THE ROLE OF NATIONAL DIRECTORATE OF EMPLOYMENT AND SMALL SCALE ENTERPRISES IN REDUCING UNEMPLOYMENT IN THE ECONOMY

ABSTRACT

The  purpose of  this study was  to  investigate the role of National Directorate of Employment and Small Scale Enterprises in reducing unemployment in the economy. Emphasis was placed on the role of government agencies like the National Directorate of Employment and related policies in curbing the menace of unemployment in the economy. The methodological approach adopted  was  the  survey  method.  The  literature  reviewed  the works  done  by  eminent  scholars,  professionals,  government gazette on small scale enterprises, unemployment and other management  practitioners.  Secondary  and  primary  data  were used for this study. The primary data were questionnaires administered   and   oral   interview   conducted   on   the   target population. The data collected were tabulated and analyzed using chi-square statistical tools. The findings of this research show that, The activities of National Directorate of Employment contribute to the reduction of unemployment rate in the economy, Government agencies and policies in Nigeria provide a reasonable solution, to an extent in tackling the unemployment problem, The existence of Small Scale Enterprises in no mean measure, boast employment generation   in   Nigeria,   There   should   be   a   re-appraisal   of government aids to Small Scale Enterprises and maintenance of agencies set up to support the programmes, There should be motivation and incentives to Small Scale Entrepreneurs and government agencies to  boast the fight against unemployment, There should be a proper maintenance and establishment of a data bank on unemployment and vacancies in the country with a view of acting as a clearing house to link job seekers with vacancies in collaboration with other government and non government agencies.

CHAPTER ONE

1.1  INTRODUCTION

The population of every economy is divided into two categories,  the  economically active  and  the  economically inactive. The economically active population (labor force) or working population refers to the population that is willing and able to work; including those actively engaged in the production of goods and services (employed) and those who are unemployed. Whereas, unemployed refers to people who are willing and capable to work but are unable to secure suitable and paid jobs.

The next category, the economically inactive population refers to people who are neither working nor looking for jobs. Examples include: house wives, full time students, and invalids, those  below  the  legal  age  for  work  and  retired persons.   The unemployment rate is expressed as a percentage of the total number of persons available for employment at any given time. Unemployment is a problem that each society faces, and each society must find a way of reducing it to the nearest minimum. Thus the involvement

of government in setting up employment agencies to aid and enhance the operation of small scale entrepreneurs in reducing the rate of unemployment.

A business whether big or small, simple or complex, private or public is created to provide competitive prices. Small scale business is also seen as one which is owned, managed, controlled by  one  or  two  persons, it  is  family influenced in decision making, has an undifferentiated organizational structure, has relatively small share of the market and employ les than 50 people. Big businesses can hardly survive without the Small Scale Enterprises as they give the important links between the big business and the consumers.

Before the advent of Small Scale Business enterprises Nigerian economy from 1970-1979 was grossly over dependent on crude oil. The oil boom of the 1970’s offered an opportunity for true national economic development. Despite  the  oil  boom,  there  was  massive  corruption, deficient policies, poor policy implementation, favoritism and total lack of sensitivity on the part of government.

The oil boom could not alleviate poverty or reduce unemployment especially graduate unemployment, due to the mismanagement that engulfed the resources which would have been used to tackle the menace of unemployment. But this research work will show the role of Small Scale Enterprises and government agencies in reducing   unemployment  in   the   economy.   There   were genuine attempts by the federal government to make sure that Nigerian’s play active and important role in the development of the economy, thus, special attention was paid into the development of Small Scale Enterprises in the

1970-74 national development plan. This was in recognition of their role sin the development of the economy. In an attempt to fight the unemployment crises-unemployment, under  employment,  law  wage  employment  and  outright social exclusion which have resulted in human resources wastage, several attempts have been made by the government, which to a large extent have not yielded the much expected results. Among these includes the Green Revolution,  Structural  Adjustment  Programme  (SAP)  the

National Directorate of Employment, which was established in 1986 and launched in 1987 and the current seven point agenda born out of the vision 20-2020 of the present administration.

1.2  STATEMENT OF THE PROBLEM

Unemployment is  one  of  the  development problems that  face  every  developing economy in  the  21st   century. International statistics shows that  industrial and  service workers living in developing region accounts for about two- third of the unemployed population.

Small Scale Enterprises and other governmental agencies are expected in every economy, community or society to play vital role towards the reduction of unemployment rate, among the roles include:

1.     Reducing    unemployment    among    the    teeming unemployed graduates

2.     Promoting  the  development  and  establishment  of Small Scale Business to boast employment generation.

3.     Supporting the activities of the agencies established by the government for employment generation like the National directorate of employment.

In  the  bid  to  achieve  these  social  objectives,  those Small Scale Enterprises and related governmental agencies have their fair share of hindrance and problems.

