This research project is strictly embarked upon findings out how small-scale industrial establishment can be financed through cooperative societies (a case study of some co-operative societies in Ikwerre Emohua local government in river-state).

This work also offer useful suggestion on how small-scale farmers can go about in obtaining loan for financing their agricultural work. It also shows how necessary it is for government to come to the aid of this small-scale agricultural and not be left out in financial institutions.

Taking loan available for and also at lower interest rate so that as many as possible can benefit thereby increasing the agricultural activity of small-scale farmers.

TABLE OF CONTENTS

Title page - - - - - - - - i

Approval page - - - - - - - - ii

Dedication - - - - - - - - iii

Acknowledgment - - - - - - - iv

Abstract - - - - - - - - v

Table of contents - - - - - - - vi

CHAPTER ONE

1.0 Introduction - - - - - - - 1

1.1 background of the study - - - - - 1

1.2 Statement of the problem - - - - 4

1.3 Objectives of the study - - - - - 5

1.4 Research questions - - - - - - 6

1.5 Significance of the study - - - - - 6

1.6 The scope of the study - - - - - 7

1.7 The limitations of the study - - - - 8

1.8 Definition of terms - - - - - - 8

CHAPTER TWO

2.0 Review of related literatures - - - - 10

2.1 Definition of small scale industry -- - - 10

2.2 The concept of cooperative - - - - 12

2.3 Sources of financing small scale industrial

development through co-operative society - - 13

2.5 Problems establishing small scale industry in Nigeria 15

2.6 Strategic and policies encouraging the

establishment of small scale industry- - 18

2.7 Ways of improving small scale industrial

development - - - - - - - 20

CHAPTER THREE

3.0 Research design and methodology - - - 22

3.1 Introduction - - - - - - - 22

3.2 Research design - - - - - - 23

3.3 Sources/methods of data collection - - 23

3.4 Population and sample size - - - - 24

3.5 Sampling technique - - - - - 24

3.6 Viability and reliability of measuring instrument 25

3.7 Method of data analysis - - - - - 25

CHAPTER FOUR

4.0 Presentation and analysis of data. - - - 27

4.1 Introduction - - - - - - - 27

4.2 Analysis of questionnaire distributed - -

Presentation of data - - - - - - 27

CHAPTER FIVE

5.0 Summary, conclusions and recommendation - 33

5.1 Introduction - - - - - - - 33

5.2 Summary of findings - - - - - 33

5.3 Conclusion - - - - - - - 35

5.4 Recommendation - - - - - - 36

References - - - - - - - 38

Appendix - - - - - - - - 40

Questionnaire - - - - - - - 41

CHAPTER ONE

1.0 INTRODUCTION

Establishment has always been essential activities in human society specially the black race since even in the simplest stage it require funding. It will therefore be most effectively supported by commonest ways of sources of income which arguable is the cooperative society.

1.1 BACKGROUND OF THE STUDY

Establishment occupied the highest position in the priority list of the federal government in Nigeria. This fact was clearly stated in the fourth national development plan 1981-1985. the priority attached to establishment bought about the importance of the Nigeria economy.

Establishment is expected to provide foods required for feeding the large population of Nigeria’s.

Secondly: It is expected to provide the raw materials require to facilitate the Nigeria’s industrial development.

Thirdly: It is expected to contribute to the country’s foreign exchange earnings through exports of supply food and other agricultural produce.

Finally: Forms the present stage of economic development in Nigeria. It is expected to provide employment for the bulk of the Nigeria population.

The central banking Nigeria (CBN) has through various credit guidelines, directed financial institution s to extend credit at prescribed minimum interest rates to agricultural sector.

Generally however, inspite of all these, food production has not kept pace with the ever increasing population of the country, thereby portraying a sad condition for the establishment and continued to last its status as the mainstay of the economy which was noticed earlier but was not taken very serious since then.

