THE ROLE OF SMALL SCALE INDUSTRIES IN THE ECONOMIC DEVELOPMENT OF AKURE NORTH AND SOUTH LOCAL GOVERNMENT AREAS OF ONDO STATE.



THE ROLE OF SMALL SCALE INDUSTRIES IN THE ECONOMIC DEVELOPMENT OF AKURE NORTH AND SOUTH LOCAL GOVERNMENT AREAS OF ONDO STATE.
ABSTRACT
It has been pointed out that the role of small scale business Organization in the development of Nigeria economy cannot be over emphasized as a result; they are best suited to take care of personalized services. Many firms do not want to take risks hence the scale of their operation is. small. This small firms are usually located in strategic place where the demand for their products is fairly high, this has contributed to the growth of towns and cities in Ondo state and Nigeria as a whole.
However, the objectives and purpose of this study is to assess and
verify how small scale industries has contributes to the economic development of Akure North and South Local Government Area of Ondo State. In this project, the definition problems and the cause of failure of small scale industries were examined further, factors that account for the existence of small scale industries as well as factor to be considered when sitting small scale industries were also examined.




TABLE OF CONTENTS
Title page-- -        -        -        -        -        -                  -        -
Certification-        -        -        -                  --       -        -        -
Dedication  -        --       -        -        -        -        -        --       -
Acknowledgement-        -        -        -        -                  --       -
Abstract-    -        -        -        -        -        -        -        -        -
Table of Content- -        -                  -        -        -                  -
CHAPTER ONE
Introduction-        -        -        -        -        -        -        -        -
Background of the Study-       --       -        -        -        -        -
Statement of the Problem---    -        --       -        -        -        -
Research Questions-      -        -        -                  -        -        -
Significant of the Study-          --       -        -        -        -        -       
Scope of the study --      -        -        -        -        -        -        -
Definition of Terms-      -        -        -        -        -        -        -
CHAPTER TWO
REVIEW OF RELATED LITERATURE-  -        -        -        -
Meaning and Definition of Small Scale Industries-        -        --      
Ondo State and its Economy- -        -        -        -        -        -
Requirement of a Successful Small Business-      -        -        --
Rationale for Small Scale Industries-          -        -        -        -        -
The Role of Small Scale Business to Economic Development -        -
Problems and Cause of Failures of Small Scale Industries-     -
CHAPTER THREE
Research Method-          -        -        -        -        -        -        -        -
Research Design-  --       -        -        -        -        --       -        -
Research Instrument-     -        -        -        -        -        --       -
Population of the study-          -        -        -        --       -        -       
Sample and sampling techniques-     -        -        -        -        -
Method of Data Analysis-       -        -        -        -        -        -
CHAPTER FOUR
Presentation and Analysis of Data-  -        -        -        -        -
CHAPTER FIVE
Summary, Conclusions and Recommendations-  -        -        -
 Summary -          -        -        -        -        -        -        -        
Conclusion-          ---      --       -        -        -        -        -        -        -
Limitation of the study- -        -        -        -        -        -        -
Recommendation-          -        -        --       --       -        -        -        -
REFERENCES-   -        -        -        -        -        -        -        -
QUESTIONNAIRE-      -        -        -        -        -        -        -
CHAPTER ONE
INTRODUCTION
Background Of The Study
Economic development of any nation depends of how well a country can tap available resources. This could be done through the establishment of industries. It must be noted that this can be hindered by some factors which are characteristics of developing countries like Nigeria of which Ondo State is part. The economic activities of a nation determine the functions of small scale business for example the manufacture is depend on wholesalers who buy in bulk and sell to renters to the consumers. In this, economic activity, the small scale business is usually the renters and his functions are so unique because they make the goods available to consumers. However, small scale industries are those that normally produce in small quantity and in which the capital out lay is small.
Famoyin, (1973) described small scale industry as the one which is run and managed in a modest level; he went 7
further to say that they produce little output because of the little capital involved.
Durcker, (1978) in his own view sees small scale industries as a business which requires almost one man who does nothing but top management work and who is not engaged in any of the functional work required. Despite the fact that these small scale industries operate on small economic scale, they have been noted for the contribution they render in the economic development of a nation. By creating employment opportunities, they help in spreading modern technology all over the nooks and corners of the state especially in rural by making them selves available in areas where the large scale industries will find it difficult to operate profitable as a result of market size.
Statement of the problem
The research work is on the role of small scale industries in economic development of Ondo State, focusing attention on Akure North and South Local Government Areas.
In an attempt to verify and assess the roles of small scale business in the economic development of Akure north and south local government areas of Ondo State, the following statement of problems need to be considered.
i. To assess and verify how small scale industries have contributed to the economic development of Akure north and south local government of Ondo State.
ii. To finds out the various types of small scale industries in Akure north and south Local Government of Ondo State
iii. To examine the problems faced by small scale industries in Akure North and South Local Government of Ondo State, and to know how the problems could be solved.
iv. To examine marketing conditional or the small scale industries in the study area.
Research Questions
The question that might be generated in this research work is, should we allow Ondo State to remain under 4
developed in the face of enormous humans and material resources in the state? The following research questions will be addressed in the course of this research work.
i. Are small scales contributing to the economic development of Akure North and South Local Government of the State?
ii. What are the factors affecting the growth of small scale industries in this part of the state?
iii. Are the present marketing conditions favourable to the survival of these small scale industries in Akure North and South Local Government Area of Ondo State?
Significance of the study
The importance of the study can be looked into through the researcher point of views, the government and the entrepreneurs the significance are:
       i.            The study is to enable the researchers to meet one of the requirement for the award of Nigeria certificate of education (N.C.E) in business education.
     ii.            To help researcher to know the problems and reasons that are accountable for the failure of small scale industries and how the problems might be solved.
  iii.            The researchers will be equipped with how to conduct research and also to serve as a point of business to operation where, how and when it should be operated.
  iv.            To enable the government and the public to know the factors that are responsible for the premature collapse of small scale industries in Akure North and South Local Government Areas of Ondo State.
     v.            To help the entrepreneur to benefit and to know efficiently a business it to be managed the causes of failure of small scale business.
Scope of the Study
The research is mainly based on the role of small industries in Akure North and South Local Government Areas of Ondo State.
The research work is limited to sole proprietorship, partnership and other business forms that fall within small scale category in the two local government areas of study
Definition of terms
The following are the unique meaning of the terms used in this study.
a.     Small Scale Industries: - These are industries being run and managed in a modest level.
b.     Economic Development:- The rate at which a nation or state is growing in the world of business.
c.      Capital:- These are money and other forms of credit needed to operate business such as cash hand, building, e.t.c.
d.     Partnership:- It is a one man business the capital is provided by the owner who also takes the risks and all the profits.
e.      Manufacture:- Producers of goods useful level the process raw materials into finished goods.











