CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
It is necessary to bring out the point that to succeed in business required some measure of discipline. Most industrialist expected to make a reasonable profit from the investment of time and resources, that they have to make it, in other to bring a project to friction. While this may sound simple enough, the bother line is the fact in an economy wide context, the rate of level of reward that can accrue to various level of effort, discipline and productivity should never be allowed to get out of proportion in relation to effort input. Experience has shown that industrial pursuits have been found to yield for the patient and disciplined and industrialist rather than stand for business concern with all kinds of effort mostly unproductive and required no legitimate effort to reap profits in multiple fields. After considering the above mentioned statement of facts about industry; the question is, how far are we from being industrialized bearing in mind that it yields for disciplined and patience industrialist all things being equally. Taking cognizance of the fact that a step forward is the beginning of a mile. Some, therefore Nigeria’s business industrial Evolution will only start when positive steps are taken towards adequate financing of small scale business. The experience of newly industrialized countries has been an eye opener. Finance is the greatest problem we are likely to face whenever we talk of establishing a small-scale industry.
This is control surrounding the problem of inadequate finance. A look on the small-scale industries/business, all over the country would help to throw further light on the effect of lack of fund or business, the drastic effect is mostly few when gradually collapsing, even surviving ones are terribly looking for assistance that they are not sure of. Funds are scarce, hence the growing industries as regarded in this part of the world as never-do-wells especially Nigeria. When an economy is shaky, growing industries in that economy tend to suffer most and usually stand the taste of time. Hence, an increase in the number of causalities in this regard. The researcher aimed at exploiting the possibilities, problems of financing small-scale business/industries. The project centers on management and financial problems.
1.2 STATEMENT OF PROBLEM
There are various problems facing the establishment of small-scale business like financial limitation, lack of raw materials, poor management and quality of the management, staff, poor accounting methods, high interest charge on loans and lack of adequate planning and feasibility studies. The most common and problematic issues is funding Small-scale business/industries. It is quite difficult to obtain fund from established institutions like commercial banks. Some projects have take o but had to be abandoned half way. The issue involved is the question of capital adequacy. When a company is under capitalized it cannot realize its full potentials. Many small-scale enterprises in Nigeria experience this problem. They cannot expand their scale of production to optimum level. To ameliorate these problems therefore, government should implement the law or policy that will enhance small-scale business/industries (especially that of infant ones) such as central bank policy that direct all commercial bank to give out some percentage of loan to small scale business than those of medium and large scale industries/business.
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