THE IMPORTANCE OF COMMERCIAL BANK TO THE GROWTH OF SMALL SCALE BUSINESS IN NIGERIA

CHAPTER ONE

• BACKGROUND TO THE STUDY
• INTRODUCTION

In developing countries like Nigeria, majority of the population is rural based, so there is the need to give emphasis to the development of small scale and medium scale enterprises to enable the participation of greater segment of indigenous entrepreneurs in the development process. There is evidence to substantiate the argument that the small industrial sector holds a greater capacity to abort large number of workers who have been unable to secure a wage job in the large and capital intensive industrial sector.

          There is no doubt that small-scale is the backbone of business activities in Nigeria. More than 50% of business in Nigeria meets the standard of smallness if such high proportions of enterprise group, it cannot provide the desire effects.

          Since the establishment of any enterprises whether large medium or small require finance, it is therefore imperative to examine the importance of small require finance, it is therefore imperative to examine the importance of financial institution especially commercial banks in financing of small scale industries in Nigeria financial institution and banks of any forms, pursue identical goals.

          They contribute in no small measure to the country macro-economic objectives for the rapid transformation of the economy. Banks particularly contribute significantly to real development through savings and tending process by stimulating savings, mobilization fo funds and by the ability to ensure the most efficient transformation of the savings into real output.

          The important of banks is primarily to transform the economy depends largely on the development of small scale industries in the country and realizing this, they rose up additional sources of capital ventures especially to small-scale industries to encourage and contribute to the development of small scale industries.

• STATEMENT OF THE RESEARCH PROBLEM

The focus of this study by the researcher is to identify the important of commercial bank to the growth of small scale business in Nigeria, in the course of the study; effort has been made to find solution to the following research problem.

1. What is the historical background of the development of small-scale business in Nigeria?
2. What are the importance of small-scale business in Nigeria?
3. What is the effect of small-scale on the Nigeria economy?
4. What is the impact on development of small scale industries?
5. What are the problems facing the development directives to small-scale industries?
   • RESEARCH QUESTION

The study approach to be adopted in this work would be based primary on secondary method of data collection, most of the work in this research would be based on the primary data collected like Journals, Annual Report, Magazines, Textbooks, Financial papers, interest and other material collected in the library while the secondary data were collected through the interview.

QUESTIONNAIRE, PANELS

1. What is small scale entrepreneur?
2. What is small scale business?
3. How can we invest in the small scale business?
4. How can we be developed in the small scale business
5. How can we developed in the small scale business?
6. What can be the consequence of the small scale business?
7. How can we risk positive in the scale business?
8. What are the business in the small scale business?
   • OBJECTIVES OF THE STUDY

This research mainly focuses on the importance of financial institution to the development of small-scale industries in Nigeria.

To the researcher:

1. It helps in proving an existing fact
2. It helps them to find out fact
3. It helps to interpret the findings of other by ways of synthesis of material to support conclusion.

To the government

1. It improves their contribution of small-scale
2. It expatiates the meaning of small-scale to them

To the business men and women

1. It gives them an insight into their problem and how to solve them in order to achieve their aim objectives.
   • SIGNIFICANCE OF THE STUDY

It is believed that the information gathered from this study is of immense values to the academic community management of the banks the researcher, government and also to businessmen and women.

          To the bank, it helps them to improve on their performance especially in the area of loan and advances to small-scale industries.

• SCOPE AND LIMITATION OF THE STUDY