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The research is aimed at understanding the impact embraced by industrialization in terms of development.

In this regard, many small scale industries were sampled, analysis of the data proved that most industries are raw materials and market oriented. Also the problems of industrialization in the study area (Umunwarahu) includes: noise pollution, unemployment problem, inadequate infrastructural facilities, irregular power supply, and poor road network. Rural industries play an indomitable role in the economic transformation of nations, but unfortunately.

The development of industries in the rural areas has experienced some problems partly due to poor financial investment on them or due to lack of some economic base potential.

This has triggered the development of haphazard and uncompleted industries here and there. However, the researcher recommended that government should embark on enlightenment campaign so as to educate the rural people on the impact, and benefits derived from sitting or establishment of these industries.




Title page       –      –      –      –      –      –      –      –      i

Approval page        –      –      –      –      –      –      –      –      ii

Certification page   –      –      –      –      –      –      –      iii

Dedication      –      –      –      –      –      –      –      –      iv

Acknowledgement –      –      –      –      –      –      –      v

Abstract –      –      –      –      –      –      –      –      –      vi

Table of contents    –      –      –      –      –      –      –      vii-ix

Chapter One

  • Introduction –      –      –      –      –      –      –      1
    • Background of study –      –      –      –      –      2-4
    • Statement of problems – –      –      –      –      4
    • Goal –      –      –      –      –      –      –      –      5
    • Research questions –      –      –      –      –      –      6
    • Hypothesis –      –      –      –      –      –      –      7
    • Study area –      –      –      –      –      –      –      8
    • Scope of study –      –      –      –      –      –      8-9
    • Plan of the study –      –      –      –      –      –      9-10


Chapter Two

Literature review    –      –      –      –      –      –      11

  • Introduction –      –      –      –      –      –      11-15

2.1  Meaning of small scale industry     –      –      16-19

  • Kinds of small scale industries –      –      20

2.2.1 Characteristics      –      –      –      –      –      20

2.2.2 Effects   –      –      –      –      –      –      –      22-26

2.3 The Impacts   –      –      –      –      –      –      27-28

Chapter Three

  • Research methodology –      –      –      –      29

3.1 Aim/goal   –      –      –      –      –      –      –      29

3.2 Objectives –      –      –      –      –      –      –      29

3.3 Problem statement (research question)

and hypothesis      –      –      –      –      –      –      30

3.,4 Hypothesis      –      –      –      –      –      –      31

  • Population of the study – –      –      –      32
  • Sample and sampling technique –      –      32
  • Sampling procedure –      –      –      –      32
  • Method of data collection/data source –      33
  • Data analysis and presentation     –      –      35

Chapter Four

4.1 Data presentation and analysis              –      –      36

4.2 Presentation and analyses of data   –      –      37-52

4.3 Testing of research questions –      –      –      53-56

Chapter Five

  • Discussion of findings, summary, recommendation and conclusion –       –      –      –      –      –      57
    • Findings – –      –      –      –      –      –      57-62
    • Summary –      –      –      –      –      –      63
    • Recommendations – –      –      –      –      65
    • Conclusion –      –      –      –      –      –      67

References –   –      –      –      –      –      –      –      68

Questionnaire  –      –      –      –      –      –      –      69




       The purpose of this paper or project is to review the existing state of knowledge on decentralization as a strategy of rural development and examine empirical evidence on decentralization efforts with particular reference to rural industries (By D.r Enyinna Chuta – Modibbo Adama College University of Maiduguri, Nigeria).

Settlements grow in size and complexity with the passage of time. In fact, all present – day large cities were once village or small towns, and their growth to urban status is due to a combination of factors. All settlements are nuclei of population concentration, and each succeeding generation adds to the number of people merely by natural increase besides those who drift in from surrounding rural areas.

In recent years, many towns have experienced a rapid population crease from large numbers of people who flock into towns for one reason or another. Large towns and cities all over the world seen to be places of great excitement to rural flock, with many attractions that makes life worth living. Many move in from distance villages without any idea of how they are going to make a living and end up with problems for themselves and the urban authorities concerned.

It cannot be denied that employment opportunities are far greater in towns than in villages whether in shops, offices, factories, entertainment or other public services, but one must remember that the number of people competing for those jobs is proportionally great. Unless towns can grow at a rate which provides enough job opportunities to mach the influx of migrants from the country side, unemployment and urban congestion are bound to arise.



       Men’s universal demand for food, clothing, shelter and other comforts of life has promoted the creation of many new things. Few people ever realize that all these changes have come about only within the last 200 years ago, beginning with the industrial revolution of the eightieth country.

