Functions and Achievements of Government Support Agencies in the Development of Entrepreneurship in Enugu State

FUNCTIONS AND ACHIEVEMENTS OF GOVERNMENT SUPPORT AGENCIES IN THE DEVELOPMENT OF ENTREPRENEURSHIP IN ENUGU STATE.(A CASE STUDY OF NATIONAL DIRECTORATE OF EMPLOYMENT (N.D.E)

The essence of the chapter is to critically look at some solvent literary work that appear to have theoretical relevance to the research work and indicate their strength and weakness and how they impinge on this work.

To the end, therefore, this chapter has been structured into three much sections

1. Entrepreneurship development
2. Need, scope and characteristics of entrepreneurship.

iii.      Various government support agencies and their functions.

This will enable us to appreciate the problems as they relates to the referenced organization of this work: National directorate of employment (NDE) which is one of the government support agencies.

2.2     ENTREPRENEURSHIP DEVELOPMENT

Entrepreneurship is a catalyst for  economic growth. Drucker Peter (1986) suggested that the work of entrepreneurs drives free market economy. Yet economists have been slow to recognize the central role played by entrepreneur in driving growth.

As creators of new organizations, entrepreneurs are giving other jobs and a chance to become part of growing organizations. The government of Nigeria has recognized the value of entrepreneurship and has fostered it in part by creating empowerment zones, a practical that helps funds entrepreneurial enterprise in certain areas needing additional development. According to Ani Nnenna B (1999) P2 It is anticipated that these new enterprise will grow and produce some of the goods that the country has until now imported, thus conserving our dividing foreign exchange earnings. It is hoped that these new enterprise would help not only to generate employment opportunities for or school leavers and university/polytechnic graduates and earn some foreign exchange for the country.

Entrepreneurship benefits the economy by facilitating the spared of innovation so that it benefit not only the original entrepreneurs but also their competitors.

A Harvard professor, Arthur Cole (1984)  defined entrepreneurship as purposeful activity to initiate maintain and develop a profit  oriented business. The important part of this definition is that creating a new business organization is considered entrepreneurial.

Classical economists regarded land, labour, capital and entrepreneur as the main factors of production. The main task of the entrepreneur according to Lawal A.A et al (1998) is to organize the production system and assume the risk of production, land, labour and capital will have no economic value unless they are organized by an entrepreneur who on his own account under takes the financial risk and management control. In short an entrepreneur is a person who identifies business opportunities and organized the business activity. An entrepreneur is different from a manager who only plans, organizes and controls a business idea after it has been successfully initiated by the entrepreneurs.

Wheelen and Hunger (1989.p372(  saw entrepreneurial venture as any business with primary goals of profitability and growth and can be characterized by innovative strategic practices.

Ani Nnenna B (2000.p.3) pointed out  that an entrepreneur in the content of our society could be assumed to include any person who runs a business. This the man who owns department store, bookshop, beer parlor, painting press beauty salon, publisher, manufacturer, wholesaler and retailer is an entrepreneur. Entrepreneurship does only involve big organizations like the young motors, IBM, Ifesinachi Motors, Anammco etc. they are all business and each of  them has a contribution to make in the development of our economy. These big business at a take started from the scratch and the owners nursed them into big business through hard work. Therefore, anybody who identifies or creates a business, establishes it and nurses it to growth and profitability or takes over an existing business because the founder is dead or has sold it, or who inherited it and continuous to build and innovate on it qualifies as an entrepreneurs in our usage.

ENTREPRENEURSHIP DEVELOPMENT STAGES

Successful entrepreneurs, however work hard to build their organizations, starting from little and undertaking a process that result in a thriving business. Even the best ideas were profitable only because the entrepreneur went through the steps necessary new ventures do not appear magically out of the swirl of the market. They are planned, created and managed.

Three stages that a business person must go through in order to create a successful entrepreneurial venture were presented in the volume 1 of the  ENCYCLOPEDIA OF BUSINESS, second edition (2000 p 644): where ideas are generated, the innovation and opportunity are identified and the business idea begins to take shape.

