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IMPACT OF
GOVERNMENT INDUSTRIAL POLICY ON THE DEVELOPMENT OF SMALL SCALE ENTERPRISE IN
NIGERIA
CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Small scale
enterprises varies widely around the world, small scale enterprise are normally
private owned corporation partnership or sole proprietorship. What constitute
“small scale enterprise are common in many countries depending on the economic
system in operation, typical examples includes convenience store, other small
shop (such as bakery or delicatessen), hairdressers, trade man, lawyers,
accountants, restaurants, guest house.
A small
scale business can be started at a very low cost and on part- time basis, small
scale business is also well suite to internet marketing because it can easily
serve specialized riches, some things that would have been more difficult prior
to the internet revolution which began in the late 1990s sometimes called a
small scale business, a small scale enterprise is a business that employs a
small number of workers and does not have a high volume of capital. Such
enterprises are generally privately owned and operated sole proprietorship,
corporations and partnerships. The legal definition of a small scale enterprise
varies by industries and countries.
In some
countries, the definition of a small scale enterprise is bound by financial
measure such as net profit, balance sheets, totals, the value of assets and
annual sales. In Ogun State for example, a non-manufacturing small scale
enterprise is one that does earn more than 1 million in a year. Financial
measure can varies by industry, as annual receipts may be higher for industries
that have higher overhead cost to operate. In general small scale enterprises
are business that does not dominate their respective industries. The role of
small scale enterprises in fostering economic development has been well
articulated in different form of this nature. The specific attention on them is
based on their expected impact and potential contribution on broad and
diversified production base as well as their accelerative effect in achieving
macro-objectives pertaining to full employment, income distribution and the
development of local technology. They are particularly most conducive for
diffusion of management skills and stimulation of indigenous entrepreneurship
overtime.
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