These problems are  either  internal or  external. The internal problems are hinged on the incompetence and inadequacies of those at  the helm of affairs; poor policy implementation with corrupt attitudes and practices among the practitioners while external problems are mainly based on environmental factors. Moreover, other problems include managerial problems, poor organizational skills, absence of proper control mechanisms, poor  functional management and lack of good planning.

In view of the above mentioned and identified weaknesses,   there   is   a   need   to   research   into   the contributing factors that have led to the inefficiencies and ineffectiveness of these policies, and implementation, which

by extension have not allowed efficiency to thrive in those establishments, agencies and small scale enterprises.

1.3  OBJECTIVES OF THE STUDY

The purpose of this study is to investigate the activities and operations of Small Scale Enterprises and government agencies in Nigeria, with the view of finding out:

1.     How  the  activities  of  the  National  Directorate  of employment reduces unemployment problem in the economy.

2.     To determine how government incentives to Small Scale Enterprise contribute to the reduction of unemployment in the economy.

3.     To ascertain how sufficient government policies are in tackling unemployment problem in the economy.

4.     To  examine  how  the  existence  of   small  scale enterprise boast employment generation in the economy.

1.4  RESEARCH QUESTIONS

1.     Do   the   activities   of   National   Directorate   of Employment reduce unemployment in the economy?

2.     Has   government   incentives   to   Small   Scale Enterprises contribute to the reduction of unemployment.

3.     Are government policies sufficient in tackling the problems of unemployment?

4.     Has  the  existence  of  Small  Scale  Enterprises boast employment generation in the economy.

1.5  RESEARCH HYPOTHESES

As  a  guide  in  the  collection of  data  for  the  study, certain hypotheses have been formulated. These are

Ho1: The    activities    of    the    National    Directorate    of Employment do not reduce unemployment in the economy?

H1: The activities of the National Directorate of Employment reduce unemployment in the economy.

Ho2: Government incentives to Small Scale Enterprises do not contribute to the reduction of unemployment in the economy?

H2: Government incentives to Small Scale Enterprises contribute to the reduction of employment in the economy.

Ho3: Government polices are not sufficient in tackling the problem of unemployment.

H3: Government policies are sufficient in tackling the problem of unemployment

Ho4: The existence of Small Scale Enterprises do not boast employment generation in the economy?

H4: The existence of Small Scale Enterprises has boast employment generation in the economy.

1.6  SIGNIFICANCE OF THE STUDY

According to Gbosi (1997) unemployment is defined as “a situation in which people who are willing to work at the prevailing wage rate are unable to find jobs. The unemployed is a member of an economically active population, who are

without work but available for work, including people who have lost their jobs and those who have voluntarily left work (World Bank 1998). The natural rate of unemployment is the average rate of unemployment around which the economy fluctuates. Moreover, the activities and existence of small scale enterprises can not be overlooked in the fight to reduce the alarming rate of unemployment by the government and its agencies.

This  research work  will  be  an  invaluable source  of literature for researchers, students, marketing practitioners, management professionals, companies and other individuals intending to study.

1.     How   the   activities   of   National   Directorate   of Employment contributes in the employment generation.

2.     The effects of government incentives to Small Scale

Enterprises in the economy.

3.     The various types of unemployment and the effects of high rate of unemployment.

4.     Government policies in reducing unemployment in

Nigeria.

Findings from this research will help researchers suggest alternative strategies that  can aid in  eradicating unemployment in the economy.

1.7  SCOPE OF THE STUDY

This means the boundary of the study. It is the area in which the researcher intends to operate, concentrate and extend its tentacles. It also means the area where the researcher cannot exceed during the researcher study. In this  research work, the  researcher could  not exceed the boundary of studying the contribution of the Small Scale Enterprises in reducing unemployment in the economy, assessing the effects of incentives by government towards the  Small  Scale  Enterprises  and  how  the  activities  of National Directorate of Employment have contributed towards the reduction of unemployment in the economy.

The study is limited to Anambra state with the researcher   concentrating   on   the   owner’s,   employers,

employees of Small Scale Enterprises and concentrated in six (6) small business types which include: wood work, Bakery industries, food and catering services, beauty and hair saloon, printing and fashion and designing.

The research study was concluded by examining types of unemployment, policies and measures to reduce unemployment, effects of high rate of unemployment, Historical Development and orientation of small scale enterprises in Nigeria, the role of small scale enterprises in the economic development of Nigeria.

Finally   government   objectives   in   promoting   the activities of small scale industries were not left out.

1.8  LIMITATIONS OF STUDY

The researcher obtained all data, information and materials   through   several   means   that   was   thought important for this piece of work. However, putting this write up was not easy due to several constraints encountered by the writer during this researcher work.

The  major  limitations  which  the  researcher encountered in the course of carrying out this research are the difficulty of getting and gathering information, understanding certain concept in the questionnaires by the respondent, financial constraint.

However, the list of limiting factors, not withstanding, the study will make a positive contribution to literature.

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