ROLE OF SMALL-SCALE ENTERPRISES IN SOLVING UNEMPLOYMENT PROBLEMS (A Case Study Of Enugu North Local Government Area Of Enugu State)

CHAPTER I

INTRODUCTION
Background of the Study
To adequately appreciate how unemployment could be solved through the establishment of small scale business in Nigeria and in particular Enugu North Local Government Area of Enugu State. There arose the need for the initial attempt of defining unemployment? As well as small-scale business and inter worse both for our purpose.
Oxford dictionary of current English defined unemployment, as the state of being unemployed and the amount of unusual labour. Unemployment is also those people who are willing and able to work, but cannot find the job. On the other hand small-scale enterprise has been defined by many authors. 
According to Ejiofor (2009), defined it as these enterprise that have relatively little capital investment that products small quantities and a result control of a small scale of the market, which management marketing and entrepreneurs functions are rested in the proprietor. 
Also, according to Wolt Lawrence (1999), said that small scale industries is an industry, which is independently owned and operated and not dominated in its area of operation, also Druker P. F. 2000 maintains that there is only one critical things which, with a fair degree of reliability, industries whether a business is small, business requires at most one man who is not engaging any other functional work required. It is clean that same business man’s and stop generating employment and there by stimulating the economy. It seems it is confirmed to large scale business, small scale business are known to have certain attributes which distinguish them from the large scale business. To him, the year stick for measuring what constitutes a small scale business will include the following:
The size of business: Since they are small in nature, most of them are usually small in size and occupies a small share market. 
Types of Management: They are characterizes by one man management, it is owner domination that is fusim of ownership and control. The owner manager participates actively in all level of decisions operation of this firm. 
Insufficient accounting Record: They have little or no accounting records, consequently banking or credit facilities from financial institution are hardly, availed, to it.
Sole proprietorship: They are usually piloted by sole proprietor who hardly ever want to go into partnership with others, that is they are rule solely.
Cheap labour: Most of them, due to the nature of their business, they look for cheap labour to do work for them, so that they can easily pay at the end of the day. 
Small outlay: Due to the nature and size; they usually have small investable capital to run it’s business. Some examples of small business are small scale poultry, fashion and design, hair dressing, phone boot business etc.
According to Yakass, (2000), over the years, there has been a controversy over the definition of small scale industry. The absence of universal acceptable definition has compounded the problems of many industrialists. The central Bank of Nigeria definition of small scale over, does not exceed N500,000.00 for commercial bank or capital investment not N2 million and turn over up to million merchant banks. The Nerfund (National Economic Reconstruction Fund) defines a small scale operation, as the medium scale enterprises is any business that requirement between N5 million and N10 million also excluding land to start up.
The Federal ministry of industries defines small scale industries as a manufacturing, processing or serving enterprise, who capital investment does not exceed N25,000 in machinery and equipment only. 
The definition is to lay down the parameter under which and industrialist may take advantages, various incentive created by government for the growth of the small-scale industries, such machinery equipment and raw materials. The important of small scale industries to the survival of the nation economy are no longer by wares. They have moved from the subsistence level of the pre-indigenization period to a position of importance in the country industrial process. Therefore, the authorities should not relent on the efforts of making small scale industries assume their role in the economy.
My main concern is the central Bank of Nigeria (CBN) and National Economic Reconstruction Fund (NER) definition, not withstanding the experience of many Nigeria. Like their canter part in the advanced industrialized countries has shown that the small and medium scale enterprises are sort of training ground for the prospective, successful business men and women whose enterprises may eventually grow into giants locally, nationally and globally, more so, most labour force are in this sector of economy.

Statement of the Problem
In the present day, Nigeria society has been afflicted with very serious unemployment problems. This account largely for the social ills that have been devilled, the country today such as, obtaining by false, pretences or advance fees found more popularity known “as 419” robbery, bribery and corruption and other vices. It is commonly knowledge that graduates produced by various institution of higher learning and other highly skilled professional hardly ever find suitable employment opportunity in Nigeria today. Youth coopers for instance on passing out, rooming the street in searching of job or employment.

Purpose of the Study
The main purpose of this study is to identify the extent to which small scale enterprise in solving unemployment problem in Enugu North Local Government Area. Specially, the study sought:
i. To find out the extent establishment of small scale business helped in solving the problem of unemployment in Enugu North.
ii. To find out the extent employment provision resulting from the establishment of small scale actually affected the standard living of the people?
iii. To find out the extent establishment of small scale business assisted in mitigating the high level of social vices in Enugu North.

Significance of the Study
This study investigates its impact of establishment of the Nigeria economy and that of Enugu North Local Government Area in particular. The lingering problems and findings places to our rural job seekers could be specified by the establishment of small scale industries through the length and width in the country, this research work tries to know whether or not the establishment of the small scale business in the study area could reduced or decreased the unemployment problems of the study area.
In addition, it is aimed that this study will help to proffer solutions to the unemployment problems of Enugu North Local Government Area of Enugu State in particular, and the Nigeria society at large. It does applied that, if jobs could be provided for the unemployed, this could have a positive impact in the reduction of crime rate in our society also the basics standard of the people will be expected to be improve.

Research Questions
1. Has the establishment of small scale business helped in solving the problem of unemployment in Enugu North Local Government Area?
2. Has the employment provision resulting from the establishment of small scale actually affected the standard living of the people?
3. Has the establishment of small scale business assisted in mitigating the high level of social vices in Enugu North?

Delimitation of the Study 
This research is delaminated to the Enugu North Local Government Area of Enugu State in Nigeria and the unemployment level is also considering, which is seriously eradicated by the establishment of small scale business or industries.

Definition of the Term
Small scale business: Oxford paper back defined it as an industry, which can be carried out in the home.
Unemployment: The state of being unemployed is one who have no job to do regardless his/her strength and qualification.
Entrepreneurship: This is an individual who has the ability to see and evaluate business opportunities, gathering the necessary resources to take advantage of them and initiate appropriate actions to ensure success. This can also be defined as one who undertakes an enterprise, e.g. (a contractor, employer) etc.