DEPARTMENT OF BANKING &FINANCE, PROJECT TOPIC, EFFECT OF SMALL SCALE BUSINESS FINANCE IN A DEPRESSED ECONOMY
EFFECT OF SMALL SCALE
BUSINESS FINANCE IN A DEPRESSED ECONOMY
TABLE OF CONTENT
Title
page i
CERTIFICATION ii
DEDICATION iii
ACKNOWLEDGEMENT iv
- v
TABLE OF CONTENT vi
- vii
CHAPTER
ONE
1.1 INTRODUCTION
1.2 AIMS
AND OBJECTIVES OF THE STUDY
1.3 IMPORTANCES
OF THE STUDY
1.4 SCOPE
AND LIMITATION OF THE STUDY
1.5 RESEARCH
METHODOLOGY
1.6 DEFINITIONS
OF TERMS
1.7 PLAN
AND ORGANIZATION OF THE STUDY
CHAPTER
TWO
2.1 REVIEW
OF LITERATURE
2.2 IMPORTANCE
OF SMALL SCALE
2.3 ROLES
OF SMALL SCALE BUSINESS
CHAPTER
THREE
3.1 RESEARCH
METHODOLOGY
3.2 IMPORTANCES
OF SMALL SCLAE
3.3 METHOD
OF DATA COLLECTION
3.4 METHOD
OF DATA ANALYSIS
CHAPTER
FOUR
4.1 DEFINITION
OF SMALL SCALE
4.2 HISTORICAL
BACKGROUND OF MIGHTY GOD INVESTMENT
4.3 EFFECT
OF SMALL SCALE IN ECONOMIC MELTDOWN
4.4 SUGGESTED
SOLUTION TO THE EFFECT
CHAPTER
FIVE
5.1 SUMMARY
5.2 CONCLUSION
5.3 RECOMMENDATION
5.4 REFERENCES
CHAPTER
ONE
1.1 INTRODUCTION
In
the recent years, the experience has shown that it is a known fact, that in
both develop and developing nations, that small scale business form the bedrock
for rapid and sustainable growth and development of national economics.
Interest in the development
of small scale enterprises and their contribution in development process
continue to be in the fore font of policy debates in developing countries the
disadvantages claimed for small scale enterprises are various including: the
encouragement of entrepreneurship: The greater likelihood that small scale
business would utilize lab our intensive technologies and this have an
immediate impact on employment generation. They can usually be established
rapidly and put into operation to provide quick return, small scale enterprises
development encourage the process of both inter and extra- regional
decentralization, and they may well become a countervailing force against the
economic objectives, including poverty alleviation.
Therefore in reality
Nigeria is an underdeveloped nation were small scale business are not well
develop to a number of factors, improper finance and economy depression, and
the government has emphasized and encourage the development of large industries
which are partly owned by Nigerians and foreigners.
Small scale business
finance by interested investors required the business to be sound management
good business and long survival.
It is understandable that
the main objectives behinds the establishment of small scale business is to
make profit, and the continuous survival of the business but, in most cases,
small scale business do fail even with good idea because of finance and economy
depression.
In a depressed economy
careful finance planning is a continuing necessity. A current shortage of funds
is seen and agreed on that finance is pillar of any small scale business.
Finance constitutes the
major success factor of a small scale
business finance in economy depression depends upon the yardstick an investor
is using in lending its money to the growth of the business.
It must be categorically
stated that banking institution is not way of rasing fund for a small scale
business; we also have individual financial and credit facilities granted by
suppliers.
Some of small scale
business range from sole traders, wholesalers, retail business, partnership
enterprises, cooperative society such as food proceeding and block industries.
As a catalyst to the
economy, the importance of small scale business need not to be over emphasize
especially in a less industrial state like Kwara state, which has in recent
time been given reasonable suitable incentives, mostly design to complement
finance and management of these small scale business so as to create employment
opportunities and boost the economic activities of Kwara state, mobilization of
resources and minimize rural-urban drift
With above introduction
small scale business is very important if it national economy would have to
develop.
1.2 AIMS
AND OBJECTIVES OF THE STUDY
The objectives of this study is to analyze and
highlight the utmost relevant of small scale business finance in Kwara state
economy in a manner to find ways to
improving area that are below business expectation.
