Most government owned establishment in Nigeria, in which hotel business is one, are no longer   booming in the nation competitive economy due to improper accounting system existing there in. as a result of nonchalant attitude of its staffs.

Since independent Nigeria the giant of Africa has spent much time and resources both human and material trying to convince the developed countries and indeed the whole world that she (Nigeria) is capable of developing her industrial capabilities.

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Since independent Nigeria the giant of Africa has spent much time and resources both human and material trying to convince the developed countries and indeed the whole world that she (Nigeria) is capable of developing her industrial capabilities.

Much of the efforts made in this direction have found expression mostly in international conference and seminars, newspapers reports, radio announcements and various national development plans.

Industries have actually increased since after the independence, but the disappointing record of economic performance in the last decade has led to the re-opening of the debate on strategy of industrialization.

Nigeria is still a net import of all sorts of goods from needless to heavy machinery, simple because most of the Industries were established for their immediate lucrative such as beer, soft drink and other consumer goods industries without the consideration to nation’s industrial needs or for the utilization of local materials.

Besides most of the large scale industries before the industrialization decree were foreign owned and were associated with significant possibilities of income leakages. This in spite of the rapid increases in the Gross National Productivity (GNP) in last decade, the poorest segment of the population peculiarity those in the rural areas has received relatively little benefit.

Unfortunately the bulk of Nigeria businesses are small-scale industries of the number of business establishments, they account for about 80% or above of the total number of enterprises in the country.

The important role they play in the development process was observed by the first progress report of the second National development plan “In spite of the anticipated rapid growth of the wage sector, the major solution to the nations unemployment problem will have to be found in other areas like agriculture small scale industries development.

In spite of all these, the small scale industries sub-sector has continued to suffer from lack of credit most all the government financial programmes for the small industries credit scheme, fund for small scale industries has remained largely inadequate and of little effect.

The banks and other financial houses cannot help matters either despite the central bank credit scheme to industries. It would be noted in this regard that majority of the small scale industries would not be able to meet the requirement of the bank and other financial institution lending policies, therefore giving these financial constraints.


Cover page                                                                                                  i

Title page                                                                                                    ii

Approval/ Certification page                                                                          iii

Dedication                                                                                                   iv

Acknowledgement                                                                           v-vi

Abstract                                                                                                   vii-ix

Table of content                                                                                        x-xii


1.0     Introduction                                                                                       1

  • Background of the study 1-3
  • Statement of the problem 3-4
  • Objective of the study 4-5
  • Research questions 5-6
  • Significance of the study 6
  • Scope of the study                                                           6-7
  • Limitation of the study 7


2.0     Review of the related Literature                                                8

2.1     Theoretical review                                                                              8-14

2.2     Small-scale Business defined                                                              14-17

2.3     Management and organization of small scale business

problems and prospects                                                                      17-23

  • Sources of fund to small scale business

Problems and prospects                                                                      23-26

  • Problems of small scale business. 26-29


3.0     Research Design and Methods                                                            30

  • Research Design 30
  • Area of study 30
  • Population of study 31
  • Sampling method 31-32
  • Instrument for data collection 32
  • Methods of data collection 32-33
  • Methods of data analysis 33


4.0     Presentation and analysis of data                                                       34

  • Presentation and analysis of results 34-40
  • Summary of the Results 41-42


5.0     Summary of Findings, Conclusion and Recommendations.                   43

5.1     Discussion of Findings                                                                        43-45

5.2     Conclusion                                                                                         45-46

5.3     Recommendations                                                                              46-50

5.4     Suggestions for further research                                                         50-51

Bibliography                                                                                             52-53

          CHAPTER ONE



It is necessary to stress the point that to succeed in business require some measure of discipline. Most industrialist expect to make a reasonable profit from the investment of time and resources, that the have to make in other to bring a project to fruition.

While this may sound simple enough, the bother line is the fact in an economy wide context, the rate or level of reward that can accrue to various level of effort, discipline and productivity should never be allowed to get out of proportion in relation to effort put in.

Experience has shown that industrial pursuits have been found to yield for the patient and disciplined industrialist rather than stand for business concern with all kinds of effort mostly unproductive and require no legitimate effort to reap profits in multiple fields.

