Thesis Abstract

Small scale enterprises (SMEs) play a significant role in the economic development of many countries, particularly in emerging economies. These enterprises contribute to job creation, income generation, poverty alleviation, and overall wealth creation within their communities. However, one of the key challenges faced by SMEs is access to financing. The lack of adequate financing options often hinders the growth and sustainability of these enterprises, limiting their potential impact on the socio-economic well-being of the society. This research project aims to investigate the impact of financing on small scale enterprises and how it can improve the socio-economic well-being of individuals and communities. The study will focus on various sources of financing available to SMEs, including bank loans, government grants, venture capital, and crowdfunding. By analyzing the different financing options and their impact on SMEs, this research seeks to provide valuable insights into how access to finance can drive growth and development within the small business sector. Through a combination of quantitative and qualitative research methods, this study will examine the financial performance, growth prospects, and social impact of SMEs that have received financing compared to those that have not. By comparing these two groups, the research aims to identify the specific ways in which financing contributes to the success and sustainability of small scale enterprises. Moreover, this research project will also explore the role of financial literacy and business management skills in leveraging financing opportunities for SMEs. By examining the relationship between financial knowledge, management capabilities, and access to financing, this study aims to provide recommendations for policymakers, financial institutions, and small business owners on how to improve the effectiveness of financing mechanisms for SMEs. Overall, this research project seeks to contribute to the existing literature on SME financing and its impact on socio-economic development. By shedding light on the importance of financing for small scale enterprises, this study aims to provide valuable insights for policymakers, practitioners, and researchers interested in promoting entrepreneurship and economic growth at the grassroots level.

Thesis Overview

INTRODUCTION
1.1

BACKGROUND OF THE STUDY

 According to Adekunle (2005), the importance of the Small Scale Enterprises to Economic development of any country whether developing or developed cannot be overemphasized.
Small Scale Enterprises considered to be one of the driving forces in economic development. They stimulate private ownership and Entrepreneurship skill, they are feasible and can adapt quickly to changing market, demand and supply situations they also generate employment, help diversity economic activities and make significant contribution to expert and trade.
According to the guidelines for accessing credit facilities for Small Scale Enterprises in Nigeria by R.K. Moruku (2002), “There is potential in Small Scale Enterprises to create employment, reduce underemployment and poverty, and utilize local raw materials output expansion and transformation of indigenous technology. Others are those to reduce intermediate goods, promote even development and reduce income inequalities. Thus, they constitute a strategic choice in industrialization and economic development, even served as a new development aid model.
In view of growing unemployment and poverty including the working poor in Nigeria, the indignity poverty inflicts on and threat to the survival of human kind, no efforts should be spared in nurturing, supporting and sustaining Small Scale Enterprises in Nigeria.

 1.2 STATEMENT OF THE PROBLEM

The economy at present needs diversification and expansion. Despite the fact that government goals of encouraging economic growth along with decreasing employment and providing a well-trainedlabour force have been activity pursued since the re-construction period of the civil war and the oil boom era. The nation however is still losing grounds in the area of unemployment, inflation, economic stagnation and over/under supply of skilled labour force.
In Nigeria expects to solve HS social economic problem in efficiency; it must take a critical look at the development of the Small-Scale business because of this development sector can be synonymous with national economic growth.
The emphasis on the small business sector, was not encouraged until recently and this changing emphasis was caused by some setbacks presented by other sectors of the economy. It has been discovered that the public sector alone failed to significantly encourage economic growth.
This recognition informed the need of desire to examine critically the impact of Small–Scale Enterprises financing in improving the socio- economic wellbeing of the Nigerian people.