1. Implementation stage: where necessary are acquire to start the business and where the business is actually started, and

iii.      Management stage:        When business venture is operating.

Thee decisions made in the first stage tend to lay the frame work for the rst of the organizational activity.

Fadahsunsi O (1992) Disclosed that entrepreneurship development follows a cycle consisting of stimulating, supporting and sustaining activities.

–        The stimulating activities ensure the supply of entrepreneurs, ready to take initiative and organized their enterprises by risk taking through awareness programmes.

–        The supporting activities however, provide infrastructural facilities, resources like information, finance, technology, ability and skills for enterprises launching.

–        The sustaining activities refer to efforts that facilitate the growth and continuity through expansion, modernizations, diversification, technology and provision of enabling  environment for growth and survival of small scale industries.

 

SUSTAINING ENTREPRENEURSHIP:

The mission of the new venture can only be fulfilled if the entrepreneur remain entrepreneurial throughout the life of the organization. That is innovation has to be a primary strategy of the venture. Druker P.F (1986) pointed out that the venture must be receptive to innovation and open to the possibilities inherent in  change. Change must be seen as a positive for a business to remain entrepreneurial. Therefore, management of an entrepreneurial organization required political that encourages innovation and rewards those who innovate. Hence, if the venture is to remain dedicated to entrepreneurship management has to take the lead in establishing the patterns that will lead to a dynamic flexible and vital organization.

The behaviors of some Nigerian business can lead to business failure for instanced, a typically Nigerian business man has been observed to devote part of his business time to family affairs community meetings, politics or plain idles ness. The reason being that some entrepreneurs consider themselves to be their own boss and use their time as they please. Most Nigerian entrepreneurs  are after making quick profit from their business almost immediately they start production rather than in the establishment of a large enterprises that will create good will in their customers. This can lead to business failure, while when an entrepreneur makes sure he has a well established large enterprise producing quality products that are comparable with the imported product, not really expecting to make profit in the first year or  so but manages to break even at the initial stage.

Comparing entrepreneurship development in Nigeria with other countries like America, Japan, China etc. we realize that these countries started, with trade by barter and then advanced to their present state of economic growth. The only difference one would say is that these countries were faster in their development of entrepreneurship than Nigerian . I believe strongly that if Nigerian entrepreneurs understand the stages that business person must go through in order to create a successful entrepreneurial venture and work according to it. Nigeria will be counted as one of the development countries in few years to come.

In summarizing their conclusion regarding factors affecting the success of entrepreneurial ventures Hofer and sandbar (1987) proposed some guidelines for new ventures success as follows:

 

GUIDELINES FOR NEW VENTURE SUCCESS:

–        Focus on industries facing substantial technological or regulatory changes, especially those with recent exist by established competitors.

–        Seek industries whose smaller firms have relatively weak competitive positions.

–        Seek industries that are in early, height growth stages of evolution.

–        Seek industries in which it is possible to create high barriers to subsequent entry.

–        Seek industries with heterogeneous products that are relatively unimportant to the customer’s over all success.

–        Seek to differentiate your products from those of your competitors in large that are meaningful to your customers.

–        Focus such differentiation efforts on product quality, marketing approaches, and customers service and charge enough to cover the cost of doing so

–        Seek to dominate the market segments in which you compete. If necessary, either segment the market differently or change the nature and focus of your differentiation efforts to increase you r domination of the segments you serve.

–        Stress innovation, especially new product innovation, that is built on existing organizational strength.

 

2.3     NEED, SCOPE AND CHARACTERISTICS OF ENTREPRENEURSHIP.

NEED FOR ENTREPRENEURSHIP IN OUR ECONOMY:

Entrepreneurial ventures (small and medium scale business enterprises in this country have on their own made immense contributions to the development of the national economy over the years.

The need of entrepreneurship can be treated under the following headings.

