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The Effects of Marketing in Some Selected Small-Scale Industries in the South-East of Nigeria

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ABSTRACT

This study is on the effects of marketing in some selected small-scale industries in the south-east of Nigeria. The objectives of the study are to: Examine the effects of the poor state of infrastructure on the development and sustainability of the sector, examine the effects of insecurity on the field sales operations of small-scale industries, and examine the effect of lack or poor access to finance, especially from banks on the sector. Data for this research work is obtained from primary sources. This study had a population size of 319, of which a sample size of 177 was realized using Taro Yamane’s statistical formula. Survey research design was adopted. Friedman chi-square (X2) and Z-test was used to test the hypotheses. To ensure that the research instruments are valid, I conducted a pre-test on every question in the questionnaire carried out. For the reliability of the research instruments, a test for the reliability test was carried out using Cronbach’s Alpha, and Coefficient of 0.78 was achieved indicating high degree of consistency. Findings indicate that poor state of infrastructural facilities impede the marketing problems of small-scale industries in the south-east of Nigeria. Insecurity poses serious challenges to the filed sales operations of small-scale industries. Lack of access to finance, especially from banks constitute hindrance to the growth and sustainability of small-scale industries in the south-east of Nigeria. Based on the findings, the study recommends that there should be every need both at the national and state level to urgently address the issue of poor infrastructural facilities so as to encourage Small and Medium-scale Enterprises (SMEs).The owners of Small and Medium-scale Enterprises should be separated from the management. In addition, professional managers or technocrats should be employed in order to ensure a better management of their enterprises. Government should make loan accessible to small and Medium-scale enterprises by removing some of the security constraints that hinder them from not having access to it.

CHAPTER ONE

INTRODUCTION

1.3 BACKGROUND OF THE STUDY

Since Nigeria’s independence in 1960, all the National Development Plans (1962-1985; 1986-1990, 1991-2000; 2001-2010) had laid emphasis on strategies of government led industrialization through the encouragement of local manufacturing industries (Ile, 2001). This was in recognition of the leading role the small-scale industrial sector was expected to play in the industrialization strategy of the government as well as the overall development of the economy. The South-East part of Nigeria, which is the area for this study is a major commercial and industrial nerve centre in Nigeria. According to the Anambra State Handbook (2002), one of the special characteristics of Nigeria South-Easterners are the immense resourcefulness of its people who carry on the most animated business relationship with people everywhere in Nigeria. As Oyemelukwe (2009) puts it, though the rich human resources of the area are not in question, perhaps nowhere is the tenacity of the people more evident than in the vigorous struggle for personal achievements. Indeed, the Igbo philosophy of individualism has over the years encouraged the preponderance of small-scale business enterprises in the South-East of Nigeria, (Apkala, 2007). The experience from India, China, South Korea and Singapore, Perhaps account for the belief in business and government circles that the “surest route to industrialization is through small-scale business sectors”, (Okoye, 2011). To this end, the government of Nigeria and those of the South-East States have over the years designed several schemes to assist private entrepreneurs.

Indeed, Nigeria’s fourth National Development Plan (1981-1985) stressed the importance of economic growth especially in the non-oil sector and greater local participation in the ownership and management of productive enterprises.

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