review of the most recent literatures on labour turnover and productivity was
done. It was revealed that there is a significant relationship between labour
turnover rates and labour performance. And that labour turnover affects company
productivity level. But, welfare services in another way affect labour turnover
rate. Also, the finding shows that productivity measurement has significant
relationship with the company performance and growth.
the inherent disadvantages associated with labour turnover, it is also been use
to maintain profitability during slimmer period. This study examines its
implication on Nigeria
organizations, using Evans medical plc as a case – study.
hypotheses were formulated to test the relationship between labour turnover and
productivity, performance and welfare service, and how measurement of
productivity affects the growth and company performance. Questionnaires were
formulated based on the hypothesis and data were also collected from the
company. The data were analyzed using
simple percentage technique, chi- square and trend graph.
recommended that labour turnover should be minimized as it affects the growth
of the company and other additional cost associated with it.
recommended that labour turnover should be minimized to the barest minimum as
it affects the growth of the company and other additional cost associated with
TABLE OF CONTENT
of content vi
1.0 Background to the Study 1
1.1 Introduction 1
1.2 Aims/Objectives of
the Study 4
1.3 Research Questions 5
Research Hypotheses 5
1.6 Sources of Data 6
1.7 Significance of the
1.8 Definition of Terms
1.9 Organisation of Study
CHAPTER TWO: Literature Review
of Small Scale Industries 11
Relevance of Small Scale Enterprises in Economic 17
of Financing Small Scale Enterprises 22
Problems of Financing Small Scale Enterprises 29
THREE: Structure of Small Scale Industry
in Nigeria Introduction
3.0 Introduction 34
3.1 Importance Of Small And Medium-Scale
In Nigeria 35
Of Funds Available To Small Scale
Industry In Nigeria 38
3.3 Financing Small And Medium-Scale Enterprise In
3.4 Institutional Environment for Small
Promotion in Nigeria
Trends Of Commercial Banks’ Credits To
Enterprises In Nigeria 60
3.6 Non-Financial Constraints Facing Small
Scale in Nigeria
3.7 Why Small and Medium-Scale Enterprise in Nigeria Fails 65
and Prospects of Small-Scale Enterprises
In Nigeria 76
FOUR: Research methodology, Data
Analysis and Interpretation of Results
4.1 Methodology 80
4.2 Methods of Estimation of Analysis 80
4.3 Specification of the Model 82
4.3.1 Econometric Model Specification 83
4.3.2 A Priori Expectation 84
4.4 Specification of Data 84
FIVE: Summary of findings, conclusion and recommendation
5.1 Summary Of Findings 89
5.2 Conclusion 90
5.3 Recommendation 91
TO THE STUDY
For both developing and developed countries small-scale firms
play important roles in the process of industrialization and economic growth.
Apart from increasing per capital income and output, small scale industry
create employment opportunities, enhance regional economic balance, and promote
effective resource utilization. However the seminal role played by small scale
industries not withstanding its development in every where constrained by
inadequate funding and poor management. The unfavourable macro economic
environment has also been identified as one of the major constraints which most
times encourage financial institutions to be risk-averse in funding small-scale
industries. The reluctance on the part financial institution to fund
small-scale industries can be explained by the insufficient capital base of
banks and information that often exists between small-scale enterprises and
However, it is fundamental that the bedrock of any business
organization, and sources of financial available to them. In this research
study, we are going to deviate from the general aspect of small-scale
industries and the problems and prospects of financing small-scale industries
or they have been recognized as the veritable engine to economic growth and
development. Umar (1997:15) in his own words, stated that “In Nigeria, as in
many other developing countries financing and encouraging the establishment of
small-scale enterprises have been crucially recognized as a viable approach for
stimulating employment development, particularly, in a situation of rapid
growing labour force and inadequate economic growth.
However, for small-scale industries to effectively contribute to
the economic growth and development of any country, it should be well financed
well financed or funded for their business operators and expansions. In Nigeria, the
government has established institutions to provide financial and non financial
sources to small-scale industries. Among the institutions established by the
federal government to provide loans to small-scale industries are the National
Directorate of Employment (NDE), the People’s Banks of Nigeria (PBN), the National
Economic Reconstruction Fund (NERFUND), and Nigeria Development Bank (NIBK).
Despite al these efforts of government at promoting small-scale
enterprises in Nigeria,
they (SSE) are still faced with problems of inadequate financing or funding
poor management, limited markets etc. It is very known fact in business circle
or environment that small-scale business enterprises fund (S). It is difficult
to sources due to the irritability to meet up the collateral requirements to
enable them secure financial services from finical institutions (Banks). Also,
the cost of handling small-scale loans and risk of default, are factors
militating against the granting of banks loans/facilitated to small borrowers.
Generally, any business enterprise, whether small or large,
requires or needs fund to operate and these funds are obtained from diverse or
different sources. The sources of fund/finance available to small-scale
enterprises in (Nig) includes personal savings, loans from friend and
relatives, commercial and Merchant banks, and government assisted/specialized
credit schemes/funds, such as national economic reconstruction Fund (NERFUND),
world bank loan scheme, etc. It can be widely stated that small-scale
enterprises sources of finance are limited compared to the large-scale
enterprises. Due to their (small-scale enterprises) ignorance or inability to
meet the requirement of financing institutions responsible for lending of fund,
and partly due to small-scale enterprises or refusal to pay back loans or funds
lended to them at the appropriate time. In most cases small-scale enterprises
inability to pay back loans borrowed as a result of improper financial
management. Finance, as it is widely stated is “the key factor or bed rock of
business enterprise (s) and in one way or the other becomes the key problem due
to mismanagement of the available fund. Some of these small-scale industries do
not even know the means or procedures to be adopted to obtain funds needed for
their operations because of ignorance and illiteracy.
