INFLUENCE OF SMALL-SCALE ENTERPRISE FINANCING ON THE SOCIO-ECONOMY OF THE SOCIETY
ABSTRACT
This research work empirically investigated the influence of small scale enterprise financing on the socio-economy of the society. The dynamic role of small and medium scale enterprises (SMEs) in developing countries have been highly emphasized. These enterprises have been identified as means through which the rapid industrialization and developmental goals of these countries can be realized. This project work explores the influence of SMEs in developing countries. This work ensured from the failure that pervades small and medium scale enterprises. The objectives of the study includes to identify the roles of small and medium enterprises in the development of the economy and to evaluate the problems encountered in the establishment of small businesses. The methods used for gathering the data was primary source of data. The work revealed that SMEs is the foundation and strength of any economy that SMEs can employ more than any sector.
TABLE OF CONTENTS
CHAPTER ONE: INTRODUCTION
1.1    Background to the Study                             
1.2    Statement of the Problem                             
1.3    Objective of the Study                             
1.4          Research Questions                                
1.5    Hypothesis of the Study                             
1.6    Significance of the Study                             
1.7    Scope of the Study                                 
1.8    Limitation of the Study                            
1.9    Definition of Related Terms                            
References                                     
CHAPTER TWO: LITERATURE REVIEW
2.1    Introduction                                     
2.2    Theoretical Framework                             
2.3    Relevance of SMEs                                 
2.4    Problem Facing Small Scale Enterprise                    
2.5    Empirical Studies Reviewed                             
2.6    Gaps in Literature                                 
2.7    Summary of Literature Reviewed                         
References                                    
CHAPTER THREE: RESEARCH METHODOLOGY
3.1     Introduction                                     
3.2     Design of the Study                                 
3.3     Population of the study                             
3.4     Sampling Technique and Sample Size                    
3.5     Instrument for Data Collection                         
3.6     Method of Data Collection                             
3.7     Method of Data Analysis                             
References                                     
CHAPTER FOUR: PRESENTATION OF RESULTS AND DISCUSSION OF FINDING
4.1     Hypotheses Testing                                 
4.2     Discussion of Findings                             
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATIONS
5.1     Summary of Findings                                 
5.2    Conclusion                                     
5.3    Recommendations                                 
Appendix                                     
 CHAPTER ONE
INTRODUCTION
1.1    Background to the Study
    Small scale enterprises are regarded as the driving forces in economic development of any nation including Nigeria. They stimulate private ownership and entrepreneurial skills, generate employment, feasible and can adapt quickly to changing market demand and supply situation. If the small scale sector of any economy has the largest share of the population, then anything that happens to the sector positively or otherwise will definitely be of either great gains or great consequences to that nation. Jege (1990) posits that the earliest attempt by the government to develop small scale enterprises in Nigeria was in 1946 when seasonal paper No. 24 of 1945 on a ten years development and welfare plan was designed. This plan was presented to the legislative council of the time on December 13, 1945 and approved by the council on February 7, 1947. This paper authorized the establishment of Nigeria Local Development Board whose functions are to:
a.    Promote and develop village craft and industrial development of Nigeria products.
b.    Set up and operate experimental undertaking for the testing or processing Nigeria products.
c.    Approve other suitable project by the government.
The board primarily was to encourage and develop small scale enterprises within the country, which of course will help them grow to better and more efficient firms that will yield prospects to their proprietors as well as the development of the economy.
    According to Adekunle (2005), the importance of the small scale enterprises to economic development of any country whether developing or developed cannot be overemphasized. In Nigeria, evidence has shown that in 1986, Small scale enterprises accounted for 70% of all firms employing millions of Nigerians (First Bank of Nigeria report, 1987). By the end of 1979, over 80% of all establishment licensed under the factory act were small scale enterprises (Onwuala, 1987). This made the importance of this economic to be unelectable.
    Small scale enterprises in its widest sense implies the rapid response to the challenges of developing countries of which Nigeria is not an exceptional. Small Scale enterprises is established with due regards to the importance of available local raw materials in its environment because the challenges facing them are enormous. Small scale enterprises are the economic growth of any country, whether developed or developing have been widely acknowledged and acclaimed.
