Small And Medium Scale Industrial Cluster

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ABSTRACT

The industrial cluster is not a new phenomenon. It has evolved in a process after passing through number of economic theory developed, starting from location theory in 1976 by ven Thunen, marshal’s industrial district theory (1979), max Weber’s industrial complex theory (1950). The cluster concept has attracted many policy makers, academicians and researchers as a vital strategy for rural development (economic and industrial). Today, the developed and developing economy implementing cluster concept as an instrument for the development of rural small and household industries and also for the development of communities related to these industries. Generally, the cluster concept suggests a change in the units of analysis from isolated firms to a network of firms, which have an advantage of effective local knowledge up-gradation, skill development, empowerment of local community, caste people and innovations.

                                                             

 

 

                                                                

                                                                 

 

 

                             

 

Table of content

Title Page ……………………………………………………………………………….i

Certification page…………………………………………………………………..ii

Dedication………………………………………………………………………………iii

Acknowledgement………………………………………………………………….iv

Abstract………………………………………………………………………………….vi

Table of content………………………………………………………………vi-viii

CHAPTER ONE

Introduction ………………………………………………………………………1-4

    1. Background of the study…………………………………………..4-7
    2. Statement of the problem…………………………………………7-8
    3. Purpose of the study………………………………………………….8-9
    4. Scope of the study…………………………………………………10-11
    5. Limitations……………………………………………………………………11
    6. Definition of terms…………………………………………………12-13

Chapter two

2.0  Literature review………………………………………………………….14

2.1  industries (historical preview of its origin)……………14-15

2.2  Origin of industrial cluster……………………………………  15-17

2.3  Small and medium industries and the Nigeria……..17-20

       economy 

2.4  Problems of small and medium scale industries….20-22

2.5  Government’s plans……………………………………………… 22-24

Chapter three

3.0  Research methodology………………………………………………..25

3.1  Design of the study …………………………………………………….25

3.2  Area of study……………………………………………………………… 26

3.3  Population of the study……………………………………………….26
3.4  Method of date collection ………………………………………26-27

3.5  Case study 1…………………………………………………………  28-33

3.6  case study 2……………………………………………………………33-37

3.7  Case study 3…………………………………………………………  37-39

3.8  Case study 4…………………………………………………………  39-40

3.9  Case study 5…………………………………………………………  42-43

Chapter four

4.0  Presentation and analysis of data……………………………….44

4.1  Planning construction (technical studies)……………  44-43

4.2  Site selection and analysis…………………………………….53-57

Chapter five

5.0  The design programme and conclusion………………………58

5.1  Uses analysis……………………………………………………………….58

5.2  Activity analysis………………………………………………………58-64

5.3  Space analysis………………………………………………………  64-68

5.4  Design goals and objectives………………………………….68-69

5.5  Design philosophy……………………………………………………….69

5.6  Design concepts……………………………………………………  69-70

5.7  Design proposal………………………………………………………70-71

5.8  Conclusions ……………………………………………………………71-72

References

 

 

CHAPTER ONE

1.0  INTRODUCTION

Industries are categorized into micro scale, small scale medium and large scale depending on the factors which determine the scope and limitations of such firms. The definition of each of the categories depends largely on the country where the business thrives.

 

        In Nigeria, micro scale industries are defined as those whose total investment cost does not exceed one million, five hundred thousand naira (#1,500,000) including working capital but exclusive of land. The workforce is not more than 10.

 

Large scale industries are defined as those with total investment of over two hundred million naira (#200,000 000) excluding land but including working capital, and workforce of over 300 workers. It could be a national  or state enterprise which may have branches within or outside the area of locality. Private millionaire’s businessmen can also embark on such ventures.

 

Small scale industries are defined as those with total investment of between one million, hundred thousand naira (#1,500,000) and fifty million naira 50,000,000) and two hundred million naira (#200,000,000) excluding land, but including working capital, and a workforce of 11 to 100 workers.

 

Medium scale industries are defined as those with total investment of between fifty million (#50,000,000) and two hundred million naira (#200,000,000) excluding land, but including working capital and an workforce of between 101 and 300 workers. For the purposes of this project, concentration will be located at Aba, Abia state.

 

 Small and medium scale industrial cluster is an estate which houses various forms of small and medium enterprise (SME) that provide the services and needs of the people. As industries, each has its own production process which may be different from others. As a cluster, the whole area is planned in such a way as to enhance good co-ordination of activities and  relations of one industry to  another.

 

Aba is very good commercial centre and its choice as the location of this project is quite obvious various industries and commercial activities are going on everyday. Presently, the eruption of various industries and their indiscriminate locations seem to take the commercial city out of shape.

 

The industrial cluster is, therefore, meant to articulate all the various forms of small and medium scale industries together to find solution  both to industrial inefficiency and environmental problems.

 

This cluster is made to house such small and medium firms like, shoe-making, furniture making, welders and etc. The stage is ripe for it and the purpose is welcome. It is hoped that this project would open a new chapter in the industrial and commercial lives of the people of Aba and beyond.

 

In dealing directly with this project, some economic and technical analysis has been made in order to understand the subject clearly. By so doing expositions have been made on its economic implications and prerogatives which is in essence reporting on the general business of small and medium scale industries especially as it relates to the commercial city of Aba. The technical quality of the report is enhanced by the way all the factors affecting the design of industrial clusters are treated explicitly.
 

