Financing Small Scale Industries In Nigeria (a Case Study Of Enugu State)

The purpose of the study are as follows to determine how the development bank have helped to provide finance to small-scale industries as start up or working capital for the business. 

To determine how Nigeria banks help to procure machines and equipment for small-scale industries either through leasing or  here purchase to encourage massive production. 

To determine how development bank has helped to provide technical and managerial expertise including undertaking of feasibility of consultancy arrangement. 

To find our how the development banks will be able to provide adequate raw material for the small-scale industries to encourage massive production so that they will be able to compete with the large scale industries. 

Title page        ii

Approval Page        iii

Acknowledgement       iv

Dedicated        v

Table of Contents       vi

Proposal         vii

CHAPTER ONE

1.0 Introduction       1

1.1 Background of the Study      1

1.2 Statement of the Problem    4

1.3 Purpose of the Study     5

1.4 Definition of Terms       6

1.5 Scope of the study       7

1.6 Limitation of Study      8

CHAPTER TWO

2.0 Review of Related Literature      9

2.1 Nature and Characteristics of the Nigeria        12

2.2 The Role of Small Scale Enterprises         15

2.3 Advantages of Small Industries in Nigeria        17

2.4 Major Disadvantages of Small Scale Enterprise     21

2.5 Review of Main source of Financing         23

2.6 The Role of Government in Finance and Promotion 25

2.7 Option for Improved Access to Credit        26 

CHAPTER THREE

3.0 Research Design and Methodology         30

3.1 Research Design            30

3.2 Area of the Study            31

3.3 Population of the study           32

3.4 Sample and Sampling Procedure Techniques      32

3.5 Instrument for Data Collection         33

3.6 Method of Data Collection         34

3.7 Method of Data Analysis           34

3.8 Validation of Instrument          35

3.9 Reliability of the Instrument               35 

CHAPTER FOUR

4.0 Data Presentation and Analysis         36

4.2 Summary of the Results         44

CHAPTER FIVE

5.0 Findings            46

5.2 Conclusion           46

5.3 Recommendations          49 

Bibliography 

Appendix

 

 Industrial development involves development of a technical arrangement that moves on economy from the traditional method of production to a more complex system of mass manufacturing of verity of goods of services involving technology and management techniques.  

 Industrialization tends to propel growth adequate the achievement of structural transformation and diversification of economy. It enable a country to utilize it’s factor endowment and depends less on external sector for its growth and sustenance. They provide employment for a substantial proportion of the industrial establishment. Therefore due to the above mentioned role played by industrial sector, that is small-scale industrial in the economy, it requires some financial support from government for the smooth running of the industrial.         

 But small-scale industries is a sub-sector of development that is of great importance as mentioned above, but it has not received the types of attention it deserves that is why the government and the Federal Ministry of industries lay-down the parameter under which a industrialist may take advantage of the various incentive erected by the government for the growth of the small-scale industries. Such incentives are in the form of loan provision of machinery and raw materials. 

 The process of taking advantages of the various incentive scheme are so cumbersome and its subject to bureaucratic radicalism and only few small-scale industries are able to utilize them. 

 The importance of small-scale industries to the survival of a nation can no longer be saved. They have moved from the substance level to pre-indigenization period of importance in the country’s industrial process. Therefore the authorities should not relent on the inactive due to lack of fund.

 The Nigeria Bank was established to provide among other financial services to the indigenous business community, especially small sale industries of the recommendation of the financial system review committee of 1976 government made bank the apex financial institution for small-scale business. The bank obtains fund from the federal government to assist small business and the loan granted are relating on soft terms. During the 1970s and 1980 banks promoted of soft loans and advisory services of operational and liquidity problems attributed to reduced government funding and poor loans repayment by medium scale entrepreneur. Bank loans and advances fluctuated from N984 million, N223 millionm, N305.3 million, N87,7 million and 1994 respectively similarly, it’s deposit liabilities fluctuated from N252 million. In 1990 to N423.3 million in 1991 N318.7 million in 1992 and N320 million in both 1993 and 1994 following this, the government utilized the opportunity equip it banks with power to act as catalyst in development by operating like an all purpose universal bank to engage in all types of investment banking and under writing operation.