The Role Of Commercial Bank In Small Scale Business Financing

The Role Of Commercial Bank In Small Scale Business Financing

Abstract

This study is aimed at chancing out the part of marketable banks play over the small scale diligence and the problem the small scale diligence encounter. This study, has been divided into five( 5) chapters therefore Chapter one is the preface sitting out the background of the study, the exploration stressed that the performance of small scale diligence are financed by marketable banks and other fiscal institution this study is consummate significance because it helps to discover the problem facing the small scale diligence in the course of financing themselves. Chapter two is a review of affiliated literatures, it started by the description of the small scale diligence the description by the small scale, the institution involved backing handed by marketable banks to small scale diligence government programs for promoting small and medium scale diligence etc. Chapter three symbols with the exploration design and methodology bettered in the study. Then data were collected from secondary sources. Chapter four, the exploration state the finding or affect collected in the course of this exploration work. Eventually chapter five stated the conclusion and recommendation of the study.

Chapter One

Preface

Background Of The Study

The conception of dependent has enthralled as central place in the profitable development over the time, principally as a incarnation of the colorful attempts by the developing world- to map new profitable strategies which would relieves also of profitable dependence on their former social master, in Europe. moment the conception of dependent continues to be misknew in its abecedarian ramification and has remained delicate in large sections of the developing world. In Nigeria, neither the mixed frugality approach, appeal to have responds to the dictates of husbandry dependent.

still, in pursuit of dependent in the developing world like Nigeria, the central government legislated called “ enterprises creation decree ” when there was need for small scale enterprises possessed and managed by Nigeria to be creation of profitable development strategies. numerous developing countries have failed to borrow this strategy owing to their believed that it’s a fairly slow process of industrialization, but in the recent time is due to the failure of foreign exchange, attention has been to be concentrated formerly again on developing of ingenious without the development of small scale diligence in Nigeria the nations request for industrialization will clearly remain ever at a state.

likewise several fiscal institution are invested in entrepreneurship development in Nigeria in ways some of also are set up by the government for specific functions. There man functions are to give findings reckoned from fiscal consequences of query and premonitory services for business enterprises public and private. The government plays the part of fiscal companies.

Some of these institution include Nigeria bank for commerce and assiduity( UBCI) Nigeria Agricultural and development bank( NDB) people bank of Nigeria( PBU). The marketable sourcing for fund and enough fund can not be mustered from friend and relations the coming effects that comes to mind is to try the banks. The marketable banks for case is the center to the leading request and makes the topmost number and oddity of want. The commercial are veritably conservative in leading the marketable banks look at numerous effects piecemeal from the capability of entrepreneur to give the demanded collateral and may be interested by looking at the feasibility report. The experience of the entrepreneur his particular credit records profit capabilities.

More, so piecemeal from the banks, fiscal institution like the insurance companies give relief from fiscal loss and especially from fear of loss is maybe is one of the fastest growing diligence in Nigeria. It’s the important for the entrepreneur who want to be free from uncertain loss in trouble of loss to have acceptable insurance.

Eventually the part of bank in the development of small scale enterprise can not be over stresses due to the part it plays in the country over the small scale diligence

Statement Of The Problem

Some fiscal institution in Nigerian are involved in entrepreneurship development in numerous ways. Some of them are set up by the government for specific function while others are set up by private association. They give funding relief from fiscal consequences query and premonitory services for business enterprises etc stile on this, there’s problem of development in small scale diligence. Why is it that our small scale diligence aren’t yet developed despite all the functions performed by fiscal institution in Nigeria. Could it be that the credit granting for entrepreneurship development from banks aren’t acceptable for funding them. The answer to this question will come in the posterior chapter of this exploration work

Purpose Ideal Of The Study

For the purpose of this exploration the experimenter has come with the following objective

1) To know what small scale diligence is each about.

2) To know specific function perform by the government in developing small scale diligence.

3) To know some of the fiscal institution involved in the development of small scale diligence in Nigeria.

4) To know some of the backing handed by marketable bank in the area of small scale diligence.

5) To know some of the government policy for promoting small and medium scale enterprises.

6) To know some of the government part in encouraging small diligence.

7) To know the affect of government programs on the small scale diligence.

8) To know the problems of scale and medium scale diligence.

Eventually to give result or suggestion on how to attack the problems of small scale enterprises in Nigeria.

14 Siginificance Of The Study

This exploration work will be great significance to so numerous heirs, specifically to both private and public possessors of business. individualities who are into small scale business will inversely profit and also those who enter into the business of small scale diligence will inversely profit from this exploration work.

How ever, fiscal institution will inversely profit are returns from small scale diligence will deposited in their guardianship. When profit are generated effective application of this exploration work.

Limitation Of The Study

The exploration has formerly said that the compass of the exploration work is limited to marketable banks and the reasons for this had been given. The limitation that’s put away about then will be taken to mean the problem formerly and will still be encountered by the experimenter. It’s always said and believe that, nothing good comes readily and with eschewal pains no earnings.

The exploration is at present witnessing and still anticipates further of profitable problems. The exploration of this nature should typically needed a lot of plutocrat which an average pupil just can not go especially with the present profitable situation in Nigeria.

still, with the little fiscal support from my parent and aids from musketeers and well- provision, indeed cousins. I hope to aver- come, this constraint.

On the other hand, time factor is another problem defying the experimenter in this study. A regular full time under- graduate. Student especially of institution of operation and technology who carries the typically semester cargo doesn’t have the full necessary time needed for a exploration work of this kind he attends lectures from Monday to Friday. still with divagation and commitment and by the especially grace of God, I hope I’ll succeed.