Economics of Small Scale Industries: A look at Programmes for the Growth and Development of Small Scale Industries in Nigeria

Abstract

Governments in most developing countries have recognized that small scale industries play an important role in the acceleration of growth and development in their economies. As a developing country, Nigeria is not an exception. Nigeria attempted several programmes, such as National Economic Reconstruction funds, Industrial layouts and Establishment of Nigerian bank for Commerce and Industry, etc., to improve the production and growth of this vital sector during the colonial era as well as after the independence at 1960; however some of these programmes succeeded in bringing little changes, while others are unsuccessful. The objective of this study is to assess the viability of programmes and proffer solutions that could bring about changes in this vital sector. Secondary data such as government publications and corporation’s annual reports as well as interviews conducted with officials and managers were collected and statistical techniques are used for analysis. The study reveals that small scale industries have not seriously impacted on the areas of large scale immediate employment, development of indigenous industrial sector, production of highly specialized goods and filling in cracks between large industries in the economy. It is observed that unless concrete steps are taking in identifying the problems, then the country will continue to chase shadows.