The predominance of small scale business scale in
Kwara state coupled with the ineffectiveness of the banks in meeting the needs
of small scale business and economy/ economic depression which affect the
whole, which makes one presume that government should raise up to the task
further more the objectives of this study are:
Examining the state of small scale business in a
depressed economy
To examine the different alternative sources of
finance opened to small scale business in the development of less developed
State as Kwara state.
1.3 IMPORTANCE
AND SIGNIFICANCE OF THE STUDY
The project work will be of help to the owner of
small scale business and managers even the intending entrepreneur in their
application of fund. It will also review the ability of a owner of small scale
business with respect to the economy. Also is the proper application of
available resources.
The study will also be useful as a guide to
government agencies and policy makers on small scale business in Kwara State
economy finance particularly in Kwara state. And also in a depressed economy,
the business is available sources of fund during economic depression the role
of entrepreneur of small scale business in economic depression and Kwara State
as it geographical scope of the study.
More so, the research work would cover only four
local government area of the state as its population scope because, the
researcher believe that those areas are area where business enterprises are
well practice and managed, the area are offa, ilorin west, ilorin east and
ifelodun local government area of kwara state.
1.4 SCOPE
AND LIMITATION OF THE STUDY
The effect of small scale business finance in a
depressed economy as a topic as covered four local government area such as
offa, ilorin west, ilorin east and ifelodun local government area ilorin, Kwara
state, because the researcher believe that those area where business
enterprises are well practice in the state.
Also very important, the research work would cover
certain finance which form its industrials scope such as furniture works,
fashion designer, Block industries, Bakeries and leather work.
Because of time and financial constraint, the
research work limited to some local government area in the state. And due to
lack of good road and limited infrastructural facilities some areas can not
also be attained for research.
1.5 RESEARCH
METHODOLOGY
The reality and validity of any survey depends upon number of factors
Among these, are the methods used in gathering and
analyzing information for the survey. In recognition of this, the method for
this research are stated
Two sets of data collection would be used in the
course of this study. The primary and the secondary data.
The primary data is raw data collected or gathered
for the first time for the purpose of the study, the primary data are collected
through the use of questionnaire and this would be designed and send to the
respondence. The use of questionnaire would be supplement, with personal
interview with appropriate stratified sample, selected business questionnaire
are to be used because of dispel areas to be covered.
The secondary data were obtained from text books,
newspaper and business journals which discuss the subject matter would be
consulted for information.
1.6 DEFINITION
OF TERMS
FINACE: Money used to run a business, an activities or a project
BUSINESS: The activities of making buying, selling or supplying goods and
services for money
DEPRESSION: To make trade business etc less active
SMALL SCALE: An organizational activities etc which is not large in size or extent.
MANAGEMENT: The act of running and controlling a business or similar organization
CATALYSE: A person or thing that cause a change
PARTNERSHIP: A business owned by two or more people who share the profit
DEVELOPING: (of a country, society) poor and trying to make its industry and
economics system more advance
DECENTRALIZATION: Giving some of a central government, organization, power etc to smaller
part of the organization around the country
ECONOMY: The relationship between production, trade and the supply of money in a
particular country or region
RESOURCES: (usually) a supply of: that a country, an organization or a person
especially to increase their wealth
INDUSRIALIZATION: Building or formation of new industry in a particular area.
1.7 PLAN
OF THE STUDY
The study shall concern five chapters:
Chapter one, which is the introduction part, the
background of the study, the statement of the problem and the objectives of the
study, the methodology of the topic shall be discussed in this chapter also.
Chapter two shall contain the literature review
which can be of some scholars etc
The methodology shall be explained in chapter
three, data presentation, and analysis and interpretation chapter four.
Chapter five involves the conclusion.
CHAPTER
TWO
2.1 REVIEW
OF RELATED LITERATURE
There is no single criterion for classifying a
business unit as small scale enterprises. The term small scale businesses are
differs from industry, country to country and there is no unique or universal
definition of these terms.
It is important also to recognize that definitions
changes over a period of time and depend on large extent on a country’s level
of development.
What was regarded as large scale industry in fifty
and sixty centuries may now be regarded as small scale today.
As we all no that small scale business constitutes
an important part of today’s business system, and there has been a lack of
agreement in Nigeria and elsewhere as to what constitutes a small scale
business can be looked at from two definition put forward by different books,
authors and those who are business inclined.
