas t e r c r a f t m a n ' s

t e c h n i q u e s are t h e m a j o r r ea sons .

S m a l l m a u f a c t u r i n g f i r m s do s u f f e r from m a r k e t i n g problems.

The ovmer - m a a g e r l a s k s t h e r e s o u r c e d and q u a l i f i c a t i o n s f o r

e f f i c i e n t ma-ke t ing . He migh t f i n d i t d i f f i c u l t t o reach

d i s t a n t m a r k e t s ; and s c a r c e l y does he know o f c h a n g i n g marke t

t r e n d s Lo be & l e t o make a p p r o p r i a t e a d a p t a t i o n s i n h i s

p r o d d c t ~ a d may s ~ d d e n l y be c a u g h t up by changes i n demand a

a r e . T h i s l e a d s t o heavy l o s s e s because h e i s unable t o

m&e t i m e l y m d a p p r o p r i a k e a d a p t a i i o n s . Many small f i r m s

have t h e cap s i t y t o produce more i f t h e marke t s i t u a t i o n

improved. The c r o b l e z l i e s i n f i n d i n g s u f f i c i e n t ma-ke t s f o r

t h e i r p r o d u c t s ,

These e x p o = have ,i.aivn t h a t t h e r e ar-c numerous p rob lems

m i l i t a t i n g g a i n s t t h e e f f e c t i v e and e f f i c i e n t o p e r a t i o n s o f

s m a l l - s c a l e mzmufacturirl l ; f i r m s i n O n i t s h a S o u t h l o c a l

governrnent a rea .

:3.1 I n t h e U n i t e d S t a t e s , t h e z t i v i t i e s o f s m a l l - s c a l e f i r m s i n

t h i s d i r e c t i o n are ove rwhe lming tha t P r o f e s s o r P e t e r D r u k e r

t o conc lude :

The most i m p o r t a t economic e v e n t

o f t h e las t few y e a r s i n f a c t

i s t h e emergency o f t h i s

e n t r e p r e n e u r i a l t r e n d .

P r o f e s s o r Drucke r ;vent f u r t h e r t o e x p l a i n t h a t i n t h e p x t

d e c a d e , t h e U n i t e d S t a t e s h a s c r e a t e d 23 m i l l i o n new j o b s - t h e l a r g e s t number e v e r g r e a t e d -where i n s u c h a s h o r t p e r i o d

and a t t h e s a m e t i ~ e l a r g e e s t a b l i s h e d c o m p a i e s have l o s t

s e v e r a l m i l l i o n joSslt

Adding c r e d i t t,o t h i s c o n c l u s i o n s , Ezc (1990) n o t e s t h a t

i r , c r c a ~ e s i n t h e r . roc?uc t iv i ty of the U n i t e d S t a t e s stemmed from

t h e i r i n n o v & i v e n e : - , s , Itnew ways t o do a j a b w i t h l e s s e f f o r t ,

a l o w e r c o s t . Accord ing t o t h e U n i t e d S t a t e s o f f i c e o f

rnzgagernent and b u d g e t , i t i s g iven t l ~ a t i r ~ d i v i . d u a i i . cven t0 r . s and

4 L

great p o t e n t i a l f o r t h e c r e a t i o n o f employment o p p o r t u n i t i e s .

A v a i l a b l e stat i s t i c s i n R i g e r i a s u p p o r t s t h i s c o n t e n t i o n ,

A c c o r d i n g t o t h e s e c o n d ' ru'ational Devlopment plan 1979-74

b e t w e e n 1966 and 1967 s m a l l - s c a l e e n t e r p r i s e s i n N i g e r i a

e m p l o y i n g l e s s than f i f t y p e r s o n s a c c o u n t e d f o r more t h a n 25%

o f t h e t o t a l employnient i n t h e economy. The T h i r d N a t i o n a l

Development Plan 1975- 1980, e s t i m a t e d by small e n t e r p r i s e s o f

t h i s n a t u r e can be p a r t i c u l a r l y i m p o r t a n t i n c e r t a i n s t a t e s o f

t h e f e d e r a t i o o where t h e r e a r e v e r y few l a r g e n o n - g r i c u l t u r a l

e n t e r p r i s e s . Ehployment o p p o r t u n i t i e s are c r e a t e d w i t h l i t t l e

c a p i t a l i n v e s t m e n t . With i n c r e a s e d y e a r l y o u t p u t f m r n s c h o o l s

and t h e i n c r e z s i c g i n a i l i t y o f t h e p u b l i c s e c t o r t o expand

f a s t enough t o a b s o r b t h e s c h o o l l e m e r s , t h e r o l e o f t h e s m a l l

s e c t o r i n t h e p r o v i s i o n o f employment mqy c o n t i n u e t o i n c r e a s e ,

The s m a l l - s c a l e f i r m s a l s o h e l p t o d e v e l o p and t r a i n

manpower i n d i f f e r e n t z r eas . With t h i s t r a i n i n g , t h e v o r k e r s

a c q u i r e d p r a c t i c a l management s k i l l s which. t h e y pu t i n t o u s e i if

employed i n l a r g e o r g a n i s a t i o n s . - Sma l l s c a l e f i r m s a l s o o f f e r

t e c h n i c & and management o r i e n t a t i o n t o young s c h o o l l e a v e r s

who migh t l a t e r become se l f -employed . Ekpenyong (1983) i s o f

t h e o p i n i o n t h a t s m a l l s c a l e f i r m s have c o n t r i b u t e d immensly

t o local. and r e g i o n a l deve lopmen t and a l s o have promoted a

m o r e d e c e n t r a l i s e d p& t e r n o f i n d u s t r i a l growth. Compzred

i:ri. t h l a r g e s c a l e i n d u s t r i d e n t e r p r i ~ ; e s , s m d l s c a l e i n d u s t r i e s

a r e more w i d e l y d i s t r i b u t e d i n t h e c o u n t r y . The wide d i f f u s i o n

i .n i h e c o u n t r y i s i m p o r t a n t i n t h e m i n i m i s a t i o n o f r e g i o n a l

e c o n o m i . ~ imbalance.

t lSrnall B u s i n e s s : The M d d e n i ng E t r u ~ g l e t o S u r v i v e t t B u s i n e s s Week: J u n e 9, 19'75, PI2. 96-104.

The N i ~ e r i - z n E n t r e p r e n e u r : Vol. 2 No. 1 1987 P.28

Un i t ed N a t i o n s I n d u s t r i a l Development O r g a n i s a t i o n (U.N. I .D.O. ) " I n d u s t r i d i s a t i o n o f D e v e l o p i n g C o u n t r i e s : Probbems AWl P r o s p e c t s o f s m a l l - ~ c d - e I n d u s t r y f t Vienna, Austria, 1989.

Obeleagu - N z e l i b e C. C: ~f-@nagernent o f Smal l S c a l e B u s i n e s s - i n Niger i&t . F o u r t h Dimension P u b l i s h i n g Company L t d ; Enugu, 9 9 0

Eze J. A. : U p ~ u b l i s h e d Work i n S m a l l B u s i n e s s Management, 1991 P P ~ 12-13.

Okafor F r a n c i s : V l a n n i ng and Management o f Sma l l E n t e r p r i s e s Quoted by Eze J. A. o y c i t

a b e r K. J: 3 w v i v a l i n B u s i n e s s E n t e r p r i s e t 1 1st Ed. Mercury House I n c . , London 1980

F r e n c h , Derek and Saward Hea the r : " D i c t i o n a r y o& M&UX3~ement (Epp ing , Essex: Gower F r e s s L t d . , 1975) Page 378

h u e r , Raymond q u o t e d i n J o h n L. Pa luszek; t f B u s i n e s s and 3 c i e t y 1976-2000; (New York: AMACOH, 1976) Page 1.

O l u f e l a Oshumbiy i : " S u s t a i n i n g Smal l S c a l e I n d u s t r i e s t 1 New N i g e r i a n A p r i l 21, 1989 P , 12.

O.P. Lit PP. 12- 13

Fede ra l X e p u b l i c o f Niger ia , N a t i o n a l D i r e c t o r a t e o f Ehployment ( N . D.E. ) l E n t r e p r e n u r s h i p Development Pro gramm e.

E. U . TY. Imaga: "Theory and P r a c t i c e o f P r o d u c t i o n Management f l h p u b l i s h e d Work) U n i v e r s i t y o f N i g e r i a , Enugu Camp us.

A f r i c a n Concord , concord P r e s s o f N i g e r i a L t d . , London, O c t o b e r 2, 1986, Y. 3.

Afri .can G u a r d i a n , Lagos, August 28, 1989, P. 15.

I b i d

I b i d

1 ,:.-. . . i b i d

3 : 9. Afr ican Concord, A f r i c a n Concord Magazine, Lagos. March

13, 1989, P. 20.

. b u c k e r P e t e r , M>agement, Tasks, R e s p o n s i b i l i t i e s P r a c t i c e s (Harp e r andwp 19 74) PP. 312- 352. --

; I t . E j i o f o r , . P i t a : l!Foundations o f B u s i n e s s Admin i s t r a t ion" - Afficaia - Reo. P u b l i s h e r s 1 t d . , 1989

22, I b i d

23, I b i d

24. I b i d

RESE.%RCH-M_ET_?Q I)Q&Q_GY ....................

3.1. RES_El?C_HJQ~,C,~G_N; ----------------

T h i s r e s e a r c h work i s a s u r v e y d e s i g n e d t o a s s e s s t h e

c o n t r i b u t i o n s ~ o f t h e s m a l l - s c a l e m a n u f a c t u r i n g f i rm t o t h e

economic development o f O n i t s h a - S o u t h local. government area.

AREA OF STUDY. 3-20 - ------------- --- ----------- -

The s t u d y ws c a r r i e d o u t i n O n i t s h a S o u t h l o c a l government

area o f Anambra S t a t e . I n o r d e r t o have an e f f e c t i v e

r e p r e s e r i t , ? t i o n , f o u r d i f f e r e n t t y p e s o f s m a l l - s c a l e m a n u f a c t u r i n g

f i r m s were s e l e c t e d f a r e x a n i n a t i o n . They i n c l u d e t o i l e t t i s s u e

,, - i x r m , ~ a t e r p r o o f firm, Balrery .md block-m&ing i n d u s t r y .

