FINANCING OF SMALL AND MEDIUM SCALE BUSINESS IN NIGERIA. UNIBEN INTEGRATED ENTERPRISE AS A CASE STUDY. ABSTRACT This research work has been undertaken to find out the financing of small and medium scale business in Nigeria (UNIBEN TABLE WATER) as a case study. A further objective was to ascertain the major sources of financing, finding out the problems confronting small and medium scale business and to provide possible solutions to the problems. In order to accomplish this objective questionnaires were designed and administered. This was analyzed using Statistical Package for Social Sciences Software (SPSS). In conclusion,the result obtained from this research is that the major sources of financing are bank loan and trade credit. It is recommended by the researcher that government should establish more credit institution with the objectives of improving access to finance by the SMEs. TABLE OF CONTENTS. CHAPTER ONE: INTRODUCTION 1.1 Background of the study 1.2 Statement of the problem 1.3 Objective of study 1.4 Research question 1.5 Significance of the study 1.6 Research Hypothesis CHAPTER TWO: LITERATURE REVIEW 2.1 Introduction…... 2.1.2 Contribution of SME in Nigeria Economy 2.1.3 Roles of SMEs 2.2Financing of SMEs 2.2.1 Goals of Finance 2.3 Sources of Financing 2.3.2 Financial Institutions in Nigeria 2.4 Financial Challenges faced by SMEs in Nigeria CHAPTER THREE:RESEARCH METHODOLOGY 3.1 Introduction 3.2 Research design 3.3 Population and Sampling Technique 3.4 Operationalization and measurement of variables 3.5 The research instrument 3.6 Source of data 3.7 Method of data analysis CHAPTER FOUR:DATA PRESENTATION, ANALYSIS AND PRESENATION 4.1Introduction 4.2 Demographic Profile and Respondents 4.3 Sources of Finance used to finance SMEs 44 Ranking of the sources of Financing in order of preference 4.5 Problems of financing SMEs and possible solutions to the problems of financing the Enterprise 4.6 Discussion of Findings CHAPTER FIVE:SUMMARY OF FINDINGS,CONCLUSION AND RECOMMENDATIONS. 5.1Introduction 5.2Summary of Findings 5.3 Conclusion 5.4Recommendations 5.4.1 Further Studies Bibliography Questionnaire CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY Small and medium enterprises are believed to be the major device for the development of any economy, because they form the major part of business activities in a growing economy like Nigeria (Basil, 2005) . This is obvious in the following ways, employment generation, rural development, economic growth and industrialization, better utilization of indigenous resources (Tafamel, 2009). Consequently, entrepreneurship is fast becoming a household name in Nigeria. This is as a result of the fact that the so called white collar jobs that people crave for are no longer there which make entrepreneurship a growing trend. Small and Medium Enterprises (SMEs) as defined by the National Council of Industries refer to business enterprises whose total costs excluding land is more than two hundred million naira (N 200, 000,000.00) only. In so many seminars and workshops both locally and internationally, SMEs has formed the matter of discussion. In the same vein, governments at diverse levels (local, state and federal levels) have in so many ways concentrated on the Small and Medium Enterprises. Some governments have formulated policies aimed at facilitating and strengthening the growth and development and performance of the SMEs, others had focused on assisting the SMEs to grow through soft loans and other fiscal incentives (Basil 2005). International agencies and organizations such as (World Bank, United Nations Industrial Development Organization (UNIDO), International Finance Corporation (IFC), United Kingdom Department For International Development (DFID), European Investment Bank (EIB) among others are not only promptly interested in making SMEs robust and vigorously in developing countries but have also heavily invested in them. Locally, the several Non-Governmental Organisations such as Fate Foundation, Support and Training Entrepreneurship Programme (STEP), the Nigerian Investment Promotion Commission (NIPC), the Association of Nigerian Development Finance Institutions (ANDFI), as well as individual Development Finance Institutions (DFIs) have been promoting the growth of SMEs in Nigeria through advocacy and capacity-building initiatives, and have continued to conduct for better structures for operators in the SME subsection (Basil 2005). So much has been written about performance in recent years as the relationship between finance and performance of small and medium enterprises (SMEs) has received significant attention in finance literature. Small and medium enterprises (SMEs) performance may be measured using financial performance, market performance and share holder returns . This study examines how the finance gap for SMEs might be addressed by means of policies to support other financing initiatives other than commercial finance by the conventional financial institutions. The study seeks to investigate the awareness and use of these various financing institutions available to SMEs in Nigeria. 1.2 STATEMENT OF THE PROBLEM Small and medium enterprises (SMEs) in Nigeria have not performed commendably well and has not performed the vital and expected role in the development or economic growth in Nigeria. Some SMEs in Nigeria strive to survive and grow to maturity within their first three to five years of existence. Many factors have been identified contributing to the failure of SMEs. The key factors are insufficient capital, infrastructural inadequacies, irregular power and supply, inadequate market research, lack of proper records, lack of business strategy, lack of proper book keeping, inability to distinguish between revenue and profit, inability to engage or employ the right staffs, inability to acquire the right plant and machinery (Agwu&Emeti, 2014). 