 

1. ACCELERATION OF ECONOMIC GROWTH

The fact that entrepreneurial ventures are such an important for economic growth is not over statement.  Entrepreneurs are seen in every part of Nigeria engaging in goods and service for the masses. These goods and services they provides help in no small and measure in improving living standard of the people. These business also utilize the money saved by other people in banks such as people bank, community banks and other banks in form of loans  which could have been unutilized, and invest them on new business or use them to expend existing ones which lead to economic growth.

2. CREATION OF EMPLOYMENT.

IN RECENT YEARS, Nigeria government has been experiencing serious unemployment problem. One of the ways fashioned out by the government to reduce this problem is to encourage many individuals by giving them certain incentives to establish small scale businesses. Ani Nnenna B. (1999:p 23) supported this views as follow.

Small business enterprises have now come to be known as a major sources of new jobs and is capable of reducing the present unemployment problem. Not only that they creates job for seekers but provide employment for the owners. Therefore entrepreneurship must be encouraged as can go a long way in enhancing economic development of the country.

3. SKILL ACQUISITION
   

Some of the big businesses in this country started as small scale enterprises owners to acquire more skill and experiences that could enable them to manage big business. From this, one can see that entrepreneurship provides fertile ground for practical training and dvelopment for ambitions  managers who hope to manage big business in future.

4. INCREASE STANDARD OF LIVING

The entrepreneurial venture makes more goods and service available both in  rural areas and urban areas of this country. As the supply of goods and service increase this often results to an increase in living standard of average Nigerian.

 

5. INCREASE GOVERNMENT TRAINING:

Entrepreneur pay taxes to the government, also their employees pay personal incomer taxes to the government which improve the government earnings.

 

6. ACCELERATE LARGE SCALE PRODUCTION:

The small scale businesses help the big firms in distributing their goods and services and also supply them with raw materials needed in their production. (L.E Nwana 1995) small business also provide variety of goods and services to each other and large firms. Large firms generally buy parts and assemblies form smaller enterprises for one very good reason, it is less  expensive than manufacturing the parts in their own factories. This lower costs is eventually reflected in the prices that consumer pay for their product. In this way we all benefit enormously from the presence of small scale enterprises.

 

7. PROVIDING COMPETITION.

Small business challenge large well established firms in many ways causing them to become more efficient and more responsible to consumer need. A small business cannot of course compete with number of small enterprises, each competing in it is own particular  area, and it’s own particular way, together have the desired competitive effect. With competition, the quality of products or services produced would improve and firms would find new ways of doing things or new products which at the long run would improve the national economy .

 

8. PROVIDING TECHNICAL INNOVATION:

Invention and innovation are among the foundation of any economy, more than half the major technological advances in the advanced countries originated with individual investors and small enterprises. Some of these innovation are air conditioning automatic transmission, instant Camera, Jet engine, xerography etc. in Nigeria as well as in many developing countries, there are instances of similar indigenous technology innovation which have originated from individual entrepreneurs (JOHN UDEH 1990)

SCOPE OF ENTREPRENEURSHIP

There is no limitation to business opportunities available to entrepreneurship they are not restricted to any sector of the economy. As such entrepreneurs can go into any kind of business of their choice excepts that they have to  abide by the rules and regulations of  of the country as it affects business. Ani Nnenna B. (1999) noted that opportunities available to them include the following.

1. Merchandising (Buying and selling) either as wholesaler or retailer: Most Nigerian entrepreneurs are interested in this area of business, may be because they feel it is less risky and has quick returns on investments.
2. Farming: This is another area entrepreneurs can exploit, t involves small scale farming such as grain and tuber cultivation, plantations etc. some of which can be used as raw materials by big industries, sheep and goat rearing, poultry keeping, fishing etc.

iii.      Agro Processing: Cassava processing, oil processing, grain processing etc.

1. Engineering: Constructing machines for manufacturing, fabricating spare parts for already imported machines, copy technology etc.
2. CHEMICAL AND PHARMACENTICAL INDUSTRY.

Soap making, cosmetics production, toilet paper, air fresheners, odour              control, mosquito coils, perfumes, industrial alcohol, to mention but a                            few.

