The effect of geopolitical crises on small-scale industrial growth in Awe Local Government Area, Nasarawa State
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Chapter One: Introduction
1.1 Background of the Study
Small-scale industries play a critical role in the economic development of local communities in Nigeria, providing employment and contributing to economic diversification. However, geopolitical crises, including ethnic conflicts, political instability, and insurgencies, often disrupt industrial activities, leading to reduced productivity, business closures, and economic stagnation. Awe Local Government Area (LGA) in Nasarawa State has experienced significant geopolitical challenges, including conflicts between ethnic groups and regional power struggles, which have severely impacted the growth of small-scale industries in the area (Suleiman & Gabriel, 2024).
The geopolitical crises in Awe LGA have affected access to resources, investment, and markets, all of which are crucial for the growth and sustainability of small-scale industries. In addition to the economic disruption caused by conflicts, the social fabric of the community has been altered, leading to reduced investor confidence and hindering the development of a stable business environment (Dogo & David, 2023). This study will investigate how geopolitical crises influence small-scale industrial growth in Awe LGA, focusing on the causes, effects, and potential solutions for fostering industrial development in conflict-affected regions.
1.2 Statement of the Problem
Geopolitical crises in Awe LGA have significantly hindered the growth of small-scale industries, contributing to economic decline and increasing unemployment. This study seeks to examine the effect of these crises on industrial development and explore strategies to mitigate the adverse impact on the local economy.
1.3 Objectives of the Study
- To examine the impact of geopolitical crises on small-scale industrial growth in Awe LGA.
- To assess the challenges faced by small-scale industries in Awe LGA due to geopolitical crises.
- To propose strategies for enhancing the growth of small-scale industries in Awe LGA despite geopolitical crises.
1.4 Research Questions
- How do geopolitical crises affect small-scale industrial growth in Awe LGA?
- What challenges do small-scale industries face as a result of geopolitical crises in Awe LGA?
- What strategies can be employed to promote industrial growth in Awe LGA amidst geopolitical crises?
1.5 Research Hypothesis
- Geopolitical crises have a significant negative impact on small-scale industrial growth in Awe LGA.
- Small-scale industries in Awe LGA face significant challenges due to geopolitical crises, including reduced investment and market access.
- Implementing effective strategies can mitigate the impact of geopolitical crises on small-scale industrial growth in Awe LGA.
1.6 Significance of the Study
This study is significant as it provides valuable insights into the effects of geopolitical crises on local industrial development, particularly in Awe LGA. The findings will help policymakers and local stakeholders understand the challenges faced by small-scale industries in conflict-prone areas and provide recommendations for fostering economic resilience. The research will also contribute to broader discussions on the role of small-scale industries in regional economic development in conflict-affected zones.
1.7 Scope and Limitations of the Study
The study is focused on Awe LGA, Nasarawa State, and examines the effects of geopolitical crises on small-scale industrial growth. Limitations include potential difficulties in accessing industry-specific data due to the sensitivity of the research topic and the complex political environment in the region.
1.8 Operational Definition of Terms
- Small-Scale Industries: Enterprises that are typically labor-intensive, locally owned, and characterized by limited capital investment, often contributing to local economic development.
- Geopolitical Crises: Political instability, conflicts, and regional power struggles that disrupt the normal functioning of societies and economies.
- Industrial Growth: The expansion and development of industries in terms of output, employment, and market presence.
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