ERADICATION OF UNEMPLOYMENT IN NIGERIA THROUGH SMALL SCALE BUSINESS ENTREPRENEURSHIP
NATIONAL DIRECTORATE OF EMPLOYMENT AS CASE STUDY
CHAPTER ONE
1.0 INTRODUCTION
Agricultural
activities and little form of trading activities had been a means of
livelihood of people in different parts of Nigeria before the advent of
the white men.
The coming of the white men into
Nigeria brought change to this. Better ways of farming were introduced,
economic activities came to being and grew, commercial activities
expanded, the Christian religion was introduced in different parts of
the country and political activities were introduced and grew too. All
these activities called for the need to employ personnel into one
position or the other. During this period, the word unemployment was not
given birth to. Even after independence, in the 1960s and 1970s,
undergraduates do not need to apply for employment. Employers usually
woo them by depositing offers of jobs in their hall of residence for
those interested to choose from as soon as they finish writing their
degree examinations. During the period of oil boom, economic activities
were generated in abundance and these made plenty of jobs available.
But nowadays, things have
changed. We have move from this age of economic growth and development
to economic recession, which has contributed to the high rate of
unemployment. How to alleviate or possibly eradicate unemployment is a
thing of concern to all. That is why the government of Nigeria has
established some institutions to encourage the setting up of small scale
industries and to finance the already existing one. Some of the
establishments are: The National Directorate of Employment (NDE),
Industrial Development Centre, People’s Bank of Nigeria ;(PMB), small
scale industries credit schemes, Small and Medium Enterprise Scheme
(SMES), Nigeria Bank for commerce and Industry (NBCI), Nigeria Export
Promotion Council (NEPC), Nigeria Industrial Development Bank (NIDB),
Nigerian Agricultural and Cooperative Bank Limited (NACB), National
Association of Small Scale Industrialists (NASSI), Family Economic
Advancement Programme(FEAP) and lots more. This is so because small
scale business has been recognized to be the bedrock of industrial,
economic growth and development of any nation. All these efforts made by
the government are aimed at eradicating unemployment in Nigeria.
This research work is to examine
how well and how far small scale business introduction and encouragement
can be a source or means livelihood for the unemployed and the degree
of government’s enlightenment; and level of finding in order to
terminate unemployment.
1.1 BACKGROUND OF THE STUDY
Assistance on employment with
emphasis on self-reliance and entrepreneurship, being the unique
assignment of the directorate has called for unusual boldness and
creativity.
In the early 80s, the worldwide
economic depression causes a rapid deterioration in Nigeria’s economy.
Industrial output shrank to an ultimate low level and commercial
activities were consequently reduced leading to the loss of employment
opportunity for millions of Nigerians.
The unemployment situation in Nigeria had reached a desperate and an alarming proportion at the end of 1985.
On 26th March 1986,
the president appointed a committee to deliberate on strategies for
dealing with mass unemployment under the auspices of the federal
ministry of employment, labour and productivity. The report of the
committee as it became popularly known was approved by the federal
government in October, 1986. Based on its recommendations, the National
Directorate of Employment (NDE] was established in November 22, 1986 and
its initial care programmes were formally launched in January 30th,
1987 by the Chief of General Staff, Vice Admiral, Augustus Aikhomu, on
behalf of the president and commander-in-Chief of Armed Forces, General
Ibrahim Badamosi Babangida.
It now becomes matter of interest
knowing the achievement so far in eradicating or alleviating
unemployment in Nigeria through small scale businesses.
1.2 STATEMENT OF THE PROBLEM
The following are the problem area of interest to the researcher:-
- How small scale business can provide job opportunities for groups or individuals.
- What are the various types of unemployment, their causes and the solution.
- What are the prospects in undertaking small scale business entrepreneurship?
- How an effective small scale business be undertaking?
- How to avoid unemployment?
1.3 OBJECTIVE OF THE STUDY
This study is being carried for the following purposes:
- To create enthusiasm in many people to become potential entrepreneurs.
- To give proper understanding on how to start small scale enterprise through feasibility studies.
- To awaken people’s awareness on the role of National Directorate of Employment (NDE] and how to get good employment opportunity through it.
- To bring about reduction on the rate of dependence on government and large firms for salary.
- To give researcher and others, better understanding on how to eradicate unemployment through small scale business entrepreneurship.
- To show the benefits of understanding small scale business entrepreneurship as a means of livelihood.
- To recommend possible solutions.
1.4 SIGNIFICANCE OF THE STUDY
The significance
of this study is to enlighten people on the importance of undertaking
small scale business entrepreneurship as a means of livelihood thereby
avoiding unemployment situation. This is to say that, it is a good means
of livelihood to the entrepreneur, as well provide employment for
others employed by him.