5-30 g Q P u ~ , ~ ~ L Q ~ - Q i ; l - T ~ & , ~ T _ U _ D ~ , -----------------------.-

The p o p u l a t i o n o f t h e s t u d y m s g r o u p e d i n t o tw p a ' t s :

P o p u l a t i o n f1X1I a n d I1Yl1. P o p u l a k i o n " X I 1 c o n s i s t e d o f t i le s ; . , i 2 l

.. c b u s i n e s s ovners and ti,ei:. s taf f i n each 01 t h e b u s i n e s s

t y p e s elected f o r t?,? s t u d y ; \d?ere a s p o p u l & i o n I1YH c o n s i s t e d

0 f t h e l x g e - x a i e fi:a:r! o w i e r s al:d t h e i r s t a f f . Both

p o p u l & i o n r n ~ , p e d o u t f o r s tudy viere s e l e c t e d from t h o s e f i r m s

o p e r a t i n g x i t h i n t h e l o & government area.

KEY:

n = sample s i z e

z = conf idence i n t e r v a l

p = p r o b a b i l i t y o f s u c c e s s e s

;g = p r o b a b i l i t y o f f a i l u r e s

e = s t a n d a r d e r r o r o f e s t i m a t e

P o p u l a t i o n "Xu i n v o l v e d an i n v e s t i g a t i o n o f four ( 4 ) b u s i n e s s e s

bki t h s i x ( 6 ) b u s i n e s s f i r m s w i t h i n each o f t h e b u s i n e s s t y p e s ,

T h e e n t i r e popu1;d;ion f o r llXM was twen ty f o u r (24) t h a t i s

4 x 6 = &.

Popu1;d;ion IfYf1 c o n s i s t e d o f f i v e ( 5 ) l a r g e s c a l e

m a u f a c t u r i n g f i rms .

I n t h e use o f p o p u l a t i o n llX1l a p i l o t s tudy o f 15 p e r s o n s

drawn from t h e f o c a l o r g a n i s a t i o n s was c a r r i e d o u t . The

r e s e a r c h e r posed t h e q u e s t i o n : Do you t h i n k that t h e s m a l l

s c a l e m a n u f a c t u r i n g f i r m s have c o n t r i b u t e d much t o the

economic development o f O n i t s h a S o u t h l o c a l government z e a s

t w e l v e (12) p e r s o n s answered i n af f i r m z t i v e , t h r e e i . e r s o n s

',#I], ,.- . . t i > .

, . 1.9 6 con i'i dence i nterva1

T i2.05 ~l-;-,t . ; ;~i~lit ,v f' fa. l !~l ' ( : 6 . .

. C.03 ~ L a r i d a r d erro:' o f ' t 2 c ' - ; , ..., L A i1.i ;; i, (:

T h e r e f o r e t h e sample s i z e f o r ,

P o p u l & i o n I1Xt1 .

Then f o r t t e populaLion t l Y 1 t a p i l o t s t u d y o f & p e r s o n s

was c a r r i e d o u t - The q u e s t i o n posed w a s : llDo y o u t h i n k tha t

t h e s m a l l - s c a l e m a n u f a c t u r i n g f i r m s h m e c o n t r i b u t e d t o t h e

economic deve lopment o f On i t sha -Sou th l o c a l government area?

To t h i s q u e s t i o n , 15 p e r s o n s answered i n a f f i r m a t i v e whereas

10 p e r s o n s d i s a g r e e d . Based o n t h i s t h e p r o b z b i l i t i e s o f

10 s u c c e s s and f a i l u r e were 0.97 ( ) and 0.03 ($

T h e r e f o r e :

z = 1-96

P = 0097

g = 0.03

e = 0,05

FGr h e sake o f convenience X ) s a n p l e s were c h o s e n f o r s t u d y .

The r e s e a r c h e r a l s o made u s e o f p e s t i o n a i r e s and o r a l i n t e r v i e w

f o r d a t a c o l l e c t i o n . The q u e s t i o n n a i r e s were d i v i d e d i n t o

g r o u p llXll and g r o u p t t Y 1 l . Group I1Xn was d i r e c t e d t o t h e

e m p l o y e r s and s t a f f o f t h e s m a l l - s c a l e f i m s whereas Group l1Yl1

w a s d i r e c t e d t o t h e employers and s t a f f o f l a g e - s c a l e f i r m s .

These two s e t s o f q u e s t i o n n a i r e s were d i s t r i b u t e d t o t h e

f o c a l o r g a n i sat i o n s opera tin^ at Fegge , Ocitoakpu, Hous ing E s t a t e ,

3

Uga j u n c t i o n a d B i d a Road a r e a s o f t h e l o c a l government .

H o w v e r , t h e m a j o r i t y o f t h e c p e s t i o n n a i r e s were d i s t r i b u t e d

w i t h i n Hous ing E s t a t e and Uga j u n c t i o n m e a s where t h e r e a r e

c o n c e n t r a t i o n o f t h e m a n u f a c t u r i n g f i rms .

3.5. _Q_UESTEQyy_A~.I'~?_DI~I_N_I_S_T&TIoN - ---- ------ ---. -------------

I n d i s t r i b u t i n g t h e c p e s t i o n n d r e , . t h e r e s e a r c h e r a v o i d e d

i l l i t e r a t e s and un in fo rmed who w r e i n t h o s e f i r m s . Again as

a r e s u l t o f f i n a n c i a l c o n s t r a i n t s , t h e r e s p o n d e n t s were

l i m i t e d t b t hose w o r k e r s who z e r e s i d e n t s i n t h e l o c a l

government .

The b u s i n e s s o f t h e r e sponden t s .

The form o f b u s i n e s s h e o p e r a b e s

The r e s p o n d e n t s 1 i n t e n s i o n s f o r g o i n g t o mall

s c a l e f i r m s and t!;e number o f y e a r s a l r e a d y i n

o p e r a t i o n .

Sources o f c a p i t a l a c q u i s i o n

The o r g a n i sat i o n l s s o c i a l r e s p o n s i b i l i t i e s and

f i n a n c i a l o b l i g a t i o n s t o t h e local gouernment

The d e g r e e s o f governnient and bank a s s i s t a n c e t o

t h e e f f e c t i v e o p e r a t i o n s i f t h e f i r m s .

T h o c o n t r i b u t i o n s made i n t ~ i g i b l e t e r m s by t h e

ope!-atir ig f i r m s .

sci,s o f q u e s t i o n n s r e s h w e ; I , q i l e s t i o n s . The

fi:in::t:i.orlnaire which was d i r e c t e d t c t h e s m a l l - s c d e

39

m a n u f a c t u r i n g f i r m s c o n t a i n e d 27 q u e s t i o n s d e s i g n e d and

s t r u c t u r e d t o i n v e s t i g a t e t h e above l i s t e d i t e m s . However,

t h e q u e s t i o n n a i r e l1X1I was b a s i c a l l y t o i s c e r t a i n t h e views o f

t h e l a r g e sca1.e owner s and t h e i r st;af f on, t h e g e n e r a l

a c t i v i t i e s o f t h e s m a l l - s c a l e f i rms .

METHOD O F DATA ANALYSIS - ------------ ---------- .......................

The r e s e x c h e r c o l l e c t e d d a t a t h r o u g h b o t h o r d i n t e r v i e w s

a n d q u e s t i o n n a i r e s . A l l t h e r e s p o n s e s g a t h e r e d t h r o u g h

q u e s t i o n n a i r e were a n a l g s e d u s i n g t a b l e s and w r i t t e n e x p l a a t i o n s .

T a b l e s 4.1 - 4.5 a q a l y s e t h e a g e s o f t h e r e s p o n d e n t s , t h e

number o f r e s p o n d e n t s p e r b u s i n e s s t y p e , t h e number O f y e a r s

a l r e a d y i n o p e r a t i o n and t h e m o t i v e s b e h i n d e s t a b l i s h i n g t h o s e

b u s i n e s s .

Then t a b l e s i+. 6 - 4.9 d e d w i t h t h e f i n a n c i a l a s p e c t s o f

t h o s e m a n u f a c t u r i n g f i rms . The t a b l e a n a l y s i s c o v e r s t h e

: i . n i t i d capi.ta:L s t r u c t u r e , t h e s o u r c e s and how far t h e b a n k s

a r e I .nvolved ir, I.oxl l e n d i n g t o t h e small s c a l e m a n u f a c t u r i n g

firms i n t h e a-ea.

T a b l e 4.10 dea l s w i t h t h e compendium o f problerns f a c i n g

t h e s m a l l - s c a l e f i r m s i n t h e area. The a n a l y s i s f u r t h e r

shows t h a t r i s i n g c o s t o f raw m a t e r i a l s i s t h e ~ o s t i .mpor ian t

proble in v&th :zC r e s p o n d e n t s 01; 36,.@L o f t h e sample s i z e

i n d i c a t i n g t h a t .

VlFith t h e ~xc r - j - . t i o r , o f t a b l e s 4 . a , 4.21 and Li.;:j which

a r i t l y s e t h e r e l . a t i i > n & ~ i p Set!;;een t h e s m a l l - s c a l e 1 i : m s w i t h

I - ' .., =,, &. c. 4 d (.? a1 L !.:eir. immediatr: I cji;c> f-c>verrlmt?nt a t k o r i t y , o t h e r ' - I '' p - -

-xi t h t h e c o n t r + i Li i i , j ,::;:. 9 f i;ile:;t. fj.r.lns t o t h e &ci~-i: ;c, . , r ,omic

(kvelopment o f t h e a rea .

Roreove r , t h e q u e s t i o n s i n t h e q u e s t i o n n a i r e a r e answered

a n d t h e i r r e s p e c t i v e r e s p o n s e s c a l c u l a t e d i n p e r c e n t a g e s t o

d e t e r z i i n e t h e p r o p o r t i o n d i t y o f t h e i r r e s p o n d e n t s r e s p e c t i v e

o p i n i o n s .

The u s e o f t a ' o l e s f o r i i n a l y s i s i s f o r c l a r i t y o f

i n f o r m z t i o n a d b e t t e r u n d e r s t a r i d i n g by t h e r e a d e r s .

rf.,T_"i_Qg-Qy-~EsT~N_G-_HyPOTH~_S~S ............................

