INVESTIGATION OF GOVERNMENT INDUSTRIAL POLICY ON SMALL AND MEDUIM BUSINESS DEVELOPMENT
IN ENUGU NORTH AND ENUGU SOUTH LOCAL GOVERNMENT AREAS ENUGU STATE      
ABSTRACT
This research work examined “Investigation of government industrial policy on small and medium business development”. The objectives of the study include to: investigate the effect of Nigerian indigenization policy on the development of SMEs in Nigeria, ascertain the impact of import substitution industrialization policy on the development of SMEs in Nigeria, determine the effect of Small and Medium Industries Equity Investment Scheme (SMIEIS) on the development of SMEs in Nigeria and examine the impact of trade and financial liberalization policy on the development of SMEs in Nigeria. The research method adopted was the survey research method. The sources of data used were the primary and secondary sources of data. The population of the study was 904 while the sample size of 277 was determined by applying the rule governing population and sampling. The major instrument of data collection was the questionnaire. The data collected were presented in tables using frequencies and percentages and analysed using the five point likert system. The hypotheses were tested using the chi-square distribution formula. The findings included that Nigerian indigenization policy has a positive effect on the development of SMEs in Nigeria, import substitution industrialization policy has a positive effect on the development of SMES in Nigeria, small and Medium Industries Equity Investment Scheme (SMEIS) has a positive effect on the development of SMEs in Nigeria and trade and financial liberalization policy has a significant impact on the development of SMEs in Nigeria. The researcher concluded that government industrial policy has a significant impact on the development of small and medium business development in Nigeria, and it was recommended that Government should promote Nigeria indigenization policy, Import substitution industrialization policy should also be promoted, Small and medium industries equity investment scheme should be implemented and Trade and financial liberalization policy should be encouraged.
TABLE OF CONTENTS
CHAPTER ONE
INTRODUCTION
1.1     Background of the Study                        
1.2     Statement of the Problem                        
1.3     Objectives of the Study                         
1.4     Research Questions                            
1.5     Statement of Hypotheses                         
1.6     Significance of the Study                        
1.7    Scope of the Study                             
1.8    Limitation of Study                            
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1    Conceptual Framework of the Study                
2.2     Theoretical Framework of the Study                
2.3     Empirical Review                             
2.4 Summary of Review of Related Literature            
2.5 Gap in the Review of Related Literature             
CHAPTER THREE
METHODOLOGY
3.1    Research Design                            
3.2    Sources of Data                            
3.2.1    Primary Sources                            
3.2.2 Secondary Sources                            
3.3    Area of the Study                            
3.4     Population of the Study                        
3.5    Sample Size Determination                     
3.6     Instruments for Data Collection                
3.7    Validity of the Instrument                     
3.8    Reliability of the Instrument                    
3.9     Method of Data Presentation and Analysis        
CHAPTER FOUR
DATA PRESENTATION, ANALYSIS AND DISCUSSION OF FINDINGS
4.1    Distribution and Return of Questionnaire            
4.2    Bio-Data                                    
4.3     Data Relating To Research Questions            
4.3.1 Research Question One                        
4.3.2 Research Question Two                        
4.3.3 Research Question Three                        
4.4    Test of Hypotheses                            
4.4.1 Test of Hypothesis One                        
4.4.2 Test of Hypothesis Two                        
4.4.3 Test of Hypothesis Three                        
4.4.4 Test of Hypothesis Four                        
4.5    Discussion of Findings                         
4.5.1 Discussion Based on Hypothesis One            
4.5.2: Discussion Based on Hypothesis Two            
4.5.3: Discussion Based on Hypothesis Three            
4.5.4: Discussion Based on Hypothesis Four            
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1    Summary of Findings                         
5.2     Conclusion                                 
5.3     Recommendations                             
5.4    Contribution to Knowledge                     
5.5    Suggestions for further Research                
List of References                               
Appendix                                    
Questionnaire        
CHAPTER ONE
 INTRODUCTION
1.1    Background of the Study
    The history of government industrial policy in Nigeria, could be traced back to 1960s when the government pursued primarily, a policy of industrialization based on import substitution (Adewale, 2015). From 1974-1980, the industrialization strategy changed swiftly from assemblage plants to heavy duty industrial structures, which led to the establishment of the Nigerian Industrial Development Bank (NIDB) and the Nigerian Bank for commerce  and  industry (NBCI). In that era, the Central Bank of Nigeria (CBN), issued credit guidelines, prescribing high allocation of credit to the industrial sector. In 1986, the Structural Adjustment Programme (SAP) evolved which was aimed at diversifying Nigeria’s economic base including the productive sector of the economy. In 1988, Nigeria launched an industrial policy aimed at achieving an accelerated pace of industrial development for the country. The policy was principally targeted at increased export, manufactured goods and promotion of industrial development and national integration through industrial dispersal. In 2012, the  ministry  of trade  and investment announced a plan for the country’s industrialization, which was aimed at positioning and  empowering the  nation’s  manufacturing  sector as the key driver  of economic  growth.
    It has never been argued anywhere in academics, industry or government that industrialization is critical to economic development. Perhaps, what is contestable is the effectiveness of a given industrial policy to bring about the required development. Infact, there is hardly any developed nation that is not industrialized. As Iwuagwu (2011) noted, industrialization usually comes with clear enthusiasm and commitment of the administrative and political classes of the society, i.e there should be a focused administrative capability to wield the necessary political will to implement clearly defined policies that can transform the nation to industrialization.