Another essence of the study is
that, it reduces the rate of dependency on the government and large
firms for employment.
When successful small scale business enterprises are established, economic growth and development are achieved.
1.5 RESEARCH QUESTIONS
(i) Will small scale business create job opportunity?
(ii) Is the welfare of the unemployed an issue of great concern at National Directorate of Employment?
(iii) Has National Directorate of employment been able to reach her goals and objectives?
(iv) Has National Directorate of Employment been encountering problems while performing her duties?
1.6 STATEMENT OF HYPOTHESIS
Hypothesis is a proposition which
can be tested in order to determine its validity. A hypothesis is a
tentative answer to a research problem.
Therefore, the following hypothesis is formulated:
Ho: Small scale business would not create job opportunity.
Hi: Small scale business would create job opportunity.
Ho: Welfare of the unemployed is not an issue of great concern at N.D.E.
Hi: Welfare of the unemployed is an issue of great concern at N.D.E.
Ho: National Directorate of Employment has not been able to reach her goals and objectives.
Hi: National Directorate of Employment has been able to reach her goals and objectives.
Ho: National directorate of employment has not been encountering problems while performing its duties.
Ho: National directorate of employment has been encountering problems while performing its duties.
Ho: Entrepreneurship development would not reduce crime.
Hi: Entrepreneurship development would reduce crime.
1.7 SCOPE OF THE STUDY
This study will
attempt to identify how unemployment can be alleviated or eradicated in
Nigeria through small scale business entrepreneurship.
As this relates to National
Directorate of Employment (NDE), it also embraces how N.D.E. helps the
unemployed in raising funds and giving trainings through its schemes as
means of livelihood.
1.8 LIMITATION OF THE STUDY
It is pertinent to note that the
researcher was confronted with one problem or the other that limited the
work to what I have endeavoured to present so far. These limitations
are in three broad categories viz: The questionnaires were not received
completely, some received were partly filled and some of the respondents
are biased in their response as they are unwilling and unable to
disclose some needed information they termed secrete.
1.9 DEFINITION OF THE KEY CONCEPTS
- Economic Recession: This is a period of economic decline in a country with reduced trade and industrial activities and many people unemployed.
- Economic Growth: Is an increase in the national income or total volume of production of goods and services in a country without improving the standard of living of the inhabitants of the country.
- Economic Development: This refers to as an increase (Expansion) of the national income or total volume of production of goods and services of a country accompanied by improvements in social, political and economic lives of the people inhabiting that country.
- Unemployment: This refers to the situation whereby factors of production are unengaged or not utilized in productive activities that can earn them income. (Paul Kofi Tawiab, 1989).
- Entrepreneur: China (1993:54) defined it as a person who is able to look at the environment, identify opportunities to improve the environment, marshal resources and implement action to maximize the opportunities”.
- Small Scale Business: The Government small scale Industrial Development scheme defines small business as any manufacturing, processing or service industry with a capital investment not exceeding N150,000 in machinery and equipment. (Akirinade 1989).
The central Bank on its part insists
that any business whose turnover is above N500,000 does not qualify to
be described as a small business (Jegede 1990).
- Livelihood: Is a means earning income to obtain the necessities of life by an individual to care for self, family and others.
- Employers: Those who employ people to work for them.
- Personnel/employees: Those people employed in an organization or the staff.
- Alleviate: To reduce or lessen.
- Eradicate: To remove or destroy completely.
- Monopoly: This is a situation whereby there is only one producer or supplier of a product or service in a market.
- Creativity: Conception of idea or imagination to create something.
- Gestation Period: Time or period of growth and development before gains.
- Tentative: Uncertain
- Prospect: The possibility of occurrence.
1.10 ORGANIZATION OF THE STUDY
This work is
segmented into five parts referred to as chapters for the sake of
uniting and systematic approach. It is chronologically stated below:-
The introductory chapter is
designed to explain the various stages I underwent in the course of
writing this project: Background of the study, statement of the problem,
objective of the study, significance of the study, research questions,
statement of hypothesis, scope of the study, limitation of the study and
definition of the key concept.
The second chapter deals with
review of literature. Here, the researcher explained the meaning, types,
causes and problems of unemployment. The chapter also comprises the
meaning, types and importance of small scale business. As well as
starting up a small scale business and problems associated with small
business operation and solutions.
The third chapter explains the
research methodology. It shows (outlines) how I was able to obtain the
information that gives this project framework.
The fourth chapter covers data presentation and analysis.
While the last chapter of the
project comprises: the summary of finding, conclusion, recommendation
and references (Bibliography).
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