The main thrust of this study was to evaluate the significance of the development of small industries as an instrument for controlling unemployment problems in Nigeria, choosing Ostrich Bakery Limited Ilorin, Kwara state as the case.

To achieve this series of text on the development of small scale industries as an instrument for controlling unemployment problems in Nigeria were consulted with the aim of knowing the perspective of various aultours on the theoretical frame work of the study.

Also, primary and secondary method of data collection were used to gather information on the result shows that the development small scale industries is the major instrument that we can use in Nigeria to fight against unemployment problem in our country.

Small scale industry in Nigeria can be simply defined as the business or investment of not more than six hundred thousand naira (600,000) are referred to as small scale industries in Nigeria and with the labour force of not more than ten (10) workmanship. 

With this little definition that I have made on small scale industries, I think it is very easy to establish so far it does not require a huge amount of money, so it is a better way to get every body employed once are able to think of this. 

Therefore, the project will now consist of five chapters.

Chapter one will consist of general introduction, statement of problem. Objective and significance of the study, scope and limitation of the study, definition of the key terms.

Chapter two consist of historical background of the case study brief history of Ostrich Bakery Nigeria Limited objective of setting OBNL, benefit of OBNL, constraint effective of development of OBNL.

Chapter three, Research Methodology, research population and sample research, design, data collection instrument, administration of instrument, method of data analysis.

Chapter four data presentation and analysis.

Chapter five summary, conclusion and recommendation.


Title page i

Certification ii

Dedication iii

Acknowledgement iv 

Abstract v 

Table of content vi  


1.1 Background to the study

1.2 Statement of problem of the study

1.3 Aim and objectives of the study

1.4 Scope of the study

1.5 Significance of the study

1.6 Limitation and constraints to the study


2.1 The concept of unemployment

2.2 Effect of unemployment

2.3 Measure for controlling unemployment

2.4 The meaning of small scale industries   

2.5 Problem of small scale Industry Development in Nigeria

2.6 Development of small scale Industries as an instrument for controlling unemployment


3.1 Research Design

3.2 Research population and sample

3.3 Data collection instrument

3.4 Administration of instrument

3.5 Method of data analysis


4.1 Brief history of Ostrich Bakery Nigeria Ltd Ilorin

4.2 Data presentation

4.3 Data analysis 


5.1 Summary

5.2 Conclusion

5.3 Recommendations






Business involves activities embarked upon for livelihood and for the purpose of profit making. For any pursuit or activity to be legally recognized as a business some type of economic activities must be involved and a profit motive must be present. An activity is considered a business it is entered into and carried on in good faith for the purpose of making profit and for its material contribution to the welfare of the community. Having decided to start a business, an initial or early consideration which should be in mind is what type of business entity is to be set up? This is an area where professional assistance should be sought as there are legal matters to be considered in making this decision.

For anybody embarking on business venture, following should be considered:

1. Sole proprietorship

2. Partnership

3. Corporation 

Partnership or sole proprietorship does not pay any federal income taxes, but sole proprietorship which is considered in most cases small scale includes. The profits and losses from business on their own income tax return. Corporate profit on the other hand are levied on both the corporate and the individual share holders when the profits are distributed as dividend losses by the corporation and stock holder would not have dividend for that period.


Sole proprietorship is a one business which stands the advance of sample formation with less legal requirement. Individual who engage in business on their own account are referred to as sole proprietorship. More than seventy five percent of small scale businesses in the country are sole proprietorship.  In this firm, the business has no legal existence apart from the owner; its liabilities are the personal liabilities of the proprietor and on death of the proprietor automatically bring the business to an end.

The proprietorship undertakes all the risks of the business to the full extent of all his assets. The income from sole proprietorship is exported as part of the owners total arose income, and cash asset in a sole proprietor is treated separately for tax purposes.


