ABSTRACT
The study was conducted on
Financing Small and Medium industries in Nigeria (A Case Study of Selected
small business in Lagos State sub-urban).
The roles play
by SSEs as been confirmed by this study.
It therefore means that the SSEs can be effectively used to improve the
country’s employment and growth if the above stated problems that they face are
tackled. More activities of the
government should therefore be directed to the industry.
The data were gathered through the
administration of questionnaire to respondents from different department status
in the organization.
The findings of
this work do not differ significantly from what have been said by former
researcher as reviewed in chapter two of this work. However, this does not mean that further
study into this area cannot be undertaken since new facts are emerging every
day.
Small Scale
Industries do not prepare proper and regular financial report that makes them
not to have one for loan purposes.
Policy should be put in place to make compulsory preparation of business
name so that names of from which do not subsequently prepare financial report
may be struck off from the register book.
TABLE OF CONTENTS
TITLE PAGE I
CERTIFICATION II
DEDICATION III
ACKNOWLEDGEMENT IV
ABSTRACT V
TABLE OF
CONTENTS VI
CHAPTER ONE:
INTRODUCTION
1.1 BACKGROUND OF THE STUDY 1
1.2 STATEMENT
OF RESEARCH PROBLEM 3
1.3 OBJECTIVE
OF THE STUDY 4
1.4 STATEMENT
OF RESEARCH OPERATORS 4
1.5 STATEMENT
OF RESEARCH HYPOTHESIS 4
1.6 SIGNIFICANCE
OF THE STUDY 5
1.7 SCOPE
AND DELIMITATION OF THE STUDY 5
1.8 PLAN
OF STUDY 5
1.9 DEFINITION OF TERM 6
CHAPTER TWO:
LITERATURE REVIEW
2.1
DEFINITION
OF SMALL SCALE ENTERPRISES 7
2.2
ADVANTAGE
OF SSE’S 10
2.3
ROLES
OF SSE’S IN NATIONAL DEVELOPMENT 11
2.4
PROBLEM
OF SMALL SCALE ENTERPRISE 15
2.5
CONCEPTUALIZING
UNEMPLOYMENT /EMPLOYMENT 17
2.6
ECONOMIC
GROWTH 24
2.7
THE
ROLES OF SMALL-SCALE ENTERPRISE 27
2.8
FINANCES
OF SMALL – SCALE ENTERPRISE 30
2.9 THE NIGERIA BANK FOR COMMERCE AND INDUSTRY
(NBCI) 32
CHAPTER THREE:
RESEARCH METHODOLOGY
3.1 INTRODUCTION 37
3.2
RESEARCH DESIGN 37
3.3
RESTATEMENT
OF RESEARCH QUESTIONS 37
3.4
RESTATEMENT
OF RESEARCH HYPOTHESES 38
3.5
THE
POPULATION OF THE STUDY 38
3.4
SAMPLE
SIZE AND SAMPLING PROCEDURE 38
3.5
SOURCE
OF DATA/METHOD OF DATA COLLECTION 39
3.6
METHOD
OF DATA ANALYSIS 39
CHAPTER FOUR:
PRESENTATION AND ANALYSIS OF DATA COLLECTED
4.1 INTRODUCTION 40
4.2 DATA PRESENTATION AND ANALYSIS 40
4.2.1 TESTING OF HYPOTHESIS 55
CHAPTER FIVE:
SUMMARY RECOMMENDATION AND CONCLUSION
1.1
SUMMARY 59
5.2 CONCLUSION 60
5.3 RECOMMENDATION 62
5.4 SUGGESTION TO FURTHER STUDIES 63
BIBLIOGRAPHY 65
QUESTIONNAIRE 67
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
Interest in the role of small and medium-sized enterprises (SMEs)
in the development process continues to be in the forefront of policy debates
in developing countries. The advantages claimed for SMEs are varies, this
include: the encouragement of entrepreneurship; the greater likelihood that
SMEs will utilize labour intensive
technologies and thus have an immediate impact on employment generation; they
can usually be established rapidly and put into operation to produce quick returns.
SME development can encourage the process of both inter- and intra-regional
decentralisation; and, they may well become a countervailing force against the
economic power of larger enterprises. More generally the development of SMEs is
seen as accelerating the achievement of wider economic and socio-economic
objectives, including poverty alleviation.
Staley and Morse (2011) identify a ‘developmental approach’ to SME
promotion which has as its objective the creation of ‘economically viable
enterprises which can stand on their own feet without perpetual subsidy and can
make a positive contribution to the growth of real income and therefore to
better living levels’. This approach emphasises the importance of efficiency in
new SMEs. Small producers must be encouraged to adopt new methods, move into
new lines of production and in the long-run, wherever feasible, they should be
encouraged to become medium- or even large-scale producers.
More recent concerns associated with the growth and efficiency of
smaller enterprises has also become prominent. Using the case of Northern
Italy, Piore and Sabel (2009) have argued that small enterprises are more
efficient because they have adopted a flexible specialisation approach.
Correspondingly, there has been growing interest in whether this model has or
can be replicated in developing countries (Schmitz, 1998; Pederson, 2002;
Schmitz and Musyck, 2003; Schmitz, 2004).
