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IMPACT OF INSECURITY ON MICRO ENTERPRISES IN KADUNA METROPOLIS

 Format: MS WORD   Chapters: 1-5

 Pages: 68   Attributes: COMPREHENSIVE RESEARCH

 Amount: 3,000

 Feb 19, 2020 |  10:53 pm |  1263

CHAPTER ONE

INTRODUCTION

1.1       Background to the study

Within the last few years, heightened insecurity in Nigeria has fuelled the crime rate, leaving consequences for the nation Nigeria's economy and its growth. The rate of terrorist attacks, bombings, kidnapping, armed robbery attack on banks, offices and shops as well as other violent crimes in recent months, have led to a prevalent massive loss of nations human resources. This ugly trend poses a threat to the future of the nation’s productivity level, private sector investment volume, impact of micro enterprises in the economy, man power and overall economic development. Northern Nigeria where Kaduna state is located consists of 19 out of the 36 states (Amorji, 2014) clustered into three geo political zones in North West, North East and North Central. It is a region characterized in more than a decade by violent crimes and widespread corruption resulting into different forms of insecurity which widely affects Micro small enterprises in Kaduna state, and forced internal displacement of population largely due to poor governance, socio economic and political imbalances, injustice and inequalities, as well as insensitivity to the plight of their citizens (Ibadan, 2012).

According to Omoyibo and Akpomera (2013), Security is a concept that is prior to the state, and the state exists in order to provide that concept. Security is the prime responsibility of the state (Thomas Hobbes, 1996). The 1999 Constitution of the Federal Republic of Nigeria specifically states that “The security and welfare of the people shall be the primary purpose of government”. Unfortunately, government on this constitutional responsibility has failed to provide a secured and safe environment for lives, properties and the conduct of business and economic activities.

The alarming level of insecurity in Nigeria has fuelled the crime rate and terrorists attacks in different parts of the country, in states like Kaduna for example, leaving unpalatable consequences for the nation’s economy and its growth. To address the threat to national security and combat the increasing waves of crime the federal government in the 2013 budget made a huge allocation to security, and the national assembly passed the Anti-Terrorism Act in 2011 (Ewetan, 2011). Despite these efforts, the level of insecurity in the country is still high, and a confirmation of this is the low ranking of Nigeria in the Global Peace Index (GPI, 2012).

Despite the plethora of security measures taken to address the daunting challenges of insecurity in Nigeria, government efforts have not produced the desired positive result.

Some of the root causes of insecurity is the poor implementation of constitutional measures to address past socio-economic and political injustices, inequalities and imbalances among other diverse Nigeria populace, politicization of ethnicity and manipulation of religion by the state elite for their selfish ends, thereby providing a fertile ground for extremism, intolerance, ethno religious violent conflicts and perpetual cycle of recrimination or revengeful killings, and failure by the proliferation of small arms and light weapons(Ladan 2012) The impact of Insecurity generally includes loss of thousands of lives and millions worth of property ;social dislocation and displacements; social tension and new patterns of settlement; hostility between "indigenes and settlers”; disruption o*f family and communal life ;general atmosphere of gear, mistrust and frenzy ;de-humanization of women and children; Deeping hunger and poverty in the society ; and atmosphere of political insecurity and instability including declining confidence in the political leadership and apprehension about the system.

In the developing world, the root causes of Insecurity and conflict are often due to the failure of development to take hold not only does the efficiency of development lead to conflict, but conflict itself results in missed development opportunities. Conflicts also erode a country's development potentials, as people are killed or maimed or kidnapped, populations are dislocated, and production is abandoned. Infrastructure is destroyed and scarce resources are used up to manage the crisis (Willet, 1999).

