THE EFFECT OF HIGH INTEREST RATE IN SMALL SCALE INDUSTRY
The topic of the research is the effect of high interest rate on the small-scale industry in Nigeria.
The purpose of this study is to evaluate the extent of which the small-scale industry obtained loan and advance (risk financing) from the Nigerian bank economy. Here, the term small-scale industry is the business with not less than five hundred thousand Naira (500,000.00) as their annual turnover. Therefore this small-scale industry in Nigeria needs to be developed.
There are five chapters in the project. Chapter one deals with the principle and other related issues like to the background of the overview of the high interest rate on the small scale industry in Nigeria, the statement of the problem faced by the researcher, the objective of the study, limitation of the study and definition of terms and th4 end of notes or reference.
Chapter two deals with the review of the related literature. It explained the definition of the small-scale industry in Nigeria, how the government policy affects the industry and improving the funding of the small-scale industry.
Chapter three discus in some detail the research design, methodology, source of data, the secondary data, method of data collection (literature work)
Chapter four examines the finding. This chapter also fond the effect of high interest rate on the small scale industry.. in chapter five , the author presented her recommendation and conclusion on the effect of high interest rate on the small scale industry in Nigeria. Therefore it is hoped that this study will serve as a reference book to industrialist, bankers, accountants, scholars and all others interested in the development of the small-scale industry in Nigeria.
Table of content
1.1 Background of the study
1.2 Statement of problem
1.3 Objective of the study
1.4 Significance of the study
1.5 Limitation of the study
1.6 Definition of terms
2.2 Meaning of the small-scale industry
2.3 Government policy
3.2 Source of data (secondary data)
3.3 Secondary data
3.4 Limitations of data
3.5 Method of data collection (Literature work)
The successive development plan in Nigeria has laid on the attainment of self-reliance. The need for this national objective is because much is expected form individual from the viewpoint of providing employment opportunity; self-reliance is the basic for food and material production of the industrial raw materials.
But Nigeria small-scale industry continues to decline despite the so-called priority giving to this sector. However, the discoveries of the central bank must reserve a proportion of their minimum credit allocation for indigenous borrowers for small-scale enterprises. The largest prescribed in 1979 was 10%. This was subsequently raised to 16 percent in 1980 and had remained at that level till date. Even though the available data shows that the performance of the commercial against this directive have been disappointing the central bank intents to spare no effort in ensuring that bank fully comply without compromising the smooth functioning of the national banking systems.
Without the development of the small-scale industry in Nigeria, the national guest for industrialization will certainly remain at a stake. It the humble opinion of the researcher that future development in our induet4ization must address the basic issue of creating linkage within the economy to begin to produce real input to our manufacturing activities. Priority attention must therefore be giving to industry for which domestic input; could easily produce of this by automatically bringing to mind the agro-allied industry like food processing and other by-products, the objective should be to maximize the value added to them in processing and manufacturing as final goods or immediate inputs.
Empirical evidence indicate that strong producer incentive to small scale industry are necessarily o met the food requirement but also to provide growing input supplied and demand as a foundation for sustained industrial growth. The present economic constraint may well turn out to be a blessing in disguise to