The role of finance has been viewed as a critical element for the
development of small and medium-sized enterprises. Previous studies have
highlighted the limited access to financial resources available to smaller
enterprises compared to larger organisations and the consequences for their
growth and development (Levy, 1993). Typically, smaller enterprises face higher
transactions costs than larger enterprises in obtaining credit. Insufficient
funding has been the major problem confronting SMEs (Peel and Wilson, 1996).
Poor management and accounting practices have hampered the ability of smaller
enterprises to raise finance. Information asymmetries associated with lending
to small-scale borrowers have restricted the flow of finance to smaller
enterprises. In spite of these claims however, some studies show a large number
of small enterprises fail because of non-financial reasons (Liedholm, McPherson
and Chuta, 2004).
The panacea for solving problems of economic growth in developing
countries often reside in the development of small scale industries. The
establishment of those industries has been the centerpiece of industrial
development of many countries such as India, Malaysia, Pakistan, Indonesia and Nigeria to
mention a few. It is expected that the gains to be derived from the
establishment of small-scale industries will be translated into the generation
of employment at a low investment cost. These industries will also be able to
harness raw materials locally and serve as raw inputs to the large-scale industries.
1.2 STATEMENT OF RESEARCH
PROBLEM
The growth of output of any economy depends on capital
accumulation, and capital accumulation requires investment and an equivalent
amount of saving to match it. Two of the most important issues in developing
countries, are how to stimulate investment, and how to bring about an increase
in the level of saving to fund investment.
The primary focus of this research work emanates from the fact
that small scale enterprises owners do not have sufficient finance to carry on
due to the low saving culture of the people in this part of the world. Besides,
the Central Bank stipulated that 20% of banks’ credit should be granted as loan
to the Small Scale Enterprises but this was not adhered to because of the
reason that most loans granted to Small scale holders were not repaid and so
the banks did not consider them as creditworthy. In the light of these, this
research shall evaluate the financial incentive available to the small-scale
enterprises.
1.3 OBJECTIVE OF THE STUDY
The main purpose of this study is to identify and consequently
analyze the financial incentives that are available to small and medium scale
enterprises. Other objective include:
I.
Contribution of growth of
the Nigeria
Company.
II.
Role played by financial
market in financing small and scale enterprises in Nigeria.
III.
Economic potential of small
and scale enterprises in Nigeria
IV.
Strategies that would improve the
development, growth and survival of small-scale enterprises
1.4 STATEMENT OF RESEARCH QUESTIONS
1. Does SMEs identify the financial incentives
2.
Does financial institutes improve SMEs
activities
3.
Is their any economy potential of SMEs
in Nigeria enterprise
4.
Can the strategies in place improve the
growth and survival of SMEs
5.
What are the roles played by financial
market to improve SMEs in Nigeria
1.5 STATEMENT OF RESEARCH
HYPOTHESIS
Hi: There
is no relationship between Small and Medium enterprise and economic growth in Nigeria
Ho: There
is significant relationship between Small and Medium enterprise and economic
growth in Nigeria
HI: The
role played by financial market does not improve SMEs activities in Nigeria
Ho: The
role played by financial market improve SMEs activities in Nigeria
1.6 SIGNIFICANCE OF THE
STUDY
The significance of this study can be viewed from the perspective
of the importance of the industrial sector as a whole to the economy, which
could in turn be examined from the government policies that are meant to
promote industrial development and provide a solid foundation for the long-term
growth in the industrial sector.
Above all it is believed that small and medium scale enterprises
will propel the rationalism of economic independence, long after political
independence thus there is a need to evaluate and promote small and medium
scale enterprises. This research work shall contribute to existing literature
on SMEs by providing a detailed analysis of the financing strategies that are
available to small and medium scale industries in Nigeria with the aim of improving
their operations and effectiveness.
1.7 SCOPE AND DELIMITATION
OF THE STUDY
The study will be limited to SSEs as defined. Also the study shall limit the number of SSEs
to be study to fifty.
1.8 PLAN OF STUDY
The study will be divided into five main
chapters. Chapter one will cover the general
introduction into the study under which introduction, statement of problems,
objectives of the study, statement of the study are discussed. Chapter two focus on literature review, which
has to do with a general presentation of views by of former researchers as well
as scholars on the main variables of the study.
Chapter three will contain the structural composition of the study under
which the source the finance of small scale enterprises are discussed. Chapter four will be devoted to data
presentation and analysis. The last but
by no means the least in importance chapter will be used for summary,
conclusion and recommendations.
1.9 DEFINITION OF TERM
Small-Scale Industry: An industry with a labour size of 11-100 workers or a total cost
of not more than N50 million, including working capital but excluding cost of
land.
Medium Scale Industry: An industry with a labour size of between 101-300 workers or a
total cost of over N50 million but not more than N200 million, including
working capital but excluding cost of land.
Large Scale: An industry with a labour size of over 300 workers or a total
cost of over N200 million, including working capital but excluding cost of land.
Finance: The
act of providing funds for business activities, making purchases or investing,
financial institutions and banks are in the business of financing as they
provide capital to business, consumer and investors to help them active them
goals.
Click “DOWNLOAD NOW” below to get the complete Projects
FOR QUICK HELP CHAT WITH US NOW!
+(234) 0814 780 1594
Login To Comment