CHAPTER TWO
REVIEW OF RELATED LITERATURE
Meaning and Definition of Small Scale Industries
Some writers refer to small scale business as one with low employees, rather low sales volume and small capital, the owner is usually directly involved in the management as well as the operations of the business and may not have much training or experience in accounting procedure taxation, finance business management and business procedures and practices. According to Drucker (1978:7) sees small scale industries as a business which requires at most one man who does nothing but top management work and who is not engaged in any of the functional work required, it must be noted that members of family of the boss or the owner of the enterprise are usually employees to the business and this is one of the characteristics of small scale industries. Famoyin (1973: 5) describes small scale industries as business run in a modest level. This type of business are normally found in places where large scale industries cannot be establishes, especially in the rural area and densely populated areas where demand will be relatively low. Most of this business operates on wholesale. While others operate on retail services and thereby making goods available in areas where it will be needed. It is worthy of note that majority of raw materials used in big firm are produced and made available by the small scale industries. In a research carried out by centre for management development. Lagos in 1974, it was noted that small scale business cannot be adequately defined in terms of number of employee sales volume, assets employed or a combination of the above because of the inherent fallacy that would be embedded in such a definition.
The national directorate of employment (1990) (NDE) defines a small scale industry as a manufacturing establishment employing less than 10 person or a business whose investment in machinery and equipment does not exceed N2,400,000. in the same vein National Economic Reconstruction Found (NERE FUUND 1991) also sees small scale industry as a manufacturing, processing or service industry involved in a factory or production type of operation engaging up to 50 person and whose investment or plant machinery excluding land and building shall not exceed N2,000,000. According to companies and allied matter decree 1990. business time June (1990) define small scale business as that company whose annual turnover is not more than (N8m eight million naira and whose net assets value is not more then (N4m) four million naira.
Awakoby (1992) criticized the definition of small scale business using the parameter of size number of employment capital formation and locality on the ground that it tends to retard the growth of small scale business because of the difficulties involved in capital formation and discriminatory attitudes of the banks towards the small scale business entrepreneur. In view of the acticulty in defining precisely a small business, one cannot but agree with osagbemi (1983) who regards a small scale business as one whose scale of operation is less than the average definition in what is a suitable for all economic conditions, all that one needs to do is just to take an average figure of certain variables and all business which fall below this average can be referred to as small scale business in Ondo State, most small business can be found in following categories: weaving, carpentry, bricklaying, plumbing, printing press, shoe making farming, fishing, tailoring and dress making, poultry and ceramic, cocoa trading, mechanics, wood and metal works, barbing, blocking making, transportation to mention but a few. However, the contribution of these small industries towards the economic development will be critically examined in this and how they have helped in the economic development of Ondo State in particular.
Ondo State And Its Economic
Ondo state is a state in which is major activities centered on farming small scale industries are also found of dominate the business activities of the state.
As a matter of fact, Akure north and south local governments which are under study do have some large scale status. This implies that the economic activity of the two local governments is terms of industrialization are centered on small scale industries.
Requirement of a successful small scale business
It is important to realize that to start a new business of any type is to exposed to the risk of business failure.
Sufficient Capital: To commence a small scale business without enough financial support further increase the risk, and to start such a business without enough planning and necessary information to run this to increase the risk of failure.
Adequate Planning: Planning is an important ingredient for the success of any business operation, planning is a natural process for determining set of objectives effectively and economically with in a specified time. One of the most serious operational and formal planning. The seriousness of this problem is underlined by the number of small scale business failures every year.
          In a survey research conducted by Agim (1984) he found out that the cause of small scale business failure are as follows inadequate sales competitive weakness heavy operating expenses, poor location and poor management, difficult in getting materials. Thus, the survival of any small scale business depends on the product which can be obtained in necessary volume at a cost of that after adding a profit it can be sold and necessary volume will be reached.
At least three out of every four small scale business fail each year the committee in small scale business administration contends that 90% of such failures could be traced to lack of planning inexperience or inadequate manager competence. The remaining 10% are accounted for by neglect fraud and disaster.
Lack of effective planning and its negative consequences are recognized as major problems. Therefore, small business managers be convinced that formal planning is the basis prerequisite for successful operation. They should also knowledgeable in planning methods that are suitable and appropriate for small business situation.
Rational Of Small Scale Industries
The small business have continued to exist side with big firms not only in ondo state but also in Nigeria and other parts of the world the reason for their continued survival is that they too have advantages which big farms do not posses the reasons for this not for fetched.
i. Small firms can give personal treatment which by firms cannot render many customers value such personal treatment and therefore prefer to patronize the small firms.
ii. Small firms thrive more than the big firms in the provision of direct service such as the mechanics, lawyers and doctors.
iii. Small business unite throve in area where consumers demand that goods be produced to their specific tastes. A good example of this is the tailoring business. Many consumers prefer that garment 14
should be made according to their specific requirement rather than buying already sew ones in the market.
iv. Big firms cannot exist where the market for the product is small for example. In a small village demand for bread will be small and only a small bakery can exist there.
v. Small firms are usually located in strategic places where the demand for their product is fairly high they are never in want of customers because of their special location.
vi. In some cases small business unity have very low costs, for example hawkers do not need to pay exorbitant rents or pay salaries to workers. As a result, hawkers often sell their articles at prices lower than those of the big store.
 The role of small business in economic development
Industries, their findings constitute what was generally described as Macmillan gap”. The emphasis of this Macmillan gap” was that small scale industries are not given adequate attention by the banks and other financial institutions, because small scale industries often lack collaterals they are not able to gap the large security market and generally they are unfamiliar with the financial community these facts coupled with information gap tend to make them operate below the optimum level.
However, Hoselitze (1968) and Lewis (1972) have identified the following role scale industries.
i.        Stimulation Of Indigenous Entrepreneurship
Since the scale of operation of small business enterprises is small little capital is often required to take off for this reason local entrepreneurs are encouraged to start off the partial success of the National Directorate of Employment (NDE) when it was newly introduced was  recorded because indigenous entrepreneurs were prepared to go into businesses with little capital provided under the scene me.
ii. Creation Of Employment
Many small industrial establishment tend to use capital saving method and small scale industry is therefore recognized as an effective means of tackling the problem of unemployment opportunities should not however be exaggerated with the growth.
iii. Dispersal Of Industry
In most development countries, the essential facilities for the establishment of industries are available only in large cities where industry tends to concentrate. The establishment of additional enterprise in urban areas may overstrain the limited infrastructure and affect the economy of production of all types of industry. One remedy is to directly industrial development outside the metropolis and in this respect small scale industries have some advantages small enterprises can make use of raw materials and serve limited markets. They may be able to utilize lower cost labour to manufacture components. Under subcontracting agreement with large enterprise in urban centers. On the whole small industry has a greater locational flexibility and can be used more early to achieve industrial disperser.
iv. Diversification
Small scale industry is particularly usefull in diversification of the industrial structure. Where the size of the demand for a particular product is limited, production on small scale is often the only alternative to importation and this small scale industry facilitates the process of import substitution.
Similarly, large scale industry may require components and parts which may be uneconomic for production in a large scale. This types of ancillary in a large scale eventually contributes to the strength and stabilization of both large and small scale industry.
v. Utilization Of Resources
Small scale industries help to tap resources which would otherwise remain unused and this accelerates capital formation very often, the capital investment comes from family saving which would otherwise remain idle or from diversion of founds from luxury or nonproductive expenditure. Small scale enterprise can of then make use of raw materials available in certain localities or by products of large enterprises which normally have remained unused.
Problems and Causes of Failure of Small Scale Industries
Some attribute failure to ageing product arising from lack of innovation and inability to keep up with change in technology.
Instances of bad luck have been mentioned in which a thriving firm suddenly fail in the face of misfortune such as an accident or unforeseen tragic event, some of the problem are:
Poor Financial Support: A stumbling block for most small business in inadequate capital and credit facilities small business find it difficult to obtain long term financial assistance source banks rarely lend money to them and even though if these funds are available, they frequently carry a high interest rate which will at the end, constitute or problem to them when paying back the money.
What they do is to go straight into the little capital that they have invested and this will result to nothing but to pull down the enterprise.
Failure to Plan: One of the causes of failure small scale industries is lack of planning. Planning is very important in the management of a business. This is because of changes in the economic situation. It is worthy of note that today’s business activity demands forward looking strategies well formulated plans permit the entrepreneur to take better advantages of opportunities as they arise. Planning is not simply thinking ahead”, it involves the establishment of objective and determination of methods of attaining the objectives. But the achievement of this becomes difficult if not impossible because of lack of planning which eventually leads to business failure. Poor cash management the failure to maintain a stable and adequate financial position is a serious management error. A “cash poor” firm has little or no bargaining position and will waste a good of time struggling with creditors. The problem encountered by the new form is under capitalization simply not putting enough capital into the venture to really get started. In the going concern, on the other hand too much capital can get tied up in fixed assets, or absolute inventory if growth is not properly controlled hence, this will no doubt, lead to the collapse of small scale industries. The success or failure of any venture depends basically on one person, the entrepreneur. Those who are destined to fail ignore the standard of good business practice and operate on the basic of trail always struggling with the same basic problem.
Those who succeed are able to admit their short-coming and learn from their errors. Despite the ills and problems confronted by the small scale industries, the successful ones have been noted for the immense role they play in the economic development of Ondo State.