1. Transportation: Air, sea, and land transport, many entrepreneurs are into transport business these days to reduce the hardship being encountered by committers in both urban and rural areas.

Other areas entrepreneurs can go into are construction business, manufacturing, communication, advertising, hotel and hospital  services among others. Manufacturing and industrial projects are areas that one  can be sure of long run benefits as these areas holds the key to economic development of any nations.

 

ENTREPRENEURSHIP CHARACTERISTICS

Hofer and Sandbar (1998) propose four behavioural factors as being key to a new ventures success. These include:

1. Successful entrepreneurs are able to identify potential venture opportunities better than most people. They focus on opportunities no on problems and try to learn from failures.
2. Successful entrepreneurs have a sense of urgency that makes them actions orientated. They have a high need for achievement which motivates them to turn their ideas into action.
3. Successful entrepreneurs have a detailed knowledge of the key factors needed for physical stamina needed to put their lives into their work.
4. Successful entrepreneurs seek outside help to supplement their skill, knowledge and abilities. Through their enthusiasm, they are able to attract key investors, partners, creditors and employees.

Nwachukwu C.C (1990) also proposed seven entrepreneurial traits which s are summarized as follows.

1. Risk taking entrepreneurs are calculated as risk takes. They enjoy the excitement of a challenge, but they don’t gamble. They like achievable challenges.
2. Self confidence: Entrepreneurs have self confidence in whatever they are doing. This makes them to venture into private business even when others are shying away from it or are failing.

iii.      Hard work: an entrepreneurs is hard working individual who is determined to achieve his set objective. He works is done. He is mentally attached to the job.

1. Goal setting: Entrepreneurs have objectives based on their objectives they set a goal for themselves. They are restless until the set goal is achieved.
2. Accountability: Entrepreneurs love to keep a careful record of their achievements as a result of which they are able to tell stories of their humble beginning.
3. Innovation: All successful entrepreneurs are innovators. They introduce new methods of distribution or carryout a new organization of an industry.

vii.     Versatility:  Entrepreneurs tend to be very informal and very versatile, qualities require to ensure that the job get done properly themselves and subordinates.

“If you cannot do it, I do it myself seems to be the philosophy of entrepreneurs for example in a hotel situation  the entrepreneur can work as a bar attendant, a cleaner, steward etc. no work is too mean or elevated for him to do.

It should be noted that no single individual would posses all these traits before he/she can go into businesses. Some of these traits are developed where one is into it and for one to continue to be in business.

 

2.4     VARIOUS GOVERNMENT SUPPORT AGENCIES AND THEIR FUNCTIONS.

Government at federal, state and local levels have set up agencies that are specifically charged with providing funds and other service for the promotion and  development of entrepreneurship because of the realization of the importance of the private sector of the economy in the development of the national economy. These support agencies have their various function. Some are establish to provide soft loans for small and medium scale industries, render advisory services to entrepreneurs , some go as far as carrying out  feasibility study for their clients. Others help entrepreneurs identify sources of needed raw materials, structure their organization which could be managerial and or technical structuring while others are established to encourage entrepreneurs to go into the production of exportable products. Yet others help in the  identification of profitable ventures for entrepreneurs.

We are going to look each of these agencies and discuss their individuals function in the development of entrepreneurship.

 

24.1   NATIONAL DIRECTORATE OF EMPLOYMENT (NDE)

The national directorate of employment (NDE) was set up by the federal government in November 1986 to work out strategies for dealing with the country especially school leavers and college graduates, its initial care programmes were formally lunch on 30^th January 1987 NDE has the following Mandates.

I        To design and implement programmes to combat mass unemployment.

1. To articulate policies aimed at developing work programmes with labour intensive potentials.

iii.      To obtain and maintain a data bank on employment and vacancies in the country with a view to acting as a clearing house to link job seekers with vacancies in collaboration with other government agencies.

The other  directorate of employment has articulated a number of programme give effect  to government   objective of generating employment. The aim of the programmes is to assist applicants in setting up their own business in agriculture small scale industries etc and to enable them employ additional hands in their establishment, thus helping to reduce the level of unemployment. These programmes are backed up by necessary administration monitoring and support personnel thus enabling optimum use of resources and prompt response to requirement of the public.

