The Role Of Small Scale Business In Job Generation In Nigeria A Survey Of Oshodi Isolo Local Government Area Of Lagos State

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The study of the Role of small scale Business in jog Generation Nigeria (a survey of Oshodi/Isolo LGA of Lagos State) was carried out to assess the extent of job generation through small scale businesses in Nigeria. Descriptive research methods was employed in carrying out the study. The population of the study was 1, 113,000. A sample size of 400 was derived using Yaro Yamani formular; Bowley’s proportional allocation formular was applied in allocating questionnaires in various stratums under study. 373 questionnaires were dully filled and returned out of 400. Analysis was done using tables and simple percentage. Formulated hypothesis was also tested using X2 (Chi-square) The study revealed that the small scale business boosts the economy of any nation. It was also discovered that small scale business offers a lot of employment opportunities for graduates than government jobs. Furthermore, it was discovered that small scale business has suffered a lot of hitches as a result of lack of funds, inadequate infrastructures, ineffectiveness of government policies and lack of proper education for the practitioners of this  businesses. In conclusion, the researcher therefore seriously recommends that: laws pertaining to small scale business should be amended; again Agencies responsible for containing corruptions should be free for the controls of the executives. Furthermore, young graduates should take urgent steps in taking up small business as means of livelihood. Finally, government should try to encourage and reward creativity, hard work and innovations, as a way of motivation for Youths to get involved in the development of the nation. 






Title page





Table of content

Chapter one


1.1      Background of study

1.2      Statement of the problem

1.3      Objective of the study

1.4      Research hypotheses

1.5      Significance of the study

1.6      Scope of the study

1.7      Limitation of the study

1.8      Definition of terms


Chapter two

Review of related literature

2.1      Meaning of unemployment and its causes

2.2      Poverty

2.3      Small scale business defined

2.4      Causes of unemployment in nigeria

2.5      Conceptual framework for employment generation

2.6      Importance of small scale business

2.7      Benefits of the small scale enterprises

2.8      Government efforts to reduce unemployment in nigeria through small-scale business

2.9      Ways to go in to small business

2.10  Why unemployment persist in nigeria


Chapter three

Research methodology

3.1      Research design

3.2      Area of study

3.3      Population of the study

3.4      Determination of sample size

3.5      Instruments for data collection

3.6      Validity of instrument

3.7      Reliability of the instrument

3.8      Method of data analysis


Chapter four

Presentation and analysis of data

4.1      Data presentation

4.2      Data analysis

4.3      Test of hypothesis

Chapter five

Summary of finding, conclusions and recommendation

5.1      Summary of findings

5.2      Conclusion

5.3      Recommendations


















The role employment in poverty reduction programmes in developing countries like Nigeria has received considerable attention world wide, in development strategies and policies. Here in Nigeria, the disease of unemployment is being suffered  by almost majority of the citizenry and in all aspects of life Yearly, the number of young school leavers entering into the labour market increase geometrically as they are looking for non-existing white-kola jobs. To this effect, it easily be inferred that up to 80% of both young and able-bodied Nigerians are constantly roaming about in the streets looking for both fresh and better job opportunities.

However, the truth remains that in Nigeria, the story of unemployment is supposed to have been a past story. This is because Eze (1999: 6) state that Nigeria is a country greatly endowed with many natural and human resources. The business environment apparently offers opportunities for many entrepreneurial ventures. Ironically, despite this endowment, her state of economic development leaves much to be desired.

Meanwhile, the government of this nation both past and present embarked on several campaigns against unemployment and equally established many bodies to put an end to the unemployment story in this country, but all were to no avail. Also, the international communities have in so many ways contributed to the reduction of unemployment in Africa, especially in Nigeria, but the story still remain the same.

Thus, unemployment means different things to different persons and different countries. O Nigerians, according to Ike (1998), unemployment means that people who are able, willingly and qualified to be employed to help themselves, and the society to reduce idleness and frustration but are not employed because of lack of job opportunities. To him, unemployment is seen to be existing only when people are not engaging themselves at all in some paid jobs and this is clearly proven when he/she is idle.

In a developed country like America, unemployment is not only when someone is idle and doing nothing, it also exist when he/she is not rightly employed in the type of job that suit him according to his level and discipline.

Generally, unemployment according to Oxford Advanced Learner’s Dictionary is defined as the fact a number of people not having a job or the number of people without a job. In a nutshell, unemployment is a cancer that has eaten deep into fabrics of this Nigeria and it is the objectives of this research work to x-ray the major causes of this ugly trend and equally showcase how this problem can be solved. 



Years back, between 1960 and the 1970 (according to an internet report), students of tertiary institutions were being booked for employment by cooperate organizations even when some of the students will have up to a year or two to conclude their degree programmes. This could be as a result of the limited number of tertiary institutions coupled with low turn out of students in the school, which was as a result of the people’s ignorance of the great value of education.

Gone are those years, when young graduates gained lucrative jobs first immediately after graduation; - Nowadays, the number of graduates deployed into the society for all well paid job out-numbered the little available jobs and al efforts both by the government and private sectors to curb this menace had proved abortive.

It is based on the above back drop that the following problems were deduced:

1)          As a result of unemployment, crime rate is on the increase in the country.

2)          It has also made youths to divert their interests from innovative and self-employable programmes to politics. Some are political thugs.

3)          There is also poverty and hunger among the people, especially the dependable population, yet the agricultural sector is neglected.

4)          Foreign investors are scared of investing in Nigeria.



In this work, the researcher tends to probe into the topic of unemployment through these question:

1)          Can unemployment actually be solved by increased small business in Nigeria?

2)          Does capital (fund) posses any impediment to the establishment of small scale organizations in Nigeria?

3)          Why the neglect of agricultural sector by the youths?

4)          Are foreign investors scared of investing in Nigeria?


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The Role Of Small Scale Business In Job Generation In Nigeria A Survey Of Oshodi Isolo Local Government Area Of Lagos State