For t h i s r e s e z r c h s t u d y , f o u r h y p o t h e s a s were p o s t u l a t e d .

H y p o t h e s i s 1, 2 and 4 were a n a l y s e d by rn&ing u s e o f t a b l e

means i n o r d e r t o d e t e r m i n e t h e l e v e l o f d i f f e r e n c e between t h e

'IYes" o p i n i o n and t h e "NO1! o p i n i o n . H y p o t h e s i s 3 was a n a l y s e d

by a d o p t i n g t h e t- t e s t .

20th p r imary and seconda ry s o u r c e s were employed by t h e

r e s e a r c h e r i n o r d e r t o c o l l e c t d a t a f,rorn b o t h t h e r e s p o n d e n t s

and n o n r e s p o n d e n t s .

PI?ZEU?-SQU?CZS ---------------

In o r d e r t o e l - i c i t ; d i r e c t i n f o l m a t i o n f rom t h e r e s p o n d e n t s

t h o p r e s e n t r e s e a r c h e r a d o p t e d o r a l i n t e r v i e w method and a l s o

t h e q u e s t i o n n a i r e method .

SECQEDABY-SDIJdCEL -------------..----

The r e s e a r c h e r a l s o made u s e of ' w r i t t e n m a t e r i a l s s u c h as

b c . 7!1:-;, newspapers , m z a z i n e s , p e r i o d i c a l s and h i g h l y e d i t e d

acacemic p a p e r s i n o r d e r t o gathc:. t h e n e c e s s a r y d a t a .

No_TEU-s_/_EEEN,c_E ---------------

1. Two s e p a r a t e q u e s t i o n n a i r e s were a d m i n i s t e r e d t o t h e s m a l l

sca$e e n t r e p r e n e u r s and t h e l a r g e s c a l e b u s i n e s s owners.

T h i s was c a r r i e d o u t i n o r d e r t o obta in . an. o b j e c t i v e

0p . in ions o f t h e s e r e s p o n d e n t s on. t h e c o n t r i b . u t i o n s o f t h e

s m a l l s c a l e manufac tu r ing f i r m s i n O n i t s h a Sou th l o c a l

government a-ea.

a. Obeleagu - Nzel ibe Chinelo : "BUSINESS STATISTICS Theors and application^'^ O p t i n a l P u b l i s h e r s , Enugu, 1995.

3. Udeogu, C . : S t a t i s t i c a l Method, unpubl ished memeogrqh- f o r T k k VgV92 MBA. S t a t i s t i c a l . c l a s s i n . th.e U n i v e r s i t y o f Nigeria, Enugu Campus.

T h i s c h a p t e r d e a l s w i t h t h e t a b l e p r e s e n t a t i o n and

d i s e n s s i o n o f d a t a c o l l e c t e d w i t h t h e two s e t s o f q u e s t i o n n a i r e s

AGE D I STRI BUTION OF RESPONDENTS UNDER SECTION tXX" CSMALL-SCALE MANUFACTURING FIRMS)

AGE - NUMBER PER CENTAGES

16 - ;O y e a r s 6 7. %

21 - 3 y e a r s 11 13.4%

31 - 50 y e a r s 35 4k7%

50 and above 2- 8 2 100.0% -

The above t a b l e shows t h a t t h e least numbers f a l l s w i t h i n

t h e age b r a c k e t o f 16 - 20 y e a r s , T h i s sma l l -pe rcen tage

r e p r e s e n t s s c h o o l l e a v e r s , a r t i s a n s and young employees who

d'o n o t h m e money t o e s t a b l i s h t h e i r o w f i r m s . It i s a l s o

o b s e r v e d t h a t 92.7% o f t h e r e s p o n d e n t s who f a l l w i t h i n 21

y e a r s and above are a d u l t s who have f i n a n c i a l s t a n d i n g , t o

e s t a b l i s h m a l l - s c a l e f i rms .

TOILET WATER BAKERY BLOCK TOTAL PEH- TISSUE PROOF MAKI NG CENT AGE

Number Returned 3'7 lo 15 X) 82 0.95 Not Re tu rned - - 2 2 4 0 005 ~ o t d Sample 37 lo 17 2 86 DO.O%

For S e c t i o n "XIq

Table 4.2 shows t h a t t h e smal l - sca le f i r m s under

i n ~ e s t i g k i o n - T b i l e t T i s s u e , Water P r o o f , BAery and B l o c k

Making r e c e i v e s 37, 10, 17 and 22 q u e s t i o n s r e s p e c t i v e l y . The

t a b l e d s o r e v e a l e d t h a t w h i l e r e sponden t s under T o i l e t T i s s u e

and Water P r o o f r e t u r n e d d 1 t h e c p e s t i o n n a i r e d i s t r i b u t e d

t o them, r e s p o n d e n t s under Bakery a d Block Making d i d n o t

r e t u r n 2 q u e s t i o n n a i r e s .

- - -- - -

NO. OF NO. NOT TOTAL PERCENTAGE RESPONDENTS RETURNED

T o i l e t T i s s u e

W'der P r o o f

Bak e r y

Block Making

T o t a l No. o f Respondents

44

As can be s e e n from t h e t a b l e 4.3, o u t o f 56 q u e s t i o n m i r e s

d i s t r i b u t e d anong t h e r e s p o n d e n t s under t o i l e t t i s s u e , 55

q u e s t i o n n a t t r e s were r e t u r n e d a s w e r e d w h i l e I was n o t r e t u r n e d .

I t r e v e l s t h a t 6% r e s p o n d e n t s opera te and work under t h e

t o i l e t t i s s u e f i rms , It i s a l s o ob.served from da ta c o l l e c t e d

t h a t no s m a l l - s c a l e f i r m w i t h i n t h e l o c a l government x e a

o p e r a t e u n d e r a c o - o p e r a t i v e s o c i e t y . T h i s shows t h a t t h i s

form o f b u s i n e s s i s n o t popula- among t h e e n t r e p r e n e u r s i n t h e

area.

l"Jo 01 p e r c e n t - Respondents t a g e s

T h e ~ d e s i r e t o be ones own boss

The y e a r n i n g f o r r e c o g n i t i o n and p r e s t i g e

The d e s i r e t o be r i c h

D i s c o v e r y o f o p p o r t u n i t i e s o t h e r s over looked

The d e s i r e t o do m m e t h i n g you l i k e d o i n g

The t a b l e shows t h a t 26 o r 3% o f t h e r e s p o n d e n t s i n d i c a t e d t h a t

t h e i r d e s i r e t o e s t a b l i s h a s m a l l - s c a l e f i r m was in fo rmed by

t h e i r i n A e d e s i r e t o be t h e i r o m boss. Those who a r e

i n t e r e s t e d i n r e c o g n i t i o n and p r e s t i g e where 17 o r 21% o f t h e

Sample under . I n a i d i t i o n , those w h o ~ e d e s i r e t o be r i c h i s

upper most i n t h e i r minds a r e 7 o r 105% o f t h e sample. The

t a b l e a l s o r e v e a l e d t h a t t h o s e who e s t a b l i s h e d small s c d l f i r m s

i n o r d e r t o e x p l o r e u n p o p u l x o p p o r t u n i t i e s a r e 21% w h i l e t h o =

45

h o s e motive was t o do something they l i k e doing s e 13 o r 16%

o f t h e sample.

RESPONSES PER CENTAGE

Not up t o 1 year 6 0.07

1 - 2 years 9 0, 11

3 - 4 years 18 0.22

4 y e a r s and above 49 0.60

Tota l no. of r e sponden t s 82 100.0%

Table 4.5 shovis t ha t 6 ( o r O,O7%) o f t h e respondents

e s t a b l i s h e d t h e i r f i r m s r e c e n t l y which i s not y e t up t o one

y e a r , S imi l z r ly , 9 ( o r 11%) o f t h e sample ind ica ted t h a t

t h e i r small-scale f i r m s f a l l wi thin one and two y e a r s o f age

b racke t . It i s a l s o obserxed that t h o s e enrepreneurs whose

f i r m s are between t h r e e and four yea r s o l d are 18 (Or 2&) o f

t h e sample. More i m p o r t m t l y , the t a b l e a l s o revealed t h a t

a g r e a t number o f t h e s m a l l s ca le f i r m s opera te w i t h i n the

l o e a l government x e a and have a p r o p o r t i o n of 60% o f t h e

sample s i ze ,

RESPONSES

Personal s a v i n g s 43

Borrowing from f r i e n d s and r e l d i o n s 21

Bowowing from money l e n d e r s 1

Loan from Commercial Banks and o t h e r F inanc ia l I n s t i t u t i o n s 15

O t h e r s ( S p e c i f y )

T o t a l number o f respondents

PER CENTAGE

The above t a b l e shows tha t pe r sona l saving which i s

52.4% o f t he sample form the major bu lk o f most e n t r e p r e n e u r s

sou rce o f i n i t i d c a p i t a l . I t d s o r e ~ e l s t h a t 21 ( o r 25.6%)

o f respondents source t h e i r i n i t i a l c a p i t a l th rough borrowing

from. f r i e n d s and r e l a t i o n s . The ac t o f borrowing from money

l e n d e r s i s no t populm i n the area. and as can be seen from.

t h e t e b l e , i t is o n l y 1 ( o r 1. a) o f t h e respondents i n d i c a t e d

t h a t t h e y sourced i n i t i d l y through money lenders. The t a b l e

a l s o shows t h a t 1 8 . B o f t he s imple i nd i ca t ed t h a t l o a s from

commercial banks and o t h e r f i nanc i a l i n s t i t u t i o n s formed t h e i r

s o u r c e 0 f i n i t i d c a p i t a l s t r u c t u r e .

