Commercial Bank – Role In Financing Small Scale Industries In Nigeria

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COMMERCIAL BANK – ROLE IN FINANCING SMALL SCALE INDUSTRIES IN NIGERIA

ABSTRACT

          This study is  aimed at finding out the role commercial banks play over the small scale industries and the problem the small scale industries encounter.

          This study, has been divided into  five (s) chapters thus:.

          Chapter  one is the introduction, sitting out the background of the study.  The researcher highlighted that the performance of small scale industries are financed by commercial banks and other financial institutions.  This study is of paramount importance because it help s to discover the problems facing the small scale industries in the course of financing themselves. 

          Chapter two is a review of related literatures, it started by the definition  of the  small scale industries, the definition of the small scale industries, the financial institution involved, assistance provided by commercial banks to small scale industries, government policies for promoting small and medium scale industries etc.

          Chapter three decals with the research design and methodology employed in the study.  Here data were collected from secondary sources.

Chapter four, the research state the finding or result collected  in the course of this research work.

          Finally, Chapter five  state the conclusion and recommendation of this study.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENT

Title page                                                                                ii

Approval page                                                                        iii

Dedication                                                                               iv

Acknowledgement                                                                             v

Abstract                                                                                  vii

Table of content                                                                      ix

CHAPTER ONE

1. 0    introduction                                                                             1

1.1            Background of the study                                                         1       

1.2            Statement of the problem                                              3

1.3            Purpose i objectives  of the study                                  4

1.4            Significances of the study                                              6

1.5            Limitation of the study                                                  6

CHAPTER TWO

2.0            Review of related literature                                            8

2.1            Meaning  of small scale  industry                         8

2.2            Financial  institution involves in                         

development of small  scales                                11     

2.3            Assistance provided by commercial

banks to small scale industries                                      19

2.4            Government policies fort promoting small

and medium scale industries                                23     

2.5            Government roles in encouraging small industries        26     

2.6            The effect of government policy on                              

small scale enterprises                                          28     

2.7            Problems of small scale  and medium

scale enterprises in Nigeria                                   30     

CHAPTER THREE

3.0            Research design and methodology                                 33

3.1            Source of data                                                      33

3.2            Location  of data                                                  33

3.3            Methods of data collection                                   34     

CHAPTER FOUR

4.0            Findings                                                                         35

CHAPTER FIVE

5.0            Conclusion and recommendation                                   37

5.1            Conclusion                                                           37

5.2            Recommendation                                                 38

Bibliography                                                                  43

Appendix                                                                       47

 

 

CHAPTER ONE

INTRODUCTION

1.1     BACKGROUND OF THE STUDY

          The concept of dependent has occupied a central place in the economic development over the year, basically as a manifestation of the various attempts by the developing world to chart new economic strategies which would reliever them of economic  dependence on their former colonial master in Europe.  Today the concept of dependent continues to be misunderstood in  its fundamental ramifications and has  remained difficult in large sections of the developing world.  In Nigeria, neither the mixed economy approach, appeal to have responds to the dictates of  economies dependent.

          However, in pursuit of dependent in the developing world like Nigeria, the central government enacted a decree called “enterprises promotion decree”.  When there was a need for small scale enterprises, owned and managed by Nigeria to be promoted.  The importance of small enterprises in the promotion of economic development has always been at the forefront of the  development strategies.  Many developing  countries have failed  to adopt this  strategy owing to their belief that it  is a relatively slow process of industrialization.  But in the recent times due to the scarcity of foreign exchange, attention has began  to be focused once again  on development of ingenious.  Without the  development of small scale  industries in Nigeria, the Nations request fort industrialization will certainly remain forever at a state.

          Furthermore,  several  financial institutions are invested in entrepreneurship development in Nigeria in ways.  Some of them are set up by the gove3rnment for specific functions, there  main functions are to provide findings, relief from financial consequences of  uncertainty, and advisory services for business enterprises, public and private.  The government plays the role of financial companies.

          Some of these institution include: Nigerian Bank for commerce and industry (NBCI) Nigerian Agricultural and  development  Bank (NDB), peoples bank  of Nigerian (PBN), the  commercial sourcing for fund and enough funds cannot be mobilized from friend and relations, the next things that comes to mind  is to try the banks.  The commercial banks for instance, is the center of the leading market and makes the greatest number and varity of loans.  The commercial banks are very conservative in lending.  The commercial banks look at many things apart from the ability of entrepreneur to provide the needed collateral and may be interested  by looking at the  feasibility report, the experience of the entrepreneur, his personal credit records, profit potentials.

          More so, Apart from the banks, financial institution like the insurance companies provide relief from financial  loss and 

 

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