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CHAPTER ONE

INTRODUCTION

1.1  BACKGROUND TO THE STUDY.

The issue of small and medium scale industries dates back to when people started producing more products than they needed. As the need for industrialization and self employment starts arising in Nigeria as a result of the federal government inability to provide employment for the teeming population the need for private individuals to establish self owned small and medium scale industries also arose. In this vein, people started raising their subsistence organizations to the status of small and medium scale industries so as to private the products therefore to the market. The existence of small and medium scale industries in Nigeria has, in no small way, contributed to the growth and development of the Nigeria economy in many ways. It provides employment and also help to increase the  gross domestic product of the nation to mention but a dew.

The need for the development of small and medium scale industries in Nigeria cannot be over emphasized and this is what the national Association of Chambers of commerce, industries, mines and Agriculture NACCIMA, is bent on. Many support organization has been sat up by the federal government to develop small and medium scale industries. This study tends to emphasize and expose the role of NACCIMA,  as a support and industrial organization in the development of small and medium scale industries in Nigeria. Other measure to be taken and roles to be played by NACCIMA in the development of small and medium scale industries in Nigeria will be considered and provided.

 1.2   STATEMENT OF PROBLEM

Nigeria has been marked as one of the industrializing country of the world with numerous small and medium scale industries established to help in the development of the economy. With her status as a country endowed with abundant natural resources, different small and medium scale industries has been set up which have assisted the federal government in its economic development measures and strategies.

Despite this great achievement, it has been observed over the years, that these small and medium scale industries are not developed. This project tends to emphasize the role of NACCIMA in the development of small and  medium scale industries in Nigeria. To find out the role of NACCIMA  in small and medium scale industries development to ascertain if there are other measure to develop them, etc these are the problems the researcher is faced with and for which this study tends to proffer solutions to.

 1.3   NEED FOR THE STUDY.

There have been criticisms that the various supports and industrial organizations set up to aid, support, and develop small and medium scale industries in Nigeria are not living to expectation of many Nigeria’s. The researcher wants to carry out a research on the role, as an industrial organization, NACCIMA has played in the development of small and medium scale industries in Nigeria. Also the  researcher is posed to ascertaining if there are other measures NACCIMA can adopt to  bring to standard and develop the small and medium scale industries in Nigeria.

Again, the researcher will dig deep into knowing if NACCIMA is working or carrying out its objectives or playing its roles co-operatively with other industrial organization with similar aim off developing small and medium scale industries in Nigeria. And finally to ascertain of NACCIMA is playing its role and carrying out its functions to the different areas and scope small and medium scale industries in Nigeria have spread their wings, that is discharging its functions to every small and medium scale industries in Nigeria be it ago based, transportation retailing.

1.4    HYPOTHESIS.

For the purpose of this study the following hypothesis statements would be used. At the end, the researcher would be able top ascertain the validity or otherwise of the statements.

I.  NULL HYPOTHESIS (H0): NACCIMA has helped in the development small and medium scale industries.

ALT. NULL HYPOTHESIS (H0): NACCIMA has helped in the development small and medium scale industries.

II. NULL HYPOTHESIS (H0): Small and medium scale industries have benefit from the activities of NACCIMA.

ALT. NULL HYPOTHESIS (H0): Small and medium scale industries have benefit from the activities of NACCIMA.

III.  NULL HYPOTHESIS (H0): Because of NACCIMA activities, small and medium scale industries have bright future.

ALT. NULL HYPOTHESIS (H0): Because of NACCIMA activities, small and medium scale industries have bright future.

1.5   PURPOSE OF THE STUDY

Motivation and interest for this study is stimulated from the development, beyond expectation of small and medium scale industries in Nigeria and the activities carried out, so far by NACCIMA in the development of these small and medium scale industries in Nigeria. Specifically, the purpose of the study are:

1.  To ascertain what role NACCIMA has played so far in developing small and medium scale industry.

2.  To ascertain if the activities of NACCIMA are developing small and medium scale industries in Nigeria.

3.  To know what makes some small and medium scale industries to wound up despite the presence and activities of NACCIMA.

4.  To know the future of small and medium scale industries.

5. To ascertain if NACCIMA is embarking on research and dvelopment in a bid to finding new ways of developing small and medium scale industries.

1.6   SCOPES AND LIMITATION OF THE STUDY

The scope of this studies very wide if it has be carried out throughout Nigeria. The study therefore is limited based on the fact that there are no time and materials resources to see to the whole nation. This study is limited to Enugu and the findings may be valid for other areas in Nigeria because NACCIMA is a national body or institution with similar objectives nationwide.

 1.7   DEFINITION OF TERMS

The following terms used in this study should be taken to mean the following:

NACCIMA: National association of Chambers of commerce, industries, mines and agriculture.

SELF EMPLOYMENT: Employment provided for oneself to earn a living and not that of either the government or other private individuals.

GDP: This is gross domestic product which is the sum of all the goods and services produce in Nigeria which does not includes gross income from abroad.

INDUSTRIES: All types of establishment that produce either goods or services.

SMALL SCALE INDUSTRIES: All industries with a capital investment not exceeding N500,000 excluding working capital and cost of land.

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