ABSTRACT
This project work is a
study of the problem militating against small scale business financing. The
shop studied is responsible for providing cooked food, cakes, sachet water,
soft drinks and stationery; using Medan Business Centre, Auchi as a Case Study.
The researcher examined the negative influence of finance on small scale
business and the possible way(s) to address the problem if to continue with the
viable existence of the business. In order to have a scope for the study, three
hypotheses were raised. At the end of the research, it was discovered that
every small scale business solve the problem of finance so as to ensure total
viability and profitability of the business. It was discovered that (i) finance
is a major problem of small scale business (ii) improper supervision is a
problem in small scale business (iii) good patronage can increase the
effectiveness and efficiency in small scale business.
TABLE OF CONTENTS
Title Page
Certificate
Dedication
Acknowledgements
Abstract
Table of Contents
Chapter
One: Introduction
1.1 Background to the Study
1.2
Statement
of Problem
1.3 Objective
of the Study
1.4 Hypothesis
of the Study
1.5 Significance
of the Study
1.6 Scope of
the Study
1.7 Definition
of terms
Chapter
Two: Literature Review
2.1 Introduction
of the Review
2.2 Review of Recent Literature
2.3 Formation
of Small Scale Business
2.4 Characteristic
of Small Scale Business
2.5 Sources
Small Scale Business Finance
2.6 Problem
of Small Scale Business
2.7 Solution
to the Problem of Small Scale Business Of Financing
2.8 Importance
of Small Scale Business
2.9 Problems
of Small Scale Business in the Economy
2.10 Solution
to the Problems of Small Scale Business in Nigeria
Chapter
Three: Research Methodology
3.1 Research
Design
3.3 The
Population of Study
3.3 The
Sample and Sampling Techniques
3.4 Method of
Data Collection
3.5 Method of
Data Analysis
Chapter
Four: Data Presentation and Analysis
4.1 Data
Presentation
4.2 Analysis
of Result
4.3 Discussion of Result
Chapter
Five: Summary, Conclusion and Recommendations
5.1
Summary
5.2 Conclusions
5.3 Recommendations
References
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
TO THE STUDY
The
future most small scale business as never been encouraging. However, the
growing recognition of the importance of small scale business to our economy
has been accompanied by the growing effort to secure more facts about
independent enterprises and their problems and needs.
But
most business organizations have failed to accomplish the various objectives
for which they were set up. One of the masons that is responsible forth is not
only the failure of performing adequate management functions, but also as a
result of the problem of financing such businesses. Small scale business that
have been most, successful in the achievement of their objectives have learnt
the various ways of adequate finance without any set back.
Small
enterprises have an important role in the economic development of development
countries like Nigeria. They play an important role by making significant
contribution to the economic development by creating employment opportunities
for the unemployed providing capital resources for industries. All these roles
help in raising the standard of living of a country economic development.
A
large number of small scale business are set up
daily, out of these, half of that number goes down the
drains or failed at a point, due to financial problems.
Essentially, the small-scale business faces similar
problems and finds among competitive uses. Some of the problems small scale
business encounter are,
i. Poor
access to sources of financing
ii.
Limited range of opportunities for
employment funds profitability.
iii. Obtaining loans of funds from financial institution
is sometimes difficult,
iv. They rely on funds from personal saving
relatives money, lender on profit and from the operation of the enterprises.
v.
The rate of failure is high because
these enterprises are mostly dominated by sole proprietors They reluctantly
venture into partnership or limited liabilities companies due to back of
confidence most business standard by technicians and traders. The researcher is
of the opinion that in such a situation managerial vacuum is far less
development an their technical till variable like financing human relation anti
motivate member of staff who are indispensable in the effective management of a
business.
These
are the areas of focus on this research work. The researcher endavours to
enlighten the prospects of a small scale business owners and current ones on
how to effectively finance their business in order to achieve their desired
goals and objectives.
Against
the identified problem associated with
business financing, the researcher has designed this
study so that their problems can be overcome.
