Other Articles in this Volume:XXII No 1

GLORY Chikodi Olorunfemi; EGWUMA, Samson Ojiakor and SYLVANUS Ani Ezema

Published in 2022; Volume:XXII No: 1 Article Number: 5

This study evaluated the role of SMEs in reducing unemployment in Enugu state with particular emphasis on the sustainability of the employment generated by SMEs. The research work was embarked upon due to the prevalence of unemployment problems in the state under study, while the study was anchored on the Economic Survival Theory as was propounded originally by Adams Smith in 1776 and was remodeled by Gild in 1981 to explain the variables used in the work. Using data generated from secondary sources, the study found that inadequate funding, lack of managerial skills, poor record-keeping, lack of capacity to provide raw materials and improper marketing affected the objectives of small-scale industry in reducing unemployment in Enugu state. Critical among the factors responsible for the rising unemployment in the state are: lack of focus, inadequate market research, over-concentration on one or two markets for finished products, lack of succession plan, inexperience, lack of proper book keeping, lack of proper records or lack of any records at all, inability to separate business and family or personal finances, lack of business strategy, inability to distinguish between revenue and profit, inability to procure the right plant and machinery, inability to engage or employ the right caliber of staff, cut-throat competition. Consequently, the paper suggests the way forward which includes: provision of adequate fund, effective training to improve managerial skill, effective record-keeping, improved capacity to provide raw materials and proper marketing to enhance the small-scale industries capacity to reduce unemployment problems in Enugu State.

Role, Small-Scale, Industry, Reduction and Unemployment