CHAPTER THREE
RESEARCH METHOD
This chapter deals with the instrument and methods used in collecting the required information, distribution of questionnaire and sample for the study and method of analyzing the data collected. For the purpose of recognition, the researchers made use of student’s identity card and the approved letter from the supervisor, this enabled the researchers to gain access to each of the various offices and establishment visited where relevant data were collected.
Research Design
The researchers made use of two major sources to retrieve the necessary information needed. The sources are primary and secondary sources.
Primary Sources
This consists of two methods which are:
The use of personal interview with the business owners during which the researchers asked oral questions from the managers, staff and the apprentices. The second method is the use of questionnaire which is of two types.
Open Ended Question: The industrial owners, staff and apprentices, as applicable have to give their own opinions about the questions put to them and the second type is closed ended questions in which the researchers have provided some options from which the interviewers are expected to pick which are ‘Yes’ or ‘No’ type.
Secondary Sources
In addition to information gathered through questionnaires, oral interview and personal observation the researchers made use of relevant business journals, magazine and newspaper for good references.
Research Instrument
The research instruments employed in the study includes: The questionnaire forms were designed purposely to elicit responses on the “roles of small scale business in the economic development of Akure north and south local government areas of ondo state.
Population of the study
There are relatively large number of small scale industries in ondo state as revealed by the ministry of trade and commerce, akure. In north and south local government, the total number of registered small scale industries were put at 600 as listed below:
Table 1:
Population of registered small scale industries in akure north and south local government areas of ondo state.
SN
Types of establishment
Akure North local government
Akure South Local Government
Total
1
Fashion design /tailoring
25
20
45
2
Vulcanizing
10
05
15
3
Coca trading merchant
45
30
15
4
Shoe making
25
20
45
5
Printing Press
26
24
50
6
Hairdressing barbing saloon
30
20
50
7
Photographic industries
25
26
51
8
Furniture making industry
35
20
55
9
Mechanize
20
15
35
10
Bookshops
25
14
39
11
Electric repairing appliance
10
20
30
12
Welding work
05
10
15
13
Hotel business
14
06
20
14
Saw milling
04
06
10
15
Garri processing industries
14
06
20
16
Watch sellers/rapining industries
08
12
20
17
Brick making industries
10
15
25

Total
331
269
600
Sources: Ministry of commerce and trade, Akure Ondo State 
Sample and Sampling Techniques
The researchers randomly selected six(6) establishments across the two (2) local government representing 35.30% of the total population of 17 establishments out of the total 600 population, the researchers further randomly selected 100 owners of these establishment which represents l6.67% of the population the sample for this research is therefore analyzed below.
Table 2:
List of sampled establishment
Names
SN
Name Establishment
Akure North
Akure South
Total

Saw milling
04
06
10

Vulcanizing
10
05
15

Hotel business
14
06
20

Watch sellers/repairing
08
12
20

Garn processing industries
14
06
20

Welding Work
05
10
15

Total
55
45
10
Method Of Data Analysis
The researchers employed the use of questionnaire to elicit responses from the sample. These questionnaires were collected and analyzed in percentage for easy understanding.













CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
The focus of the study was on the role of small scale industries in the economic development of Akure north and south local government areas of ondo state. Investigation was made on the factors that are responsible for the economic development of Akure north and south local government on small scale industries in Ondo state.
In analyzing the data, the main variables of the study were taken into proper cognizance. In doing this, all relevant questions were analyzed to answer the already stated research questions.
They are therefore presented as follows:
Research question 1:
Are small scale industries contributing to the economic development of akure north and south local government of ondo state?
In analyzing the relevant questions in the questionnaire, it was revealed that small scale industries contribute to the 29
economic development of Akure north and south local government of Ondo state.
Table 3:
Responses on the economic development of akure north and south local government of ondo state.
Serial pf the relevant question
Yes
No
Total Respondent
No 11
40
60
100
No 12
82
18
100
No 15
75
25
100
No 16
66
34
100
No 18
100
-
100
Total
363
137
500