After considering the above mentioned statement of fact about industry. The question is how far are we from being industrialized bearing in mind that it yields for disciplined and patient industrialist, all things being equal.

Taking cognizance of the fact that a step forward is the beginning of a mile. Some therefore Nigeria’s business industrial evolution will only start when positive steps are taken towards adequate financing of small scale business. The experience of newly industrialized countries has been eye an opener.

Finance is the greatest problem we are likely to face whenever we talk of establishing a small scale industry. This is the most crucial aspect of business enterprise and a lot of controversy surrounding the problem of inadequate finance. A close look on the small scale industries/ Business, all over the country would help to throw further light on the effect of lack of fund on growing business. The drastic effect is mostly felt when one tries to study the fate at which our young industries are gradually collapsing. Even surviving ones are terribly looking for assistance that they are not sure of.

Funds are scarce, hence the growing industries are regarded in this part of the world as never do-well especially Nigeria. When an economy is shaky, growing industries in that economy tend to suffer most and usually stand the taste of time. Hence, an increase in the number of casualties in this regard.

The researcher aimed at exploiting the possibilities, problems investing in small scale business problems and prospect. The project centers on management and finance problems.


          There are various problems facing the establishment of small scale business like, financial limitation, lack of raw materials, poor management and quality of the management, staff, poor accounting method, high interest charge on loans and lack of adequate planning and feasibility studies.

The most common and problematic issues is funding. Small scale business find it difficult to obtain fund from established institution like commercial banks and because of some projects have take off but had to be abandoned half way. The issue involved is the question of capital adequacy.

When a company is under capitalized it cannot realize its full potentials. Many small scale enterprises in Nigeria experience this problem. They cannot expand their scale of production to optimum level.

To ameliorate these problems therefore government should implement the law or policy that made to enhance small scale business (especially that of infact once) such as central bank policy that direct all commercial bank to give out some percentage of loan to small scale business than those of medium and large scale industries/ business.


          The purpose of this study include:-

  • To ascertain the present economics state of the lives of small scale business with the view of identify the major problems that affect investing in small scale business problems and prospects bearing in mind the adequate stands as an energizer to its operations.
  • To determine what strategies employed by the surviving and successful ones among them toward alleviating these problems.
  • To ascertain the extent to which the financial institution has helped to develop small scale business.
  • To provide a useful guide for the prospective entrepreneur who may choose self employment as a career, especially in lines of business.
  • It will equally serve as a spring board or progenitor of further researchers in the area of small scale business management. It will lead to more effective business decision making by small scale business operators managers.


     This issue will not be treated in isolation taking into cognizance the level of development in Nigeria. Based on this, questions were asked by the researcher, which will include:

  1. What number of small scale business have benefited from the commercial house loans and advances?
  2. To what extent does small scale business cope with the inadequacy of funds?
  3. How does small scale business apply for loans from financial institution?
  4. What are the strategies employed by surviving and successful ones?
  5. What are the role of government and organization in finding lasting solution to the problem enumerated above?


The significance of this research is that the result will help identify how business loan are obtained or secured both locally and internationally from financial institutions are being used. On this note awareness is being created or it will help to create it on how fund or finance could be raised to finance small scale business.


          The area situation would have been the study of the investing in small scale business problems and prospects but however, this would have posed some threats to the researcher. Among them were the lack of adequate fund to meet the rising cost of research. Unavailability of sufficient books by Nigerian authors in the area of small business and its problems. Also the problem associated with the collection of data.

Consequently, the study is specially design to examine the problems of Garri Processing Industry at Abakpa Nike, Enugu towards getting financial assistance from financial houses.


          This study is limited specifically to analyze the problems faced by small scale business in obtaining finance. A case study of Garri processing Industry Abakpa Nike, Enugu and some other selected small scale business in Enugu State.

In consideration of the nature of this work and purpose for which it is intended to achieve as well as the anticipated result, the research methodology as may be adopted were those found to be most relevant and appropriate.

Therefore the information to generate or needed will be that relating to the research questions asked.


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