Design of a Small and medium scale industrial cluster, Osisioma

Description

Design of a Small and medium scale industrial cluster, Osisioma.

CHAPTER ONE

1.0 INTRODUCTION
Industries are categorized into micro scale, small scale medium
and large scale depending on the factors which determine the
scope and limitations of such firms. The definition of each of
the categories depends largely on the country where the
business thrives.

In Nigeria, micro scale industries are defined as those
whose total investment cost does not exceed one million, five
hundred thousand Naira (#1,500,000) including working capital
but exclusive of land. The workforce is not more than 10.

Large scale industries are defined as those with total
investment of over two hundred million Naira (#200,000 000)
excluding land, but including working capital, and workforce of
over 300 workers. It could be a national or state enterprise
which may have branches within or outside the area of locality.
Private millionaire’s businessmen can also embark on such
ventures.

Small scale industries are defined as those with total
investment of between one million, hundred thousand Naira
(#1,500,000) and fifty million Naira 50,000,000) and two
hundred million Naira (#200,000,000) excluding land, but
including working capital, and a workforce of 11 to 100
workers.

Medium scale industries are defined as those with total
investment of between fifty million (#50,000,000) and two
hundred million Naira (#200,000,000) excluding land, but
including working capital and a workforce of between 101 and
300 workers. For the purposes of this project, concentration
will be located at Aba, Abia State.

Small and medium scale industrial cluster is an estate which
houses various forms of small and medium enterprise (SME)
that provide the services and needs of the people. As
industries, each has its own production process which may be
different from others. As a cluster, the whole area is planned in

such a way as to enhance good co-ordination of activities and
relations of one industry to another.

Aba is very good commercial centre and its choice as the
location of this project is quite obvious various industries and
commercial activities are going on everyday. Presently, the
eruption of various industries and their indiscriminate locations
seem to take the commercial city out of shape.

The industrial cluster is, therefore, meant to articulate all the
various forms of small and medium scale industries together to
find solution both to industrial inefficiency and environmental
problems.

This cluster is made to house such small and medium firms
like, shoe-making, furniture making, welders and etc. The
stage is ripe for it and the purpose is welcome. It is hoped that
this project would open a new chapter in the industrial and
commercial lives of the people of Aba and beyond.

In dealing directly with this project, some economic and
technical analysis has been made in order to understand the
subject clearly. By so doing expositions have been made on its
economic implications and prerogatives which is in essence,
reporting on the general business of small and medium scale
industries especially as it relates to the commercial city of Aba.
The technical quality of the report is enhanced by the way all
the factors affecting the design of industrial clusters are treated
explicitly.

1.1 HISTORICAL BACKGROUND OF INDUSTRIAL
LOCATION AT ABA
COLONIAL PERIOD
In the eighteenth century, the constructed of railway line from
Port Harcourt to Enugu through Aba enhanced the towns’
locations importance. In a bid to link the hinder leads to urban
centres, feeder roads were constructed mainly to convey
agricultural goods for sales in the town and manufactured
goods from towns’ to rural areas. Thus, the construction of road networks engendered as series of socio-economic linkages
in the area.