According to advance learners dictionary, small
scale business is define “as not large in degree or size” if went further it
says “not doing things on a large scale” the same dictionary defined industry
as branch of trade or manufacture contrasted with commerce and distribution.
It is quite clear that, when the two definitions
are joined, the meaning is to undertake or manufacturing of things in not large
scale.
The degree of deviations from business and of the
meaning of small scale business is quit different from that of the dictionary
meaning.
As earlier as mentioned, small scale business
differ from country to country and among individuals.
The operating capital, employed labour, economic
and individual/ industrial development of the region concerned.
The small scale industries business divisions of
the federal ministry of industries define small scale business as
“establishments with capital investment of not more than #250,000 employed
between 50 and 150 persons.
Despite these difference, all the definition share
the common idea, that small scale business enterprises are generally low, in
term of number of person employed and in the amount of investment annual
business plan turnover.
2.2 IMPORTANCE
OF SMALL SCALE
Small scale businesses are considered to have
special importance to the economy of a state for some of the following reason:
1) Another important feature associated with small
scale business which is particularly relevant to our current economy problem is
that, these enterprises characteristically depends less on imported inputs
relative to their total capital investment than large scale industries.
a low import content in the capital structure of
small scale business obviously reduce the need for foreign exchange and thus
helps to eliminate some of the balance of payment difficulties
2)
Encouragement of small scale business could also help to eliminate the
unearthly imbalance in the rate of economic growth between rural and urban
areas and thus help toward integrated rural development this must certainly
help in checking rural-urban migration and associating problem of unemployment,
particularly in Kwara state, can be reduce to large degree through conscious
development of small scale business. It has been argued that the encouragements
of these enterprises particularly in the rural area can serve to counteract
seasonal variations in employment in the agricultural sector are often used in
defining small scale business.
This is because, a small scale business in the
develop countries like Usa, Britain, France
and Germany
may be large scale business in the developing countries.
In Nigeria alone, there are different definitions
the central bank of Nigeria
through its credit guild line to commercial bank regard small scale business as
“any enterprises whose annual turnover is less than #500,000.
According to federal ministry of industries, small
scale business has been defined as any manufacturing, processing or servicing industry
with capital investment not exceeding #150,000 in machinery and equipment
alone.
Sule( EIA 2009) in his article small scale industry
in Nigeria
defined small scale business as a concept that is independently owned and
operated or managed by individual who take it as his own career in which the
manager of such business decision or plan and organize, and also take decision
that might suit the business concept.
The obafemi Awolowo university, industrial research
unit define small scale business as one
whose total asset in capital equipment plant and working capital are less than
#250,000 and with a staff of 50 full time workers
According to S.Ibitoye, he defined small scale
business in term of certain functional characteristic which make its problems
and opportunities some what different from those of the medium and large scale
industries.
It is noted from these definitions that no
agreement that serve as criteria for determining a small scale business. This
means that there are no specific definitions. Any existing is subjected to
changes in the current economy of a country. By utilizing excess labour that
other wise would be underemployed in agriculture.
3) Thus promotion of small scale business is being
increasing adopted as a strategy for growth and development in third world
nations.
In kwara state, small scale business constitute
over 10% of registered companies, thus if encouraged, these enterprise could
provide opportunities for employment large scale and therefore make the
possibilities of equitable distribution of state income more realistic. In
addition by the nature of their operation they would help facilate mobilization
of capital and human resources that would otherwise, be left idle.
2.3 ROLES
OF SMALL SCALE BUSINESS
1) Reduction of regional economic imbalance small
scale enterprises is capable of removing or reducing economic imbalance. By
doing this they assist not only in eliminating a sources of social and
political conflict, but also in reducing the rush to few developed countries,
the appreciation of this fact come about when one realizes that most big
industries tends to be located in places where basic infrastructural like
electricity, pipe water, good roads exist.
These infrastructural are mostly in urban centre,
therefore bringing an imbalance in the location of such large firms, small
scale business on the other hand can be located where some such infrastructure
do not exist, its relevance in the scheme of things, given the present Nigeria
situation, can thus be appreciated.
Beside provided the small scale business is well
chosen, the multiplier effect of the small scale business will cover a wider
area than large industry. Small scale business is that the contribution greatly
to the industrialization of the rural areas
CHAPTER
THREE
3.1 RESEARCH
METHODOLOGY
It would not be easy to research into every
individual small scale business and other sources of finance within the
population.
