This write up is based on an evaluation of the impact of small scale business on the economic development of Nigeria.

( A Case Study of Sawo Industry, Ilorin Nigeria).

However, the role of small scale industries on the economic development of Nigeria has helped the economy to improve to a maximum level unlike when Nigeria use to bring in all their needs from foreign countries which make the economy worse that time. 


Title page 




Table of content 



1.1 Background to the Study 

1.2 Statement of the Study 

1.3 Objectives of the Study 

1.4 Significance of the Study 

1.5 Scope of the Study 

1.6 Limitation of the Study 


2.1 Concept of  Small Scale Business 

2.2 Small Scale Business in Nigeria 

2.3 Conceptualization Economic Development 

2.4 Relevance Of Small Scale Business in Economic Development 

2.5 Types  of Small Scale Industries

2.6 Sources of Financial  Small Scale Business 

2.7 Problems of Small Scale Industries in the Development Process.

CHAPTER THREE: Research Methodology

3.1 Introduction 

3.2 Research  Study Area 

3.3 Research  Population and Sample 

3.4 Research  Instrument 

3.5 Validity of the Instrument 

3.6 Administration of the Instrument

3.7 Method of Data Analysis.

CHAPTER FOUR: presentation and analysis of result

4.1 Introduction 

4.2 Preview of the Questionnaire  Administered 

4.3 Presentation of Result CHAPTER FIVE 

5.1 Summary

5.2 Conclusion 

5.3 Recommendation





The question for economic development ensures overall improvement in individual well being of citizen as been the pre occupation of every nation. The process involves a number of approaches. One of these is the adoption of an industrialization strategy at a point in time relevant to the prevailing needs of development. Developing countries are under much pressure in this regard  because of their general peculiar features  which among other include concentration of high  proportion growth  low level of savings, general  poverty of various dimension, poor credit and marketing  facilities etc (on Wumere, 2000)

Many developing countries have attached high priority to the industrial sector in their development plans  possibly as a result of  their attraction  to many development theories  that have tended to  see industrialization as the gateway to modernization Nigeria, like many of them had on gaining political independence, adopted  import substitution as her industrialization strategy. Thus should not be surprising, because  even as at today. Most of the rich advanced countries are rich because they are industrialized.

Incidentally, the past policies and strategies failed to generate self sustaining growth largely because of their reference establishment of large scale firm. Resources (human and material) had largely idled in the face of mounting  problems

Since the 1970s, therefore, developing countries have been compelled, in the face of thus problems to look for alternative approaches to development. One of these approaches has been the redirection o f efforts and encouragement of small and medium scale enterprises (SMES). 

Since the introduction. However, the role of small  scale industries on the economic  development  of Nigeria  has help the economy  to improve to a maximum level unlike when  Nigeria use to import all her need from the overseas  countries which of course made the economy worse that time (Oshagbemi, 2000).

The contribution  of SMES to the development  process are such that any country  are such that any country can only ignore its own peril. Hence, there is need to evaluate the impact of small scale business on economic development


Development strategies in the past had favoured large scale concerns which  had not yielded much desired  not returns  to their economic. The quest for economic  development to ensure  over all improvement  in individual well-being  of citizens  then become the occupation of every nation, hence an attempt to incorporate the small and medium scale  industries then become important  with the incorporation, has thus been able to foster economic development in the  Nigerian  own situation? This become a problem which this study tries to proffer  solution to, so as to evaluate  its importance on the economic  development of Nigeria.


The major objective of carrying out this research is to evaluate small scale industry impact on the economic development of Nigeria.

I will also focus on the following areas

I. To  identify  constraints such as fund and management  of SMES

II. To identify  strategies that would be used in operation of MES in kwara state 

III. To examine  the economic potential  of SMEs on gross domestic  products and creations 

IV. To establish  the importance of SMES as an option of  economic  developing recovery growth  in Nigeria.

V. To identify the  role played in government towards the promotion  and developing of SMES.

VI. To examine and identify the constraints  such as funding  and managing  of SMES.

Finally, the research work will lay emphasis on the  various agencies  established by government to promote small- scale industries in Nigeria.


Small and medium scale enterprises in Africa rely largely on own savings, not only to grow but also to innovate. Firms often need real services support and formal finance assistance, failing. Which under – investment he long term capabilities (training and R& D) may result, (oyeleran, 2003).

Beside finance, there are critical elements (including: knowledge, skill and experience staff: capacity and quality of internal facilities information and knowledge of market, intellectual and managerial leadership external infrastructure and the incentive system at the micro and macro levels)  that are lacking within technology support institutions, these under line the effectiveness of their support to SMES.

This study is significant because it would help to evaluate the operations of a vital segment of the industrial sector. Small and medium scale industries, which has been identified as having very high potential in promoting economic growth and development. The evaluation will be done with special focus on the small and operation in small scale business. There by adding to the existing literature on the subject matter.


This research covers the area of promoting small and medium scale enterprises in the economy of Nigeria. Paying attention to the role of the government and other external factors that can affect positively the development of small and medium scale enterprises in Nigeria.

The research intends to study the essential problems encountered by small scale operators in the economy of Nigeria and suggest ways by which they can be adequately efficiently financed and promoted.


Carrying out any research on any study cost is very important without enough in hand, it will be very difficult to carry out the research effectively.

Further more, text books and journals are not made available in the library the journal room is not opened at the appropriate time for the student book, that can not give enough data for the researcher.

Time was another constraint, due to it was not possible to visit various small scale industries. This gives room for the selection of a case study (Sawo Industry Nigeria), there were also human problem of not meeting the respondent on seat either in the site or at their main office each time. I visit the company concerned.

Unavailability of necessary information’s as then staff and management of Sawo Industry. Nigeria are stalling from given out information about the company.



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