1.2    Statement of the Problem

Being easy to operate and maintain, Micro Small Scale Enterprises most severally established business organisation especially in developing world of Africa, Nigeria in particular. And this has many positive consequences to the government, to the people and to the economy. For instance, it increases Gross Domestic Product, National Income, it provides direct and indirect employment, it improves technological know-how, it improves economic stability, and it reduces people over dependence on the government and tries to reduce/prevent crime in the society. “Micro Enterprises make the following contribution; economic efficiency, raising the efficiency of the industrial system, development of entrepreneurs and managers, capital formation, capital saving, geographical spread of development, socio-political development, labour social relations and national enterprise” [Staley and Morse (1965) in Jonathan (ibid)] Be that as it may, the formation and growth of Micro enterprises have recently witnessed decline, to the extent that some of the established enterprises (registered and unregistered) have entirely collapsed as a result of a lot of underlying consequences, Insecurity standing out as one of the main reasons the Micro enterprises are collapsing. And this development has negative consequences to the government, the economy as well as the people. Hence, this research will examine the Impact of Insecurity on Micro Enterprises in Kaduna metropolis, the genesis of the problems that has made them decline and suggestions of possible solutions, how the macroeconomic policies induced by the government affects these micro enterprises negatively and how it in turns increases the rate of insecurity, rising violence and challenges. 

1.3           Research Questions

The research Questions of this Study will include;

  1. What are the causes of Insecurity on Micro Enterprises in Kaduna Metropolis?
  2. What is the relationship between Insecurity and Micro enterprises in Kaduna Metropolis?

1.4             Objective of the study

      The main objective is to examine Impact of Insecurity on Micro Enterprises in Kaduna Metropolis. To achieve this, the specific objectives of the study are:

1.   Examine the causes of Insecurity on Micro Enterprises in Kaduna state.

2.   Investigate the relationship between Insecurity and Micro enterprises within Kaduna Metropolis.

1.5       Research Hypotheses

H0:1 - There is no significant relationship between the causes of Insecurity and Micro Enterprises in Kaduna Metropolis.

H0:2 – There is no significant relationship between Insecurity and Micro Enterprises in Kaduna Metropolis.

1.6     Scope of the study

This research is limited to Kaduna Metropolis only, and the analysis of this study is scheduled to take place in local government areas Kaduna North and Kaduna South, specific areas to be analysed includes Hayin Banki, Unguwan Rimi, Abakpa. Central Business District (Kasua), Badikko, and Kurmin Mashi. The results might not be applicable to other states in the country Nigeria due to the fact that analysis has been done in Kaduna Metropolis.

1.7      Significance of this study

Nigerian economy as a free market and nation has seen unprecedented rise in the rates of Insecurity and Kaduna Metropolis as case study has experienced a lot of calamity caused by the level of insecurity in the state.

The research is significant in the following ways;

1.   The rate of public violence in the society has the capacity to  take up so much resources which would have been used in other areas of production in the economy, with the decline or stop to public violence, terrorism and all forms of insecurity, these resources should then be out to good use rather than being wasted away in violence.

2.   With the rate of Insecurity, instead of enterprises and industries to think of the way to move forward, insecurity turns people into victims, makes  enterprises shut down and lose all the goods they are willing to produce and stop the services these enterprises renders to the society.

3.   The persistently high incidents of insecurity is also damaging Nigerian's image abroad, and more importantly undermining the nation's effort at achieving economic growth and development. The significance of this research therefore lies in the fact that it will; contribute to knowledge by complementing existing literature on the topic of Insecurity and Micro enterprises. The impact of this problem highlighted with specific reference to Kaduna Metropolis. Suggest policies and means of effectively addressing the problem of Insecurity on Micro enterprises in Kaduna state.

1.8        Organization of the chapters

          The study is structured into five chapters. Chapter one is introduction which is included background to the study, objectives of the study, scope of the study, significance of the study. Chapter two is Literature Review, Conceptual Literatures, Theoretical framework and Empirical Framework. Chapter three is research methodology. Chapter four is presentation and analysis of data obtained from the field survey and testing of hypothesis. Chapter five is summary, conclusion and recommendations

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