The directorate employs different strategies which include training and retaining of unskilled youths, promoting entrepreneurship development programmes and providing credit facilities would be entrepreneurship NDE achieves these through the implementation of four well articulated programmes namely:

1. National youth employment and vocational skill development programme.
2. Small scale industrial and graduate employment programme.
3. Agriculture sector employment programme.
4. Special public work programme.

In 1994, the directorate launched three  new schemes.

1. National sanitation scheme.
2. Motor cycle loan scheme

iii.      Crop farming scheme

1. NATIONAL YOUTH EMPLOYMENT AND VOCATIONAL SKILL DEVELOPMENT PROGRAMME.

This programme emanated from the realization that the majority of the unemployed are youth without productive and marketable skills, hence the three main schemes of this programme are concerned with skill acquisition:

1. NATIONAL OPEN APPRENTICESHIP SCHEME:

This is aimed at providing unemployed youths with basic skill that  are needed in the economy. This is achieved by attaching them as apprentices to companies, ministries, palatals and professional craft men and woman some of them are given admission into vocational training institutions or centers to learn a trade.

All participant in this scheme are required to register labour and     productivity’s local   labour exchange poor to being accepted as trainer.       This formal registration enables accurate tracking of employment  tends     and labour statistics which is required for realistic national planning.

On completion of their apprenticeship, these participant will posses the necessary skills that are considered valuable by potential employers or          enable those with entrepreneurial skill go self employment.

Approved training organizations and individuals craftsmen are paid a fee          for impacting their skill to the beneficiaries of the scheme. Each participant is paid a monthly stipend towards his/her maintenance whilst         training.

2. WASTES TO WEALTH SCHEME.

This scheme is created to encourage the conversion of  neglected raw materials into useful, marketable products. For example by share inventiveness. It is possible to use snail shells, care materials, coconut shells and other scrap materials to make furniture items, house decorators objects, ash trays apparels, containers, toys and other functional items. A parts form creating employment  opportunities for there concerned, this scheme will help in developing a culture of inventiveness, self-reliable in resources use, thereby curtailing wastefulness and  importation of items that can be produced locally.

The period of orientation is two weeks. After training, the participants are given small loan to set up their own, participants can establish on individual basis or operated together as co-operatives.

 SCHOOLS ON WHEELS SCHEME:

The directorate has recognized that there are few companies in the rural areas capable of offering apprenticeship and therefore the danger of encouraging scheme. To avert this and give equal opportunity to the rural  youths, the directorate developed the school on wheel scheme. This involves taking fully equipped mobile vocational training facilities to the rural areas. This scheme will create a pool of artisans who will become a cornerstone of rural employment and development.

4. DISABLED WORK SCHEMES:

The directorate has initiated scheme to bring the disabled into mainstream of the gainful employment.

Many disable people lack not only ambulatory capability but usually possess full mental and manual dexterity. They can therefore be trained in high technology and information management skills such as assembling electronics equipment and computer operations.

B.               SMALL SCALE INDUSTRIES AND GRADUATE

Employment programme.

This program is designed to encourage and aid unemployed Nigeria to  set up and run their own business. To help the participants translate their business ideas into viable commercial ventures. N.D.E conducts courses to them through it’s job creation loan guarantee scheme and mature peoples scheme.

THE OBJECTIVES OF THIS PROGRAMME INCLUDE:

1. To develop a pool of potential entrepreneurs who are well equipped to start and successfully manage small and medium scale industries.
2. Encouraging self employment as a conscious and predetermined choice.
3. Generating of employment opportunities for others.
4. Reducing firms for salaried employment.
5. Stimulation of rural development and the achievement of a meaningful level of board based economic and industrial development generally.
6. Uplifting the dignity of labour.
7. Up-grading the social status of the Nigeria youth.