As a result of this population of this research
work would cover five local government area of kwara state where small scale
businesses are well practiced and managed.
The sample size in this research work are block
industries, furniture’s works and fashion designing in offa, ilorin west. Ilorin east, ifelodun local government of
Kwara state
3.2 SOURCES
OF DATA
A research design is a scientifically development
and organized programme which direct and guide the researcher in the conduct of
this research in order to obtain information on small scale business finance in
depressed economy of the chosen case study (mighty God investment)
3.3 METHOD
OF DATA COLLECTION
The researcher used both primary and secondary
sources of gathering information
The primary data collected by the researcher for
the purpose of this research is questionnaire.
Questionnaire: this is a special form of
correspondence developed to provide authoritative information form a number of
person through the medium of well directed questions.
Questionnaire
is used because all the respond cannot be interviewed and observed by the
researcher. The questionnaire is used to cover a wide range which interview and
observation cannot covers. Therefore the research work would be ,ore meaningful
and result oriented, the researcher must give the questionnaire a wide
circulation to selected study area as to produce the intended objectives
CHAPTER FOUR
4.1
DEFINITON OF SMALL SCALE
Often, there is no single criterion for classifying
a business unit as small scale enterprises. The term small scale businesses are
differs from industry, country to country and there is no unique or universal
definition of these terms.
It is important also to recognize that definitions
changes over a period of time and depend on large extent on a country’s level
of development.
What was regard as large scale industry in fifty
and sixty centuries may now be regarded as small scale today.
As we all no that small scale business constitutes
an important part of today’s business system, and there has been a lack of
agreement in Nigeria and elsewhere as to what constitutes a small scale
business can be looked at from two definition put forward by different books,
authors and those who are business inclined.
According to advance learners dictionary, small
scale business is define “as not large in degree or size” if went further it
says “not doing things on a large scale” the same dictionary defined industry
as branch of trade or manufacture contrasted with commerce and distribution.
It is quite clear that, when the two definitions
are joined, the meaning is to undertake or manufacturing of things in not large
scale.
The degree of deviations from business and of the
meaning of small scale business is quit different from that of the dictionary
meaning.
As earlier as mentioned, small scale business
differ from country to country and among individuals.
The operating capital, employed labour, economic
and individual/ industrial development of the region concerned.
The small scale industries business divisions of
the federal ministry of industries define small scale business as “establishments
with capital investment of not more than #250,000 employed between 50 and 150
persons.
Despite these difference, all the definition share
the common idea, that small scale business enterprises are generally low, in
term of number of person employed and in the amount of investment annual
business plan turnover.
4.2 HISTORICAL
BACKGROUNG OF MIGHTY GOD INVESTMENT
Mighty God investment was established in 1997 at
Maraba opposite Maraba garage under the management of Mr. Olalekan Yemi
The business was started with the capital of
#13,000. the manager of the company raised his capital by selling of empty
bottle for the period of six months, before the company was appointed on the
daily supplier to dasleng Nig Ltd. Sterly Nig Ltd. Segna intercontinental
midland Nig LTD etc
The above companies supported towards growth of
mighty God investment by granting the company credit facilities in order to
compete with others competitors. In order to achieve maximum and effective
service, the company purchases a van for goods delivery for their customers at
different places which increase the net profit of the company.
Advertisement o n radio and television programmes
actually started in2002 and 2005 the company sponsor a programme tittled “LABE
ORUN” which is a 15 minutes programme and lasted for two years on Kwara radio
and Kwara state television known as Kwara. T.V. and this also boost their sales
for those years.
In order to further increase the level of sales the
company decides to embark on sales promo in which tickets are given to
customers in order to participate in a raffle drawn in which there are other
manner with prices like T.V set, radio and standing fan respectively.
All these activities boost the sales and profit of
the company. This made the company to acquire an extra van in order not to be
delay on delivering the goods to various customers
Eventually, there’s was a depression in the level
of sales at a particular year which made the company to acquire loan to boost
their sales and supply. This increase their sales profit maximally and in 2007
they often banal of the company was opened at olofa way in offa town which own
till date.
4.3 EFFECT
OF SMALL SCALE IN ECONOMICS MELT DOWN
The economy situation of nation has adversely
affected all organization in the state both companies and business enterprises
whether big or small. The product or services rendered by these enterprises
falls in sales of their product at the economy deepen badly.
