ABSTRACT
The topic of this
research is the problem and prospect of capital mobilization in financing
small-scale industries in Enugu state.
The purpose of this study is to evaluate the extent to which small-scale
industries in Nigeria obtain loans and advances (risk financing) from Nigeria
commercial bank as a major source of finance to the economy.
Here the term small scale industries are those small business with not more
than five hundred thousand Naira (N500, 000) as their annual turnover.
Therefore this small scale industrial in Nigeria need to be helped to develop
and expand their industries and discover for themselves their roles to play to
make profit.
There are four (4) chapters in this project.
Chapter one, deals with
general principles and other preliminary issues, like the overview of the
problem and prospect of capital mobilization in financing small scale
industries in enugu state, the statement of the problem faced by the
researcher, objectives of the study. The significance of the study hypothesis
and the scope and limitation of the study.
In chapter two, the
review of relate literature is examined and this chapter deals with definition
or meaning of small scale industry in Nigeria, how government policy effect,
the industry and improving funding to small scale industries.
In chapter three, discuss
in some detail research methodology and analysis of data. This chapter deals
with the source of data used in the project, the interview sample A is devoted
to a examination of the method of investigation, and data collection and the
analysis of data is also highlighted.
In chapter four, it is an examination of concludes the role of commercial banks
in financing small-scale industries in Nigeria. Therefore, it is hoped that
this study will serve as a reference book for industrialists, bankers,
accountants, scholars and all other interested in the development of the
small-scale industries in Nigeria.
TABLE OF CONTENTS
tChapter one:
Introduction
1.0
Over view of the role of commercial banks in financing small scale industries
in Nigeria ……..
1.1
Statement of the problems………….
1.2
Objective of the study……………
1.3
Significance of the study……………….
1.4
Scope and limitation of the study………..
CHAPTER TWO: REVIEW OF
RELATED LITERATURE.
2.0
Introduction
2.1
Meaning of small-scale industry………..
2.2
Government policy’s…………..
2.3
Projection of promotion……………
2.4
Support systems………..
2.5
Financing small scale industry (A case study of Hallmark bank P L C)…………
CHAPTER THREE: DESIGNED
AND METHODOLOGY
3.0 Designed
and mythology………..
3.1 Source of data
………
3.2
Location of data
3.3
Methods of investigation and data collection….
CHAPTER FOUR:
PRESENTATION AND ANALYSIS OF DATA.
4.0
Presentation and analysis of data……….
CHAPTER FIVE: FINDING,
RECOMMENDATIONS AND CONCLUSION.
5.0
Recommendations…………….
5.1
Conclusions………………
Bibliography……………..
CHAPTER ONE
INTRODUCTION
1.0
OVERVIEW OF THE RULE OF COMMERCIAL BANKS IN FINANCIAL SMALL INDUSTRIES IN
NIGERIA.
The successive development plans of Nigeria have laid emphasis on the
attainment of self reliance the need for this national objective is because
much is expected from individual on the view point of providing employment
opportunities, self reliance in basic food and material production of
industrial raw materials.
But, Nigeria small-scale industries continued to decline despite the so called
priority given to this sector. However, the discovery of the central banks that
this policy was not enough from 1970 /80 that all commercial banks must reserve
a proportion of their minimum credit allocation of indigenous borrowers for
small scale Nigeria enterprises the largest prescribed in 1970 was 10 percent.
This was subsequently raised to 16 percent in 1980 and has remained at that
level to data.
Even though, available
data showed that performance of commercial banks against this directive has
been disappointing the central bank intends to spare no effort in ensuring that
banks fully comply without compromising the smooth functioning of the nations
banking system.
Without the development of small scale industries in Nigeria guest for
industrialization will certainly remain forever at a stake. It is the humble
opinion of the researcher that future development in our industrialization must
address the basic issue of creating linkages within the economy to begin to
produce real inputs to our manufacturing activities.
Priority attention must therefore be given to there industries for which
domestic inputs could easily produce of this automatically brings to mind the
agro-allied industries like food processing and other by products. The
objectives should be to maximize the value added in them processing and
manufacturing as final goods or immediate inputs.