SOURCES RESPONSES

Equi ty F i n a n c i n g 2

In. t tknal s o u r c e 8

Loan from f i n a n c i a l i n s t i t u t i o n s 5

Government g r a n t s and s u b s i d y 7

Borrowing from f r i e n d s and r e l a b i o n s 9

T o t a l number o f r e s p o n d e n t s 82

Wrsinesses and more i m p o r t m t l y manufactur ing

PER CENTAGE

f i rms need

more funds as t h e y grow. Table 4.7 shows t h a t e n t r e p r e n e u r s

who sourced a d d i t i o n a l f u n d s t h r o u g h e p l i t y a r e 22 ( o r 26.8%)

o f t h e respondents . It i s d s o i n d i c a t e d t h a t t h e r e s p o n d e n t s

who f inanced i n t e r n i l l y are (8 o r 9.8%). Moreover, t h e t a b l e

shows t h a t t h o s e who sourced t h r o u g h f i n a n c i a l i n s t i t u t i o n s

a r e 36 ( o r 43.9%) o f t h e sample s i z e . Then t h o s e e n t r e p r e n e u r s

who sourced t h r o u g h government g r a n t s and s u b s i d y and t h o s e who

borrowed d d i t i o n d f u n d s from f r i e n d s and r e l a t i o n s are 7

( o r 8.%) and 9 ( o r 11%) r e s p e c t i v e l y .

ITEMS PER CENTAGE - RESPONSES

Yes 61 74.4%

NO 2 1 25.6%

~ o t d No, of respondents 82 100.0%

Table 4.8 shows t h a t 61 o r 74.4% o f t h e respondents have

a p p l i e d f o r loans i n t h e commercial banks f o r t h e i r o p e r a t i o n s

w h i l e 21 o r 25.6% o f t h e respondents have no t . These respondents

c o u l d be m a l t h y e n t r e p r e n e u r s who are f i n a n c i a l l y bouyant t o

carry o u t t h e i r businesses .

ataWL~~~THE~P_ROPO_RTIO_N~O_F_THOSE~ENT_R_EEi_RE~E,v_R_S_WHO~S_U_C_CEEDED ----------------------------------------------------------- I N O B T A I N I N G LOANS FROM THE COMMERCIAL BANKS ............................................ ............................................

ITEMS RESPONSES- PER CENTAGE

Yes 23 28.0%

NO 59 m T o t a l No. of respondents 82 loO.O%

The t a b l e shows t h a t o u t of 61 respondents who a p g l i e d f o r

l o a s i n commercial banks, i t ms o n l y 23 o r 28% o f them

succeedM i n o b t a i n i n g the loan, However, 59 o r 72% o f t h e

respondents d i d not slcceed i n o b t a i n i n g the loan, Th i s shows

t h a t most commercial banks a r e n o t h e l p f u l t o ma l l - s ca l e

rnmufac tur ing firm owners.

ITMS

Lack o f government a i d s

Management and o rgan i sa t iona l d i f f e r e n c e s

Lack o f s u i t a b l e f a c t o r y premises

R i s i n g c o s t o f raw m a t e r i a l s

U n a x a i l a b i l i t y of p roduc t ion equipment and machines

\ .

T o t a l Number of Respondents

RESPONSES PER CENTAGE

a 3 . 1 %

The above tab le shows d i f f e r e n t problems facing

d i f f e r e n t en t r ep reneu r s i n the o p e r d i o n s o f h i s f irm. The

t a b l e shops t h a t t h e respondents whose major problem is

l a c k i f government a i d s a r e 28 o r Jb. @ o f t h e m p l e s ize .

Management and o rgan i sa t iona l d i f f e r e n c e s i s no t a problem

t o a y o f t h e respondents. Lack o f s u i t a b l e f s t o r y premises

i s a l s o a problem t o on ly 5 o r 6. % o f t h e respondents. The

t a b l e a l s o r evea l s t h a t r i s i n g cos t o f r m m a t e r i a l s i s t h e

most p r e s s i n g problem t o t h e mqjor i ty o f Chspondents. As

can be seen thorn t h e t a b l e 30 O r 36.6% o f t h e respondents

i n d i c a t e d t h a t t h i s f aces t h e e f f e c t i v e o p e r d i o n o f t h e i r

e n t e r p r i s e . However, o t h e r respondents (19 o r 2 3 . a ) o f them

50

consider u n a r a i l a b i l i t y o f p roduc t ion equipment and machines

a s t h e i r own problem.

ITEMS - RESPONSES PER/XENTAGE

Yes 82 10075

Total No. o f Respondents 8 2 0%

The d o v e t a b l e shows t h a t t h e smal l - sca le f i r m s h e l p t he

e n t r e p r e n e u r s t o generate revenues w i t h i n t h e l o c a l government

area. A s such 100% o f t h e en t r ep reneu r s i n d i c a t e t h a t they

genera te revenues from t h e i r bus iness opera t ions .

ITEMS

Yes

No

RESPONSES PER CENTAGE

65 7 9 . 3

17 a*% Tota l No. o f Respondents 82 1 0 0 . ~

The t a b l e r e v e a l s t h a t 65 ( o r 7 9 . 3 ) o f t h e respondents

i n d i c a t e t h a t they p q cornpay tax whereas 17 o r (20.7%() i n d i c a t e

51

r e v e a l e d t h a t a g r e a t e r pe rcen tage o f t h e s e c a t e g o r y o f

r e s p o n d e n t s con!e from block-making i n d u s t r i e s .

ITEMS

Yes

No

RESFONSES PER CENTAGE

T o t a l No. o f Respondents 82 100.0%

T h e above t a b l e shows t h a t o u t o f 82 r e s p o n d e n t s who

r e t u r n e d t h e i r a s w e r e d q u e s t i o n n a i r e s , 47 ( o r 57.3);) o f t h e

r e s p o n d e n t s pay income tax whereas 35 ( o r 42.7%) do no t pay

income tax. The r e s e a r c h e r a l s o obse rved frorn t h e t a b l e s

4.12 and 4. 13 t h a t 18 ( o r 2Z0k) o f t h e r e s p o n d e n t s who pay .. .

company t a x do n o t pay income t a x .

ITEMS

Yes

No.

- K5PONSES PER CENTAGE

65 79 Y o

,To La1 Yo . o f: rcsp oncen t, s b2 100. 0%

A s can be o b s e r v e d ;'ri - , i . ! ,e t a b l e , G>(or 79.313) o f t h e

w i t h t h e l o c a l government e s p e c i a l l y t h e s a n i t a t i o n and

o t h e r l e v i e s r e q u i r e d o f them by t h e l o c a l government.

ITEMS

YES

RESPONSES PER CEKTAGE

No. 34 - 41 . 5ob T o t a l no. o f r e s p o n d e n t s 82 - 100. @%I

The above t a l e i n d i c a t e s t h a t 48 ( o r 58.576) o f t h e

r e s p o n d e n t s m&e d i f f e r e n t s i z e s o f t h e i r p r o d u c t s w h i l e

n o t . The i d e a o f d i f f e r e n t s i z e s i s t o i n c r e a s e

t h e s i z e c f t t i e i r market a d conven ience on t h e p a r t o f useage.

-.- ITEMS

Tax h o l i d a y s 1

~ i s c o v e r i e s / i n a e n t i o n s from i n d u s t r i a l dev . S r e s e a c h 15 c e n t r e s

~oan/Crcdl t . from l o c a l 1

government a g e n c i e s

U t i l i t y s e r v i c e s ,i ' G /- 56.1

A1.L of' i l , t , atcve 1 t j (- 23.2 -- - 'Total no, (1:' r e s p o n d e n t s h2 100.0%

23

Local government do o f f e r some s o c i a l and f i n a n c i a l

a s s i s t a n c e t o t h e b u s i n e s s o p e r a t i n g w i t h i n them. The t a b l e

above shows t h a t i t i s o n l y ( o r 1.2) r e s p o n d e n t s t h a t ber,kiEit

t h r o u g h tax h o l i d w s . Those who e n j o y d i s c o v e r i e s and

i n v e n t i o n s by i n d u s t r i d deve lopmen t and r e s e a r c h c e n t r e s a r e

15 ( o r 18.3%). It i s o n l y one r e s p o n d e n t t h a t i n d i c a L e s t h z t

he r e c e i v e s l o a s and c r e d i t s f rom t h e l o c a l government

z g e n c i e s w h i l e t h o s e who e n j o y u t i 1 i . t ~ s e r v i c e s l i k e w a t e r ,

p o w r and r o d s a r e 46 t o r 5 6 . ~ 6 ) . hrowver , 19 ( o r 23.276) o f

t h e r e s p o n d e n t s i n d i c a t e t h a t t h e y b e n e f i t t h r o u g h d l t h o s e i t e m s .

The t a b l e r e v e a l s t h a t t a x h o l i d q s and 1 o a and c r e d i t s e r v i c e s

a r e n o t popular means o f z s i s t i n g t h e smdl f i r m s by t h e f o c a l

l o c a l government .

--

ITZM

Very d e q u a t e

I n a d e q u a t e - 63 74. 3; Tota l no. o f r e s p o n d e n t s 82 100 .Oj% -

54

g o v e r n m e n t ' s lukeworm a t t i t u d e s t,o.wards t h e o p e r a t i o n s o f t h e

s m a l l - s c a l e f i r m s i n t h e a r e a .

ITEM

Yes

RESPONSES PER CENTAGE

T o t a l No. o f r e s p o n d e n t s 82

Tab le 4.22 r e v e a l s t h a t 48, ( o r 58.5%) o f t h e r e s p o n d e n t s

engage i n social . r e s p o n s i b i l i t i e s w i t h i n t h e f o c a l l o c a l

gove rnmen t a rea while 3 ( o r 41.5%) o f them do no t .