Deficiency of capital also hinder the expansion of
small scale business when there are no enough capital, expansion will be
difficult if not possible to embark on and when they can cot expand the output
will be low. As a result of technology there were need to change the modern
system of production, which required more money but as a result of the state of
the economy, the project are not worth of implementation.
Low importation or availability of raw material for
the production of goods and services. The small scale business has been
restricted from importing raw materials and even component part into the
country. This is due to the government policy on the non importation of raw
materials from other countries and those materials cannot be produced locally
and if they are allow they heavily taxed and this result into business in production
cost. However, the small scale business choice were restricted to the locally
produced raw materials which are not abundantly available for use in production
Also, the depressed states of the economy serve as
a restriction to the entry of small scale business in Kwara state. The state of
the economy discourage investment and encourage consumption, because the little
money available to the public is spent on food or something tangible rather
than invested it into small scale business which has high rate of maturity than
it success. People even find it difficult to feed properly talk less of
investing into unpredictable business.
Another effect of depressed economic on small scale
in a depressed economy is low capital per income. The distress economic has
result in low capital income of the citizen. This has lead to high cost of
living and therefore, there is no enough capital available for the people to go
into small scale enterprises. The people direct their income majority to the
procurement of basic amenities.
More so, innovation are not encourage during
economic depression as a result of where the enterprises were not sure of what
the future hold in stock for them as means of diversification and with low
capital income that affect the generality of nation even, money are not forth
coming through personal saving friends loan from financial institution.
Due to non importation, this result in low
production, low sales recorded by small scale business they cannot cope with
staff salaries again. These workers were lay off, not only because of the
salary but mainly they did not perform to the capacity due to low production
and lack of raw materials to be used and with this, more unemployment are
recorded. These workers can only be called back when the economy of the country
improves.
At it is well known that Nigeria is an agricultural
nation and form part of small scale enterprises in the country, but as a result
of oil boom in 1973/75, the agricultural sector were neglected. As there is a
greater degree of dependence on oil revenue than any other sector (SSB), the
effect of this is that the declining crude oil price has created a lot of
problems in Nigeria
in which both the government and the entire citizen are still bathing with.
this has been reflected in the persistent low level of external reserve and
unfavorable balance of payment position. Thus decline in oil sector revenue
mean a decline in government revenue and this led to high budget deficit both
federal and state government in which Kwara state were not left out.
Lastly, because of fundamental changes that have
taken place in the economy which occasioned the structure adjustment programme,
a number of small scale business are possible lying idle. One or two may be
crumbing but the truth of the matter is that overall, enterprises has quit well
regarding new investments over, the last five years especially since the
introduction of SAP.
4.4 SUGGESTED
SOLUTION TO THE EFFECT
There are various suggested solution to the effect
of small scale business, the proprietor of the business may raise fund from
himself, relatives and friends which constitute informal sources. The small
scale business can also raise fund from formal sources such as financial
institutions. The sources of Kwara state as a whole there is even a body called
small scale industrial credit control scheme (SSICS) which was established in
other to laid the small scale business by giving them loans and advances.
Those formal sources of financing small scale
business can be known as” institutional sources. They include commercial bank,
merchant bank and development banks etc.
Commercial banks are in business to supply debt
financing. A large portion of commercial banks provide three distinct types of
loans. Working capital, short terms loan and longer term loan
Working capital loans are normally extended to
provide the small scale enterprises with the cash necessary to take care of
seasonal peaks, to take large trade discounts, or to meet any usual cash needs
of a less than twelve months duration.
Term loans range in length one to five years.
Typically, the loans are for the purchase of fixed asset durable nature that
will provide revenue for the company. The commercial bank wants assurance that
sales will materials over these longer periods of time.
Real Estate loans by commercial Banks are another
type of term loan to small scale business. From the commercial banker’s view of
point, real estate loans are secure if accurate appraisals are done.
On the part of development banks, they have thus
become the vacuum created in the area of long term financing. Through the
creation of development bank such as Micro finance bank. Its help to reduce the
burden bear by small scale business in area of finance.
The major objectives of this especially line of
credit is to make soft loans easily available to deserving small scale owner
all over the federation to noble them undertake new project or finance on going
projects.
Through the fund made available by this banks, few
small scale business owners are able to finance their business, therefore , it
serve as one of the institutional arrangement
for financing small scale business particularly in Kwara state.
