Small Scale Industries and Rural Development in Edo State, Nigeria

Abstract

The future of the industrial development of this nation depends to a large extent on the growth and development of the potentials of small and medium scale enterprises (SMEs). Small scale industries play a considerable role in the employment of manpower and productivity, distribution of income across the regions through increased investments and profits. In fact, they are termed 'rural developing motors'. The objective of this study is to highlight the roles and constraints of small scale industries in the rural development of Edo state. The data collected were obtained through field observations, oral interviews and questionnaire administration. The data received were analysed using statistical techniques. Findings revealed that small scale industries have seriously impacted in the area of employment and household income generation .It also shows that there is lack of management skills, poor record keeping and weak access to financing.

The role of SMEs in rural development: Access of SMEs to finance as a mediator

“…This means that SMEs can accommodate rural entrepreneurs regarding their standard of living and improving their quality of life. These results are in line with numerous previous studies of Oboniye [ 66 ], Xiujuan [ 67 ], Vasilescu and Popa [ 68 ], and Tambunan [ 69 ]. For instance, Xiujuan [ 67 ] claimed that SME’s development in rural areas is conducive to promoting rural economic growth, and SMEs have become the bottleneck of rural development.…”