ABSTRACT
This research
is aimed at finding out how to solve the problem of financing a small
scale business industry in Nigeria, using Igweshi garri processing industry at
Akpugo in Nkanu West Local Government Enugu as a case study with a view to
discovering areas of improvement and possible handicaps associated with such
industries. In Enugu State, the state government established fund for small
scale industries (FUSSI) in 1971 through the state ministry of commerce,
industry and technology The fund says “small scale industry means a
manufacturing, processing or servicing industry with a capital investment of up
to N150,000 in machinery and equipment alone, this excludes working capital and
cost of land”. Data was collected through primary and secondary sources for
this project. That is oral interview and designed questionnaire and also
textbooks, newspapers, internet and
journals were all used. Some of the findings of the study include: Lack
of good equipment or machines, Bad roads, electricity and poor management. My
suggestions and recommendations is that, government should grant loans to the
small scale industries to enable them buy good machines for their
business.Government should also provide electricity in rural areas, so that it
will help Igweshi garri processing industry and small scale industries to grow.
TABLE OF
CONTENT
Title page- –
– – –
– – –
i
Approval page –
– – –
– – –
ii
Dedication –
– – –
– – –
iii
Acknowledgment –
– – –
– – iv
Abstract – –
– – –
– – –
v
Table of content –
– – –
– – vi
CHAPTER ONE
INTRODUCTION
1.1
Background of the study-
– – –
1
1.2
Statement of the problem – –
– 4
1.3
Objective of the study – –
– – 6
1.4
Hypothesis – –
– – –
– 7
1.5
Research question – –
– – –
8
1.6
Significance of the study-
– –
– 9
1.7
Scope of the study- – –
– – 10
1.8
Limitation of the study – –
– – 11
CHAPTER TWO
REVIEW OF RELATED LITERATURES
2.1
Theoretical review – –
– – –
12
2.2
Small scale business defined
– – –
21
2.3
Management/Organization of small
scale business –
– – –
– – 25
2.4
Sources of fund to small scale
business/industries –
– – –
– 33
2.5
Problems of small-scale business
– – 35
CHAPTER THREE
RESEARCH
DESIGN AND METHODS
3.1
Research design – –
– – –
42
3.2
Area of study – –
– – –
– 42
3.3
Source of data- – –
– – –
43
3.4
Population of study- – –
– – 45
3.5
Sampling method – –
– – –
45
3.6
Research instrumentation
– – –
46
3.7 Validity
reliability of research instrument
– 47
3.8
Method investigation – –
– – 47
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
4.1
Presentation and analysis of data
– – 49
4.2
Summary of result – –
– – –
– 59
4.3
Test of hypothesis – –
– – –
60
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATION
5.1
Discussion of finding – –
– – 71
5.2
Conclusion –
– – –
– – 74
5.3
Recommendation – –
– – –
76
5.4
Suggestion for further research
– – 81
Bibliography –
– – –
– – 83
Appendix I –
– – –
– – 85
Appendix II –
– – –
– – 86
CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
It is necessary to bring out the point that
to succeed in business required some measure of discipline. Most industrialist expected to make a
reasonable profit from the investment of time and resources, that they have to
make it, in other to bring a project to friction.
While this may sound simple enough, the
bother line is the fact in an economy wide context, the rate of 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 input.
Experience has shown that industrial pursuits
have been found to yield for the patient and disciplined and industrialist
rather than stand for business concern with all kinds of effort mostly
unproductive and required no legitimate effort to reap profits in multiple
fields.
After 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 patience
industrialist all things being equally.
Taking cognizance 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.
Finance is the greatest problem we are likely
to face whenever we talk of establishing a small-scale industry. This is control surrounding the problem of
inadequate finance. A look on the
small-scale industries/business, all over the country would help to throw
further light on the effect of lack of fund or business, the drastic effect is
mostly few when gradually collapsing, even surviving ones are terribly looking
for assistance that they are not sure of.
Funds are scarce, 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.
The researcher aimed at exploiting the
possibilities, problems of financing small-scale business/industries.
The project centers on management and
financial problems.
1.2
STATEMENT OF PROBLEM
There are various problems facing the
establishment of small-scale business like financial limitation, lack of raw
materials, poor management and quality of the management, staff, poor
accounting methods, high interest charge on loans and lack of adequate planning
and feasibility studies.
The most common and problematic issues is
funding Small-scale business/industries. It is quite difficult to obtain fund
from established institutions like commercial banks. Some projects have take
off but had to be abandoned half way. The issue involved is the question of capital
adequacy.
When a company is under capitalized it cannot
realize its full potentials. Many small-scale enterprises in Nigeria experience
this problem. They cannot expand their scale of production to optimum level.
To ameliorate these problems therefore,
government should implement the law or policy that will enhance small-scale
business/industries (especially that of infant ones) 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 scale industries/business.
1.3
OBJECTIVE OF THE STUDY
The objectiveof the study are as follows:
(a)
To ascertain the present economic state of the life of small-scale
business with the view to identify the major problems that affect the financing
of small scale business bearing in mind that adequate financing stands as a
chance to energize to its operations.
(b)
To determine with strategies
employed by the surviving and successful ones among them towards alleviating these problems.
(c)
To ascertain the extent to which the financial institution has helped to
develop small-scale business/industries.
(d)
To provide a useful guide for the prospective entrepreneur who may
choose self-employment as a career, especially in lines of business.
(e)
It will equally serve as a springboard progenitor of further researchers
in the area of small-scale business/industries.
1.4
HYPOTHESIS
Hypothesis I
Ho:
Inadequate fund does not adversely affected the operation of small-scale
industries/business in Enugu.
Hi:
Inadequate fund affect adversely of small-scale industries/business in
Enugu.
Hypothesis II
Ho:
poor accounting method does not affect small-scale industries/business
in Enugu.
Hi:
poor accounting method affects small-scale industries/business in Enugu.
Hypothesis III
Ho:
poor management does not affect small-scale industries/business in
Enugu.
Hi:
poor management affect small-scale industries/business in Enugu.
1.5
RESEARCH QUESTIONS
This issue will not be treated in isolation
taking into cognizance the level of development in Nigeria. Based on this, some vital research questions
were asked by the researcher, which includes:-
1.
What number of small-scale business/industries have benefited from the
commercial banks loans and advances?
2.
To what extends does small-scale business/industries cope with the inadequacy of funds?
3.
What are the strategies employed by the surviving and the successful ones?
4.
How does small-scale business apply for loans from financing
institutions?
5.
What are the role of the government and organizations in finding lasting solution to the
problem numerated above?
1.6
SIGNIFICANCE OF THE STUDY
The significance of the study is that the
result will help identify how business loans are obtained or secured both
locally and internationally from financial institutions.
As a result of this, awareness is being
created on how fund or finance could be raised to finance small-scale
business/industries.