Informal sources of financing small scale business
can be form personal saving, relatives and friends and trade credit which are
all regarded as non institutional sources of finance.
Personal saving: this is the first option for a
person that wants to be a small scale business man. That is he will have the
sufficient money handed without looking up to a back or any other person to
venture capital.
Other suggested solution to the effect is through
trade credit which has been fairly significant in the finance of small scale
business, particularly, in the distributive trade. This in most case is in the
form of personal and with short term credit for goods supplied often such
facilities do not exceed one month and an advance deposit that will be credited
to the amount owned may sometimes be required.
ANALYSIS
OF QUESTIONNAIRE ADMINISTRATION
In order to collect data for research work, forty questionnaires
were collected and distributed, and thirty five of them were returned from
respondents.
Their respondents percentage are presented inn the
table below.
Table 4.1: Analysis of questionnaire administration
|
DISTRIBUTED QUESTIONNAIRE
|
NUMBER
|
PERCENTAGE
|
|
Return questionnaire
|
35
|
87.5
|
|
Unreturned questionnaire
|
5
|
12.5
|
|
Total
|
40
|
100
|
The table above show that 35 questionnaires
representing 87.5% were returned while 5 questionnaire representing 12.5% were
not returned. With the respondent who are not among those who filled the
questionnaire. As mentioned earlier, the sensitivity of the topic reduce the
rate of responses as many of them refused completely to fill the questionnaire,
the questionnaire were been collected more than the number of days planned for.
4.2 DISTIBUTED REPONDANTS BY
OFFICES OR FIELD
|
FIELD
|
NUMBERS OF RESPONDENT
|
PERCENTAGES %
|
|
Civil servant
|
8
|
22.86
|
|
Private workers
|
7
|
20
|
|
Bankers
|
10
|
28.57
|
|
Others
|
10
|
28.57
|
|
Total
|
35
|
100
|
The table below show the distribution of various
participants from different fields, frequency counts analysis showed that
majority of bankers officials in CBN ilorin 28.57% are first in the field of
banking. Indicating that comprehensive information on the subject matter of the
study was obtained as a result of their educational development.
Table 4.3 DISTRIBUTIONS OF
RESPONDENTS BY YEARS OF WORKING EXPERIENCE
|
YEARS
|
NUMBER OF RESPONDENT
|
PERCENTAGE%
|
|
Below 5
|
---------
|
--------
|
|
5-10
|
3
|
8.6
|
|
11-15
|
6
|
17.1
|
|
16-20
|
16
|
45.7
|
|
21 above
|
10
|
28.6
|
|
Total
|
35
|
100
|
The table shows the distribution of participants by
year of working experience
The frequency count analysis showed that majority
of the respondent 45.7% have put in between 16-20 years that as a result of
working experience, comprehensive information on the subject matter was
obtained
RESEARCH QUESTION ONE:
Is small scale business ramped in Nigeria especially Kwara state
Table 4.4
|
RESPONSE
|
NUMBER OF RESPONDENT
|
PERCENTAGE %
|
|
Yes
|
25
|
71.4
|
|
No
|
7
|
20
|
|
Indifference
|
3
|
8.6
|
|
TOTAL
|
35
|
100
|
The table above shows response of participant on
whether small scale business is ramped in Kwara state. Frequency count that
majority of the respondents 71.4%agreed that small scale business is ram pad in
Nigeria especially Ilorin.
RESEARCHES QUESTION TWO:
Do you agree that commercial bank provide fund for financing business.
TABLE 4.4
|
RESPONSE
|
NUMBER OF RESPONDENT
|
PERCENTAGE %
|
|
YES
|
28
|
80
|
|
NO
|
5
|
14.3
|
|
INDIFFERENCE
|
2
|
5.7
|
|
TOTAL
|
35
|
100
|
The table above show the response of participants on whether commercial
bank provide fund for financing business
The frequency counts
analysis showed that majority of the respondent 805 agreed with the statement.
RESEARCH QUESTIONS THREE:
Do you agree that finance is very important in business sector.
TABLE 4.5
|
RESPONSE
|
NUMBER OF RESPONDENT
|
PERCENTAGE
% |
|
Yes
|
20
|
57.1
|
|
No
|
10
|
28.6
|
|
Indifference
|
5
|
14.3
|
|
TOTAL
|
35
|
100
|
Table:4.5 above show the response of participant on whether finance is
very important in business sector.