We have many groups of industries but the one’s to discuss about are the small scale industries that can be practicable in the rural settings.

A natural resource based is one that is dependent on an agricultural, forest, fishing, mining, or other natural resources of the local area.

Examples include wineries, lumber mills and many kinds of food processing operations. Natural resource based industries or industry is appropriate and allowed in rural areas. Agriculture and forestry provides the economic base for a number of rural counties.

Small scales industries are those industries which are found or sited in rural areas in order to improved and increase the rural economics, rural sociology and rural geography of the rural dwellers.

Small scale industries helps in creation or providing employment opportunities, reduce poverty, it reduces crime rate brings development to such an area and improve the income per capital of the rural dwellers.

Examples are: Block industries, bakery, hair dressing mechanic workshop etc.


       Since rural industrial production units have to depend on some nearby towns for marketing and other special services (such as banking) rural industry institutions have to consider problems related to the accessibility of essential services to their clients (CHUTA 1985).

Decentralization of services is essential for this the general poverty of rural people and the presence of sectoral (farm, rural non farm) and locational linkages characteristics of rural industry promotion, present difficult problems which cannot be solved without the cooperation, coordination and collaboration of government ministries or departments at all levels of administration. There is need to decentralize industries in the rural areas, despite the location and accessibility of such an area.


1)    Poor road network

2)    Lack of basic infrastructural facilities and services like electricity, pipe borne water etc.

3)Insufficient fund

4] poor communication system




       To assess the roles played by the industries in the development of the study area.



  • To identify the small scale industries in the study area;
  • To identify the factors responsible for industrial concentration in the study area.
  • To identify the employment status of the industries
  • To identify the production capacity of the industries;
  • To identify the level of infrastructure facilities associated to the industries;
  • To investigate the role splayed by the industries in the physical and socio-economic development of the community;
  • To identify any problem militating against operations of the industries in the study area;
  • To proffer solutions to such problems.


To guide the study, the following research questions have been framed.

  • What factors have contributed to the concentration of small scale industries in the study area (Umunwarahu village) than any other village?
  • What impact has industrialization made in the growth and development of the study area in relation to any village in Obodoukwu, Ideato north L.G.A Imo state?




       From the research questions or problems statement it is deducted that:

  • Availability of raw-materials and market proximity had contributed to industrial concentration in the study area (Umunwarahu village).
  • The concentration of industries in Umunwarahu has accelerated the rate and development of the study area more than any other village within the town.

From the research questions or problem statement the following hypothesis is formed.

1)    Hi    Availability of raw-materials and market proximity has contributed to industrial concentration in the study area.

2)    H.O Availability of raw materials and market proximity had not contributed to industrial concentration in the study area.

H.I Inadequate capital and poor management are not the major problems of rural industries.

3)    What are the major problems facing rural industries?

4)    How could the problems of rural industries be solved?



       The study area is Umunwarahu village in Obodoukwu Ideato north local government area in Imo state.

The study area comprises of five (5) kindred’s which includes Umudimomere, Umudimewuzie, Obinese, Umueze-ekulie, and Umuezenyaka. The study area is bounded on the east by Akokwa, on the west by Akpulu and Isiokpo, by the north Osina and by south Urualla (the local government headquarters). It has population of about 3,000 persons and it is located at the centre of the town and it is the head among the other villages in Obodoukwu, they hold the highest post in terms or in regards to chieftaincy title and produce the ‘Eze” of the whole Obodoukwu town in general.


The scope of the study area is both the geographical delimitation and the content of the research. The scope therefore, is limited to Umunwarahu village in Obodoukwu, Ideato north local government area in Imo state as indicated in the study area map. The content of the research is the impact of small scale industries in the rural areas.

Specifically, the research identifies the small scale industries in the area, the production capacity, the role they play in physical and socio-economic sections, the problems encountered by the industries in operation and suggestions for improve production.


This research comprises of five(5) chapters. Chapter one deals with the introduction aspect of the study, covering the problem statement, aim and objectives, research questions, hypothesis, study area, scope of study, limitations, plan of the study.

Chapter two reviews the relevant literature. The chapter three covers the research methodology adopted in the research, research design, population of the study, sample and sampling technique, method of data collection and their sources, mode of data analysis.

Chapter four deals with data analysis and findings using percentage distribution table. It also coves the testing of hypothesis which is the direct application of the methodology as stated in chapter three.

Chapter five is mainly on findings, summary, conclusion and recommendation.


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