Thesis Paper Updated June 2009

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Somaliland Small-Scale Industries Development And Constraints

{June 2009}

TABLE OF CONTENTS Acknowledgement 1 Dedication .1 Declaration_________________________________________________________1 Abstract_____________________________________________________________1 Chapter One____________________________________________________________2 Introduction_____________________________________________________________21.2 Problem Statement ............................................................................................................4 1.3 Purposes of the Paper.........................................................................................................5 1.4 Structure of the Paper.......................................................................................................6

Chapter 2_______________________________________________________________7 Literature Review________________________________________________________72.1 Definition of Industry:........................................................................................................7 2.2 Types of industries..............................................................................................................82.2.1 Large Scale and Small Scale Production Compared......................................................................9

2.3 Industrial Revolution........................................................................................................11 2.4 The objectives of industrial development in the current development.........................12 2.5 Favorable factors enhancing the economic development of small-scale industries.....13 2.6 Micro Finance and Small-Scale industries .....................................................................14 2.7 Somaliland Industrial Revolution....................................................................................15 2.8 Somaliland Current Industries........................................................................................152.8.1 Somaliland Small-Scale industries ..............................................................................................16 2.7.2 Importance of Small-Scale industries..........................................................................................16 2.8.3 Failed industries in Somaliland....................................................................................................20 2.8.4 Causes of failure in industries......................................................................................................21

Chapter three__________________________________________________________22 Methodology___________________________________________________________22 Chapter Four___________________________________________________________25 Data Presentation and Analysis____________________________________________25 CHAPTER FIVE_______________________________________________________41 CONCLUSIONS AND RECOMMENDATIONS_____________________________415.1 Conclusion .......................................................................................................................41 5-2Recommendation...............................................................................................................42

Bibliography ___________________________________________________________43 Appendix I_____________________________________________________________44

Copyright All Rights Reserved to Mohamoud Abdi Hassan (tiger)

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Somaliland Small-Scale Industries Development And Constraints

{June 2009}

Chapter One IntroductionIn 1988 bloody civil war broke in former Somali republic between the government of Mohamed Siad Barre and Somali National Movement. In that decade of civil war, which erupted every side of life in northern regions of former Somali republic now Somaliland, has finally led the total collapse of Somali state in January 1991. After the collapse of the Somali state, Somaliland declared it independence. Although the country, Somaliland, is now peaceful and stable and has its own government, yet, much of the consequences of the war are still visible. The country has so far not been able to gain international recognition and this prevents it from obtaining international long-term investments or loans. To make the matter worse, livestock exports which has been the backbone of the economy for centuries no longer operates after the Saudi authorities whose country constituted the largest market for Somaliland livestock banned it on basis of suspected disease outbreak in Somaliland livestock in 1996. The war destroyed or seriously damaged every aspect of life. Economic and institutional infrastructures were destroyed, personal property and sources of income disappeared. The returnee population war traumatized, their homes were destroyed and the country was devoid of any kind of employment opportunities. Now the people of Somaliland are recovering form the war effects and trying to establish their economy on concrete pillars including industrial sector. The sector of industry, in the near future is expected to play a curtail role and contribute in the developing of Copyright All Rights Reserved to Mohamoud Abdi Hassan (tiger) (2)

Somaliland Small-Scale Industries Development And Constraints

{June 2009}

Somaliland economically and creating employment opportunities, because the industries like a fore mentioned factories can play a very important role in the economic growth, not only for employment opportunities but also for skills promotion and income generation as well. Therefore, it become necessary to establish national small industrial organization, which has the capacity to strengthen, direct, encourage, harmonize and promote privateowned industries and locally processed production of local Small-Scale industries in order to avoid overlapping and wasting our scarce resources.

Under these conditions small-scale industries in Somaliland and other business enterprises were revived initially by returnee which were within a short time of period impacted on all types of commercial transactions and production activities specifically related to basic human needs like shelter, food, clothes and household commodities etc. During the peaceful years in Somaliland the contribution of Small-Scale industries in Somaliland to the economic and social life of the country has been tremendous. The Small-Scale industries have participated the employment condition in the country; it has contributed to the retention of skills as well as skill creation and saved some of the countrys hard currency. In this my paper, I will examine the constraints of Small-Scale industries in Somaliland and impact of the nations economic as whole and the consequences of the problems associated with the breakdown of small-scale industries in the country. In this paper I will try to present in dept about the economic prospects of developing Small-Scale industries in Somaliland. First industry is a broad term for any kind of economic production, in economics and urban planning industry is a synonym for the secondary sector, which is type of economic activity involved in the manufacturing of raw materials in to goods and precuts. Industries in the sense of manufacturing became a key sector of production and labor in European and North America Countries during the industrial revolution. So, The developing industries in Somaliland is the only one which benefited the above

Copyright All Rights Reserved to Mohamoud Abdi Hassan (tiger)

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Somaliland Small-Scale Industries Development And Constraints

{June 2009}

.opportunities and it covered the needed for industries for the entire population of Somaliland and saved hard currency for the country that was being to spend the importation of industries form abroad countries. The purpose of the study is to better understand the current situation of the factor industries in Somaliland and their role of economy and to identify the existing industries and their locations in the country. It will also focus on their weaknesses, strengths and their capability in all aspects of economy, by examining their situation through identifying in case of major opportunities and obstacles that might encounter their economic influence. Generally, maturity of Somaliland industries is light industries and established during the past eight years. Somaliland industries produces different thing of materials such as: water bottling factors, hard soap and powder soap factors, bread, mattress, cushions, soft drinks and home furnishing materials.

1.2 Problem StatementWhat is the main development in Somaliland Small-Scale industries? What are the main constraints in Somaliland Small-Scale industries? As mentioned above, this paper will focus on the small industry development and constraint. The purpose of the study is to better understand the current situation of the factor industries in Somaliland and their role of economy and to identify the existing industries and their locations in the country. It will also focus on their weaknesses, strengths and their capability in all aspects of economy, by examining their situation through identifying in case of major opportunities and obstacles that might encounter their economic influence. Generally, maturity of Somaliland industries is light industries and established during the past eight years.

Copyright All Rights Reserved to Mohamoud Abdi Hassan (tiger)

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Somaliland Small-Scale Industries Development And Constraints

{June 2009}

Somaliland industries produces different thing of materials such as: water bottling factors, hard soap and powder soap factors, bread, mattress, cushions, soft drinks and home furnishing materials. The development in Somaliland Small-Scale in