From the above table, it is obviously indicated that small scale industries contribute immensely to the economic development of Akure north and south local governments of Ondo state. Through the data collected, 363 of the respondents, representing 72.60% agreed that small scale industries contribute to the economic development of Akure north and south local government of Ondo state while only 137 of the respondents with a percentage of 27.40% have contrary opinion as regard the contribution of small scale industries to economic development of the local governments
This therefore, indicates that small scale industries play an important role towards the economic development of akure north and south local government’s ondo state.
Research Question 2
Are there any problems affecting the growth of small scale industries akure north and south local government of ondo state?
The relevant question revealed that there were a lot of problems affecting the growth of small scale industries akure north and south local government of ondo state. Some of them are lack of capital of expansion, high tax form the government e.t.c for the purpose of analyzing this research question, the researcher used question number 12(twelve) of the questionnaire, the result of which is presented below:
Table 4
Problem militating against the growth of small scale industries in akure north and south local government of ondo state.
Names establishment
Yes
No
Total
Saw mill
85
15
100
Vulcanizing
65
35
100
Hotel Business
70
30
100
Wrist / Sellers / repair
64
36
100
Garri processing
55
45
100
Welding
55
45
100
Total
439
161
600
The above table shows the response of the respondents as regards problem affecting the growth of small scale industries akure north and south local government.
Those who responded positively to this were 439 in both akure north and south local government, representing 73.2% of the responses while 161 disagreed representing 26.8% of the responses.
Since the number and the percentage of the respondents who agreed is greater than those who disagreed, therefore, it is believed that these problems are having negative effect on the growth of the industries.
RESEARCH QUESTION 3
Are the present marketing condition favourable to the survival of those small scale industries in akure north and south local governments of ondo state?
In analyzing the relevant questions numbers 11 (eleven) and 15 (fifteen) respectively were used to examine the survival of these small scale industries akure north and south local government of ondo state.
The table below shows the responses of the researchers sample.
Table 5:
Analysis of marketing condition on the survival of small scale industries in akure north and south local government of ondo state.
RESPONSES
Names establishment
Yes
No
Total
Sawing Milling
90
10
100
Vulcanizing
70
30
100
Hostel business
75
25
100
Wrist / sellers/ repair
55
45
100
Garri processing
52
48
100
Welding
58
42
100
Total
400
200
600
From the above the responses show that the favourable marketing condition of these small scale industries at local government areas has a corresponding positive development or survival in the two local government areas in question number 11,400 responses representing 67% supported that the competition by large scale industries does not impeded the gift of small scale industries intends especially in the way they regulate adjust prices at will, to ensure that they have the control of the market.
However, the researchers condition an oral interviews and personal discussion with some people which compress private business owners and individuals in the two local government areas, were it was discovered that most respondents advised the government to encourage the small scale industries for enhanced social and economic development to reduce their burden of tax on them.
It was also revealed that the business owners in the two local governments should be given training regularly especially on the interact and behave to the customers public in the course of their duties.

CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION Summary
The major objectives of this research is to assess the role of small scale industries in the economic development Akure north and south local government of Ondo state.
The research tools used to collect the data were interview and questionnaire the statistical analysis used was simple percentage (%). In this study the economic activities of Ondo state were looked into with focus on the economic activities of Akure north and south local governments.
The researchers, samples were interviewed and questionnaires administered to each of the industries under sample the rationale for small scale industries and strategy of industrialization were discussed.
Above all, the role small scale industries in the economic development of ondo state as well as the problems and causes of failure of small scale industries and suggested solutions were also highlighted.


Conclusion
Small scale industries are very important not because they contribute to economic development but also serve as a training ground for bigger industries, provide employment opportunities, supply raw materials, help to check migration from rural areas to urban centers and utilization of resources.
There is no gain that saying that small scale industries play a dominant roles in the economic development of Akure north and south local governments of Ondo state, since the economic development is centered on small scale industries. In view of this, it is therefore concluded that all tiers of government and the banking industry should not leave the small scale industries to their fate if they must function properly in the state.
Limitation
The following are some of the problem faced by the researchers during the cause of carrying out this research work. There was limited time for the researchers to carry out the research. The researchers were faced with financial problems since there was need to travel to the study area. In order to collect information and the transport fare was very high as a result of like in the price of petroleum products nationwide.
Moreover, most of the interviews feel reluctant to provide the researchers with some necessary information which they considered sensitive and confidential; this almost discouraged the researchers initially.
Recommendations
In view of the findings on the role of small industries in the economic development of Akure north and south local government of Ondo state, the researchers thought it necessary to make some recommendation as a means o ameliorating the problems encountered by small scale industries.
Through it, is difficult to prescribe a fool proof survival kit, it is the researchers opinion that if the following recommendations should be adopted.
a.     The state government with the joint effort of the federal government should make provision for capital as to solve the problem that might result from insufficient capital. This could be done by directing the industrial development bank to always set aside some amount for industrial development as short term and long loan with light collateral security.
b.     Small scale business should maintain adequate book keeping of their transactions to prevent misappropriation of funds and frauds.
c.      The entrepreneur should carry out market research as it relates to their products to enable them discover further scale opportunities available in there area, this could be accomplished by sufficient advertisement managers the entrepreneurs and managers of small scale industries should endeavour to employ competent and effective personnel to assists them in the day to day running of their business.
The government should intensity its effort is the provision of necessary infrastructural facilities, particularly more good roads, should be constructed to facilities transportation between rural and urban centers. Electrification of not well electrified towns and state should be embarked upon to ensure the desired rural development.


REFERENCES
Adekunle, A. (1978): Modern Economics Analysis for Advance Level Students, Ilesanmi Printing Press, Ilesa, Nigeria.
Drucker, P.F (1978): Management Tasks, Responsibilities Practices, William Heinemann Limited, Nigeria.
Eyiyere, D. 0 (1978): Economic Made Easy, Deosun Limited, Nigeria.
Famoyin, V.O.L (1973): Principles and Concept of Economic Oxford University Press, Ibadan, Nigeria.
Lawal, O.A (1985): Economics for West Africa, Oxford University Press, Ibadan, Nigeria.
Nwaka, W.L (1985): The Role of Small Scale Industries in the Economics Development, Longman Group Limited, Nigeria.
Obaleagu-nzelibe, E.Cr (1990): Management of Small Scale Business in Nigeria. Oxford University Press, Ibadan, Nigeria.
Oladeji, 0. (1982): The Basic Principles of Economics for Advance Level, Ilesanmi Printing Press, Ibadan, Nigeria.



