TABLE OF CONTENT
CHAPTER ONE
INTRODUCTION
1.1
Background of the study
1.2
Statement of the problem
1.3
Purpose of the study
1.4
Scope of the study
1.5
Research hypothesis
1.6
Significance of the study
1.7
Limitations of the study
1.8
Definition of the terms
References
CHAPTER TWO
LITERATURE REVIEW
2.1
The nigerian financial system: an overview
2.2
The regulatory institutions within the financial system.
2.3
The role of financial institutions.
2.4
Small scale business ownership.
2.5
Nature and dimensions of small scale business
2.6
Ways to go into small business
2.7
Small business and the economy
2.8
Importance of small scale business.
2.9
Merits of small scale business
2.10
Causes of small business failures
2.11
Government and small business enterprises.
2.12
Funding problems of small scale business
2.13
Source of funds
2.14
Roles of financial institution to the growth of small scales business.
Reference
CHAPTER THREE.
RESEARCH DESIGN AND
METHODOLOGY
3.1
Research design
3.2
Area of the study
3.3
Population of the study.
3.4
Sample and sampling procedure
3.5
Instrument for data collection
3.6
Validation and reliability of the instrument
3.7
Method of data collection
3.8
Method of data analysis
Reference.
CHAPTER FOUR.
DATA PRESENTATION AND
ANALYSIS
4.1
Distribution and return of questionnaires
4.2
Presentation and analysis of data.
4.3
Testing of hypothesis
Reference.
CHAPTER FIVE
FINDINGS, CONCLUSION AND
RECOMMENDATIONS.
5.1
Discussion of findings.
5.2
Conclusions.
5.3
Implications of research findings.
5.4
Recommendations.
5.5
Suggestions for further research.
Bibliography
Appendix
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY.
Financial institutions
have a very great role to play in the growth of small scale business everywhere
in the world but I will limit my discussion to their roles in Nigeria.
Financial institutions
could be seen as an institutions which primary function is collecting and
giving out funds to individuals, firms, organizations etc. for business
purposes.
From the definition of
financial institution, or its function, one can see that financial institution
could aid the growth of small scale business. How can this be done or achieved?
That is the next question that could come to one’s mind. It could be achieved
by the financial institutions giving out funds in form of loans, overdraft,
grants and aids etc on request from small scale business man or woman.
I will not forget to
talk about or explain what a small scale business is. A small scale business
could be talked about or explained by different people in different ways.
And in their different
views, a lot of factors or things is being considered before calling a business
small scale business. What am saying in essence is that, what Mr A calls small
scale business might not be what Mr. B calls small scale business. Therefore a
small scale is business is being explained by these few people and school of
thought. Blott Lawrence 1973 defines small scale business to be any industry
which is independently owned and operated and not dominant in its area of
operation.
The Committee for
Economic Development (C.E.D) of the united States defines small scale business
of having at least two of the underlisted characteristics:
(a)
Managers are also owners.
(b)
Area of operation mainly local
(c)
Owner supply capital and
(d)
Small in size within the industry.
1.2
STATEMENT OF THE PROBLEM.
1. Small
scales industries are capable to source capital easily from Union Bank Plc and
this problem prevents entrepreneurs from procurement of machinery and equipment
required for production.
2.
The banks are not helping matters because their condition for giving loans are
not easily met and the small scale industry owners are unable to provide their
request with well structured and circulated feasibility studies.
3.
The inability of the banks to support the entrepreneurs through loan and other
instruments such as leasing of equipment result in low capital utilization,
volume of production, provision of services and sales.
4.
The loan granted suffers additional problems of high interest rates and the
burden creates higher probability of default in repayment of loans.
5.
The rapid policies of banks contrary to CBN guidelines and the attendant. Lack
of collateral securities from the entrepreneurs created additional problems of
inability to procure and unitize capital from Union Bank Plc.
1.3
PURPOSE OF THE STUDY
The reason for the study
of the roles and problems of financial institutions to the growth of small
scale business is that it helps individuals, small scale business owners and
all the sundries to be informed of the roles of financial institutions to the
economy and at the same time so that they can take an advantage of the
roles and develop themselves, their families and the nation at large. These
roles include giving of loans, advances, overdrafts, grants and aids and
advisory services. The roles when utilize properly by small scale business owners
help in the growth of their businesses.
