THE PROBLEM AND PROSPECT OF CAPITAL MOBILIZATION IN FINANCING SMALL INDUSTRIES IN ENUGU STATE . A RESEARCH PROJECT MATERIAL ON BANKING AND FINANCE
ABSTRACT
The topic of this research is the problem and prospect of capital mobilization in financing small-scale industries in Enugu state.
The purpose of this study is to evaluate the extent to which small-scale industries in Nigeria obtain loans and advances (risk financing) from Nigeria commercial bank as a major source of finance to the economy.
Here the term small scale industries are those small business with not more than five hundred thousand Naira (N500, 000) as their annual turnover. Therefore this small scale industrial in Nigeria need to be helped to develop and expand their industries and discover for themselves their roles to play to make profit.
There are four (4) chapters in this project.
Chapter one, deals with general principles and other preliminary issues, like the overview of the problem and prospect of capital mobilization in financing small scale industries in enugu state, the statement of the problem faced by the researcher, objectives of the study. The significance of the study hypothesis and the scope and limitation of the study.
In chapter two, the review of relate literature is examined and this chapter deals with definition or meaning of small scale industry in Nigeria, how government policy effect, the industry and improving funding to small scale industries.
In chapter three, discuss in some detail research methodology and analysis of data. This chapter deals with the source of data used in the project, the interview sample A is devoted to a examination of the method of investigation, and data collection and the analysis of data is also highlighted.
In chapter four, it is an examination of concludes the role of commercial banks in financing small-scale industries in Nigeria. Therefore, it is hoped that this study will serve as a reference book for industrialists, bankers, accountants, scholars and all other interested in the development of the small-scale industries in Nigeria.
CHAPTER ONE
INTRODUCTION
1.0 OVERVIEW OF THE RULE OF COMMERCIAL BANKS IN FINANCIAL SMALL INDUSTRIES IN NIGERIA.
The successive development plans of Nigeria have laid emphasis on the attainment of self reliance the need for this national objective is because much is expected from individual on the view point of providing employment opportunities, self reliance in basic food and material production of industrial raw materials.
But, Nigeria small-scale industries continued to decline despite the so called priority given to this sector. However, the discovery of the central banks that this policy was not enough from 1970 /80 that all commercial banks must reserve a proportion of their minimum credit allocation of indigenous borrowers for small scale Nigeria enterprises the largest prescribed in 1970 was 10 percent. This was subsequently raised to 16 percent in 1980 and has remained at that level to data.
Even though, available data showed that performance of commercial banks against this directive has been disappointing the central bank intends to spare no effort in ensuring that banks fully comply without compromising the smooth functioning of the nations banking system.
Without the development of small scale industries in Nigeria guest for industrialization will certainly remain forever at a stake. It is the humble opinion of the researcher that future development in our industrialization must address the basic issue of creating linkages within the economy to begin to produce real inputs to our manufacturing activities.
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