Empirical evidence indicate that strong producer incentives to small scale
industries are necessary not only to met the food requirement but also to
provide growing input supplies and demand as a foundation for sustained
industrial growth.
The present economic constraints well turn out to be a blessing in disguise to
our industrialization effort particularly for the dynamic manufacturing sector
for instance the market determined exchange rate through S T E M with its
resultant at high cost of imported inputs may serve as an impetus to
industrialists to intensify their search for local institute.
In 1971, the government of the east- central state statutorily enacted an edict
establishing an ministry of commerce and industry to be known as fund for small
scale industry credit scheme (fussi) to give credit to prospective investors to
enable them establish thus helping the country towards industrialization.
In the period 1980 to 1985, loans approved for small scale project by Nigeria
bank for commerce and industry (NCB) amounted to N29,983 million for 126
projects while Nigerian industrial development bank (NIDB) during the same
period sanctioned N250.7 million to the national directorate of employment
(NDE) have approved a total amount of N23,353,938 (73.2%) as at the end of
December 1988.
Similarly, in the circular on small scale and medium enterprises loan scheme
released by the central bank of Nigeria in February this year (1999) it was
revealed that world bank has granted a loan of & 270 million to the federal
government for the development of small sectors out of this loan, the sum of
&265.7 million would be made available for on lending to small and medium
scale enterprises through eligible participating banks. No doubt this help to revitalize
the acting economy.
1.1
STATEMENT OF THE PROBLEM
Small-scale industry
like any other business cannot be carried on extensively unless funds area
available for maintenance and procurement of equipment and necessary inputs.
a.
Short-term credit: the type of credit is used to finance yearly operations
until the products / proceeds from the industry are sold. The amount, which is
involved on this types of credit is usually small, but lack of this type of
credit is not accurately felt by small scale industrialist who have little or
no upon which to draw they are mostly beginners.
b.
Long-term loan: this type of credit is necessary for acquisition of major
industrial machines, improvement on industrial equipment building and land.
c.
Medium-term loan: this type of loan is for more than one year maturity period
but not exceeding three to five years. This loan is mostly required for
acquisition of inexpensive equipment with relatively short scale industrial
credit.
There fore smaller scale
industrial credit can be a power full instrument in bringing about a revolution
in industries if supplied in sufficient quality and used efficiently. It is
well known that the development of small-scale industries and attainment of
self-reliance in industrial production coupled with the provision of raw
material for other industries is among the top priorities of the successive
government in the country.
Furthermore, the
continuous escalation of Nigeria’s import, bill and unemployment are threat to
the country. It is therefore necessary for all to put heads together to
formulate a meaningful policy that scale industrial sector. Therefore the aim
of this research work is to put an end to his abnormalities.
The study therefore,
identifies small-scale industries financed in Enugu state as part of the wider
subject of industrial development because finance is just one of the factor of
production.
1.2 OBJECTIVES
OF STUDY
The objective of the study include
The ascertain the extent
to which the capital mobilization has helped to finance small-scale industries
and problems hindering such.
· To
identify the problems encountered by the small scale industrialists in
obtaining finance from banks
· To
evaluate various measures introduced to boost industrial production and it’s
financing and how this has affected the realization of the set goals.
· To
determine the cause of variability in small-scale industries with regards to
capital mobilization.
· To
appraise and evaluate the situation and make recommendation on how to improve
on capital mobilization provision of finance on small-scale industries.
1.3
SIGNIFICANCE OF THE STUDY
The development of
small-scale industries and self-reliance of in industries and food production
coupled with the provision of raw materials for other industries is among the
top priorities of the Nigeria government in the successive development plan.
Against this background,
the review of the financing problem facing small-scale industries is essential.
Such a review will enable this sector fact the ever – increasing demands upon
it.
An examination of
capital mobilization performance will enable us find to a larger extent why
there has been a decline in industrial output in recent years.
Department | Banking and Finance |
Project ID Code | BFN0165 |
Chapters | 5 Chapters |
No of Pages | 44 pages |
Methodology | Null |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2349067372103 |
Contact Us On | +2349094562208 |
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