CHAPTER ONE
1.1 INTRODUCTION
After about a decade and a half of adopting an industrialization strategy based on large-scale industries, mostly of the assembly type, Nigeria has failed to achieve industrial development. The large-scale industries, which were setup, tended to be capital intensive and in appropriate, given the country’s resources endowment. Their capital equipment and technical manpower have continued to be largely imported. As a result, the triple objective of setting up large-scale industries namely:
1. Achievement of high level employment
2. Local sourcing of raw materials.
3. And saving of foreign exchange acquisition materialized.
In response to the weakness of large-scale manufacturing government has sought to promote small-scale industries as a strategy for self-reliant industrialization. In Nigeria economy, attention has been drawn to the fact that small-scale enterprises have received very little attention where as it is providing employment for approximately triple the number engaged in large-scale manufacturing as well as playing their role which is crucial importance to our developing economy.
This is why it is important to reconsider the problem hindering the growth of his sector. Such problems the researcher has classified into managerial and financial inhibitions as well as some of the government policies, which do not favour small-scale industries.
1.2 STATEMENT OF PROBLEMS
For the period under review, the country’s economic objective were centered on reducing the level of important and promoting the expansion of domestic production especially in the small-scale manufacturing sector.
However, small-scale industries in Nigeria today are faced with a lot of problems.
These problems go a long way to hamper their prospects and growth in the country and thereby limiting their potential contributions to the development of the economy.
Such problems are as follows:
a) Many small-scale industries do not possess a visible feasibility study of their projects.
b) There is also the problem of loan misapplication and non-repayment of loans.
c) They keep poor accounting and business records, and
d) Because of the low capital outlay involved, experts are not often employed.
The researcher will therefore, focus attention on the problems and prospects of parts company limited and what the company should do to alleviate these problems hindering it’s prospects and opportunities available to it.