ERADICATION OF UNEMPLOYMENT IN NIGERIA THROUGH SMALL SCALE BUSINESS ENTREPRENEURSHIP IN NATIONAL DIRECTORATE OF EMPLOYMENT AS CASE STUDY

ERADICATION OF UNEMPLOYMENT IN NIGERIA THROUGH SMALL SCALE BUSINESS ENTREPRENEURSHIP IN 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 26^th 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 30^th, 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:

1. To create enthusiasm in many people to become potential entrepreneurs.
2. To give proper understanding on how to start small scale enterprise through feasibility studies.
3. To awaken people’s awareness on the role of National Directorate of Employment (NDE] and how to get good employment opportunity through it.
4. To bring about reduction on the rate of dependence on government and large firms for salary.
5. To give researcher and others, better understanding on how to eradicate unemployment through small scale business entrepreneurship.
6. To show the benefits of understanding small scale business entrepreneurship as a means of livelihood.
7. 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

1. Economic Recession: This is a period of economic decline in a country with reduced trade and industrial activities and many people unemployed.
2. 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.

1. 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).
2. 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”.
3. 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.

1. Personnel/employees: Those people employed in an organization or the staff.
2. Alleviate: To reduce or lessen.
3. 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.

1. 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).