The problem and prospect of financing small scale industries in nigeria (a case study of bencos busienss centre enugu)

Project Abstract

ABSTRACT The small scale industry sector in Nigeria plays a crucial role in the economic development of the country. However, one of the major challenges faced by small scale industries in Nigeria, as highlighted in this study, is the issue of financing. This research project focuses on examining the problems and prospects of financing small scale industries in Nigeria, using Bencos Business Centre in Enugu as a case study. The study employs a mixed-methods approach, combining both qualitative and quantitative research methods to gather data. Interviews, surveys, and financial analysis are conducted to explore the various aspects of financing small scale industries in Nigeria. The findings reveal that small scale industries in Nigeria face numerous challenges in accessing finance, including high interest rates, collateral requirements, and lack of awareness about available financing options. Despite these challenges, the study also identifies several prospects for financing small scale industries in Nigeria. These prospects include the availability of government support programs, the presence of microfinance institutions, and the potential for crowdfunding and peer-to-peer lending to fill the financing gap. Additionally, the study highlights the importance of financial literacy and entrepreneurship education in improving access to finance for small scale industries. Overall, this research project provides valuable insights into the problem and prospects of financing small scale industries in Nigeria. By focusing on Bencos Business Centre in Enugu as a case study, the study offers specific recommendations for addressing the financing challenges faced by small scale industries in the country. These recommendations include the need for policy reforms to reduce interest rates, the promotion of alternative financing options, and the importance of capacity building for small scale entrepreneurs. In conclusion, the findings of this study contribute to the existing literature on financing small scale industries in Nigeria and provide practical recommendations for policymakers, financial institutions, and small scale entrepreneurs. Addressing the financing challenges faced by small scale industries is crucial for promoting economic growth, job creation, and poverty alleviation in Nigeria.

Project Overview

<p> </p><p><strong>INTRODUCTION</strong></p><p>Small scale industries, although has no consensus definition, has been known to assume various dimension in different country. In L.L Ahukannah and his college text titled commerce for senior secondary school classified retail shop into: small – scale traders and large – scale trader which means that small scale trade is under retail trade.<br>In addition. The parameter could equally be the size of human, sales, capital invested and other resources.<br>Finance on other hand has been defined by Mr. Joseph Iloh in three prospective view namely:<br>vAccording to layman’s prospective – to a layman finance is the total volume of cash in hand and at bank.<br>vAccording to investors prospective – it is the provision of fund as at very time that investment is ripped or ready.<br>vAccording to academic “ prospective – finance is the body of knowledge packaged to train a person and get him qualified as a professional.<br>Nevertheless, this study attempt to examine the various problems faced by small scale business in Nigeria especially in securing adequate finance and other problem retarding the progress of business in Enugu in Nigeria.<br>Small scale business according to national development plan (1976 – 1980) on the third general notion has to that small scale industry means an industrial undertaking involving a total investment of one hundred and fifty thousand naira (150000) as maximum.<br>However, a framework definition could be given for the purpose of this study. Hence small scale business is a business personally set up, organized, financed and perhaps managed either by the owner or employee. Both could equal run the business simultaneously.<br>Notably in the past decades, government used to provide more resources to large scale industry in her plans and policies at the expense of small and medium scale industry.<br>But today, following the importance of small scale enterprises in promoting economic self – reliance has gained increasing recognition in many developing countries such as Nigeria especially with the realization and acceptance that import substitution strategies of many large scale enterprises</p> <br><p></p>