QUESTIONNAIRE
This questionnaire is primarily designed to collect information from the respondents in order to ascertain the role of small scale industries in Akure north and south local governments and how these roles have helped in the economic development of Ondo State.
Note:- Your name is not required on these questionnaires. Your response will be highly appreciated and that all information provided will aid the researchers in this study.
You are assured of confidential treatments of all information given.
Instruction: Kindly tick (‘.1) or comment or as applicable to each question and return it as your utmost operation is highly needed.
1.     Sex: Male ( ) Female ( )
2.     Age: ________________
3.     What is the level of your education? (Tick one) non formal education ( ), Primary education ( ), Secondary ( ), O.N.D ( ), N.C.E ( ), University graduate ( )
4.     Martial Status: ____________
5.     Does the business belong to you? Yes ( ) No ( )
6.     If not, what is your position in the organization?
7.     For how long has the business been in existence? 0- l yr ( ), 1-l0 yrs ( ), 10- 2oyrs ( ). 
8.     What type of service does the business render?
9.     What was the initial capital invested in the business?
10.                        Sources of capital: (a) Personal saving ( ) (b) Borrowing from relations and friends ( ), (c) Credit from financial institution ( ).
11.                        Does competition by large scale industries impeded the growth of small scale industries? Yes ( ) No ( )
12.                         Do you agree that small scale industries do not play any roles in the economic development of Ondo state? Yes ( ) No()
13.                         If yes, give reasons
14.                         If no, give reasons
15.                         Do you agree that small scale industries bring changes in income and demand for goods and services in all the nooks and corners of the state? Yes ( ) No ( )
16.                        Do you agree that small scale industries located in rural areas reduce the migration of people from rural to urban? Yes( )No( )
17.                        Do you agree that small scale industries is very easy to establish as compared to large scale industries? Yes ( ) No( ). 
18.                         Do small scale industries provide employment opportunities for people in Ondo state and particularly Akure north and south local government areas? Yes ( ) No( )
19.                        Do you agree that small scale industries contribute to the development of Akure north and south local governments? Yes ( ) No ( )
20.                         Do you agree that small scale industries are more predominate over large scale industries in Akure north and south local government? Yes ( ) No ( )
21.                        Do you agree that small scale industries compliment big firms by providing raw materials and other facilities like canteens for their workers? Yes ( ) No ( ).


CHAPTER ONE
INTRODUCTION
Background Of The Study
Economic development of any nation depends of how well a country can tap available resources. This could be done through the establishment of industries. It must be noted that this can be hindered by some factors which are characteristics of developing countries like Nigeria of which Ondo State is part. The economic activities of a nation determine the functions of small scale business for example the manufacture is depend on wholesalers who buy in bulk and sell to renters to the consumers. In this, economic activity, the small scale business is usually the renters and his functions are so unique because they make the goods available to consumers. However, small scale industries are those that normally produce in small quantity and in which the capital out lay is small.
Famoyin, (1973) described small scale industry as the one which is run and managed in a modest level; he went 7
further to say that they produce little output because of the little capital involved.
Durcker, (1978) in his own view sees small scale industries as a business which requires almost one man who does nothing but top management work and who is not engaged in any of the functional work required. Despite the fact that these small scale industries operate on small economic scale, they have been noted for the contribution they render in the economic development of a nation. By creating employment opportunities, they help in spreading modern technology all over the nooks and corners of the state especially in rural by making them selves available in areas where the large scale industries will find it difficult to operate profitable as a result of market size.
Statement of the problem
The research work is on the role of small scale industries in economic development of Ondo State, focusing attention on Akure North and South Local Government Areas.
In an attempt to verify and assess the roles of small scale business in the economic development of Akure north and south local government areas of Ondo State, the following statement of problems need to be considered.
i. To assess and verify how small scale industries have contributed to the economic development of Akure north and south local government of Ondo State.
ii. To finds out the various types of small scale industries in Akure north and south Local Government of Ondo State
iii. To examine the problems faced by small scale industries in Akure North and South Local Government of Ondo State, and to know how the problems could be solved.
iv. To examine marketing conditional or the small scale industries in the study area.
Research Questions
The question that might be generated in this research work is, should we allow Ondo State to remain under 4
developed in the face of enormous humans and material resources in the state? The following research questions will be addressed in the course of this research work.
i. Are small scales contributing to the economic development of Akure North and South Local Government of the State?
ii. What are the factors affecting the growth of small scale industries in this part of the state?
iii. Are the present marketing conditions favourable to the survival of these small scale industries in Akure North and South Local Government Area of Ondo State?
Significance of the study
The importance of the study can be looked into through the researcher point of views, the government and the entrepreneurs the significance are:
       i.            The study is to enable the researchers to meet one of the requirement for the award of Nigeria certificate of education (N.C.E) in business education.
     ii.            To help researcher to know the problems and reasons that are accountable for the failure of small scale industries and how the problems might be solved.
  iii.            The researchers will be equipped with how to conduct research and also to serve as a point of business to operation where, how and when it should be operated.
  iv.            To enable the government and the public to know the factors that are responsible for the premature collapse of small scale industries in Akure North and South Local Government Areas of Ondo State.
     v.            To help the entrepreneur to benefit and to know efficiently a business it to be managed the causes of failure of small scale business.
Scope of the Study
The research is mainly based on the role of small industries in Akure North and South Local Government Areas of Ondo State.
The research work is limited to sole proprietorship, partnership and other business forms that fall within small scale category in the two local government areas of study
Definition of terms
The following are the unique meaning of the terms used in this study.
a.     Small Scale Industries: - These are industries being run and managed in a modest level.
b.     Economic Development:- The rate at which a nation or state is growing in the world of business.
c.      Capital:- These are money and other forms of credit needed to operate business such as cash hand, building, e.t.c.
d.     Partnership:- It is a one man business the capital is provided by the owner who also takes the risks and all the profits.
e.      Manufacture:- Producers of goods useful level the process raw materials into finished goods.











