THE INFLUENCE OF POOR FINANCING ON THE OPERATION OF SMALL SCALE INDUSTRIES IN NIGERIA (A CASE STUDY OF SELECTED INDUSTRIES IN AWKA METROPOLIS)
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.
LIST OF TABLE
1. The response to questionnaires distributed (table 3:1)
2. Number of questionnaire accepted or rejected .
3. Analysis of question11.
4. Analysis of question 12
5. Analysis of question 13
6. Analysis of question 15
7. Analysis of question 17
8. Analysis of question 17
9. Analysis of question 18
10. Analysis of question 19
11. Analysis of question 25
12. Analysis of question 26
13. Test of hypothesis one
14. Test of hypothesis two
15. Test of hypothesis three
TABLE OF CONTENT
List of table
1.2 Statements of problem.
1.3 Purpose of study
1.4 Significance of the study
1.5 Scope of the study
1.6 Research hypothesis
1.5 Definition of terms
REVIEW OF RELATED LITERATURE
2.0 Meaning of small-scale industry
2.2 Characteristics of small scale business (industry)
2.3 Towards efficiency in small scale industry management
2.4 Recommendation our success in small scale industry management
2.5 Effect of uncontrollable forces on small scale industry
2.6 Remedies to these uncontrollable forces
2.7 Adequacy of financing small scale industry
2.8 Reason why small scale industries
2.9 Effect of interaction with industrial association to small scale industries
2.10 Factors in small business success
3.0 Research methodology
3.2 Sample and sampling technique
3.3 Sources of data
3.4 Instrument for data collection
3.5 Reliability of the instrument used
3.6 Administration and collection of data
3.7 Method of data analysis
4.0 Data Presentation & analysis
4.1 Analysis of responses from respondents in the questionnaires
4.2 Test of hypothesis
4.2.1 Test of hypothesis one
4.2.2 Test of hypothesis two
4.2.3 Test of hypothesis three
5.0 Finding conclusion and recommendation
A look around us will reveal that that our economy consists of people whose material needs and wants are satisfied by numerous business organizaiton 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.