FINANCING SMALL-SCALE INDUSTRIES IN NIGERIA

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Industrial development involves development of a technical arrangement that moves an economy from the traditional method of production to a more complex system of mass manufacturing of variety of goods of services involving technology and management techniques. Industrialization tends to propel growth and quicken the achievement of structural transformation and diversification of economy. It enable a country to utilize it’s factor endowments and depends less on external sector for its growth and sustenance. They provide employment for a substantial proportion of the industrial establishment. Therefore, due to the above mentioned role played by industrial sector, that is small-scale industries in the economy it requires some financial support from government for the smooth running of the industries. But small-scale industry is a sub-sector of industrial development that is of great importance as mentioned above, but it has not received the type of attention it deserves that is why the government and the feral ministry of industries lay down the parameter under which a industrialist may take advantage of the various incentive created by the government for ht growth of the small-scale industries. Such incentives are in the form of loan, provision of machinery and equipment, and raw materials. The process of taking advantage of the various incentive scheme are so cumbersome and its subject to bureaucratic radicalism and only few small scale industries are able to utilize them.