But in all, establishment has remained the mainstay of the rural economy in Nigeria. Likewise in IKWERE EMOHUA local government an real which is the area study.

IKWERE EMOUA area being among those performing well in agricultural produce, hence reflecting the great expectation from the L.G.A.

However attaining this goals has remained elusive.

The local government is endowed with relatively evenly distributed rainfall throughout the year, excellent weather conditions, large and fertile and relatively cheap labour force.

However there is a missing link which hindered the attainment of that expected status.

Despite the policies made by the federal government in the recent past compelling Nigerians to look inwards for local sourcing of the agro based industries raw materials still farmer, in Ndokwa-west hardly produce above subsistence level.

The reasons for the persistent poor performance of the farmers are;

1. Non availability of in inputs like fertilizer pesticides and herbicide.

2. Lack of early maturity and high yielding seedlings and disease persistence seedling.

1.2 STATEMENT OF THE PROBLEMS

The level of income and the low standard of living of the people have the majority on the rural area to solve this problem, there is a need to device a method and strategies will help them better living conditions.

However, the problem facing the government today communities and channel the same establishment production.

Co-operatives offer the necessary framework, education and propaganda required to mobilize rural savings and grand credit to member farmers.

1.3 OBJECTIVE OF THE STUDY

The general objective is to determined how the cooperative will help to improve the financing of small scale industrial establishment in Ikwere Emohua local government area.

1) To identify various source of making credit available to Ikwere Emohua farmers.

2) To identify the problem that the rural farmers are encountering in search for agricultural credit.

3) To find all the effects of inadequate/lack of credit facilities on the farmer productivity.

4) To find out why lending institution are not willing to extend credit to rural farmers.

5) To make recommendation for efficient financing of establishment through the cooperatives in the rural areas based on this objectives as well as the problem statement of the study, the following research questions were formulated.

This is researcher to realize her objective;

1.4 RESEARCH QUESTIONS

1) What are the major problems encounters by the rural farmers in search for agriculture credit in Ikwere Emohua local government area?

2) What are the various ways of making credit available to the farmers in Ikwere Emohua.

3) What are the major problems encounter by the rural farmers in search for agriculture credit in Emohua Local Government in Ikwerre.

4) What are the reason that make lending institution not willingly give credit to rural farmer in Ikwere Emohaua.

1.5 SIGNIFICANCE OF THE STUDY

This study will be very useful to the farmer themselves by showing then how co-operative society could help them to obtain credit easily from financial institutions through group guarantee thereby boosting where productivity.

It will enable commercial banks to ascertain the adequacy or otherwise of agricultural credit supplied to rural small scale farmers that 5 produces, the bulk of the nations good requirements.

The research finding will also be useful to on-lending institution. It will show them how well or otherwise they have failed.

This study will hopefully bring general improvement in the financing of small scale industrial establishment through the co-operative and in more efficient utilization of farm resources improved technologies reduction in the risks and uncertainties associated with food production.

1.6 SCOPE OF STUDY

The scope of this study is that cooperative should take proper care of financing small scale industrial establishment in Ikwere Emohua.

1.7 LIMITATION OF THE STUDY

This study is limited to improving the financing state of small scale industrial establishment through the co-operative in Ikwere Emohua local government area. It is directed towards the identification of the sources of making credit available to co-operative farmers in Ikwere Emohua local government area.

Another limitation which hindered the completion of the study. On schedule was un co-operative attitude of the respondents.

1.8 DEFINITION OF TERMS

Cooperative: It is a form of business organization, which involves the coming together of individuals who have the same socio-economic interest in order to help or soilve it (i.e the problem) mainly on promoting their economic interest.

Organization: It is the pattern for combining the human and material resources of a business.

Finance: Finance is the raising of money and using of fund by individual firm, and government or organization for the day to day running of management of their business undertaking.

Small Scale Industry Farmers: This implies to a farmer whose total cultivates farm land is not more than a heater and whose farm labour requirement is largely supplied by the family.