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Product Category: Projects

Product Code: 00002691

No of Pages: 56

No of Chapters: 5

File Format: Microsoft Word

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This project understudy is concerned with the problems, prospects as well and the sources of finance available to small-scale business. The main purpose of this study is to identify the various sources of finance available the prospects and difficulties experienced by small-scale business in Nigeria, and hence advance some feasible solutions to them. Small scale business financing in Edo State and in particular has been problematic as a result of some factors. While officials of the financial institutions have always expressed preparedness to assist these enterprise on their part have continually accused away financial institution of shying away from the responsibility of financing small scale business in Nigeria. Perhaps this research attempts to reconcile these divergent views using Esan North East of Edo State as an example, with an intended population of sixty (60), adopting the use of questionnaires and direct interviews as a means of data collection and subsequent analyzing the data using chi-square. It is found that small-scale business does not receive financial assistance from financial institution and lack of awareness of firms and sources of credit and finance constitute problem in securing credit. Conclusively, the underdeveloped nature of the economy can be said to be significant affected the case of obtaining credits. Finally the fact is that both the private sector and public sectors has a poor financial awareness.



Title Page                                                                 i

Certification                                                             ii

Dedication                                                               iii

Acknowledgements                                                  iv

Abstracts                                                                 v

Table of Contents                                                     vi


Chapter One: Introduction

1.1      Background to Study                                               1

1.2      Statement of research Problem                                        2

1.3   Research Questions                                                         3

1.4   Objectives of the Study                                            4

1.5   Statement of Hypothesis(es)                                     4

1.6   Significance of the Study                                         4

1.7   Scope of the Study                                                   5

1.8   Limitations of the Study                                          6

1.9   Definitions of Terms                                                7


Chapter Two: Review of Related Literature

2.1   Introduction                                                             9

2.2   Concept of Small-Scale Business                            9

2.3   Nature of Small Scale Business                               11

2.4   Types of Small –Scale Business                               13

2.5           Characteristic of Small-Scale Business                   15

2.6  Sources of Fund for Small-Scale Business                      16

2.7  Problems of sourcing funds in small scale business 19

2.8  Importance of small scale business in Nigeria          21


Chapter Three: Research Method and Design

3.1   Introduction                                                             23

3.2   Research Design                                                      23

3.3   Population of the Study                                           23

3.4   Sample and Sampling Technique                            24

3.5   Instrumentation                                                       24

3.6   Method of Data Collection                                       25

3.7   Method of Data Analysis                                          25


Chapter Four: Data Presentation, Analysis and Interpretation

4.1   Data Presentation and Interpretation                       26

4.2   Data Analysis                                                           26

4.3   Hypothesis Testing                                                  43

4.4   Discussion of Findings                                            44


Chapter Five: Summary of Findings, Conclusion and Recommendation

5.1   Summary of Findings                                              46

5.2   Conclusion                                                              47

5.3   Recommendations                                                   48

        References                                                               49

        Appendix I                                                               50

Appendix II                                                              51





The opportunities to achieve wealth and personal gratification through small-scale business have come to occupy an important economic and cultural role in our society. Little or know attention has been given to the development of small-scale business in Nigeria. Member of new business are starting each day in Nigeria. But few eventually succeed.

However, this project work is mainly concern with the problems and prospects of financing small-scale business in Nigeria. It is therefore important here to discuss some of the financial problems the investors come across some of the financial problems the investors encounter in trying to set-up a small-scale business.

According to Kotler (1975), he said that before commencing a business, the new business, and producer should be aware of the need for finance (this cover manufacturing, production and the provision of goods and services).

Generally, small-scale business in Nigeria  involves considerable risk  of one kind or another.

This simply means that even if the finance has set-up, it is not always certain that the business will be successful.

The proceeding chapters of this project will highlight some of the main problems of financing small-scale business in Nigeria and the possible solutions to them.


Small scale business like larger ones need finance to start up the business and also to run the business that is running capital.

A capital look at the establishment of small scale business in Nigeria particularly the rural areas have suggested that there are problems facing the growth and the start up of a business especially the area of finance.

This problem is based on the role small scale business has to play in the development of the nation. The economic situation in Nigeria (which is not very stable), low income per capital limits the savings. However, the fact remains that low capitalization cannot easily be completely eliminated.

This study has been set up to examine some of the problems and prospects of financing small scale business. To enable them eliminate some of these problems facing the public government, a cursory look on financing a small scale business will be examined.


To enable this study solve the problem highlighted above, the following served as the objectives of the study;

a.     To ascertain a possible solution to the problems of finance in small scale enterprise

b.     Identification and analysis of the various sources of capital available for obtaining start up as well as expansion funds.       

c.     Recommendations for government investments and the financial policies of small scale business in Nigeria.


In other to realize the aim of the study, the following questions are deemed necessary;

a.     Is there finance in small scale business in Nigeria?

b.     What problem do you encounter in securing credit in financial institution?

c.     Does financial institution has impact in the survival of small scale business.


Ho:  Finance is not a problem facing small scale business.

HI:    Finance is a problem facing small scale business.


At this time of the nation, questions for economic recovery and self-reliance, the role of small-scale business in this regard can not be overemphasized. There is no doubt that the result of this research will be useful to prospective and existing small-scale firms in Nigeria by equipping them survival strategies in a period of economic hardship.

Both public and private sector hopefully find this work useful in all areas of financial management.  Moreover, potential investors and other individual wishing to establish small-scale business will also see this work as a useful guide.

Furthermore, the study shall be beneficial to the commercial banks and other financial institution as a reference frame in the formulation of credit policy guide-lines towards the financing of small-scale business. Commercial bank and government will also benefit from this work since it will help them to review their existing criteria for granting loan.

Finally, if they are properly applied, small-scale investors would have a significant step towards self-reliance in industrial drive.


The scope of this study includes; Objectives, sources of finance and problems of encounter



The limitations to this study are;

Finance was in fact the most limited factor and this constitute a major problem in carrying out effective and efficient research, for this reason, the job is limited.

Time is another problem of the researcher, because the time short for the completion of the project work was not sufficient. This was done to the facts that with in this short time Limit, others academic work were carried out side by side with the project.

Finally, the school system has make it difficult for student to go out in search for information by granting exert for student. 


The following terms are gotten from published materials and journals. 

a.           Loan Credit: A sum of money lends to somebody to be repaid with interest.

b.           Scale:  A set of numbers or standard for measuring or comparing.

c.           Profit: This is the money gained from trade

d.          Occupation: Business, trade which any human done to either living, it could be permanently or temporally.

e.           Problems: These are difficulties in business that needs attention.

f.            Finance: It is the provision and management of money in a business enterprise.

g.           Capital: money needed to start a business

h.          Bank: This is a place where money are kept for the purpose of transaction.

i.            Asset: The property of a company owned by the company e.g building.

j.            Liabilities: This is the amount of debt, which a business owes e.g loan.

k.          Investment: To put money to a particular business in order to make profit e.g buying of share.

Staff: A groups of employee in a business organization.

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