1.3 RESEARCH QUESTIONS Based on the statement of the problem, the study seeks to answer the following research questions. What are the major sources of financing Uniben integrated enterprise? What are the financial problems confronting the enterprise? What are the solutions to the problems of financing the enterprise? 1.4 OBJECTIVES OF THE STUDY This study aims to ascertain the effect of financing small and medium scale enterprises. The aims are: To ascertain the major sources of financing Uniben table water enterprise. To find out the financial problems confronting the enterprise. To provide possible solutions to the problems of financing the enterprise. 1.5 SIGNIFICANCE OF THE STUDY This study will benefit to many stakeholders such as young graduates in establishing their own business. This research study will provide a better understanding about financing a business. The outcome of this study is expected to provide information that will be useful to the manager of Uniben table water enterprise, related industry, government, policy agency and individuals (employers, employees, young graduates). This research study will examine the financing of small and medium scale business and an aid to profit maximization and increase in the level of employment. Lastly, this study would further contribute to the body of knowledge and be a useful source of information including for future research regarding this study. 1.6 SCOPE OF THE STUDY The study will be limited in scope to staffs in Uniben table water enterprise, Ekehuan campus, Benin city metropolis. The subject matter is to investigate the financing of small and medium scale business. For the purpose of this study, the funding of small and medium scale business include: Formal financial institutions such commercial banks, merchant banks etc. Informal Institutions such as money lenders, landlords, friends etc. Personal savings. Managerial and employees skills.
FINANCING OF SMALL AND MEDIUM SCALE BUSINESS IN NIGERIA: CASE STUDY UNIBEN INTEGRATED ENTERPRISE
FINANCING OF SMALL AND MEDIUM SCALE BUSINESS IN NIGERIA. UNIBEN INTEGRATED ENTERPRISE AS A CASE STUDY. ABSTRACT This research work has been undertaken to find out the financing of small and medium scale business in Nigeria (UNIBEN TABLE WATER) as a case study. A further objective was to ascertain the major sources of financing, finding out the... Continue Reading
CHAPTER ONE INTRODUCTION 1.1 Background To The Study Small and medium enterprises are believed to be the major device for the development of any economy, because they form the major part of business activities in a growing economy like Nigeria (Basil, 2005)... Continue Reading
ABSTRACT The study is a descriptive survey designed to examine financing of small scale business enterprises in Nigerian. A total of one hundred and forty respondents were selected from Warri South Local Government Area of Delta State to form a sample size. A test and retest method was used to determine the reliability of the questionnaire items.... Continue Reading
ABSTRACT The study is a descriptive survey designed to examine financing of small scale business enterprises in Nigerian. A total of one hundred and forty respondents were selected from Warri South Local Government Area of Delta State to form a sample size. A test and retest method was used to determine the reliability of the questionnaire... Continue Reading
Abstract The major purpose of the study was to determine the working capital management competencies needed by graduates of business education for management of small and medium scale business enterprises in Anambra State. The study utilized a survey research design. The population of the study was 188 comprising 95 business education teachers in... Continue Reading
CHAPTER ONE INTRODUCTION 1.0 Introduction The history of taxation in Nigerian dates back to the pre-colonial era. Before the colonization of the different entities which were later amalgamated under the name Nigeria. There were different systems of taxation, existing in the forms of compulsory services, contribution of goods, money, labour... Continue Reading
CHAPTER ONE 1.1 HISTORICAL BACKGROUND OF THE STUDY The production of goods and services in the most efficient manner has continued to be the only viable and reliable option for development, growth and survival of any economy. The development of small scale enterprises... Continue Reading
A CASE STUDY OF FIRST BANK PLC ABSTRACT The research provides an assessment of the role of commercial banks in financing SME in Nigeria. IT provides a conceptual and theoretical appraisal of SMEs, the roles and significance of SMEs towards the development of... Continue Reading
ABSTRACT Adequate supply of financial resources is a necessary condition for the survival of any business. This study tends to review government policies and programmes on financing MSMEs in Nigeria. Both primary and secondary data were employed to arrive at the results with the use of statistical method of testing hypothesis chi-square... Continue Reading
ABSTRACT The study investigates the benefits of Small and Medium Enterprise Development Agency of Nigeria (SMEDAN) on small scale entrepreneurs across the 36 states off the federation. The study adopted Analysis of variance Specification... Continue Reading