The frequency count
analysis showed that majority of the respondent 57.1 agreed with the statement,
indicating that finance is very important in business sector
RESEARCH QUESTION FOUR:
Is Nigeria
a develop or developing country ( develop (yes) developing (no)
TABLE 4.6
|
RESPONSE
|
NUMBER OF RESPONDENT
|
PERCENTAGE %
|
|
YES
|
8
|
22.9
|
|
NO
|
23
|
65.7
|
|
INDIFFERENCE
|
4
|
11.4
|
|
TOTAL
|
35
|
100
|
The table above show the response of participant on
whether Nigeria
is a develop or developing country
The frequency counts
analysis showed that majority of the respondent 65.7 agreed with the statement
indicating that Nigeria
is a developing country.
RESEARCH QUESTION FIVE:
Do you agreed that small scale enterprises enhance in the development of
our economy
4.7
|
RESPONSE
|
NUMBER OF RESPONSE
|
PERCENTAGE%
|
|
Yes
|
21
|
60
|
|
No
|
10
|
28.6
|
|
Indifference
|
4
|
11.4
|
|
TOTAL
|
35
|
100
|
Table 4.7: above shows the participant on whether small scale
enterprises enhance in the development of our economy. The frequency analysis
showed majority of the respondent 60% agreed with the statement.
CHAPTER FIVE
5.1
SUMMARY
The research carried out revealed what constitutes
small scale business” its finance during economic depression. The small scale
business in Kwara state have came to say, they form the basis of development
because a large number of the economy depend on them as a result of its important.
In reality, Kwara state is an underdeveloped state
as stated earlier on mentioned part of this research study where small scale
business predominance, although there are few number of giant companies.
Finance on the other hands has played a major role
in day to day running of the business because without finance, whether
institutional or non institutional, the small scale business owners will have
nothing to run their business.
The imitated capital, inability to engage in new
investment, low capital per income and low innovation and low profit margin
during economic depression are the factors or effect of economic depression
which slow development of small scale business, this has been authorized to a
number that is the government emphasized and encourage the development of large
industries.
The small scale business finance in depressed
economy have always been a problem to the small scale owner and sometimes to
financial institution involved as a result of the effect of depressed economic despite
the importance of small scale business. Through small scale business owners
have been trying there best to improve on small scale industries credit scheme
(SSICS) which was established in accordance’s with the federal government
policy of giving effective financial aids to indigenous small scale business.
It is also recommended that the government should
Endeavour to create a conducive environment for the growth of small scale
business in term of formulating favorable economic policies for survival of
these industries, tanning of would be personnel and provision of good means of
transportation for use. If these are provided, all over the country, it will
help speed up the development temps in the rural area thus, reducing the rural,
urban migration, because people will now settle in rural area since they are
sure of getting employment and other basic thing available in cities.
There is needed to enlighten small scale
industrialist above the necessity for partnership and limited liability
companies so that their experience as well as problems could be shared rather
than restricted to sole proprietorship. Through this, better and qualified
management personnel could be employed in other to enhance the running of small
scale business efficiently and effectively.
There is need to make raw materials or equipment
used by small scale business available locally, so that, production level will
be increase and also it will prevent them from premature death which is
sometimes due to lack of raw materials or equipment.
REFERENCES
Aluko S.A, Afonja, V.A and oguntoye O.A 1986
Small scale industries inwestern Nigeria,O.A,U department of
economics and industrial research .
Akinnowo O.O financing snall scale industries,Nigeria
Tribute 25th
March 1987.
Hilignswoth and hand as guide to small business management
sauders co, Philadelphia
Horby,S.A Advance learners dictionary Ibitoye,
Siemon, starting
Your own business uk,
leiguction Buzzard, bed.1986
Masha. R.A self reliance and small scale enterprises. The
CBN Bullion Vol 10 no
2, june 1986
Oshunbiyi: olufela ensuring survival of small scale
industries, business time, April 10,1989
Sule
E.I.A. small scale industry
in Nigeria.
CBN Economic and finance review volume 24, No one dec. 1986 of the new
industrial policy for Nigerian federal ministry of industry CBN Economic and
financial review vol. 27, No 1 March 1989
Financial review investment opportunity in the
field of small scale industry: published by ministry of trade industrial and
co-operative kwara state 1997
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