In
recent times, the issue of mass unemployment, the rural urban migration and
social problem have
attracted the attention of both state and federal governments. The role of
small scale in achieving
economic growth and political stability cannot be
underestimated.
A
cursory look at the rate of establishment and
failure of small scale business plague the establishment and failure of small
scale business in the country precisely, the aims of it is study is to
highlight the problems and prospects of financing small scale business with a
view to suggesting some possible ways of soluting these problem identifies.
1.2 STATEMENT OF PROBLEM
The
main aim of this research is to identify the
problem of small scale financing and the various solution to them.
For
this to be carried out efficiently the researcher should be able to know some
of the limitations which may prevent the by mess from achieving its goals and
its ability to raise finance. Some of the problems are
The
entrepreneur is often not educated, lack of knowledge of potential sources
finance. The study will
thus assist them know to present sources of financial assistance.
i. Most small scale business is unquoted in
the stock exchange market. This makes it difficult for them to et loans from
banks, and other financial institutions because they are not recognized.
ii. Lack of financial records.
iii. Lack of financial advice.
iv.
Poor management which leads to small
profit margin.
v. Lack of limitation in capital formation
1.3
OBJECTIVE OF THE STUDY
The
primary aim and objective of any organization
or business is to row, survive and maximize profit
profit can not be maximized without adequate financing.
In
realization of these facts the main aim and
objective of this research work is to fund out the
following
·
The problems associated with small scale
·
Other problem is associated with small
scale enterprises.
·
The importance of small scale in the
economy.
·
Finally the solutions to the problems of
financing small scale business in the economy.
1.4 HYPOTHESIS OF THE STUDY
HO: Finance is not a major problem of small scale business in financing
Eborieme market.
HI: Finance is a major problem of small scale business in financing Eborieme
market.
1.5
SIGNIFICANCE OF THE STUDY
The
research work is important to many sectors of this economy some of its
importance are
1.
It focused attention on the small
scale business and therefore significant to prospective small scale business
owners, it will help them, not only on the stop to take in the management and
control of their business, but also on the various option opened to them for
financing their business.
2. It is also important in that at the end of
the
research, government small scale business in
providing employment for the unemployment. The research will make government
known the
specific roles to perform, in order to assist the individual proprietors in
financing their business. Significantly too, this research will contributed to
the
existing literature in the area of study it will therefore
serve as reference tool for information.
3.
This research work is also designed to
sever the benefit of the students of business administration who want to know
more about small scale enterprise financing. It will also be called as
secondary sources for data
collection for the researcher.
4. Lastly, this research work is also n
partial fulfillment for the award of National Diploma certificate ND in Business
Administration and management.
1.6
SCOPE OF THE STUDY
This
study is limited to the problems associated with the small scale business sole
proprietorship and partnerships are example of such industries precisely these
include;
1. Ndotewa shopping center
2.
Abundance venture
3.
Mana’s Shopping center
4.
Praise ventures
5.
Victories enterprises
1.7
DEFINITION OF TERMS
1. Small Business: Usually
we hear much about the activities of large companies such as Delta steel,
Nigerian National Petroleum Company and Nigerian Electric power authority, but
little about the small firms that are an important part of the Nigerian
business system yet small businesses generate more than half of all business receipts.
In addition, they employed over half of the private workforce.
2.
Eborieme Market: Eborieme
market was built in the year 2002 under the administration of Sir, Dr. Eborieme.
It is situated inventory strategic position and direct opposite the school read.
It is a market where exchange takes place.
3.
Finance: someone
has said, it takes money to make money. Though not always true, this statement
does contain a large element of truth when applied to business or industrial
establishment.
4.
Turnover: The term turnover
describes the number of times inventory is bought and sold in a given period.
To find the business turnover, total sales is divided by the average rattail
value of inventory, at any given time or moment.
5. Planning: Planning
is futuristic; it is deciding in the present what to do in the future.
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