According to Uayatudeen (2001) across the world, small business have such crucial role to play in the development of an economy and that cannot be ignored. According to guidelines for accessing credit facilities for small scale enterprises in Nigeria by R.K. Moruka (2002), there is potential in small scale enterprises to create employment, reduce underemployment and poverty, utilize local raw materials, output expansion and transformation of indigenous technology. They constitute a strategic choice in industrialization and economic development even served as a new development aid model. All these programmes and policy initiatives were intended to transform the country from under developed state to a developed one which will guarantee a self-reliant future.
1.2    Statement of the Problem
    Small scale enterprises are not able to take business ventures with high yielding potential because of the numerous problems in obtaining adequate funds, this financial problems hampers all important objectives of the business its grow and survival.
    The economy at present need diversification and expansion. Despite the fact that government goals of encouraging economic growth along with decreasing employment and providing a well-trained labour force have been activity pursued since the reconstruction period of the civil war and the oil boom era. The nation however is still leasing ground in the area of unemployment, inflation economic stagnation and over/under supply of skilled labour force.
    The emphasis on the small business sector, was not encouraged until recently and this changing emphasis was caused by some setbacks presented by other sectors of the economy. It has been discovered that public sector alone failed to significantly encourage economic growth. Therefore, this study seeks to evaluate the promotion of small scale enterprises in Nigeria and their catalytic role in economic growth.
1.3    Objective of the Study
    The main purpose of this study is to investigate the influence of small scale enterprises financing on the socio economic wellbeing of Edo State.
    The objective of this study can be clearly set below:
i.    To show the role of small scale enterprises financing
ii.    To show the problems encountered in financing small scale enterprises
iii.    To identify the policies put in place by the Nigeria government in order to promote growth of small scale  enterprises
iv.    To identify the feature as well as the source of capital for small scale enterprises.
1.5    Research Questions
i.    What is the role of small scale enterprises finance?
ii.    What are the problems encountered in financing small scale enterprises?
iii.    What policies have been put in place by the Nigerian Government in order to promote      growth of small scale enterprises?
iv.    What is the feature as well as the source of capital for small scale enterprises?
1.5    Hypothesis of the Study
    To properly guide the focus of the study, the following hypotheses were formulated in their alternative form:
Ho1: That small scale enterprises has a significant impact in developing the economy
Ho2: Government has a significant impact in contribution to the socio economic wellbeing of the Nigeria people.
Ho3: Small scale enterprises has a significant impact in reducing poverty in the economy.
Ho4: Financial institution has a significant impact in providing funds for small scale enterprises.
1.6    Significance of the Study
    It is expected that this study would consolidate existing literature on the impact of small scale enterprises in the economy. It will enable small scale enterprises operator to know their impact on the Nigeria people.
    This study is also going to provide useful information on some of the challenges small scale enterprises face in Nigeria which will be significant to people interest in developing small scale enterprises in Nigeria.
1.7    Scope of the Study
This research work will cover some selected forms that are within the concept of small scale enterprises within Oredo, their roles, challenges especially in funding basic infrastructures etc. as it affect small scale enterprises. The small scale enterprises studied are in the area of bakery and confectionary, sachet and Bottled water production, palm kernel oil mills and furniture making and this study is undertaken to cover a time frame of thirteen years, 2003 till 2015. The Oredo Local Government is one the largest in Edo State.
    The researcher chose studying about the small scale firm in the Local Government because of its economic importance to Edo State.
1.8    Limitation of the Study
    A study of this nature cannot be carried out without constraints. The main limitation of this study is the reliabilities of data, as data from small scale enterprises often varies from different sources. The reliability accuracy of these data will thus affect accuracy this research work.
    Another problem is the time constraint, a research of this nature required a lot of time to make an in-debt look at personal observation possible, since the work has to be submitted within a specific time, had to combine lectures, semester course work and examination with research work.
1.9    Definition of Related Terms
Socio economic: field of study that examines social and economic factors to better understand how the combination of both influences something.
Catalyst: It is a personal substance that causes a change
Improving: Advancing to higher level
 REFERENCES
Jegede, C.T. (1990). The Development of small and medium scale industry in Nigeria, management in Nigeria. May /June.
Adekunle .O. (20005). Small scale business as the solution for the economic development in our society Ibadan, Jacky Kola Printer.
Adesaola, T.O., Oladoyin, Aim and Oladele P.O. (2005) “A consideration of the problems and prospects of revitalizing, the small scale sector in Nigeria” European Journal of scientific Research 7(3):5-11.
Moruka R.K. (2002) Small Scale Business Enterprises as for Accessing credit facilities for Nigeria Economy. Kawara Olariwaju Printing Company.