CHAPTYER ONE
1.1 INTRODUCTION
Business involve activities embarked upon for live hood and for the aim of making profit for any pursuit or activity to be legally recognized as a business some type of economic activities must be present.

An activity is considered a business which is centered into and carried on in a good faith for the purpose of profit making for it material of the co – existence or co – communication having decided to start a business, an initial or early consideration which should be in mind is what type of business entity is to be set up this is an area where professional assistance should be sought as there are legal matters to be considered in making this decision for any body to embark on a business, the following should be considered.
1. Sole proprietorship
2. Partnership
3. Corporation
Partnership or sole proprietorship does not pay any federal income taxes but corporation.

Which is considered in most small scale business?

The profit and losses from the business on their own income tax return corporate and the individual share holder when the profit are distributed as an individual losses by the corporation and stake holders would not have dividend for the period.

SOLE PROPRIETORSHIP
Sole proprietorship is a one man business which stands the requirement individual who engage in business on their own account are referred seventy five percent of the small scale business in the country are sole proprietorship.

In this firms, the business has no legal existence apart from the ownership, its liabilities of the proprietors and the death of proprietor automatically brings the business to an end the proprietorship undertakes all the risk of the business for the full extent of all his asset.

The income from sole proprietorship is exported as part of the owner total gross income and cash assets in a sole proprietor is treated separately for test purpose.

PARTNERSHIP
A partnership represents the relationship that exist between two or more persons who team together to embark on a business with each contribution moneys, property , labor or skill and each expecting to share in the profit or losses of the business either or not partnership agreement has been drawn up though a partnership is not a taxable entity it must determine its income and sate out the income tax return in the same manner on an individual except or certain items that must be sated separately.

Each partnership agreement especially limits the liabilities of a certain partners.

In partnership the business stand a better chance in raising capital because it will have more input from other partners rather one – man business.
Corporations
The information of a corporation involves the transfer of money and property or both by the prospective shareholder in exchange for capital stock in the corporation.

It cost a lot more to set up a corporation, when the profit are distributed as dividends, the dividend are taxed to the individual shareholders.
In computing its taxable income, a corporation officially can take the same education allowed to individual in addition to some special education.

Available only to corporation must file an income tax return regardless of the amount of its income.

The personal liabilities of the individual involved in the corporation unlike sole proprietorship are limited to their investment, the corporation is treated like an individual how ever, it can be due and can be.

1.2 STATEMENT OF PROBLEM
Despite direct government allocation to small scale industries as both federal and state levels through agencies like small scale credit scheme (s.s.c.e) couple with directive that all commercial banks and other financial institution to extend certain percentage of their loan and advance to small scale business owners, the sectors are still crumbling and unable to find its feet due to in ability to secure funds for their growth.

1.3 AIMS AND OBJECTIVE TO THE STUDY
The objective of this study is to critically analysis and highlights the development of small scale industry as an instrument for controlling UN employment problem in Nigeria.
The aim of this research project is also to find out various avenues by which development of small scale industries can serve as an avenue or instrument for controlling unemployment problem in Nigeria the research intend to find out problems of securing funds for local to the intending local industrialist in other to be able to mange their enterprise effectively and efficiently

1.4 SIGNIFICANCE OF THE STUDY
The result of the study would be of importance to the people Kwara sate and to the intending industries because the study would reveal various avenues of establishing small scale industries and also funding.
The study would also be importance to resourceful individuals or group of people who may be interest in the establishment of small scale industries in the future this study would provide information on source of financing such industries within the state and as a result help to stimulate the efficiency of the industry and consequently increase their contribution to the over all national development.