You wash/sweep them i n t o t h e g u t t e r

You w s h / s w e e p them i n t o pas&b. le r o u t e s

You d i g a t r e n c h a d d i r e c t e d t h e w a s t e i n s i d e

You move them t o r u b b i s h c o l l e c t i o n c e n t r e s

You leave t h e was te l y i n g & o u t y o u r b u s i n e s s p r e m i s e s

T o t d n u m b e r o f r e s p o ~ d e n t s

RESPONSES

13

PER CENTAGE

15 8%

Ps c z n b e s e e n from t h e t a b l e , t h o s e r e s p o n d e n t s wash and .

s v e e p t h e i r i n d u s t r i a l . w a s t e s i n t o t h e p u b l i c g u t t e r a re 13

( o r 15. 8%) w h i l e t h e i r c o u n t e r p a r t s wino d i g t r e n c h anci d i r e c t

t h e c m s t e s i n s i d e a re jL+ o r 41.5%. I n z d i t t i o n , t hose who move

them i n t o t h e r u b b i & c o l l e c t o r c e n t r e s a r e 35 ( o r 42.776) o f t h e

s m p i e s i z e . However, none o f t h e r e s p o r - d e n t s u n d e r s t u d y

i r i d i c a t e d t h a t t h e y e i t h e r sweep t h e i r i n d u s t r i a l w a s t e s i n t o the

par,r:'clc r o u t e s o r 1 e a e t h e v a s t e 1 y j . n ~ & o u t t h e i r bucii :~ess

~ r ~ r n i ses,

Yes

- RESPONSES PES CENTAGE

82 10 076

No - --

T o t a l no. o f r e s p o n d e n t s 8 2

The t a b l e s h o v ~ s t h a t a l l t h e e n t r e p r e n e u r s i n d i c a t e t h a t

t h e y employ v a r k e r s . T h i s shows t h a t .mall s c a l e f i r m s

c o n t r i b u t e t o t h e r e d u c t i o n o f e r n p l o y m e ~ t o p p o r t u n i t i e s and

t h a t no m a n u f x t u r i n g f i r m can e x i s t w i t h o u t m p l o y i n g l a b o u r .

---- ITEMS

- RESPONSES PER CENTAGE

18 a.9%

1 1 - a 19

21 - 9 9

31 - 41 21

41 and above 5

Tota l no o f r e s p o n d e n t s 82 -

A s t h e t & l e show^ 18 ( o r 21,3?<) o f t h e r e s p o n d e n t s employ not

more Lhzn 10 v iorkers w h i l e 19 (23.36) employ between 3.1 a n d 20

T : -. 5 7

However, 21 ( o r a*@%) i n d i c a t e t h a t t h e y employ between

31 a n d 40 m r k e r s . Those e n t r e p r e n e u r s who employ 41 w o r k e r s and

above form 18.377 o f t h e r e sponden t s .

ITEMS RESPONSES FEH CENT AG E

T o t a l no. o f r e s p o n d e n t s 82 lOO.0"b -

The above t a b l e r e v e a l s t h a t 71 ( o r 86.6%) o f t h e

r e s p o n d e n t s i n d i c a t e t h a t t h o s e firm h e l p t o redvce was te

wk~ereas 11 ( o r 13. 4$$.) s a i d no t o t h e q u e s t i o n . These w a s t e s

c o u l d be i n t h e fcrm o f u t i l i s i n g t h o = m a t e r i d s a n d

subs t ances t h a t vto u l d have been u s e l e s s ,

58

T h e t a b l e shovs that all t h e r e s p o r i d e n t s are o f t h e

o p i n i o n tha t s m a l l - s c a l e fi! ms d e v e l o p i n d u s t r i d &i l l s i n the

i. n d i g e n e s o f t h e 1-ocal government e s p e c i d l y t h e young s c h o o l

l e ave r s .

They have m d e g r e a t c o n t r i b u t i o n s

T h e y h a e made modera t e c o n t r i b u t i o n s

T h e y h a v e made a l i t t l e c o n t r i . b u t i . o ~

RESlPoNSES PER CENTAGE ---

44 53.6%

T h e y have mxle no ... - s i g n i f i c m t c o n t r i b u t i o n s -

T o t a l no. o f r e s p o n d e n t s 82 -

The t a b l e i n d i c a t e s t!lz?. t h o s e r e s p o n d e n t s who have t i l e

v i e r : t ha t s m d 1-seal e f i r m s !i24e mzde g r e a t c a n t r i b u t i o n s t o

ITEMS -- Yes

PER CENTAGE

T o t a l no. o f r e s p o n d e n t s a3

The t,&l e shows t h a t 8 ( o r 40%) o f t h e X) r e s p o n d e n t s

mapped o u t for. & u d y iMdicatea t h a t small fir~ns pose

c h a l l e n g e s t o t h e l a r g e o n e s w h i l e 12 ( o r 60%) a re o f t h e

c o n t r a r y v i e v ~ .

Yes

No

T o t d no.

FER CENTAGE

The t a b l e shows t h a t a g r e a t p r o p o r t i . o n o f l a r g e f i r m

owners do n o t b e l i e v e . t h a t t h e p r o d u c t s o f s m a l l - s c a l e f i r m s

a r e o f h i g h q u a l i t y v h i l e i t i s o n l y 2 ( o r 10%) o f t h e

sample r e g a r d t h e i r p r o d u c t s as o f g r e a t q u a l i t y .

I T EN S EESPO NSES FER CENTAGE

Yes X) 10 0%

No - - - - ~ o t a l no. o f r e s p o n d e n t s X ) 0 0%

- -

Table 5.3 i n d i c a t e s t h a t 100% o f t h e r e s p o n d e n t s

b e l i e v e t h d s m a l l f i r m s g e n e r a t e empLoyment o p p o r t u n i t i e s

f o r t h e u t i l i t i e s o f t h e l o c a l government a-ea.

Y_Q~~-.QP~~~S)P_-Q,M-T!E-~Qr\~~J_B_UTIQN_S-Q_F__SNALLZSC_&&E-FI~MS ON-T..i-1.& ------------------------------------------------------------ ECONCYIC DEVELOPMERT OF ONITSHA-SOUTH LOCAL GOVERNMENT AREA - ---------------------------------------------------------- - ----------------------------------------------------------

---.- ITEMS I: L<:d90?:SES - -- PER CEKTAGE -- --- They hdve nlade g r e a t c o n t r i b u t i o n s J z 15%

T h e y i i w c modera te c o n t r i b u t i o n s 10 50% T h e y have made l i t t l e c o n t r i b u t i o n s 6 9% They h m c m a l e no s i g n i f i c a n t c o n t r i . ? i i r I..iorj.s

61

A s can be observed from t h e t a b l e 3 ( o r 15y6) o f t h e

r e s p o n d e n t s i n d i c a t e t h a t small. f i r m s have rnade g r e a t

c o n t r i b u t i o n s w h i l e 10 ( o r 50:L) c o n s i d e r t h e c o n t r i b u t i o n s as

b e i n g moderate. I n d d i t i o n 6 ( o r PYL) and 1 ( o r 5%) o f t h e

r e s p o n d e n t s are o f t h e o p i n i o n tha t t h e s m a l l f i r m s hare made

l i t t l e and no s i g n i f i c a n t c o n t r i b u t i o n s t o t i le economic

development of O n i t s h a S o u t h l o c a l government a r e a

r e s p e c t i v e l y .

TEsTING-T~E-~YPOTHESI S ......................

T h i s c h a p t e r d e a l s w i t h t e s t i n g o f h y p o t h e s i s which were

p o s t u l a L e d i n c h a p t e r f o u r . The a n a l y s i s o f t h o s e h y p o t h e s i s

was d o n e u s i n g t a b l e s and f i g u r e s were neces sa ry .

YPOTHESIS 1 p:=:=::...== TABLE 6,1 - ------ - --------

T h i s h y p o t h e s i s a n d y s e d t h e d i f f e r e n c e between t h e

o p i n i o n o f t h o s e r e s p o n d e n t s who b e l i e v e t h a t s m a l l - s c a l e

m a n u f a c t u r i n g f i r m s c o n t r i b u t e t owards t h e r e d u c t i o n o f

unemployment i r , O n i t s h a - S o u t h l o c d government a r e a a n d t h o s e

who have c o n t r a r y v iew p o i n t .

The t a b l e s u sed f o r t h i s a n a l y s i s are t a b l e s 4 . 2 0 ai.d

4. 3 o f m c t i o n l fXIt o f c h a p t e r 4.

TA3LE NO. ITEMS(4.26 Z 4.29) YES Ecl . DEBEilETfCE

XI e s y o u r b m i ness 4 . 21, employ v,orkexs 82 0 82

( 1oo:L) ( 0;: )

4. L?g Do t h e smal .1-scale f i r m s d e v e l o p

i n d u s t r i a l s k i l l s 56 16 i n t h e i n d i g e n e s

50

o f t h e l o c a l overr rimer it a rea . ( 6 0 . %':. 1 ( I ? . 5;:)

b3 I n t h e a b o v e t a b l e t h e i t e m s u n d e r c o n s i d e r a t i o n a r e

l i s t e d a g a i n s t t h e i r r e s p e c t i v e numbers i n c h a p t e r f o u r .

The f r e q u e n c y o f po.s i t ive o p i n i o n ffYesl1 i s conpa-ed t o

t h e f r e q u e n c y of ' n e g a t i v e o p i n i o n "Novv and t h e d i f f e r e n c e i s

e n t e r e d i n t h e 5 t h column.

I n d d i t i o n , t h e mem o f t h e flYesl' c o l u m n a d tfNolf co lumn

a r e t a k e n i n d i v i d u a l l y m d t h e d i f f e r e n c e between them i s

d e t e r m i n e d and e n t e r e d in t h e a p p r o p r i a t e co lumn.

The t a b l e r e v e a l s t.hat i n t h e i t e m NO. 26 t h a t t h e I1Yesl1

o p i n i o n i s 100yA whereas t h e "Noft o p i n i o n i s n i l . Again i n t h e

i t e n : Kumber 29, t h e flYesll o p i n i o n h a s 80.50d w h i l e t h e Wof l

o p i n i o n has 167L. T h e d i f f e r e n c e i n t h e t o t a l p e r c e n t a g e s h o v ~ s

t h z t 565 o f t k e r e s p o n d e n t s i n d i c a t e d t h a t s m a l l - s c a l e f i r m s

employ v ~ r k e r s . B a e d o n t h i s d i f f e r e n c e , VE s h a l l r e j e c t t h e

n u l l h y p o t h e s i s and c o n c l u d e t h a t s m a l l - s c a l e liianu f a c t u r i n g

firms co n t r i b u t e t o t h e r e d u c t i o n o f unenployinent i n O n i t s h a

S o u t h l o c a l government area .

