Introduction
1.1 Background Of The Study
To adequately appreciate how unemployment could be solved through the establishment of small-scale businesses in Aguata Local Government Area of Anambra State, there arose the need for an attempt at defining unemployment as well as small-scale business and later interwove both for the purpose of research.
Hornby (1974), in his revised and updated oxford Advanced Dictionary of current English defines this social evil, unemployment, as the state of being unemployed and amount of unused labour. On the other hard, small-scale business has been defined by Peter Ejiofor 91989), in his book Foundations of business Administration as those enterprises that have relatively little capital investment, that produce in small quantities and as a result control a small share of the market, that employ not more than fifty (50) workers in which management/marketing and entrepreneurial functions are vested in the proprietor. However, there is no definition of small-scale industry that is accepted universally. The definitions vary from one country to another. Even in a country, the definitions may differ from state to state and from institution to institution. Definitions are usually based on the level of economic development of the particular economy and purpose of the definition.
However, there are standard adopted by people who defined small-scale industry. In the opinion of Broom Longenecker (1983), the definitions are not rigidly fixed since people adopt different standards for different purpose with some of the standards being number of employees, asset size, volume of scales etc. generally accepted as a sound criterion is investment in fixed capital.
Also, Mr. Ejiofor P. (1989) sees small-scale business as a relative term because according to him, what may be regarded as a small-scale business can be large-scale to another. To him, the yardstick for measuring what constitutes a small-scale business will include the following:
1. The size of the business:
Since they are small in nature, most of them are usually small in size and occupies a small share of the market.
2. Type of management:
They are characterized by one man management, it is owner domination i.e. there is fusion of ownership and control. The owner manager participates actively in all levels of decision making and day to day management and operation of the firm.
3. Information flow:
This is are sided, that is to say, from the owner to his workers. Feedback is not encouraged.
4. Insufficient accounting records:
They have little or no accounting records; consequently banking or credit facilities from financial institutions are hardly availed to it.
5. Sole proprietorship:
They are usually piloted by sole proprietors who hardly want to go into partnership with others.
6. Cheap labour:
Most of the owners employ apprentice whom they can pay at a cheaper rate.
7. Small scale outlay:
Due to its nature and size, they usually have small investable capital to run the business.
Some examples of small-scale businesses are poulty, farming, fashion designing, hair dressing, small-scale trading / processing of agricultural produce like garri, yam flour, maize flour, palm oil, palm wire tapping, groundnut and banana hawking etc, gold / black something, came chairs/basket making, dyeing smelting works, leather works, making of farm tools like hoes, matchets and knives, production of cooking utensils like pots, kettles etc. wood carving, carpentry weaving, automobile, electronics repairs, photographic works and other cottage industries employing small time artisans.
According to Yakassi (1990), over the years, there has been controversy over the definition of small scale industry, which has lead to the following diverse definitions.
The central Bank of Nigeria defines small-scale industry as any industry “whose annual turnover doe not exceed N500,000.00 for commercial banks or capital investment not exceeding N2 million and turnover up to N5 million for Merchant Banks.
The NERFUN (National Economic Reconstruction Fund) defines small scale business as any enterprise requiring not more than N5 million excluding land to start operations, whereas the medium scale enterprise is any business requiring between N5 Million and N10 million, also excluding land to start up.
The FEDERAL MINISTRY OF INDUSTRIES defines small scale industry as a manufacturing processing or service enterprise whose capital investment does not exceed N250,000 on machinery and equipment only.
The definition is to lay down the parameters under which an industrialist may take advantage of various incentives created by the government for the growth of the small scale industries, such incentives include the granting of loans, machinery, equipment and raw materials.
The importance of small scale industries to the survival of the nations economy can no longer be waived. They have involve from the subsistence level of the pre-indegenisation period to a position of importance in the country’s industrial process.
Therefore, the authorities should not relent on the efforts of making small scale industries assume their role in the economy.
1.2 Statement Of The Problem
In the present day Nigeria, the society has been afflicted with high level of unemployment problems. This accounts largely for the vices that have bedeviled the country today such as obtaining by false pretence or advanced fraud popularly known as “419”, burglarly, robbery, bribery and corruption and other social ills. It is common knowledge that graduates produced by various institutions of higher learning and other highly skilled professionals hardly ever find suitable employment opportunities in Nigeria today. Youth corpers for instance on passing out, roam the streets in futile efforts to secure employment.
