CHAPTER ONE

• BACKGROUND OF THE STUDY

The guest for economic development ensure 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  facility etc (on wumere, 2000)

          in fact 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

• STATEMENT OF THE PROBLEM

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.

• OBJECTIVE OF THE STUDY

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

1. To identify  constraints such as fund and management  of SMES
2. To identify strategies that would be used in operation of MES in kwara state

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

1. To establish the importance of SMES as an option of  economic  developing recovery growth  in Nigeria.
2. To identify the role played in government towards the promotion  and developing of SMEs
3. 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.

1.4     SIGNIFICANT OF THE STUDY

The research  work carried out on the evaluation of small scale  business on the development of Nigeria is of significant important to the academic world in various institutions.

          The study is also helpful to  small scale business enterprises  as it would burden their knowledge  efficiency and effectiveness in small scale business management.