Financial institutions have some problems they are confronted with too. These
problems include borrowers not paying back at stated time, government policies
and regulations etc. This problems affect the smooth running of financial
institutions because ties up capital that would have been used for further
development of the sector. Government regulations or policies also affects also
affects financial institutions because, government might make a policy to correct
certain abnormalities in the economy. The policy might affect their profit as
such it constitutes a problem.
1.4
SCOPE OF THE STUDY.
The research was to
determine the roles and problems of financial institutions to the growth of
small scale business in Nigeria. The research carried out in-dept study on the
operations of financial institutions to the growth of the said industries.
Due to the current
emphasis on the industrialization of the industry in order to reduce country’s
export bill from foreign countries and unemployment the study focuses attention
on the evaluation of small scale industries that obtains loan from the Union
Bank of Nigeria Plc to attain the needed heights and capacity. The research
covers selected small scale industries in Enugu.
Small scale industries as used in this study are those indigenously owned fully
by Nigerians and with an annual turnover not exceeding five hundred thousand
naira (N500,000.00)
1.5
RESEARCH HYPOTHESIS
HYPOTHESIS 1
Ho.
Union Bank Nigeria Plc would not accommodate small scale entrepreneurs in their
priority sector for provision of funds for procurement of machinery and other
equipment.
H1.
Union Bank Nigeria Plc would accommodate small scale entrepreneurs in their
priority sector for provision of funds for procurement of machinery and other
equipment.
HYPOTHESIS 2
Ho: Union Bank Nigeria
plc would not provide financial assistance to entrepreneurs without collateral
securities.
H1: Union Bank Nigeria plc
would provide financial assistance to entrepreneurs without collateral
securities.
1.6
SIGNIFICANCE OF THE STUDY
Financial institutions
play a very significant5role in the growth of small scale business. The roles
they play includes:
i.
Giving of loans to small scale business.
ii.
Giving of overdraft
iii.
They render business advisory services.
I. GIVING
OF LOANS TO SAMLL SCALE BUSINESS:
This is one of the roles
played by financial institutions in the growth of small scale business. They
give loans to small business man or woman on request. This aids the small scale
businessmen can now perform better compares to when they has small capital.
II.
GIVING OF OVERDRAFT.
Financial institutions
allow small scale businessmen that have a savings account deposit to withdraw
from their accounts more than they have if they wish. This excess allows or
enables the capital at hand to increase. The addition of the excess fund to the
main amount withdrawn would aid the small scale businessmen to plan better than
they would have done if they withdraws the main fund he has in his account.
III.
THEY RENDER BUSINESS ADVISORY SERVICES.
Financial institutions
render advisory services to small businessmen. This advisory services they
render aids the small scale business who acts upon the advise rendered. It aids
them to grow in business. Small scale businessmen are thought how to introduce
simple record keeping and accounting in their operations. This is because, most
business concerns do not keep accurate record of their business and this can
lead to business failure. Banks or financial institutions providing this
services have reported significant success.
1.7 DEFINITION
OF TERMS
1.
BANK
A financial institution
that keeps custody of valuables such as money, gold, jewelries etc. for
customers. They charge customer for their services.
2.
ENTREPRENEUR.
The one who conceives
the idea of a business, runs the business, bears the risk and enjoys profit or
loss.
3.
FINANCIAL INSTITUTIONS.
Are institutions
responsible for collecting and giving out funds to individuals, firms,
organization etc. for business purpose.
4.
GRANT.
It is a financial
assistance by financial institutions or government which is not repayable.
5.
LOAN
Financial assistance
rendered by financial institutions to borrowers. It is payable and collateral
is required before financial institution can grant the loan.
6.
MANAGER.
One who adopts a process
for running the affairs of a business.
7.
OVERDRAFT.
It is a kind of loan
granted by banks, but before this loan is granted, the person who wants the
loan must have an account in the bank. It is a situation where an account
holder in a bank withdraws above the amount he has in his account
8.
SMALL SCALE BUSINESS.
A business in which the
managers are the owners, area of operation mainly local, owners supply capital
and small in size within the industry.
Department | Business Administration and Management |
Project ID Code | BAM0029 |
Chapters | 5 Chapters |
No of Pages | 74 pages |
Reference | YES |
Format | Microsoft Word |
Price | ₦4000, $15 |
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Contact Us On | +2347043069458 |