CHAPTER ONE

INTRODUCTION

PROBLEM IDENTIFICATION AND PURPOSE OF THE STUDY

          Nigeria Government joined other countries of the world in emphasizing the establishment of small-scale enterprises which is characterized by small scale industries which size would not all for elaborates administrative structure to play observation role in economic development. Consequently, those roles are feel only little due to insufficient capital, lack of vital business information, lack of education and technology, deteriorating and incompatible controls etc.

          The problem in the study therefore is to determine the extent of the contribution of small-scale enterprise towards the economic development in Enugu State and Nigeria.

          The purpose of this study there is to analytically appraise the contribution to economic development of the small-scale enterprises in Enugu State.

          In order to critically carry out this purpose, the researcher’s primary concern are to.

(1)  Examine the type of contribution which small-scale enterprises are expected to make in economic development.

(2)  To create an awareness among the citizenry of the importance of small-scale enterprises in Enugu State and Local Government area.

RATIONALE OF THE STUDY

          The rational of the study is to ascertain whether small scale enterprises contribute to the economic development of Nigeria and to what extent.

          Different commentators and critics have held contrary views about the contribution of small scale enterprises toward economic development. Some see it as a worthless project that should not be ventured into some as a drain of pipe, a problem to economic developments because it is characterized by problems of small capital, lack of government support, internal control etc. yet, some others see it as the engine for economic growth and development. Because of these alivergent views, it becomes logically reasonable to really examine the contributions of these small scale enterprises in economic development of Nigeria which will help all concerned to understand clearly that through small scale enterprises in inherent with many problems, yet its contributions to the nations economic development cannot be equaled.

SIGNIFICANTS OF THE STUDY

The government and people of Enugu State will have a lot of gain from this project work. Some of these gains are as follows:

(1)    This study will help to smell governments efforts to boost private participation in economic activities. The government has been encouraging people to start their own business, especially now that the ban on importation of basic products is still in force and there is need to produce these things we used to import, locally in Enugu State, but because Enugu State are not fully aware of the important roles industries pay in the society (especially small scale enterprises) and the advantages that can be derived from establishing them, people tend to ignore the call of government to establish industries in the state as a way of helping to revamp our battered economy, however, with the help of this study people will become more aware of the advantages of establishing these industries (especially small-scale ones) there by leading to an increase in the member of industries in Enugu State in Particular.