CHAPTER TWO
REVIEW OF RELATED LITERATURE
Meaning and Definition of Small Scale Industries
Some writers refer to small scale business as one with low employees, rather low sales volume and small capital, the owner is usually directly involved in the management as well as the operations of the business and may not have much training or experience in accounting procedure taxation, finance business management and business procedures and practices. According to Drucker (1978:7) sees small scale industries as a business which requires at most one man who does nothing but top management work and who is not engaged in any of the functional work required, it must be noted that members of family of the boss or the owner of the enterprise are usually employees to the business and this is one of the characteristics of small scale industries. Famoyin (1973: 5) describes small scale industries as business run in a modest level. This type of business are normally found in places where large scale industries cannot be establishes, especially in the rural area and densely populated areas where demand will be relatively low. Most of this business operates on wholesale. While others operate on retail services and thereby making goods available in areas where it will be needed. It is worthy of note that majority of raw materials used in big firm are produced and made available by the small scale industries. In a research carried out by centre for management development. Lagos in 1974, it was noted that small scale business cannot be adequately defined in terms of number of employee sales volume, assets employed or a combination of the above because of the inherent fallacy that would be embedded in such a definition.
The national directorate of employment (1990) (NDE) defines a small scale industry as a manufacturing establishment employing less than 10 person or a business whose investment in machinery and equipment does not exceed N2,400,000. in the same vein National Economic Reconstruction Found (NERE FUUND 1991) also sees small scale industry as a manufacturing, processing or service industry involved in a factory or production type of operation engaging up to 50 person and whose investment or plant machinery excluding land and building shall not exceed N2,000,000. According to companies and allied matter decree 1990. business time June (1990) define small scale business as that company whose annual turnover is not more than (N8m eight million naira and whose net assets value is not more then (N4m) four million naira.
Awakoby (1992) criticized the definition of small scale business using the parameter of size number of employment capital formation and locality on the ground that it tends to retard the growth of small scale business because of the difficulties involved in capital formation and discriminatory attitudes of the banks towards the small scale business entrepreneur. In view of the acticulty in defining precisely a small business, one cannot but agree with osagbemi (1983) who regards a small scale business as one whose scale of operation is less than the average definition in what is a suitable for all economic conditions, all that one needs to do is just to take an average figure of certain variables and all business which fall below this average can be referred to as small scale business in Ondo State, most small business can be found in following categories: weaving, carpentry, bricklaying, plumbing, printing press, shoe making farming, fishing, tailoring and dress making, poultry and ceramic, cocoa trading, mechanics, wood and metal works, barbing, blocking making, transportation to mention but a few. However, the contribution of these small industries towards the economic development will be critically examined in this and how they have helped in the economic development of Ondo State in particular.
Ondo State And Its Economic
Ondo state is a state in which is major activities centered on farming small scale industries are also found of dominate the business activities of the state.
As a matter of fact, Akure north and south local governments which are under study do have some large scale status. This implies that the economic activity of the two local governments is terms of industrialization are centered on small scale industries.
Requirement of a successful small scale business
It is important to realize that to start a new business of any type is to exposed to the risk of business failure.
Sufficient Capital: To commence a small scale business without enough financial support further increase the risk, and to start such a business without enough planning and necessary information to run this to increase the risk of failure.
Adequate Planning: Planning is an important ingredient for the success of any business operation, planning is a natural process for determining set of objectives effectively and economically with in a specified time. One of the most serious operational and formal planning. The seriousness of this problem is underlined by the number of small scale business failures every year.
          In a survey research conducted by Agim (1984) he found out that the cause of small scale business failure are as follows inadequate sales competitive weakness heavy operating expenses, poor location and poor management, difficult in getting materials. Thus, the survival of any small scale business depends on the product which can be obtained in necessary volume at a cost of that after adding a profit it can be sold and necessary volume will be reached.
At least three out of every four small scale business fail each year the committee in small scale business administration contends that 90% of such failures could be traced to lack of planning inexperience or inadequate manager competence. The remaining 10% are accounted for by neglect fraud and disaster.
Lack of effective planning and its negative consequences are recognized as major problems. Therefore, small business managers be convinced that formal planning is the basis prerequisite for successful operation. They should also knowledgeable in planning methods that are suitable and appropriate for small business situation.
Rational Of Small Scale Industries
The small business have continued to exist side with big firms not only in ondo state but also in Nigeria and other parts of the world the reason for their continued survival is that they too have advantages which big farms do not posses the reasons for this not for fetched.
i. Small firms can give personal treatment which by firms cannot render many customers value such personal treatment and therefore prefer to patronize the small firms.
ii. Small firms thrive more than the big firms in the provision of direct service such as the mechanics, lawyers and doctors.
iii. Small business unite throve in area where consumers demand that goods be produced to their specific tastes. A good example of this is the tailoring business. Many consumers prefer that garment 14
should be made according to their specific requirement rather than buying already sew ones in the market.
iv. Big firms cannot exist where the market for the product is small for example. In a small village demand for bread will be small and only a small bakery can exist there.
v. Small firms are usually located in strategic places where the demand for their product is fairly high they are never in want of customers because of their special location.
vi. In some cases small business unity have very low costs, for example hawkers do not need to pay exorbitant rents or pay salaries to workers. As a result, hawkers often sell their articles at prices lower than those of the big store.
 The role of small business in economic development
Industries, their findings constitute what was generally described as Macmillan gap”. The emphasis of this Macmillan gap” was that small scale industries are not given adequate attention by the banks and other financial institutions, because small scale industries often lack collaterals they are not able to gap the large security market and generally they are unfamiliar with the financial community these facts coupled with information gap tend to make them operate below the optimum level.
However, Hoselitze (1968) and Lewis (1972) have identified the following role scale industries.
i.        Stimulation Of Indigenous Entrepreneurship
Since the scale of operation of small business enterprises is small little capital is often required to take off for this reason local entrepreneurs are encouraged to start off the partial success of the National Directorate of Employment (NDE) when it was newly introduced was  recorded because indigenous entrepreneurs were prepared to go into businesses with little capital provided under the scene me.
ii. Creation Of Employment
Many small industrial establishment tend to use capital saving method and small scale industry is therefore recognized as an effective means of tackling the problem of unemployment opportunities should not however be exaggerated with the growth.
iii. Dispersal Of Industry
In most development countries, the essential facilities for the establishment of industries are available only in large cities where industry tends to concentrate. The establishment of additional enterprise in urban areas may overstrain the limited infrastructure and affect the economy of production of all types of industry. One remedy is to directly industrial development outside the metropolis and in this respect small scale industries have some advantages small enterprises can make use of raw materials and serve limited markets. They may be able to utilize lower cost labour to manufacture components. Under subcontracting agreement with large enterprise in urban centers. On the whole small industry has a greater locational flexibility and can be used more early to achieve industrial disperser.
iv. Diversification
Small scale industry is particularly usefull in diversification of the industrial structure. Where the size of the demand for a particular product is limited, production on small scale is often the only alternative to importation and this small scale industry facilitates the process of import substitution.
Similarly, large scale industry may require components and parts which may be uneconomic for production in a large scale. This types of ancillary in a large scale eventually contributes to the strength and stabilization of both large and small scale industry.
v. Utilization Of Resources
Small scale industries help to tap resources which would otherwise remain unused and this accelerates capital formation very often, the capital investment comes from family saving which would otherwise remain idle or from diversion of founds from luxury or nonproductive expenditure. Small scale enterprise can of then make use of raw materials available in certain localities or by products of large enterprises which normally have remained unused.
Problems and Causes of Failure of Small Scale Industries
Some attribute failure to ageing product arising from lack of innovation and inability to keep up with change in technology.
Instances of bad luck have been mentioned in which a thriving firm suddenly fail in the face of misfortune such as an accident or unforeseen tragic event, some of the problem are:
Poor Financial Support: A stumbling block for most small business in inadequate capital and credit facilities small business find it difficult to obtain long term financial assistance source banks rarely lend money to them and even though if these funds are available, they frequently carry a high interest rate which will at the end, constitute or problem to them when paying back the money.
What they do is to go straight into the little capital that they have invested and this will result to nothing but to pull down the enterprise.
Failure to Plan: One of the causes of failure small scale industries is lack of planning. Planning is very important in the management of a business. This is because of changes in the economic situation. It is worthy of note that today’s business activity demands forward looking strategies well formulated plans permit the entrepreneur to take better advantages of opportunities as they arise. Planning is not simply thinking ahead”, it involves the establishment of objective and determination of methods of attaining the objectives. But the achievement of this becomes difficult if not impossible because of lack of planning which eventually leads to business failure. Poor cash management the failure to maintain a stable and adequate financial position is a serious management error. A “cash poor” firm has little or no bargaining position and will waste a good of time struggling with creditors. The problem encountered by the new form is under capitalization simply not putting enough capital into the venture to really get started. In the going concern, on the other hand too much capital can get tied up in fixed assets, or absolute inventory if growth is not properly controlled hence, this will no doubt, lead to the collapse of small scale industries. The success or failure of any venture depends basically on one person, the entrepreneur. Those who are destined to fail ignore the standard of good business practice and operate on the basic of trail always struggling with the same basic problem.
Those who succeed are able to admit their short-coming and learn from their errors. Despite the ills and problems confronted by the small scale industries, the successful ones have been noted for the immense role they play in the economic development of Ondo State.