;:ill i L, hyr ,o t i i e s i s 2 ; s l y s e d t k e d i s 'zerence between t h e vieci

p o i n t s o f t h o s e viho b e l i e v e t h a t s i n d . 1 - s c d c f i r m s c o n t r i b u t e

t o w . r d s t h e envi ronrxentd . p r o t e c t i o n in tile x e a arid t h o s e who

time c o n t r a r y view p o i n t .

'The t a b l e s fo i* -IfAi s a n a l y s i s are 4. 14, 4.22, aqd 4.23.

TABLE N O . ITEMS YES NO D I FFEREIG CE

4. 14 Paymefit o f S a n i t a - l e v i e s and o t h e r s r e q u i r e d o f mall 65 17 1 1 48 s c a l e f i r m s (79.36) ( x U 7 % ) ( 58. 6 % )

Does t h e small s c a l e f i r m engage i n 48 3 ut EO c i a 1 r e s p o n s i b i l i t y (58.5%) (41.5%) ( 17%)

Do t h e b u s i n e s s ~ ~ e a n i ~ ~ f i n n d i s p o s e t n e l r i n a u s t r l a 82 0 6 2 viast e s a p p r o p r i a t e l y ( 1 0 0 % ) J 1Q.W

The above t a b l e shows the i t e m s f o r t h e analysis Q f

t h e h y p o t h e s i s 2 w i t h t h e i r c o r r e s p o n d i n g v d u i e s arid

p e r c e n t % e s . The i t e m number 14 has t h e I1YesT1 o p i n i o n of 65

( o r 79.3;) a n d llNon o p i n i o n o f 17 ( o r X).%) t h e r e b y shovd-ng

a d i f f e r e n c e o f 1-18 ( o r 58.@4). S i m i l x l j i i t e m number 4.22

h a s I1Yesf1 o p i n i o n of L@ ( o r 5 8 3 ) and I1Nof1 o p i n i o n of 3

( o r 41. 5%) w i t h a d i f f e r e n c e o f 14 ( o r 1776). Ih d d i t i o n ,

i t e m number 4.23 h a s 100% o f "Yesff o p i n i o n w i t h "n i l t1 o p i n i o n . - T h e t a b l e a l s o shows t h a t t h e mean ( X ) o f f1Yes18 o p i n i o n i s I,?,

I t i s a l s o obscrved t h & t h e p r o p o r t i o n o f t h e I1Yes1@ o p i n i o n

i s g r e a t e r t h a t h e p r o p o r t i o n o f lfT\Joll o p i n i o n . Eased on t h i s

-YP r e j c c t t,he nr:J7. l ~ g p o t h e s i . ~ . mc: z c c e p t t h e a l t e r n a t i v e

HYPOTHESIS 3, __--------- ____---------

T h e h y p o t h e s i s t e s t s t h e d i f f e r e n c e between t h e o p i n i o n

o f t h e s m a l l - s c a l e f i r m owners and t h e l a r g e s c a l e owners

o v e r t h e c o n t r i b u t i o n o f t h e s m a l l - s c a l e manufactur ing f i rms

t o t h e economy o f Oni tsha-South l o c a l government a r e a . The

h y p o t h e s i s i s t e s t e d u s i n g t h e t - s t a t i s t i c s .

= S m p l e p r o p o r t i o n f o r t h e f i r s t s a n p l e

= Sample p r o p o r t i o n f o r t h e second sample

= p o p u l a t i o n f o r iile f i r s t sample

= p o p u l a t i o n f o r t h e second sample

DECISIOK -------------- CRITERIA --- - -------- --------

S e j e c t N u l l h y p o t h e s i s (HO) i f Z ~ 2 . Put t t ~ e o t h e r way

round, we a c c e p t tile h y p o t h e s i s

z 1.96 ( c r i t i c a l v a l u e )

Level o C s l g n i f i c a n c e = 0.05

C r i t ic;: i. v a l u e z ~ / 2 = A1.96

which r e p r e s e n t t h e o p i n i o n s o f t h e s m a l l - s c a l e f i rm: owners

and t h o s e o f t h e l a r g e s c a l e f i r m owners on tkie g e n e r a l

c o n t r i b u t i o n s o f t h e s m a l l - s c a l e f i r m s t o t h e economic

development o f O n i t s h a S o u t h l o c a l government a r e a .

The sample s i z e s a r e n1 = 8 2 , n2 = 20

Sample p r o p o r t i o c p, = 24 8 2 i . e ( G r e a t c o n t r i b u t i o n +

moderate c o n t r i b u t i o n ) - T o t d sample

- _- l3 i . e (Grea t +. Moderate c o n t r i b u t i o n ) P2 - X) m p l e s i z e

z i s g r e a t e r t h a n t h e c r i t i c d v a l u e and t h e r e f o r e we x c e p t

t h e n u l l h y p o t h e s i s t h a t t h e r e i s no s i g n i f i c a n t d i f f e r e n c e

between t h e o p i n i o n s .

HY_PG'H_E_SIS ----------

T h i s a n a l y s e d t h e d i f f e r e n c e i n t h e v iew p o i n t s o f t h o s e

r e s p o n d e n t s who i n d i c a t e d t h a t t h e s m a l l - s c a l e f i r m s h e l p t o

r e d u c e waste i n t h e economy o f On i t sha -Sou th l o c a l government

a r e a a n d t h o s e vho have 2 cnns - tb ra s t ing v iew p o i n t s . The t a b l e s

for xia1.ysis a r e t a b l e : ; 1 ; . 2::': and 4.31.

I n t h e s e t a b l e s t;kc f r e q u e n c i e s o f t h e "YesI1 o p i n i o n a d "nu

o p i n i o n ars con:p.uted 2 ri ;)r,ccr t o d e t e r m i n e t h e d i f f e r e n c e : in

68 - t h e i r d e g r e e o f o c c u r a n c e . T h e i r r e s p e c t i w e mean ( X ) i s

a l s o d e t e r m i n e d .

TABLE NO, YES NO

The above t z b l e shovs t h e v a l u e s and p e r c e n t a g e s o f t h e

o p i n i o n s o f t h e r e s p o n d e n t s o n t h e r e d u c t i o n o f v a s t e and

i n c r e a s e i n t h e s u p p l y o f goods and s e r v i c e s i n t h e a r e a by t h e

s m a l l s c a l e f i r m s . The t a b l e a l s o r e v e a l s t h a t t k e p r o p o r t i o n

o f llMO1l o p i n i o n f o r b o t h i t e ; ; ~ s . The d i f f e r e n c e i n t h e r e s p e c t i v e

i t e m s i s d i s t i n c t i v e l y c l e a r . The mean(X) v a l u e s o f b o t h i t e m s

me 7 0 ad 12 w i t h a d i f f e r e n c e o f 58 ( o r 70.7%). We t h e r e f o r e

r e j e c t t h e n u l l h y p o t h e s i s and z c e p t t h e a l t e r n a t i v e h y p o t h e s i s .

1. Cbe! eagu-Nze1. i be C h i n e l o : ltSUSINE,SS STFiTIS1i'ICS" T h e o r y and A p p l i c a t i o n s . Op L i r n a l P u b l i s h e r s , Enugu, 1995

T h i s p r o j e c t work uas c a r r i e d o u t wi th a v i e w t o

i n v e s t i g d i n g t h e c o n t r i b u t i o n s o f t h e s m a l l - s c a l e

m a u f a c t u r i n g f i r m s t o t h e economic d e v e l o p m e ~ t o f O n i t s h a

S o u t h l o c a l government at.-a. To c a r r y o u t t h i s r e s e a r c h

r e s p o n d e n t s and f i r m s ve re drawn f rom ti .e l o c d g o v e r n n e n t

area. The r e s e a r c h e r avo ided i n t e r v i e w i n g and a d m i n i s t e r i n g

q u e s t i o n n a i r e s t o t h e i l l i t e r a t e members o f t h e S O C : ~ et_v 3 l i

~ r d e r t o r educe t h l o - ! ; ~ ; . : r r~ 0 5 ' b,!;y a,A l u s u b j e c t i v i t y .

Tho &uby r e u e a l e 3 t h a t among t h e numerous r e l ~ o n s why

p e o p l e go i n t o mal l . - sca le f i r n s , that t h e d e s i r e t o become

o n e s own b o s s i s u p p e r m o d i n t h e minds o f t h e r e sponden t s .

T h i s i s one o f t h e good a t jpec t s o f t h e e n t r e p r e n e u r ' s l i f e . It

a1 s o reveal ed t h a t t h o s e e n t r e p r e n e u r s r e l i e d h e a v i l y on

personal. . q v i n g s as t h e sc,~Lirce o f t h e i r i n i t i a l c a p i t d . w h i l e

borrow? ng from f r i e r d s =c' loan f r o m commercial b a k s are

seconda ry s o u r c e s . This c o u l d be i n t e r p r e t e d from t h e p o i n t o f

v i ew o f I . x k o f comrnercid banks & e q u a t e a s s i s t a n c e t o t h e small

s c a l e e n t r e p r e n e u r s i n t h e sea. T h i s expose was drawn from

c h a p t e r f o u r under t a b l e s 14.4 and 4.6 .

The? r e s e a r c h al. s:, r e v e a l e d t h a t o u t of ' 61 r e s p o n d e n t s who

ap p!.i.ed ?o:* l o a n s f rom t h e c ~ r n m e r c i a ? ~ bbsnks, i i. w s o n l y 23

7 , ! . p e r . succeeded i n obia i .n i r ig t,t'!ie l o m . 11::is % r e e d i ; f ~ t h

tk;e ~-,c::j,~,..i , : ' , + o n tllat j.:: ..-..- :,:,:: ;:; c n 1 y 15 p e r so n s o I- 1.3 . 3 I o f t h e

. . s a x p i c : . ' ,,, c:i.io hme ].oa:r. Tram f i .nar ic i& i i ;~ i : , ; . ;.;i;iLoli,s as p a t ; . . , " . i - ::,f t h e i , . . ,,-.zI. ca;, Itdl sSt;ructure. Tk1is re\--. i ;.;: i : J Z ims made

T h i s p r o j e c t work uas c a r r i e d o u t wi th a v i e w t o

i n v e s t i g a h i n g t h e c o n t r i b u t i o n s o f t h e s m a l l - s c a l e

m a n u f a c t u r i n g f i r m s t o t h e economic developmect o f O n i t s h a

S o u t h l o c a l government irt-a. To c a r r y o u t t h i s r e s e a r c h

r e s p o n d e n t s and f i r m s ve re drawn f rom t1.e l o c d g o v e r n n e n t

area. The r e s e z r c h e r avo ided i n t e r v i e w i n g and a d m i n i s t e r i n g

q u e s t i o n n a i r e s t o t h e j.!:iterate members o f t h e soc5 et.y -i I ,

t ~ r d e r t o r educe 'hi 0 . , I , : r CF' C. '' ?I-' :E aid s u b j e c t i v i t y .

