Nigeria Economy has a lot of turbulence in the 1980’s. The period witnessed unemployment, inflation,
dwindling oil revenue; the need has risen for the government to take serious
steps to change the direction of the economy through policies which are aimed
at restructuring and making better use of available resources.
this study was conducted to examine the impact of financial planning in the
profitability and efficiency of small scale industries in Orumba North Local
Government Area of Anambra State. The
results of the study showed that financial planning has to be interpreted and
an analysis of data, the study came out with findings of financial planning
propels the level of performance of small scale firms.
was found that small scale firms in Orumba North Local government was
identified to be absence of proper financial records, illiteracy, bad attitude
to change and high inflation and interest rate.
other to exploit the optional benefits of this study, the researcher offered
the following recommendations for the improvement of financial planning in
small scale firms in Orumba north local government area of Anambra state.
the fact most small scale firms lack necessary managerial know-how, experienced
and qualified staff should be employed on fulltime basis to design a good
accounting system, draw up maintenance plans for such records and help relate
them to profitable operations.
records should be kept. While a business owned is not expected to be an accountant,
he should at least be able to keep memorandum of records to assist the
accountant in preparing his financial records or reports.
scale industrialists should be enlightened through the use of seminars and
government enlightment policies.
Title page i
Table of Content vii-viii
background of Orumba North L.G.A 3
of the Study 5
of the Problem 6
of the study 8
and Limitation of the study 8
of the Research 9
of Relevant Terms 9
1.10 Summary 14
TWO: Literature Review
to Finance 15
of Finance on Management
Decision Making 16
Planning for Decision Making 17
of Financial Plans 18
Organization: General Overview 29
2.6 What is
a Small Scale Industry 32
2.7 Role and
importance of the small scale
Industry in developing country 35
of the small Scale Industry 36
3.1 Introduction 41
and Sample 42
of Data Analysis 42
FOUR: Presentation, Analysis and Interpretation of Data
4.1 Introduction 45
Presentation and analysis of Data 45
Testing and Verification 56
FIVE: Summary of Findings, Recommendations
of Findings 65
5.2 Recommendations 67
5.3 Conclusion 69
economy has witnessed a lot of turbulence in the 1980s. The period witnessed
unemployment, dwindling oil revenue. The need has arisen for the government to
take serious steps to change the direction of the economy through the use of
policies, which are aimed at restructuring and making better use of available
resources. Among these policies, one should aim at increasing the awareness, as
regards the positive impact which emphasis on small scale industries could have
on the economy.
the purpose of this research, a small scale industry because of ambiguity in
the definition, can toe defined as a continuum starting from the informal sole
propertorship and extending to an upper limit defined by the law of the country
concerned. In Nigeria
for example, various agencies have different classifications - Nigeria Bank for
Commerce and Industry, Federal Ministry of Industries etc.
of the earliest definitions of small scale industry was established in 1952 by
the United Economic Commission for Asia and
the far East (ECAFE). The commission defined a “Small Scale Industry” as
operated 50 workers if no motive power was used, or 20 workers if motive power
was used. In Nigeria,
the small scale division of the Federal Ministry of Trade Industries and
cooperative defined a ‘small scale industry’ as any manufacturing, processing
or service industry with investment not exceeding N150,000 in machinery and
equipment only. The central Bank of Nigeria insist that any business
whose whole turnover is less than N500,000 is a small scale industry or
Bank defines a ‘small scale industry as one having capital base of N10 million
repayment of ½ - 3 years MR B.E Osaze, a finance analyst sees ‘small scale
industry’ as one which is owned, managed and controlled by one or two persons,
is family influenced in decision making, has undifferentiated organizational
structure, has a relatively small share of the market and employs less than so
majority of the business organization or industry fall under the small scale
category. Thus the survival of the economy can be said to depend to a large
extent on the organizations.
small scale industry is growing all the time.
government effort should be directed at providing assistance to already
existing small scale industries and to individuals willing to embark on such
small scale industries. This project is base on the impact of financial planning
on the profitability and efficiency of the small scale industries with
particular reference to those in Orumba North Local Government Area of Anambra
State. Before I proceed, it is therefore necessary to give a historical back
ground of Orumba North Local Government Area.