 PROCEDURE AND GUIDELINE FOR GRANTING LOANS

Under the small scale industries and graduate employment programe, selected Nigeria with proven abilities who can provide viable business proposal are given financial assistance to set up business, thus creating employment for themselves and others. Orientation courses are organized to show the  participants practical ways of running their business and how avoid pitfalls in the establishment of the business.

A group of twenty banks were selected in January 1987 to participate in the implementation of small scale industries and graduate employment of the N.D.E. in order to encourage flexible lending by the participating banks, the directorate launched a job creation loan guarantee  fund which the federal government realize initial allocation of 35 million in 1987.

In order to further facilitate, the availability of credit facilities to Nigerians, the directorate commenced another approach to complement the job creation loans guarantee scheme. This was tagged state pilot projects. National directorate of employment made an allocation of  N500,000.00 (five hundred thousand naira)) to each state of the federation and Abuja to enable them sponsor about twenty business. This was deposited in the state banks.

An applicant is required to submit to the N.D.E a comprehensive feasibility report of the intended business, the amount of loan needed, names and addresses of the guarantors and his or her own curriculum vitae. The applicant is feasibility studies are submitted to banks for their scrutiny and approval. Successful applicants are given bank loans of value ranging between N50,000.00 and N35,000.00. participants are required submit the original of their certificates and testimonials  as collateral.

For loans of N35,000.00 to N50,000.00 the banks also required a personal guarantor.

The loan is project requiring more capital 13% interest rate, for project requiring more capital than that guaranteed by the N.D.E the applicants must negotiate the balance with his or her bank, based on normal bank lending practices and  conditions. The programme is particularly attractive to unemployed graduates whose only possible loan collaterals are usually their degree certificate.

MATURE PEOPLE’S SCHEME

The scheme is target at those who are either retired or are preparing to retire from paid employment and willing to maintain an economically productive life. The loan amount is available to selected participants who successfully go through the mature people’s EDP and present bankable project, loan could be up to N50,000.00 depending on the quality of the project.

Each beneficiary is expected to employ two tertiary institution graduates for every N25,000.00. the beneficiary is expected to deposit security for to 50% of the total loan package. The loan  which attracts 9% interest is payable in five years.

THERE IS AN EXPANDING ARERAY OF SKILLS BEING LEARNED: THESE INCLUDE:

1. Auto-mechanics
2. Electrical/electronic maintenance
3. Wedding/foundry/metal fabrication.
4. Plumbing works.
5. Carpentry and joinery.
6. Leather work.
7. Photography
8. Architectural draught man ship.
9. Printing & publishing.
10. Computer operation
11. Catering/bakery/confectionery
12. Tailoring/fashion designing
13. Block and concrete making
14. Agricultural production/agricultural processing
15. Soap and detergent making
16. Butchering and cold store.
17. SPECIAL PUBLIC WORK PROGRAMME.

This programme is designed to provide immediate temporary employment to a large number of the unemployed. The objective is to utilized this valuable manpower resource in carrying out necessary public work using participants obtain short term employment whilst acquiring new skills and trade experience, the programme encourages the development of a maintenance culture nation wide.

The state government identifies the project to which participants are developed usually with the active involvement of its local government authority. Examples of the kinds of public works project being executed are:

1. Construction and maintenance of roads, building and other infrastructures.
2. Tree planting

iii.      Land clearing and other farm support services, environmental sanitation etc.

 

1. AGRICU;TURE SECTOR EMPLOYMENT PROGRAMME:

This programme is designed to provable self employment for school leavers and graduates with degree, HND, NCE and OND in agriculture or related disciplines. This that are interested in farming are given the relevant training and orientation and provided with land and loans to start farming ventures.

The NDE implement its agricultural programmes at the state level in collaboration with state government. Each state has  NDE agricultural programme committee  which sees to the organization and implementation of the land needed for farming. Rural committees also provide land through appropriate local government. In each land allocation certificates are issued to the NDE for land acquired. The cost of land clearing is borne equally between the NDE and the state government. The state provides about 500 hectares of farm land for the programmes each year after the necessary screening of applicants the NDE places 200 or more graduates candidates as participants in the scheme. Each participant is given 5 hectares of cleared farm land and a loan package of N11,500.00 for the going into crop farming. Out of this land the sum of N7,325 is paid out in kind through the supply of seeds, farm implement pesticides, fertilizers, storage cribs and prepared land. The remaining N4,175 cash goes into the wages of the farm land and the participant’s monthly stipend of N150,00 for one year.