Tho @tad: reveal € 3 that among t h e numerous reisons why

p e o p l e go i n t o mall -s-<ale f i r n s , t h a t t h e d e s i r e t o become

o n e s owl b o s s i s u p p e r m o ~ t i n t h e minds o f t h e r e sponden t s .

T h i s i s o n e o f t h e good a s p e c t s o f t h e e n t r e p r e n e u r ' s l i f e . It

a1 s o r evea l ed t h a t t h o s e e n t r e p r e n e u r s r e l i e d h e a v i l y on

persona l s w i n g s as t h e sclurce o f t h e i r i n i t i a l cap i t a l . w h i l e

'oor ro l~ i n p from f r i e c d s a d l oan f r o m commercial b a k s are

seconda ry s o u r c e s . T h i 5 c o u l d be i n t e r p r e t e d from t h e p o i n t o f

v i ew o f I . x k o f commerc id banks & e q u a t e a s s i s t a n c e t o the small

s c a l e e n t r e p r e n e u r s i n t h e area. T h i s expose vjas drawn from

c h a p t e r f o u r under t a b l e s 4 .4 and 4.6.

Thc ~ ' e s e a r c h d.sc : .evealed t h a t o u t of ' 61 r e s p o n d e n t s who

70

more a t h e n t i c by r e f e r r i n g t o c h a p t e r f o u r under t a b l e s

4 .0 and 4.9.

Another i n t e r e s t i n g r e v e l a t i o n i s i n t h e a r e a o f

improvemen t i n l o c a l t echno logy . A s u r v e y o f l o c a l a luminium

p o t s - m z k i n g f a c t o r y at Creek r o d Fegge Oni t sha , r e v e a l e d t h a t

t h e s e p o t s a r e o f h i g h s t a n d a r d . The m a n u f a c t u r i n g p r o c e s s i s

w o n d e r f u l a d t h e l e v e l o f t echno logy i n v o l v e d i s e n c o u r a g i n g ,

By so d o i n g , t h e s m a l l - s c a l e f i r m s h a r e made a g r e a t

c o n t r i b u t i o n t o bo th t h e t e c h n o l o g i c a l knorc-how and t h e

economy o f O n i t s h a S o u t h l o c a l government a r ea , T h i s was

c l e a r l y s t a t e d i n c h a p t e r f o u r , under t h e t a b l e 4.30,

The r e seach w r k d s o r e v e a l e d t h a t i n t h e face o f

p e r t i n e n t p roblems f a c i n g t h e s e f i r m s c o u p l e d wi th h i g h d e g r e e

o f economic h z d s h i p i n t h e c o u n t r y , t h e s m a l l - s c a l e

e n t r e p r e n e u r s s t i l l make p r o f i t s . T h i s c o u l d mean t h z t t h e

s t a n d a r d and q u a l i t y o f t h e i r p r o d u c t s i s h i g h . Because

c o n s u m e r s p z t r o n i s e f i m s whose product:. q u a l i t y i s h i g h t h e

o p e r a t i n g m a n u f a c t u r i n g f i r m s g e n e r a t e r e v e n u e from t h e i r

b u s i n e s s o p e r a t i o n s . These e x p o s i t i o n s were c l e a r l y

i l l u s t r a t e d i n c h a p t e r f o u r , under t a b l e s 4.11 and 4.25,

The s t u d y a l s o showed t h a t d e s p i t e l a c k o f government

b e n e f i t s and t a x h o l i d a y s , t h e s e s m a l l s c a l e f i r m s s t i l l

engage i n a l l s o r t s o f b u s i n e s s s o c i a l r e s p o n s i b i l i t i e s , pay

Li1e:i.r f i n a n c i a l o 'ulj- i ,et ior:s and vrhat i s more h e l p i n r e d u c i n g

unempl.ogrnent proble:;is i . n t h e a r e a . These i m p o r t a t re - tc ld . i o n s

w e r e c l e a r l y i l l u s t !*at eci i n ci,<j t e r f o u r unde r t s b l e s 4. 12, 4. 13,

!i . CO , 14 . 22 an d 4.. 3: .

Dur ing t h e c o u r s e o f t h i s r e s e a r c h work, t h e r e s e a r c h e r

e ~ c o u n t e r e d some p e r t i n e n t problerns which l i m i t e d h i s a b i l i t y t o ;

C m r y o u t t h i s r e s e a r c h f o r a l o n g e r p e r i o d o f t ime .

Lack o f f i n a n c e ivhich cou ld n o t a l l o w me t o t r a v e l f a r and

wide i n o r d e r t o use l a r g e r s a n p l e f o r t h e pu rpose o f t h i s

s t u d y .

The re were some u n h e a l t h y b e h a v i o u r o f some o f t h e members

o f s t a f f o f t h e chosen o r g a i s a t i o n v h i c h de lqyed t h e

gat h e r i n g o f t h e d a t a a n d i n v z i t i b l y t h e c o m p l e t i o n o f t h e

p r o j e c t w r k .

Yore i m p o r t m t l y , t i m e f a c t o r a f f e c t e d t h e p r o g r e s s o f t h i s

work ZE m a y o t h e r v r i t t e n a d u n w r i t t e n p r o j e c t s were

compe t ing fox t i l e r e s e a r c h e r ' s t i m e .

T h e f i n d i n g s o f ti.is s t u d y shovied th;t i n s p i t e o f a l l

t h e numerous o b s t a c l e s m i l i t a t i n g g z i n s t t i ;e e f f e c t i v e

o p e r - d i o u s o f t h e smal.1-scale fir.l:~s i n t h e a r e a , t h e y h a e

1besi. s t e r e d a & r e a t number o T cont r i . ' ou t ions . T h e y c o n t r i b u t e d

to t h e r e d u c t i o n i n uneiiiploymen'i, p r o v i s i o n o f i n - s e r v i c e

trai n i n g p r o g r s l x e f o r ; . h e i r s:.a:'f, i1 :cu lca t io r i o f ' sk.i.1i.s i n

I , I - , ; ; . ~ m e n t o f t a e s ;;r,d 9 = , i . . l c i p a t i o r l i u t h e s o c i a l

-~~~ : : c .n t - ! s ib i . l i Lies t o r;anc but . f: vi:,

7 : . I . ba::ed 01: I:!:! .Collo\yj I , . ! ; c~ : . - . : -~ j .b~ i . io r~r ; tl;zt i . ? i ~ . .

, 8

; . . . :.,> s r - r: t; !: 2-5 :: :> 7 m p y\!.i, t j? !; )i L- ?';j ' : ,%:.~: ' , ; rc:f:o j!: ). :.I !I :!, , _ ,,.I.,

\ ? i t h t i le p r e s e n t economic r n s a i s e i n I l ' igerlc, no f i r m :

ill. s a r v i v e d e q u a t e l y v . i t hou t g o v e r n m e n t ' s a5sic ; tance.

T h e r e i s a h i c h c o s t o f raw m a t e r i . a l s , s p a r e p a r t s arid l a b o u r

:~ . lhich has a d e q u a t e l y a f f e c t e d t h e s m a l l - s c a l e m a n u f a c t u r i n g

f i r m s i n t e r n s o f p r o d u c t s c o s t . The u g l y w i g h t o f t h i s h i g h

product- c o s t i s b o r n by t h e f i n d consumers . The s t u d y

r e v e a l e d t h a t 28 ( o r 34. 1);) o f t h e r e s p o n d e n t s compla ined

b i t t e r l y t h a t t h e most irr iportant p rob l em f a c i n g t h e i r

o p e r a t i o n s i s l a c k o f goverii!:!cnt. a i d s . I t i s based o n this

t h a t t h e r e s e z r k h e r i s c a l l i r ! ~ on t i : e governments t o ava rd

s u b s i d i e s a 1 2 t a x h o l i d a y s t o t h e s e i n f a n t i n d u s t r i e s s o t h a t

-[,hey v r i l l s u r v i v e t h e econociic t u r b u l e n c e o f i h e i r t a x

e n u i r o r m e n t s . The r e s e a r c h e r til so recommend t h a t t h e s e f i r n l s

b e a l l o w c ! t!:e o p p o r t u n i t y t o p a - t i c i p A e i n b i d d i n g o f f o r e x

t o r e d u c e c o s t o f impor t ed rm I -c l a t e r i a l s . This i s because t h e

e v i l o p p o s i t e wi1.l bc produced i f tLey buy t h e i r i ' o rex f rom

t h e Uzck x m k e t .

.4s a r e s u 1 . t o f t h e f l u c t u a t i o n s i n forex and u n c e r t a i n t y

firms t h a t depend on f o r e i g n r1atior. i~ f o r t h e i r rav m a t e r i a l s

i . n t h e face o f s t r i c t economic p o l i c i e s

O c e o f t h e major problems tn.& s p u r e c t h e need f o r t h i s

s t u d y , vzs l x k o f a i e q u a t e s t a t i s t i c s o n t h e number o f

o p e r a t i n g f i . m s i n t h e area. A s a r e s u l t o f t h i s , i t i s

d i f f i c u l t f o r the government t o c o l l e c t t a x e s and l e v i e s . I t

i s d s o d i f f i c u l t f o r t h e i n d i g e n e s o f t l ie l i c a l , government

a r e a t o now a b o u t t h e e x i s t e n c e o f most o f tile o p e r a t i n g f i l m s .

