To adequately appreciate how unemployment could be solved through the establishment of small-scale businesses in Awgu Local Government Area of Enugu State, there arose the need for an attempt at defining unemployment as well as small-scale business both for the purpose of research.
Hornby (1974), in his revised and updated Oxford Advanced Dictionary of current English, defines this social evil, (unemployment) as the state of being unemployed and amount of unused labour. On the other hand, small-scale Business has been defined by Peter Ejiofor (2004), in his book Foundations of business Administration as those enterprises that have relatively little capital investment, that produce in small quantities and as a result control a small share of the market, that employ not more than fifty (50) workers in which management/marketing and entrepreneurial functions are vested in the proprietor.
However, Mr. Ejiofor P. (2004) sees small-scale business as a relative term because according to him, what may be regarded as a small-scale business can be large-scale to another. To him, the yardstick for measuring what constitutes a small-scale business will include the following:
Some examples of small-scale businesses are as follows: processing of agricultural produce like garri, yam flour, maize flour, palm oil, palm wire tapping, farm tools like hoes, matchets and knives, production of cooking utensils like pots, kettles etc. wood carving, carpentry weaving, electronics photographic works etc.
According to Yakassi (2000), over the years, there has been controversy over the definition of small scale industry, which has lead to the following diverse definitions.
The Federal Ministry Of Industries defines small scale industry as a manufacturing processing or service enterprise whose capital investment does not exceed N250, 000 on machinery and equipment only.
The central Bank of Nigeria defines small-scale industry as any industry “whose annual turnover doe not exceed N500, 000.00 for commercial banks or capital investment not exceeding N2 million and turnover up to N5 million for Merchant Banks.
The NERFUN (National Economic Reconstruction Fund) defines small scale business as any enterprise requiring not more than N5 million excluding land to start operations, whereas the medium scale enterprise is any business requiring between N5 Million and N10 million, also excluding land to start up.
The definition is to lay down the parameters under which an industrialist may take advantage of various incentives created by the government for the growth of the small scale industries, such incentives include the granting of loans, machinery, equipment and raw materials.
The importance of small scale industries to the survival of the nations economy can no longer be waived, therefore, the authorities should not relent on the efforts of making small scale industries assume their role in the economy.
In the present day Nigeria, the society has been afflicted with high level of unemployment problems. This accounts largely for the vices that have bedeviled the country today such as obtaining by false pretence or advanced fraud popularly known as “419”, burglary, robbery, bribery and corruption and other social ills. It is common knowledge that graduates produced by various institutions of higher learning and other highly skilled professionals hardly ever find suitable employment opportunities in Nigeria today. Youth corpers for instance on passing out roam the streets in futile efforts to secure employment.
This problem of unemployment without being address will cause a lot of damages to our country and recession to our economy.
The general objective/aim of this study is to identify some of the major small scale businesses in Awgu Local Government Area with a view to unveil how far, if at the setting up of these businesses has alleviated the unemployment problems of the study area. The available manpower for providing the required employment is also under study.
This research work is limited to Awgu Local Government Area of Enugu State and the unemployment level is also considered which the establishment of small scale businesses seriously eradicates.
With reference to the objectives of this study which is to identify some of the major small scale business in Awgu Local Government Area with a view to unveil how fare if at all the setting up of these businesses has alleviated the unemployment problems, the following hypothesis were formed.
HYPOTHESIS ONE
H0: Small scale industries have not helped in solving unemployment problems.
HYPOTHESIS TWO
H0: There has not been a remarkable growth in the development level occasioned by small scale business.
HYPOTHESIS THREE
H0: There has not been any reduction in crime rate as a result of the activities of small scale business.
This study investigates the impact of the establishment of small scale business on the unemployment status of the Nigerian economy and Awgu Local Government Area in particular. The establishment of small scale industries through the length and breadth of the country could pacify the hindering problem of finding places for our rural job seekers.
This research work tries to know whether or not the establishment of small scale business in the study area could decrease the unemployment problems of the study area.
In addition, it is aimed that this study will help to proffer solutions to the unemployment problems in Awgu Local Government Area of Enugu State in particular and the Nigerian society at large.
This study has a lot of significance in the sense that it represents a symbol of academic achievement as having contributed to the already record of research.
This study shall be useful to the colleagues of the researcher and the entire students in the field of the study in future especially student of Business Administration. The research shall be relevant in public administration as a whole, budget experts in various ministries and department in Awgu Local Government Area of Enugu State, at this will assist them in carrying out their budgeting duties. Also the beneficiaries are people leaving in Awgu Local Government Area as a whole.
Finally, the policy makers shall derive immense benefit from the study as it shall serve as a guide to them.
There were a lot of constraints in gathering information for this research work but the major constraints are as follows:
The general aim of having these terms defined is to enable the reader to know the meanings of these words if by any means he/she do not know them before with regards to this research work, and a situation where the reader has not come across any of them before, it tends to be of immense help.
The Nigerian Bank for commerce and Industries 9NBCI) for the purpose of its revolving loan scheme for small scale industries, defined it as those investing not more than N500, 000.00 (excluding the cost of land but including working capital).
Nevertheless, the Bank’s official definition since 1985 has been firms whose capital cost does not exceed N750, 000.00 (including working capital but excluding land).
Majority of them are business at Awgu which is the highest Market establishment in Awgu Local Government Area. The study area has fairly good network of roads and it comprises of eleven (1) towns, the people are endowed with rich culture and a mixture of Christianity and paganism is prevalent in the area. The indigenous language is Igbo. It was also observed that the population size is 312, 482 according (2006 census)