For those going into livestock, poultry or fish farming, the loan package is N13,500 this loan is paid out in two installments. The first one covwers the cost of creating simple building, sinking a well water bore hole and fencing the second installment cover the cost of purchasing feeds, foundation stocks, labour cost and stipend payable to the participant.

Both the livestock and crop loans are payable in 5 years with one year grace period of 90% interest rate. The loan are disbursed either by the state, agricultural credit corporation or the state  owned banks. The participants educational certificates are their only collaterals.

 2.4.2  THE INDUSTRIAL TRAINING FUNDS (ITF)

This was established in the year 1971 under the industrial training fund act. The objective of which is to promote and encourage the acquisition of necessary skills needed for establishment of small scale enterprises and other business in Nigeria.

According to the ITF policy statement No I issued by the governing council of 1873, the duties and functions of ITF include:

1. Encourage greater involvement of employers particularly small employers in the organization and direction of group training scheme and this centers on certain critical areas of economic activity.
2. Working out a co-operation machinery with industry and commerce whereby students in institution of higher learning undertake mid-career work experience attachment in industry on project which are compatible with their areas of study.
3. Bearing a proportion of the direct cost of on the job and off the job training of Nigerian employees undergoing training courses organized by the ITF.
4. Seeking to harmonize all its training effort and support with the activities of formal training institutions as well as utilize their facilities for clearly defined job oriented programme.

• INDUSTRIAL DEVELOPMENT CENTERS (IDC)

The industrial development center (IDC) is a section of the small scale industries division of the federal ministry of industry which was introduced in Nigeria before the level war. It is the policy of the ministry to establish the IDC in each of the thirty six 936) states of the federation and Abuja. At present, only a limited number (more than twenty (20) have been set up due to some financial bureautic constraints.

There are four zonal IDC at Owerri, Oshogbo, Zaria and Bauchi with well established and more comprehensive/elaborate workshop structures while the small state IDCs exit within the zones covered by these zonal IDC. Thus IDC Enugu falls under Owerri IDC zone, but like every other IDC, it is completely autonomous in all it’s a activities and reports to the headquarter at Abuja directly.

The principal objectives of these centers is to develop viable small scale industries and modernize the existing one through the adoption of more efficient techniques of production and better management methods. Simply put the cardinal objective of the IDC is to promote and develop small  medium scale enterprises through out the country.

 FUNCTIONS OF THE INDUSTRIAL DEVELOPMENT CENTER (IDC).

In order to achieve the laudable objectives, the center perform the following functions.

1. Technical appraisal of loan applications
2. Provision of industrial extension services.
3. Training of entrepreneurs and staff including management training.
4. Applied research into industrial product involving design of products for small scale industries.

• NATIONAL ECONOMIC RECONSTRUCTION FUND (NERFUND).

The national economic reconstruction fund (NERFUND) is a fund set up by the federal government to provide loan to small and medium scale industrial project in Nigeria.

The government is aware that many small medium scale industries which are major creators of employment in any economy are either closely or are operating far below capacity, the man reason for the state of affairs being that they do not get loans easily from banks and that the loans when available are at a very high interest rate and short maturity period. They find it  extremely difficult or expensive to secure foreign exchange or foreign loans. Hence the federal government  set up the fund to reconstruct the economy by making it easier for small and medium scale industries get loans.

All small and medium scale manufacturing and agro-related projects, mining, quarrying, industrial support services, equipment leasing are eligible to borrow from the fund provided that.

1. The enterprise is hundred percent (200%) owned by Nigerians.
2. It’s fixed assets other than land but include the cost of the new investment to financed does not exceed N10 million and
3. In the case of manufacturing project, at forty percent (40%) of it’s raw material are available locally.