This study is carried out by the researcher to see in details
“how the available sources or means of financing small-scale industries in Nigeria have
performed, and the problems associated with the financing of small-scale
enterprises, and how the problems can be redressed or solved.
OF THE STUDY
The aim of this study is to examine the impact of financing by
commercial banks on the small scale industries in Nigeria. While specific objectives
v To identify and examine the various small-scale
industries in Nigeria.
v To identify and evaluate the problem
militating against the financing of small-scale industries in Nigeria.
v To examine or access the effectiveness and
efficiency in the management of available funds by the small-scale industry.
v To make some recommendations based on the
result of the finding.
1.3 RESEARCH QUESTIONS
Of what relevance is the finance of small scale industries to Nigeria?
What are the effects of problems militating against the financing of
small scale industries in Nigeria?
1.4 RESEARCH HYPOTHESES
Ho: There is no problem(s) militating against the finance of
small-scale enterprise on Nigeria
Hi: There is problem(s) militating against the finance of
small-scale enterprise on Nigeria
In appraising the financing questions of small industries in Nigeria. The
researcher intends to employ questionnaire, informal discussion and information
derived through observation.
The source of data that will be used in this study shall be
primary source of data.
The procedure for processing data that is, testing the
hypothesis shall be through the use of chi-square which is defined thus:
X2 = (Oi-Ei)2
Where, X2 = Chi-square
Oi = Observed frequency
Ei = Expected frequency
SOURCES OF DATA
The researcher intends to use primary data in process of
carrying out this research work. The questionnaire will simply be constructed
in such a way that the respondents will easily understand the questions Oral
interviews and informal discussion will also be adopted in order to get more
information relevant to the research study.
OF THE STUDY
Small-scale industries as bedrock of economic growth and
development have an important role to play towards achieving the objectives or
rapid industrialization of any economy. This study is expected to show how
small-scale industries contribute to the growth and development of the economy
when adequately funded or financed, and carefully managed.
The discoveries of findings from this research study can help
small-scale industries in Nigeria
to find solution(s) to their financial problems and management of fund
available to them, for an effective and efficient performance.
Small and Medium Scale Enterprises (SMEs): These usually small owner or family
managers this business with its goods and services being basic, it tends to
lack the organizational and management structures which characterized
- This is the management of money (i.e the management of the flows of money
through an organization and claims against money.
Objectives: - This state precisely what is to be achieved and when the
results are to be accomplished.
Resources:- Input or element utilized in management process.
Policy:- This is a set of rules guidelines guiding the corporate
Is an entity or a body that engage in activities of performs the functions of
Financial Managers:- This is a key manager who is responsible for the day to day
financial services and record keeping of the organization
Trade Policy: This is government regulatory pronouncement aimed at managing
trade relations between one country and another with the goal of achieving
merger micro-economy objectives.
Productivity: This has been defined as the measure of how well resources are
brought together in an organization and utilize for accomplishment a set of
results productivity is reaching the highest level of the performance with the
least expenditure of resources.
An employee: An employee as used in this study refers to any worker in the
organization under study.
Motivation: Is a general term applying to the entire of desire, drive
needs wishes and similar forces in other words motivation refers to the drive
and effort to satisfy a want goal motivation implies a drives towards an
Resources: It refers to the collective means of supplying and satisfying
needs and wants in an organization e.g. man, material, machine and money, which
are known as SMS.
Administrative: It refers to the organization and direction of
persons and material in order to accomplished a specific end.
Liberation: This refers to the significant of giving or given freely
quality of being broad-minded freedom from pre-juice.
This is the process of buying and selling planned industrial area rented to
manufactures that can exchange barter.
This can be written statement of the terms of a contract of insurance. It can
also refers as the plan of action, statement of aims and ideals especially one
made by a government political party and business company future researchers
could depend on this research work as sources of relevant data, given the
above-mentioned reasons coupled with the potential research experiences that
the researcher of this study will acquire; this research project is adequately
Satisfaction: Refers to the contentment experienced when a want
is satisfied from a management point of view this means that a person might
have high job or reversed might be traced.
Co-ordination: Is the process whereby the effort of a group is synchronized so
that the desired goal is obtained.
Direction: Is the process of ensuring employee to do the jobs allotted to
Management: It refers to the process of harnessing and motivating
resources to achieve the desired goals of an organization.
Are those employee or workers in an organization.
Chapter One: This will contain the introduction to the
study, objectives of the study, statement of the problem, significance,
methodology of the study and limitations of the study.
Chapter Two: This will comprises of the literature
review of works done on this study by various researchers.
Chapter Three: This chapter will contain the methodology
and process of data collection.
Chapter Four: Here is where analysis and presentation of
data collected are done.
Chapter Five: This contains the conclusions and summary of
study and also recommendations on policy actions.
Eigbe S.E (1996): “Financing Small and Medium Enterprises in Nigeria:
“Problems and Prospects” (CBN) Debt Trend No 1: vol 2.
Osoba A.M (1987) “Towards the Development of Small-Scale Enterprises in Nigeria”. Nisar
Umar A.B (1997): “Financing Small and Medium Scale Enterprises in Nigeria” The
Guardian, Tuesday Nov. 11.
1(1987): “Problem of Small Business in Nigeria and
Solutions “First Bank Quarterly Review June Issue