independent Nigeria the giant of Africa has spent much time and resources both
human and material trying to convince the developed countries and indeed the
whole word that she (Nigeria) is capable of developing her industrial
Much of the efforts made in this direction have found expressions
mostly in international conference and seminars, newspapers report, radio
announcements and various national development plans.
have actually increase since after the independent, but the disappointing
record of economic performance in the last decade has led to the reopening of
the debate on the strategy of industrialization
still a net import of all sorts of goods from needless to heavy machinery, simple
because most of the industries where established for their immediate lucrative
such as been soft drink and other consumers goods industries without the
consideration to nation’s industrial needs or for the utilization of local
most of the large scale industries before the industrialization decree were
foreign owned and were associated with significant possibilities of income
leakages. This in spite of the rapid increase in the gross national
productivities (GNP) in last decade, the poorest segment of the population
peculiarity those in the rural areas has received relatively little benefit.
Unfortunately the bulk of Nigeria business are small-scale industries of the
number of business establishments, they account for about 80% or above of the
total number of enterprise in the country.
important role they play in the development process was observed by the first
progress report of the second National Development plan “in spite of the
anticipated rapid growth of the wage sector, the major solution to the nations
unemployment problem will have to be found in other areas like agriculture and
small scale industries development.”
In spite of
all these, the small scale industries sub-sector has continued to suffer from
lack of credit most all the governments financial programmes for the small
industrial credit scheme, fund for small scale industries has remained largely
inadequate and of little effect.
and other financial houses cannot help matters either despite the central bank
credit scheme to industries.
It would be
noted in the regard that majority of the small scale industries would not be
able to meet the requirement of the bank and other financial institution lending
policies. Therefore given these financial constraints
TABLE OF CONTENTS
1.0 CHAPTER ONE:
1.1 Background of the
1.2 Statement of the
1.3 Objective of the study
1.4 Research question
1.5 Research Hypothesis
1.6 Significance of the study
1.7 Scope of the study
1.8 Limitation of the study
1.9 Definition of terms
REVIEW OF RELATED LITERATURE:
2.1.0 Theoretical review of related literature
2.1.1 Small scale business defined
2.1.2Management and organization of small scale
2.1.3 Sources of fund to small scale
2.1.4 Obstacles of small scale
2.2 Empirical Review of Related
3.0 CHAPTER THREE: RESEARCH DESIGN
3.2 Area of the study
3.3 Population of the
3.4 Sample and sampling Techniques
3.5 Instruments for Data
3.6 Method of Data collection
3.7 Method of Data Analysis
3.8 Method of
4.0 CHAPTER FOUR: DATA
AND DATA ANALYSIS
4.1 Data presentation and Analysis of results
4.2 Test of hypothesis
4.3 Summary of
5.0 CHAPTER FIVE: FINDINGS, CONCLUSION
5.4 Suggestion for further
1.1 BACKGROUND OF
necessary to stress the point that to succeed in business require some measure
of discipline. Most industrialists expect to make a reasonable profit
from the investment of time and resources that they have to make in other to
bring a project to function.
may sound simple enough, the bother line is the fact in an economy wide
context, the rate or level of reward that can accrue to various level of
effort, discipline and productivity should never be allowed to get out of
proportion in relation to effort put in.
has shown that industrial pursuits have been found to yield for the patient and
disciplined industrialist rather than stand for business concern with all kinds
of effort mostly unproductive and require no legitimate effort to reap profits
in multiple fields.
considering the above mentioned statement of facts about industry. The
question is how far are we from being industrialized bearing in mind that it
yields for disciplined and patient industrialist, all things being equal.
of the fact that a step forward is the beginning of a mile. Some,
therefore Nigeria’s business industrial evolution will only start when positive
steps are taken towards adequate financing of small scale business. The
experience of newly industrialized countries has been an eye opener.
the greatest obstacle we are likely to face whenever we talk of establishing a
small scale industry. This is the most crucial aspect of business
enterprise and a lot of controversy surrounding the problem of inadequate
finance. A close look on the small scale industries/business, all over
the country would help to throw further light on the effect of lack of fund on
growing business. The drastic effect is mostly felt when one tries to
study the rate at which our young industries are gradually collapsing.
Even surviving ones are terribly looking for assistance that they are not sure
scare, hence the growing industries as regarded in this part of the world as
never-do-wells especially Nigeria. When an economy is shaky, growing
industries in that economy tend to suffer most and usually stand the taste of
time. Hence, an increase in the number of causalities in this regard.
researcher aimed at exploiting the possibilities, obstacles of financing small
scale business/industries. The project centers on management and
1.2 STATEMENT OF
various obstacles facing the establishment of small scale business like
financial limitation, lack of raw material, poor management and quality of the
management, staff, poor accounting method, high interest charge on loans and
lack of adequate planning and feasibility studies.
common and problematic issues is funding. Small scale business find it
difficult to obtain fund from established institution like commercial banks and
because of the some projects have take off but had to be abandoned half
way. The issue involved is the question of capital adequacy.
company is under capitalized it cannot realize its full potentials. Many
small scale enterprises in Nigeria experience this obstacle. They cannot
expand their scale of production to optimum level.
ameliorate these obstacles therefore government should implement the law or
policy that made to enhance small scale business (especially that of in fact
once) such as central bank policy that direct all commercial bank to give out
some percentage of loan to small scale business than those of medium and large
1.3 OBJECTIVE OF
purposes of this study include:
(a)To ascertain the present economic state of the
life’s of small scale business with the view to identify the major obstacles
that affect the financing of small scale business bearing in mind the adequate
financing stands as an energizer to its operations.
(b)To determine what strategies employed by the
surviving and successful ones among them toward alleviating these obstacles.
(c)To ascertain the extent to which the financial
institution has helped to develop small scale business.
issue will not be treated in isolation taking into cognizance the level of
development in Nigeria. Based on this, questions were asked by the
researcher, which include:
a. What are the present
economic states of life’s of small scale business with the view to identify the
major obstacles that affect the financing stands as an energizer to its operations.
b. What are strategies employed by the surviving and successfully
ones among them toward alternating these obstacle.
c. How does the financial
institution help to develop small scale business?
following hypothesis is relevant and necessary for the carrying out this
a. Ho: Lack
of adequate finance has contributed to the failure of economic state of lives
of small scale business.
Lack of adequate finance has not contributed to the failure of present
economics state of lives of small scale business.
There is failure in strategies employed by the surviving and successful one
among them toward alternative these obstacle.
There is no strategies employed by the surviving and successfully one among
them toward alternating these obstacle
Financial institution has contributed to the failure of small scale business.
Financial institution has not contributed to the failure of small scale
OF THE STUDY
significance of this research is that the result will help identify how
business loan are obtained or secured both locally and internationally from
financial institutions. On this note awareness is being created or it
will help to create it on how fund or finance could be raised to finance small
1.7 SCOPE OF THE
area would have been the study of all the small scale business in Nigeria but
however, this would have posed some threats to the researcher. Among them were
the lacks of adequate fund to meet the rising cost of research.
Unavailability of sufficient books by Nigerian authors in the area of small
business and its obstacles. Also the problem associated with the
collection of data.
Consequently, the study is specially design to examine the obstacles of Garri
processing industry at Abakpa Nike, Enugu towards getting financial assistance
from financial houses.
TERMS AND CONDITIONS APPLY
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