As a r e s u l t of t h i s l a c k o f s t a t i s t i c s , x i e q u a t e government

a i d s and s u b s i d i e s c a n n o t be p r o p e r l y de te rmined and

d i s t r i b u t e d anong t h e s e firms. These p rob lems can o n l y be

s o l v e d i f t h e government th rough i t s r?umerous a g e n c i e s f o r c e

f i r m s and o t h e r b u s i n e s s e s o p e r a t i n g i n t h e a r e a t o r e g i s t e r

b e f o r e o p e r a t i o n .

74

documentat e d f o i s a d e m i c pu rposes , T h i s w i l l h e l p

r e s e a r c h e r s and s t u d e n t s o f p r o d u c t i o n and o p e r a t i o n s

management t o a p p r e c i a t e t h e d e p t h o f t i le c o u r s e w i t h b e t t e r

unde r s t and i -ng .

\!,'hen o r g a n i s a t i o n s compete anong t h e m s e l v e s i n t e r m s o f

p r o d u c t s a u z l i t y , t h e r e i s t h e p o s s i b i l i t y t h a t t h e consumers

w i l l be s a t i s f i e d w i t h t h e p r o d u c t s t h o s e f i r m s a r e o f f e r i n g

them. The government s h o u l d o r g a n i s e c o m p e t i t i o n s among t t - o s e

f i r m s 2nd t h e f o c u s s h o u l d be ~n t h e p r o d u c t ' s q u a l i t y a n d i t s

a b i l i t y t o s a t i s f y t h e u l t i m a t e consumer. To make i t more

s e r i o u s and i n v i t i n g awards and p romot ions s h o u l d be made t o

t h e w i n n e r s o f t h e compei . i t ion . T h i s recommendat ion i s v e r y

i m p o r t a n t b e c a u s e t h e r e s e a r c h r e v e a l e d t h a t l a c k o f c o m p e t i t i o n

o f f e r s o p p o r t u n i t y t o mediocre f i r m s t o f o r c e low q u a l i t y

p r o d u c t s on t h e consumers v;ho may n o t have a1 t e r n d i v e s . Kore

i m p o r t a t l y , most 0;' t i , ese f i r m s do no t improve t h e q u a l i . t y o f

t h e i r p r o d u c t s u n l i k e n ~ o s t e s t z b l i s h e d aiid la roe f i r m s

o p e r a t i n g vL t h i n t h e l o c a l government s e a .

t e c h n i c a l l y e x p e r i e n c e d w r k e r s t h e r e b y unable t o & s o r b

o t h e r s c h o c l l e a v e r s . 'i':it,h t k e einergence o f t h e e n t r e p r e n e u r d

boom, d i f f e r e n t c l a s s e s o f ' ir;orkers are employed t h e r e b y

r e d u c i n g t o t h e b a r e s t minimum t h e s o c i a l v i c e s a i d j u v e n i l e

d e l i c p e n c i e s i n t h e l o c a l government area.

I n d d i t i o n , t h e s e f i : m s do p r o v i d e t echn ica l a s s i s t a n c e

and i n d u s t r i d s k i l l s t o t h e i r w r k e r s 1 . T n i s h e l p s t o

p r e p x e them f o r g r e a t e r enir;loyment. S ince t h e number o f s t a f f

j E smal 1 a d I h e r n a a g c m c . ~ ? i s n o t o r g a i c a l l y far away from

I ; . I , t:i,ey h a e t h e o;;l;ortunit.y o f knowing and u n d e r s t a i d i n g

i h e d i f f e r e n t s t a g e s o f i.i.:e f i r ~ n s o p e r a t i o n s . When t h e

i n d i g e n e s a r e t e c h n i c a l l y e , q i p p e d , t h e 1.ocal ~ o v e r n r n e n t i s

b o u n d t o d v z n c e t echnc l .og ica1 l y a d t h i s s t a t e n e n t goes t o

support; !Jni t e d S t a t e s O f ; i c e o i' i ' ; " , a n ~ e m e n t miti i I iud~et C o n c l u s i o n

that i . n d i v i d u d i n v e s t l . r . - : .x:d s::i& 1. compa1i .e~ were r e s g o n s i b l e

f o r rno::F: thaq h d . f t h e major t e c h n o l o g i c a l a i v a n c e s i n t h e

Uni ted S t a t e s .

. S m d l - S c a l e f i r m s by f o r c i n g t h e i r l x g e c o u n t e r p a r t s t o

i. n c r e a s c 'i1:ei.r produc t,sl quali . t y r i sve con t r i t su t ed towards t h e

L i v i ~ g s t a : ~ d a r d o f t h e peop le . They have a l s o i n c r e a s e d t h e

, .- 76

f i r m s pay com2any taxes and s a n i t a t i o n l e v i e s , engage i n

s o c i a l rospo~1 :~ i .b3 . l I t , , i e s and a l s o i n c r e a s e b o t h t h e q u a n t i t y

~ ~ n d q u z l i t y o f goods and s e r v i c e s w i t h i n t h e l o c a l

~ ;ove rnmc : l t area. I t i s e v i d e n t l y c l -ear- 'ihal; w i t h o u t trie

e x i s t e n c e o f t. ' !~ese f i r m s t h a t t h e o p e r a t i n g l a r g e f i r m s w i l l

riot be enough t o s a t i s f y tile y e a r n i n g demand f o r , q u a l i t y

g ~ o d s a n d s e r v i c e s f o r t h e people .

1 . Drucker, P e t e r : "ikmagement, Tasks , R e s p o n s i b i l i t k e s . m c t i c e s . ( l i a r p e r 2nd Row, 1974) pp. 312 - 352.

2. Cook S .H and Mandleson J.I. llKeg t o S o c i a l R e s p o n s i b i l i t y 2 Advanced Mmai.;'ement JO urnad, Vol. 42, No. 1. ' t i i n t e r 1977, p. 3

3. D a v i s K e i t h a d Blomstrom R.L. "Business and S o c i e t y Environment and i i e s p o n s i b i l i t y l l McGraw - H i l l , 1975, P. 39.

4. E j i o f o r P i t a t q F o u n d A i o n s o f B u s i n e s s , M m i n i s t r a t i o n V Africana-Fep P u b l i s h e r s L i m i t e d , 9 8 9 .

5. UnamkaP.C. " S o c i d R e s p o n s i b i l i t y a d N i g e r i a E n t e r p r i s e s q 1 , p p e r p r e s e n t e d at t h e NASMET Conference , Enugu, March 8 t h , 882.

A l b e r t K . J , "Surv iva l o f E u s i n e s s E n t e r p r i s e M 1st Ed. Mercury House Inc . London 1980.

Benton, W i l l i a m : nEncyclopaedia B r i t a n i c a ( 1 ~ 0 . 8 ) Encyclopaedia B r i t a n i c a I n c ; London 1970

Bauer, Raymond: quoted i n J o h n L. Paluszeir Bus iness and S o c i e t y 1976 - 2000, (iiew ~ o r k j AMACOM 1976, Page 1 .

Cook S.1-I and Handleson J. I , "Key t o S o c i a l i i e s p o n s i b i l i t y SAN Advanced Management J o u r n a l Vol. 42 NO. 1 Winter -1977-'F. 30.

~ m k s Kei th and Blomstron, R.L. "Bus iness and S o c i e t y Environment and R e ~ p o n s i b i 1 i t . y ~ ~ Mc Graw - H i l l 1975 P. 39.

Drucker , P e t e r : llManagement, Tasks . Respons ib i1 i t j : e s P r a c t i c e s f 1 (Harper and Row, 1974) pp. 312 - 352.

E j i o f o r P i t a : "Foundat ions o f B u s i n e s s A d m i n i s t r a t i o n u Af r i cana - Fep. P u b l i s h e r s L t d , 1989.

Eze, J .A. : V n p u b l i s h e d Work on S m a l l - s c a l e B u s i n e s s Management kf U n i v e r s i t y o f F i g e r i a Enugu Campus, 199 1 .

E.U.L. 1mq;a: IfTheorg w d P r a c t i c e o f P r o d u c t i o n ?4anagementff (Unpublished Work). U n i v e r s i t y o f Niger ia , Enugu Campus.

French, Derek md Saward, Heather : f fDic t ionary o f , (Epping, Essex. Gower P r e s s L td , 1975)

p z e 37

Obeleagu-Nzelibe C.G: "Maagement o f Small Bus iness i n i e . Fouth Dircension P u b l i s h i n g Compay L t d. --- Enugu, 9 9 0 .

Obeleagu-Nzelibe C . G , "Business S t a t i s t i c s Theory and AP ~ l i c a t i o ns. Optirnd P u b l i s h i n g Compay, Enugu, 995

Okafor , *=c i s : m a n n i n g and Management of' Srriall enterprise:^", c i t e d i n Eze 1991. ----

15. Unanka P.C: "SocidL, R e s p o n s i b i l i t y a d N i g e r i a Eh te rp r i s e s r ; paper p resen ted at t h e NUMET Conference, Enugu, March 8 t h , 982.

16. Udeogu, C.: l r S t a t i s t i c a l Methodfr an U n p b l i s h e d Memeograph f o r t h e 1991/92 MBA. Class , Un ive r s i t y o f N ige r i a , Enugu Campus.

17. Udeh John: ' lEntrepreneurshipf t A p r a t i c a l Guide t o Developing and Maria-ging your own Business. JBNS & LORS P u b l i c a t i o n s J o s , 1990.

18. Federal Republ ic . o f Nigeria, National D i r e c t o r a t e o f ESnployment ( NDE) . 11Entrepreneurship Development P r ~ r m m e f o r t h e youth Corps. Members, 1988/89 - S e r v i c e Year1?, Federal Min i s t ry of T r d e Lagos. Government P r i n t e r , 1990.

19 .. United Nat ions I n d u s t r i a l Development Organ i sa t i on (UMIDO) " Indus t r i a l i s a t i o n of Developing Countr ies : Prob le rd - &nc! P r o s p e c t s o f Small-Scale I n d u s t r ~ ~ ~ Vienna, A u s t r i a , 1989.

a. Ananbra S t a t e M i n i s t r y of Finance and Economic Development, S t a t i s t i c s D iv i s ion , G a z e t t e s , 1979.

21. African Guardian, Lagos, August 28 1989, p. 15.

32. African Concord, Af r ican C o ~ c o r d Magazine, Lagos b?a-ch 13, 1989.