A partnership represents the relationship that exist between two or more persons who team together to embark on a business with each contributing money, property, labour, or skill and each expecting to share in the profit or losses of the business either or not a partnership agreement has been drawn up. Though a partnership is not a taxable entity, it must determine its income and fight on income tax return in the same manner as on individual except for certain items that must be stated separately. Each partnership agreement specifically limits the liabilities of certain partners. In partnership the business stand a better chance in raising capital because it will have more input from other partners rather one-man business. 


The formation of a corporation involves the transfer of money and property or both by the prospective shareholders in exchange for capital stock in the corporation. It costs a lot more to set up a corporation and its profits to corporate profits are tax to the corporation, when the profits are distributed as dividend, the dividends are taxed to the individual shareholders.

In computing its taxable income, a corporation officially can take the same deduction allowed to individual in addition to some special deductions available only to corporations.

Every corporation must file an income tax return regardless of the amount of its income. The personal liabilities of the individual involved in the corporation. Unlike sole proprietorship or partnership are limited to their investment, the corporation is treated like an individual. However, it can due and can be sued. 


Despite direct government allocation to small scale industries at both federal and state levels through agencies like small scale credit scheme (S.S.C.E) coupled with directives the all commercial banks and other financial institutions to extend certain percentage of their loans and advances to small scale business owners the sector is still crumbling and unable to find its feet due to inability to secure funds for their growth.


The objectives of this study are to critically analyze and highlight the development of small scale industry as an instrument for controlling unemployment problems in Nigeria.

To serve as a source of information to students of business and management department on small scale business.

The aim of this research is to find out the various avenues by which the development of small scale industries can serve as an avenue or instrument for controlling unemployment problem in Nigeria. The research intends to find out problems of securing funds for the local industries and getting useful advice to the intending local industrialist in other to be able to manage their enterprise effectively and efficiently.


The result of the study would be of importance to the people of Kwara state in general because the study would reveal various avenues of finding industries. The research considers small scale industries which randomly selected. These considered for selection must have been in existence for at least five years. This is a result, enables the researcher to get the true picture of the problem of study and not a problem caused as a result of infancy of industries.


The result of the study would be of importance to the people of Kwara state and to intending industrialist because the study would reveal various avenues of establishing small scale industries and also funding.

The study would also be of importance to resourceful individual on group of people who may be interested in the establishment of small scale industries in future. This study would provide information on sources of financing such industries within the state and as a result help to stimulate the efficiency of the industry and consequently increase their contribution to the overall national development.


In writing this projects, the scope could have been more than the aforementioned but for the constituents of the under listed problems which the coverage of the research could be.

The problems ranging from financial constraint, limited true, to lack of co-operation from the respondents, have all constitute. In limitation to the research study as the relates to the research study as it relates to the selected case study. Ostrich Bakery Nigeria Limited.


Development should be perceived as a multi dimensional process involving the reorganization and reorientation of entire economic and social systems in addition to improvements in income and outputs; it typically involves radical changes in institutional, social administration structure, as well as in popular attitudes and sometimes even custom and believes. 


Small Scale Industries in Nigeria can be simply defined as the business or investment of not more than N600,000 are referred to as small scale and the labour force to ten (10) workman.

According to the third national development plan (vol. I.P 353) manufacturing establishments employing and equipment do not exceed six hundred thousand naira (N600,000) are referred to as small scale in Nigeria


The work instrument can be defined as a tool or implement for precise work is can also be describe as a measuring device but in terms of small scale industry it describe small scale industries as a tool implement for controlling unemployment problem in Nigeria.


Controlling work plan must be critically and quickly monitored to ensure strict compliance to stated objectives. Control is all about performance measurement result comparisons with standard and identification of deviation. The workforce needs to be properly monitored in order to enhance and ensure work progress. 


The work unemployment can be simply defined as the scarcity of work or a situation whereby there is no work to do in a country and it is the major problem that Nigeria if facing nowadays.

So therefore, I will advice Nigeria to stop relying on seeking for job and get them in small scale business to maintain their living.



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