For the avoidance of doubt, the fund is not available for real estate, merchandise or buying and selling, read construction consumption. Eligible entrepreneurs are required supply to any bank of their choice. A copy of the application should then be sent to NERFUND state committee for information and necessary action.

• RAW MATERIALS RESEARCH AND DEVELOPMENT COUNCIL (RMRDC).

In 1987, the central bank’s report showed that almost 36% of total annual import of the country was for industrial raw materials. Despite the high percentage indusial raw material import, almost all the industries were producing at a very low operation capacity when  compared with designed capacity, such a development has dealt, a big below to the industrial development in the country.

In realization of the importance of raw materials in the development and growth of a viable industrial production base nation, the then  military government established the raw material research and development council (RMRDC) by decree No 39 of 1987 and was inaugurated on with February 1988 to support and expedite industrial development and national self-reliance through the maximum utilization of local raw materials as impacts for our industries.

 

THE FUNCTIONS OF THE RMRDC CAN BE SUMMARIZED AS FOLLOWS:

1. Gathering and verification of basic data information of local sourcing of raw materials industrial input for all the industrial sectors of the economy, for example if the council identifies a local source of raw materials for entrepreneurs and they are aware of this, it encourages entrepreneurs to produce a full or near full capacity and this to consumers than when these raw materials are imported.
2. Proper co0ordination of necessary follow up on research and development work aimed at local sourcing of raw materials for industries. This also involves research into efficient application of raw materials.
3. Introduction of new process, technologies and products development as a result of research and development by our institution/organizations into the socio-economic life of this nation and ensuring that entrepreneurs take advantage of the presence of these raw materials and their local production.
4. The council also organizes workshops, symposia and seminars from time to time designed to enlighten people on new developments and solutions discovered thereby making information availed to users and investors and encouraging entrepreneurs to develop these raw materials for use as industrial input in order to provide cheaper and better materials for all industrial sectors.
5. The council has since it’s inception been providing support services to industries on local sourcing of raw materials machinery, processes and spare parts. It has also kept direct contact with private companies individuals and organizations in order to determine their specific needs and provide basic consultancy, advisory and extension service to meet their identified requirements or solver their problems.

 

• THE CENTRE FOR MANAGEEMENT DEVELOPMENT (CDM).

The centers was established in 1973, it has the following aims.

1. To support the use and develop the quality of existing and new management consultation and advisory capacities.
2. To support the industrial training fund in the effective utilization of it’s resources for developing managerial skills for both small and large scale industries.

1. To, co-ordinate and promote management development and supervisory training with economic, social and cultural environment of the nation in response to it’s over all needs.

 

• SUPPORT GIVEN BY RESEARCH INSTITUTIONS

Research institutions are established mainly by the government to carry out research on how to improve production. For instance, some research institutions are involves in carrying out research on improved seedlings to increase agricultural production like the improved palm seeds that makes it possible for palms to start fruiting within two to three years and also to produce more fruits unlike the local ones. Research is also being carried out no other crops like cassava to increase it’s yield also  there are research on maize seed that can mature in three months and many other crops and economics trees.

Universities, polytechnics and technical colleges are also assisting in the development of entrepreneurship in the country by creating awareness to students before they graduate, to think of what they can do for themselves to be self employed. This has led the introduction of the courses entrepreneurship development and small business management in universities and polytechnics that study business. Through the study of these course, students are aware organization and agencies set up by government to help entrepreneurs or young school leavers to establish their own small business, instead of  waiting for paid employment that may never come.

Some of the benefit derived from these courses are that students loan about small business, where and how to get the necessary fund, how to carry out feasibility studies before setting up their business, and how to identify profitable ventures. These schools serves as a local point for creating awareness for the development of small and medium scale business in the society.

We also have raw material research and development council involved in carrying out research on sources of local raw materials or new usage of old products as raw materials and introducing new process, technologies to improve productivity.

Online Resource: http://www.referenceforbusiness.com/

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