FINANCING A SMALL SCALE BUSINESS IN ENUGU AYOGU

  • Chapters:5
  • Pages:54
  • Methodology:Simple Percentage
  • Reference:YES
  • Format:Microsoft Word
(Banking and Finance)
FINANCING A SMALL SCALE BUSINESS IN ENUGU AYOGU          
CHAPTER ONE

1.0                                   INTRODUCTION
1.1    BACKGROUND OF THE STUDY    
        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 incentioned 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 dec 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.
1.2    STATEMENT OF PROBLEMS
        The study titled financing small-scale industries “attempts to determine the way by which the development banks contributes to it financing of the problems which they encounter are as follows:
Most small-scale industries lack finance as start up or working capital for their business but could not mobilize such fund easily from commercial banks.
Procurement of machinery and equipment post problems on small-scale industries and management expertise as a result had not been functioning optimally.
 Most small-scale industries because of their small nature are unable to compete with the big ones for the necessary raw material for their production and are unable to to produce massively to take advantages of economic of scale.
1.3    PURPOSE OF THE STUDY  
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.
1.4    DEFINITION OF TERMS
        The definition of terms includes the following
Credit:
It means ability command capital of another in retain for a promise to repay at a specific time in the future.
Finance:
        Financing simply implies obtaining means of payment needed by an organization for the short medium and long terms.
Loans:
        This is the transfer of finance from one economic entry to another.
Small-scale:
        Small-scale industries is a manufacturing of services company whose capital investment does not exceed.
1.5    SCOPE OF THE STUDY
        However, all definition share a common view that small-scale industries are generally low in terms of number of person employed, and in amount of investment and annual business turnover. The main criteria used throughout the world include number of employees, sales volume, financial strength, relative size, initial capital outlay, comparison with it’s past standard independent ownership type of industry etc.   
 
Share This

Project Details

Department Banking and Finance
Project ID BFN0222
Price ₦3,000 ($9)
Chapters 5 Chapters
No of Pages 54 Pages
Methodology Simple Percentage
Reference YES
Format Microsoft Word

500
Leave a comment...

    Project Details

    Department Banking and Finance
    Project ID BFN0222
    Price ₦3,000 ($9)
    Chapters 5 Chapters
    No of Pages 54 Pages
    Methodology Simple Percentage
    Reference YES
    Format Microsoft Word

    Related Project Topics

    ) ABSTRACT Since independent Nigeria the giant of Africa has spent much time and resources, both human and a material trying to convince the developed countries and indeed the... Continue Reading
    (CASE STUDY OF GARRI PROCESSING INDUSTRY IN ABAKPA NIKE ENUGU) ABSTRACT Since 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... Continue Reading
    (CASE STUDY OF GARRI PROCESSING INDUSTRY) ABSTRACT Since 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... Continue Reading
    • Type:Project
    • ID:ACC0066
    • Department:Accounting
    • Pages:80
    • Chapters:5
    • Methodology:chi saqure
    • Reference:YES
    BANKS’ FINANCING SMALL SCALE BUSINESS UNIT (A CASE STUDY OF UNION BANK OF NIGERIA PLC ENUGU BRANCH) ABSTRACT The purpose of the project is to know to the extent small businesses in Nigeria has been able to obtain loans and advances from Nigeria commercial bank as a major sources finances to the... Continue Reading
    • Type:Project
    • ID:ACC0082
    • Department:Accounting
    • Pages:40
    • Chapters:5
    • Methodology:chi saqure
    • Reference:YES
    CHAPTER ONE 1.1 HISTORICAL BACKGROUND OF THE STUDY The production of goods and services in the most efficient manner has continued to be the only viable and reliable option for development, growth and survival of any... Continue Reading
    FINANCING OF SMALL AND MEDIUM SCALE BUSINESS IN NIGERIA. UNIBEN INTEGRATED ENTERPRISE AS A CASE STUDY. ABSTRACT This research work has been undertaken to find out the financing of small and medium scale business in Nigeria (UNIBEN TABLE WATER) as a case study. A further objective was to ascertain... Continue Reading
    CHAPTER ONE INTRODUCTION 1.1 BACKGROUND FOR THE STUDY Banks are in the Business of accepting deposit from the public and on lending those funds to borrowers and make profit in return.... Continue Reading
    ABSTRACT The topic of dissertation is financing small scale business in Nigeria, the role of union bank of Nigeria plc. The major objective of the study is to ascertain the extent to which union bank of Nigeria plc... Continue Reading
    LEASING AS A MAJOR FINANCING DEVICE FOR SMALL SCALE INDUSTRIES IN ENUGU URBAN (A CASE STUDY OF HAPEL NIG. LTD) ABSTRACT Small-scale enterprises like Hapel Nigeria limited generally suffer from lack of adequate finance. The introduction of the structural adjustment programme compounded the problem... Continue Reading
    • Type:Project
    • ID:ACC0282
    • Department:Accounting
    • Pages:66
    • Chapters:5
    • Methodology:Simple Percentage
    • Reference:YES
    ABSTRACT Many developing countries have subsequently become interested in assessing the role that small scale establishment might play in their industrial strategies and... Continue Reading