1.1 historical background of industrial location at aba

colonial period

In the eighteenth century, the constructed of railway line from Port Harcourt to Enugu through Aba enhanced the towns locations importance. In a bid to link the hinder leads to urban centres, feeder roads were constructed mainly to convey agricultural goods for sales in the town and manufactured goods from  towns to rural areas. Thus, the construction of road networks engendered as series of socio-economic linkages in the area.

 

The colonial administrations made efforts to develop industries already existing before 1946. For example, the wearing and spinning centres had been in existence before this period. These types of industries were encouraged through the application of modern technique use and assistance to Nigeria industrialists to acquire, manage and staff their ventures. Such efforts gave rise to the growth of factories which started manufacturing for local market and eventually replaced the formerly imported goods

The establishment of foreign trading (the United African Company -21AC and Paterson Zokonis-PZ) and the presence of a large population which provided the market and labour potentials were factors which among other things gave rise to industrial growth at Aba. Other factors also affected Aba in its industrial growth. The completeion of Aba-Port Harcourt road and Aba water works in 1925 generated further industrial concentration. By the year 1982 the town was almost a large settlement with four roads from Owerri, Ikot Ekpene, Ort Harcourt and Opobo Other factors also.

 

Post-colonial period

before the Nigeria Civil war (1960-1967) the growth of Aba attracted more people and industries into the town. For example, within this period a cosmetic/soap factory was established at Abayi while a life stock feed mill, a textile mill and some garment factors were established in the town. The intensive and market oriented industries at this period resulted to a road population growth of Aba. Consequently, the Aba town planning Authority mapped out an area of 2,453sq km as the planning areas for their growing municipality.

 

The civil war (1967-70) disrupted all industrial activities in the town. However, after the war, all industrial activities in the town were revived; This resulted in industrial expansion, increased production and creation of more job opportunities.

 

1.2  statement of the problems

Aba is city endowed with so many talented people with respect to designing and production so many products. It is a common practice at Aba that various industries and buildings sprout anyhow at any location. People cannot clearly define the residential areas different from commercial or industrial area. Even though they should be related, they should not be juxtaposed to each other bearing in mind the consequences and implications. To solve this problem, therefore, I decided to design on industrial cluster where small and medium scale industries will be conveniently located without necessarily affecting other aspects of human life.

 

Business and industrial activities should be organised to have a good co-ordination. Some industries depend solely on others in the production of their raw materials while others put finishing touches to the products of other companies and industries. For these activities to be relatively effective, they need to be planed in a rhythmical form.

 

In a bid to achieve this, it have been motivated to carry out a project bordering on planning of these business ventures to enhance a good business life. Life in itself is supposed to have a form and so does the characteristic of people should be designed to reflect the essence of living in all its ramifications.’

 

1.3  purpose of the study

Industries play a very important role in the human life. Almost all business and commercial activities in the human society have their root in industries starting from a small scale production of cakes, bread, and making of other confectionaries to a large scale production of machines and heavy equipments. All are finally disposed of in a ready market which goes to serve various human needs.

 

On the other hand, taking into commercial nature of Aba and relatively quick turnover required by consideration the businessmen operating in the area; the idea of designing for small and medium scale industries is not out of place. The average Aba businessman does not have the patience to wait or a long term profit through large scale industries. Again, people tend to pay attention to these business activities that solve their daily needs.

To this effect, more small and medium scale industries are bound to be advantaged. 

 

 

 

1.4  scope of the study

Small and medium scales industrials enterprises are numerous that it may be cumbersome designing and providing for each od them in a particular project.

Therefore, much consideration where given to the manufacturing units that some the needs of many people especial in Aba.

 

However, the spaces are mainly divided according to the scale of industries, which are;

 

The small scale sizes -15.2m x 30.4m.

The medium scale is between 30.4m x 45. (three plots of lands).

Spaces are provided for the small and medium scale industries.

Small scale                          medium scale

Furniture make

Welding making                   metal and allied construction

Leather bags accessories              leather production

Leather work (shoes)

                                         Packaging industries

 

1.5  LIMITATIONS 

In encountered some difficulties in the course of carrying out this research work. The following are some of the constraints:

  1. Lack of establishment and industrial cluster in the country carry out a research.
  2. Secondly, I have to travel severally to Aba in Abia state to visit some individual which sometimes i was turned down.
  3. Finally, my inability on several occasions to meet the resource personal in charge of the Naze industrial cluster.

 

 

1.6  definition of terms

Industry- Is the production of goods from raw materials especially in factories.

 

Small scale industries: Are defined as those industries with total investment of between one million, five hundred thousand naira excluding land, but including working capital; and/or a work force of between 11 and 100 workers.

Medium scale industries: Are defined as those with a total investment of between fifty million and two hundred million naira excluding land, but including working capital, and/or labour force of between 101 and 300 workers.

Cluster: Is a geographic concentration of interconnected business, suppliers and associated institutions in a particular field.

Aba: A city in Abia state which is made up of five local Govt. Area.

Scale: The set of the different level of something from the lowest to the highest.

Colonial period: A period when the Nigerians was under British colony before she got her independent in 1960.

Post colonial period: This is from October 1st, 1960, when Nigeria gained her impended from British colony.

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