THE INFLUENCE OF POOR FINANCING ON THE OPERATION OF SMALL SCALE INDUSTRIES IN NIGERIA

ABSTRACT

The every economy a critical look into it will reveal that the need and desire of people are sissified by numerous small-scale manufactures not withstanding the existence of big business organizations which are locally and internationally famous. Small-scale industries contribute immensely in the growth and development of an economy through their contributions to the national income of such economy.  infact small scale industries were the mainstay of every economy world wide. Inspite of the contribution of small-scale industries financial constraint ahs been confronting their growth and development. It is because of this that the researcher decided to delve into the influence of poor financing on the operation of small scale industries in Nigeria. A critical look showed that this teething problem of finance was caused by inability of small scale industrialist to sources fund externally through the issue of shares to the public loan overdraft, grant etc. this implies that for the financing of operations of small scale industries the fund sourced internally have proved inadequate for the operations of the industries. In collection of data to know the reason behind this poor financing so that a useful solution will be offered the use of questionnaires and  interview were employed.  The use of questionnaires and interview  analyzed to ascertain the truthfulness and authenticity of data collected.  In doing this the use of co-efficient of variation (C.V) was adopted in which case the response with he lower or lowest co-efficient of variation is rejected.

At the end of the study it was discovered that:

a.    Inadequate capital contributed to the failures of small scale industries.

b.    Lack  of proper management which resulted from inadequate fund to employ competent employees contributed to the failure of small scale industries.

c.     Absence of eternal equity contributed to the failure of small scale industries.

Following the result from the study. It could be concluded that if adequate fund is provided to them the performance of small scale industries will be improve upon.

To wipe-out this ugly trend some suggestion and recommendations were offered

–                     The gearing of the firms should be increased.

–                     Staff should be well remunerated and  motivated.

–                     Government should be given grants and tax relief’s to small scale industrialists

–                     Finally the should go for external sources of fund to finance their operation.

Therefore if the suggestions and recommendation proffered by the researcher in this study as strictly adhered  to the objective of growth and development of the small scale industries will be achieved thereby improve the state of Nigeria economy.

CHAPTER ONE

INTRODUCTION

A look around us will reveal that that our economy consists of people whose material needs and wants are satisfied by numerous business organisation especially in the manufacturing sector we can comfortably count on the roster of business organizations both locally and internationally famous such as lever brothers Plc Nigeria bottling company (NBC) Plc Pfizer Plc UAC etc. American writers have pointed out that the world view of the UAS as a “land of industrial grants” a national of big operation is misplaced of all manufacturing industries in USA 89% Employs fewer than 100 people and 65% have fewer than 20 employees.  In all developed and developing countries all over the world the greater proportion of their productive sector are mainly of small sizes. It then becomes imperative to point out that grant industries with their mass production not with standing it is the small scale industries not withstanding it is the small scale industries that from the backbone of every nations economy.

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