CHAPTER THREE
RESEARCH METHOD
This chapter deals with the instrument and methods used in collecting the required information, distribution of questionnaire and sample for the study and method of analyzing the data collected. For the purpose of recognition, the researchers made use of student’s identity card and the approved letter from the supervisor, this enabled the researchers to gain access to each of the various offices and establishment visited where relevant data were collected.
Research Design
The researchers made use of two major sources to retrieve the necessary information needed. The sources are primary and secondary sources.
Primary Sources
This consists of two methods which are:
The use of personal interview with the business owners during which the researchers asked oral questions from the managers, staff and the apprentices. The second method is the use of questionnaire which is of two types.
Open Ended Question: The industrial owners, staff and apprentices, as applicable have to give their own opinions about the questions put to them and the second type is closed ended questions in which the researchers have provided some options from which the interviewers are expected to pick which are ‘Yes’ or ‘No’ type.
Secondary Sources
In addition to information gathered through questionnaires, oral interview and personal observation the researchers made use of relevant business journals, magazine and newspaper for good references.
Research Instrument
The research instruments employed in the study includes: The questionnaire forms were designed purposely to elicit responses on the “roles of small scale business in the economic development of Akure north and south local government areas of ondo state.
Population of the study
There are relatively large number of small scale industries in ondo state as revealed by the ministry of trade and commerce, akure. In north and south local government, the total number of registered small scale industries were put at 600 as listed below:
Table 1:
Population of registered small scale industries in akure north and south local government areas of ondo state.
SN
Types of establishment
Akure North local government
Akure South Local Government
Total
1
Fashion design /tailoring
25
20
45
2
Vulcanizing
10
05
15
3
Coca trading merchant
45
30
15
4
Shoe making
25
20
45
5
Printing Press
26
24
50
6
Hairdressing barbing saloon
30
20
50
7
Photographic industries
25
26
51
8
Furniture making industry
35
20
55
9
Mechanize
20
15
35
10
Bookshops
25
14
39
11
Electric repairing appliance
10
20
30
12
Welding work
05
10
15
13
Hotel business
14
06
20
14
Saw milling
04
06
10
15
Garri processing industries
14
06
20
16
Watch sellers/rapining industries
08
12
20
17
Brick making industries
10
15
25

Total
331
269
600
Sources: Ministry of commerce and trade, Akure Ondo State 
Sample and Sampling Techniques
The researchers randomly selected six(6) establishments across the two (2) local government representing 35.30% of the total population of 17 establishments out of the total 600 population, the researchers further randomly selected 100 owners of these establishment which represents l6.67% of the population the sample for this research is therefore analyzed below.
Table 2:
List of sampled establishment
Names
SN
Name Establishment
Akure North
Akure South
Total

Saw milling
04
06
10

Vulcanizing
10
05
15

Hotel business
14
06
20

Watch sellers/repairing
08
12
20

Garn processing industries
14
06
20

Welding Work
05
10
15

Total
55
45
10
Method Of Data Analysis
The researchers employed the use of questionnaire to elicit responses from the sample. These questionnaires were collected and analyzed in percentage for easy understanding.













CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
The focus of the study was on the role of small scale industries in the economic development of Akure north and south local government areas of ondo state. Investigation was made on the factors that are responsible for the economic development of Akure north and south local government on small scale industries in Ondo state.
In analyzing the data, the main variables of the study were taken into proper cognizance. In doing this, all relevant questions were analyzed to answer the already stated research questions.
They are therefore presented as follows:
Research question 1:
Are small scale industries contributing to the economic development of akure north and south local government of ondo state?
In analyzing the relevant questions in the questionnaire, it was revealed that small scale industries contribute to the 29
economic development of Akure north and south local government of Ondo state.
Table 3:
Responses on the economic development of akure north and south local government of ondo state.
Serial pf the relevant question
Yes
No
Total Respondent
No 11
40
60
100
No 12
82
18
100
No 15
75
25
100
No 16
66
34
100
No 18
100
-
100
Total
363
137
500

From the above table, it is obviously indicated that small scale industries contribute immensely to the economic development of Akure north and south local governments of Ondo state. Through the data collected, 363 of the respondents, representing 72.60% agreed that small scale industries contribute to the economic development of Akure north and south local government of Ondo state while only 137 of the respondents with a percentage of 27.40% have contrary opinion as regard the contribution of small scale industries to economic development of the local governments
This therefore, indicates that small scale industries play an important role towards the economic development of akure north and south local government’s ondo state.
Research Question 2
Are there any problems affecting the growth of small scale industries akure north and south local government of ondo state?
The relevant question revealed that there were a lot of problems affecting the growth of small scale industries akure north and south local government of ondo state. Some of them are lack of capital of expansion, high tax form the government e.t.c for the purpose of analyzing this research question, the researcher used question number 12(twelve) of the questionnaire, the result of which is presented below:
Table 4
Problem militating against the growth of small scale industries in akure north and south local government of ondo state.
Names establishment
Yes
No
Total
Saw mill
85
15
100
Vulcanizing
65
35
100
Hotel Business
70
30
100
Wrist / Sellers / repair
64
36
100
Garri processing
55
45
100
Welding
55
45
100
Total
439
161
600
The above table shows the response of the respondents as regards problem affecting the growth of small scale industries akure north and south local government.
Those who responded positively to this were 439 in both akure north and south local government, representing 73.2% of the responses while 161 disagreed representing 26.8% of the responses.
Since the number and the percentage of the respondents who agreed is greater than those who disagreed, therefore, it is believed that these problems are having negative effect on the growth of the industries.
RESEARCH QUESTION 3
Are the present marketing condition favourable to the survival of those small scale industries in akure north and south local governments of ondo state?
In analyzing the relevant questions numbers 11 (eleven) and 15 (fifteen) respectively were used to examine the survival of these small scale industries akure north and south local government of ondo state.
The table below shows the responses of the researchers sample.
Table 5:
Analysis of marketing condition on the survival of small scale industries in akure north and south local government of ondo state.
RESPONSES
Names establishment
Yes
No
Total
Sawing Milling
90
10
100
Vulcanizing
70
30
100
Hostel business
75
25
100
Wrist / sellers/ repair
55
45
100
Garri processing
52
48
100
Welding
58
42
100
Total
400
200
600
From the above the responses show that the favourable marketing condition of these small scale industries at local government areas has a corresponding positive development or survival in the two local government areas in question number 11,400 responses representing 67% supported that the competition by large scale industries does not impeded the gift of small scale industries intends especially in the way they regulate adjust prices at will, to ensure that they have the control of the market.
However, the researchers condition an oral interviews and personal discussion with some people which compress private business owners and individuals in the two local government areas, were it was discovered that most respondents advised the government to encourage the small scale industries for enhanced social and economic development to reduce their burden of tax on them.
It was also revealed that the business owners in the two local governments should be given training regularly especially on the interact and behave to the customers public in the course of their duties.

CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION Summary
The major objectives of this research is to assess the role of small scale industries in the economic development Akure north and south local government of Ondo state.
The research tools used to collect the data were interview and questionnaire the statistical analysis used was simple percentage (%). In this study the economic activities of Ondo state were looked into with focus on the economic activities of Akure north and south local governments.
The researchers, samples were interviewed and questionnaires administered to each of the industries under sample the rationale for small scale industries and strategy of industrialization were discussed.
Above all, the role small scale industries in the economic development of ondo state as well as the problems and causes of failure of small scale industries and suggested solutions were also highlighted.


Conclusion
Small scale industries are very important not because they contribute to economic development but also serve as a training ground for bigger industries, provide employment opportunities, supply raw materials, help to check migration from rural areas to urban centers and utilization of resources.
There is no gain that saying that small scale industries play a dominant roles in the economic development of Akure north and south local governments of Ondo state, since the economic development is centered on small scale industries. In view of this, it is therefore concluded that all tiers of government and the banking industry should not leave the small scale industries to their fate if they must function properly in the state.
Limitation
The following are some of the problem faced by the researchers during the cause of carrying out this research work. There was limited time for the researchers to carry out the research. The researchers were faced with financial problems since there was need to travel to the study area. In order to collect information and the transport fare was very high as a result of like in the price of petroleum products nationwide.
Moreover, most of the interviews feel reluctant to provide the researchers with some necessary information which they considered sensitive and confidential; this almost discouraged the researchers initially.
Recommendations
In view of the findings on the role of small industries in the economic development of Akure north and south local government of Ondo state, the researchers thought it necessary to make some recommendation as a means o ameliorating the problems encountered by small scale industries.
Through it, is difficult to prescribe a fool proof survival kit, it is the researchers opinion that if the following recommendations should be adopted.
a.     The state government with the joint effort of the federal government should make provision for capital as to solve the problem that might result from insufficient capital. This could be done by directing the industrial development bank to always set aside some amount for industrial development as short term and long loan with light collateral security.
b.     Small scale business should maintain adequate book keeping of their transactions to prevent misappropriation of funds and frauds.
c.      The entrepreneur should carry out market research as it relates to their products to enable them discover further scale opportunities available in there area, this could be accomplished by sufficient advertisement managers the entrepreneurs and managers of small scale industries should endeavour to employ competent and effective personnel to assists them in the day to day running of their business.
The government should intensity its effort is the provision of necessary infrastructural facilities, particularly more good roads, should be constructed to facilities transportation between rural and urban centers. Electrification of not well electrified towns and state should be embarked upon to ensure the desired rural development.


REFERENCES
Adekunle, A. (1978): Modern Economics Analysis for Advance Level Students, Ilesanmi Printing Press, Ilesa, Nigeria.
Drucker, P.F (1978): Management Tasks, Responsibilities Practices, William Heinemann Limited, Nigeria.
Eyiyere, D. 0 (1978): Economic Made Easy, Deosun Limited, Nigeria.
Famoyin, V.O.L (1973): Principles and Concept of Economic Oxford University Press, Ibadan, Nigeria.
Lawal, O.A (1985): Economics for West Africa, Oxford University Press, Ibadan, Nigeria.
Nwaka, W.L (1985): The Role of Small Scale Industries in the Economics Development, Longman Group Limited, Nigeria.
Obaleagu-nzelibe, E.Cr (1990): Management of Small Scale Business in Nigeria. Oxford University Press, Ibadan, Nigeria.
Oladeji, 0. (1982): The Basic Principles of Economics for Advance Level, Ilesanmi Printing Press, Ibadan, Nigeria.



QUESTIONNAIRE
This questionnaire is primarily designed to collect information from the respondents in order to ascertain the role of small scale industries in Akure north and south local governments and how these roles have helped in the economic development of Ondo State.
Note:- Your name is not required on these questionnaires. Your response will be highly appreciated and that all information provided will aid the researchers in this study.
You are assured of confidential treatments of all information given.
Instruction: Kindly tick (‘.1) or comment or as applicable to each question and return it as your utmost operation is highly needed.
1.     Sex: Male ( ) Female ( )
2.     Age: ________________
3.     What is the level of your education? (Tick one) non formal education ( ), Primary education ( ), Secondary ( ), O.N.D ( ), N.C.E ( ), University graduate ( )
4.     Martial Status: ____________
5.     Does the business belong to you? Yes ( ) No ( )
6.     If not, what is your position in the organization?
7.     For how long has the business been in existence? 0- l yr ( ), 1-l0 yrs ( ), 10- 2oyrs ( ). 
8.     What type of service does the business render?
9.     What was the initial capital invested in the business?
10.                        Sources of capital: (a) Personal saving ( ) (b) Borrowing from relations and friends ( ), (c) Credit from financial institution ( ).
11.                        Does competition by large scale industries impeded the growth of small scale industries? Yes ( ) No ( )
12.                         Do you agree that small scale industries do not play any roles in the economic development of Ondo state? Yes ( ) No()
13.                         If yes, give reasons
14.                         If no, give reasons
15.                         Do you agree that small scale industries bring changes in income and demand for goods and services in all the nooks and corners of the state? Yes ( ) No ( )
16.                        Do you agree that small scale industries located in rural areas reduce the migration of people from rural to urban? Yes( )No( )
17.                        Do you agree that small scale industries is very easy to establish as compared to large scale industries? Yes ( ) No( ). 
18.                         Do small scale industries provide employment opportunities for people in Ondo state and particularly Akure north and south local government areas? Yes ( ) No( )
19.                        Do you agree that small scale industries contribute to the development of Akure north and south local governments? Yes ( ) No ( )
20.                         Do you agree that small scale industries are more predominate over large scale industries in Akure north and south local government? Yes ( ) No ( )
21.                        Do you agree that small scale industries compliment big firms by providing raw materials and other facilities like canteens for their workers? Yes ( ) No ( ).


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