1.3 PURPOSE OF THE STUDY

The purpose of this research is to investigate the impact of Small Scale Enterprises financing in improving the socio economic wellbeing of the Delta State.
The objective of this study can be clearly set below:
 i) To show the role of Small Scale Enterprises financing.

ii) To show the problems encountered in financing small scale enterprises.
 iii) To the prospects of small scale enterprises financing.

iv)
v) To identify the feature as well as the source of capital for small scale enterprises.

vi) To show the activities of these enterprises in terms of revenue generation.
vii) To make valuable recommendation useful to policy makers based on the findings of this study.

 1.4 RESEARCH HYPOTHESIS

The hypothesis that are to be tested in this study are now stated as follows:
H0: The government do not contribute to the socio economic well-being of the Nigeria people

H1: That government contributes to the socio economic well-being of the Nigeria people

H0: The educational level does not affects diversification of business interest.
H2: The educational level affects diversification of business interest.

H0: The establishment do not source for credit facilities from financial institutions.
 H3: The establishment source for credit facilities from financial institutions.

1.5 SIGNIFICANT OF THE STUDY

This research has great importance for all enterprises such
that:

• It will enable Small-Scale Enterprises operator to know their impact on the socio-economic well-being of the Nigerian people.
 • This study will also guide the operation of most large and Small – Scale Enterprises (publicly and privately owned) and since most public companies are now being, privatized, this paper will be of immense help in their dealing with Small Scale Enterprises.

 1.6 SCOPE AND LIMITATIONOF THE STUDY

This study will cover number of Small – Scale enterprises from 2000 – 2004 owned and operated by Nigerians who are single owners. Directory of small – scale enterprises in Delta State in 2000 by the state ministry of commerce and industry, Asaba outlined some enterprises in Delta State. Thus this research is restricted to selected Small – Scale enterprises in Aniocha North Local Government Area of Delta State such as Pazuka Enterprises Nigeria involves in a soap making, Pakan Universal Agencies Nigeria, involved in poultry rearing, Vicmiliorganization involved in bakery, Lucky group of designers involved in garri processing, Iweka wood workers involved in furniture making etc.
This research will also deal with the impact of small – scale enterprises financing in improving the socio-economic well-being of the Nigerian people.

This work will also look at how banks help to finance small – scale enterprises activities of those business in terms of revenue generation and employment and income accruing to the owners.
There were certain limitation that the search encountered in the course of carrying out his study. They include;

• Financial constraints which limited the scope of this study on the ministry of commerce and industry, Asaba and Banks.
 • Another problem is time constraints, a research of this nature which is expected to reduce for researching result would certainly have required a lot of time to make an in-debt look at personal observation possible. However since the work has to be submitted within a specific time, I had to combine lectures, semester course work and examination with research work.

• Another limitation borders on poor response from small-scale enterprises business owner and large earners (employees)
 • This is because of the non- challant attitude of small-scale industry owners to disclose relevant information about their business for fear of tax collectors.
Despite the limitations mentioned above, great efforts have been made by researchers to collect comprehensive information from few Small – Scale enterprises necessary for the study. The study should therefore be assessed in the light of the said scope and limitations.

1.7 OPERATIONAL DEFINITION OF TERMS

 Impact: To have strong impression or effect on something. Impression could be positive or negative and effect could be positive or negative.

Small – Scale enterprises: Small – Scale enterprises comprises those enterprises with total cost inclusive of land of above one million (N1, 000 000.00) and having manpower strength (labour size) of 14 and 35 workers according to E. E. Ohibundu (2002) on Industrial trends and opportunities on page 34.

Financing: Financing is the efficient and effective allocation of resources with a view of maximizing the shareholder’s wealth.
 Improving: Advancing to a higher level.
Socio Economic: Control and management of a community, society or household.
Economic/Psychological: To have a sense of well-being or a state of being healthy and happy.

1.8 ORGANIZATION OF THE STUDY

This research work is organized in five chapters, for easy understanding, as follows Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research question, significance or the study, research methodology, definition of terms and historical background of the study. Chapter two highlight the theoretical framework on which the study is based, thus the review of related literature. Chapter three deals on the research design and methodology adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and recommendations made of the study.