Small scale businesses have been considered as the engine of economic growth and for promoting equitable development. The major advantage of the sector is its employment potential at low capital cost. The labour intensity of the small scale sector is much higher than that of the large enterprises (Owualah, 2013). The sector is a nursery of entrepreneurship, often driven by individual creativity and innovation. Besides the growth potential of the sector and its critical role in manufacturing, value chains and the multiplier effects they have on the rest of the economy enable them to be the engine of economic progress.
    In all economies, but more in developing and transition economies, there is now a consensus among state policy markers, development partners that small scale businesses are a potent driving force for their industrial growth and indeed overall economic development (Owuala, 2013).
Anyanwu (2012), posits that the experience of Nigeria indeed shows that the nation has never lacked in industrial policies. What is always absent is the political will, continuity and the enthusiasm of the administrative class; hence, the consequence is that most policies were abandoned midstream. It is based on this backdrop that this research will examine the investigation of government industrial policy on small business development.
1.2 Statement of the Problem
Despite Nigeria’s efforts at industrialization, the country has faced many challenges inhibiting industrialization. Some of these challenges to include: high geographical concentration, high production cost, low value added, low capacity utilization, high import content of industrial output, and low level of foreign investment in manufacturing.
However, apart from these challenges, it is evident that incoherent and inconsistent policy of government towards industrialization has impacted negatively on the small business development. The effect or consequences include high mortality rate of small business, increase in unemployment rate and a decline in the economy. This is just a way of saying that the government has not mustered enough political will to set Nigeria on the path of industrialization.
In the same vein, the power sector which is epileptic has not favoured Nigeria’s industrialization. Corruption and inefficiency in the management and subsequent privatization of our strategic iron and steel industry has left it in a comatose state.
1.3    Objectives of the Study
The broad objective of the study is to investigate government industrial policy on small business development. However, the specific objectives will include:
1.    To investigate the effect of Nigerian indigenization policy on the development of SMEs in Nigeria.   
2.    To ascertain the impact of import substitution industrialization policy on the development of SMEs in Nigeria.
3.    To determine the effect of Small and Medium Industries Equity Investment Scheme (SMIEIS) on the development of SMEs in Nigeria.  
4.    To examine the impact of trade and financial liberalization policy on the development of SMEs in Nigeria.
1.4    Research Questions
Based on the objectives of the study, the following research questions will be raised.
1.    What is the effect of Nigerian indigenization policy on the development of SMEs in Nigeria?   
2.    What is the impact of import substitution industrialization policy on the development of SMEs in Nigeria?
3.    What is the effect of Small and Medium Industries Equity Investment Scheme (SMIEIS) on the development of SMEs in Nigeria?  
4.    What is the impact of trade and financial liberalization policy on the development of SMEs in Nigeria?
1.5 Statement of Hypotheses
Based on the research questions, the following hypotheses will be formulated.
Hypothesis One
H0:    Nigerian indigenization policy des not have a positive effect on the development of SMEs in Nigeria.
H1:    Nigerian indigenization policy has a positive effect on the development of SMEs in Nigeria.    
Hypothesis Two
H0:    Import substitution industrialization policy does not have a positive effect on the development of SMEs in Nigeria.
H1:    Import substitution industrialization policy has a positive effect on the development of SMEs in Nigeria.
Hypothesis Three
H0:    Small and Medium Industries Equity Investment Scheme (SMIEIS) does not have a positive effect on the development of SMEs in Nigeria.
H1:    Small and Medium Industries Equity Investment Scheme (SMIEIS) has a positive effect on the development of SMEs in Nigeria.
Hypothesis Four
H0:    Trade and financial liberalization policy does not have a significant impact on the development of SMEs in Nigeria.
H1:    Trade and financial liberalization policy has a significant impact on the development of SMEs in Nigeria.
1.6 Significance of the Study
This research study is very important because it investigates government industrial policy of small business development. The government will benefit from this research study as the findings will help in industrialization in Nigeria. Small business owners will also benefit as they will be enlightened on the various policies formulated by government towards small business development. The researcher will benefit from this study as it is a partial requirement for the award of a Bachelor of Science (B.Sc) in Business Administration. The universities will benefit as this research work increases their data bank. Finally, this research work will serve as a reference material for further research on this topic.
1.7 Scope of the Study
This research work will cover the various government industrial policy measures towards small business development in Nigerian. The geographic coverage is Enugu North and Enugu South local government areas of Enugu State. The time scope will cover 2015-2017.
1.8 Profile/List of SMEs Under Study
a. Furniture Making
1.     Dunon Furniture: 14/16 Mbanugo Street Coal Camp Enugu.
2.     Edozie Furniture Company: 23 Edozie Street Uwani Enugu
3.     Kings Chair Making Company: No 17 Abagana Street Coal Camp Enugu.
4.     Adoben Furniture Company: 3/4 Amagu Street Achara Layout Enugu.
B.  Sewing
5.     Njideka Fashion and Designing: 10 Peter Okoye Street Uwani Enugu.
6.    Nwandu Sewing/Fashion and Designing: 7 Car Street Asata Enugu
7.    Oriolowo Fashion and Designing: 8 Dewhurst Street Asata Enugu.
Bread Making
8.     Majesty Bread: 12/13 Ilukwe Street Asata Enugu
9.     Coal City Bread: 15 Agu Street Maryland Enugu
10.    Pannis Bread: 12 Agu Street Achara Layout Enugu etc