THE IMPACT OF COMMERCIAL BANK
ON SMALL BUSINESS FINANCING IN KADUNA SOUTH LOCAL GOVERNMENT, KADUNA STATE
TABLE OF CONTENTS
Title page – – – – – – – – – – i
Declaration – – – – – – – – – – ii
Approval page – – – – – – – — – ii
Dedication – – – – – – – – – – iv
Acknowledgement – – – – – – – – – v
Abstract – – – – – – – – – – – vi
Table of contents – – – – – – – – – – vii
CHAPTER ONE: Introduction
1.0
Background of the study – – – – – – – 1
1.2
Statement of problem- – – – – – – – 4
1.3
Objectives of the Study – – – – – – – – 5
1.4
Research Question – – – – – – – – 5
1.5
Significance of the study- – – – – – – – 6
1.6
Scope and Limitations of the Study – – – – – 6
CHAPTER TWO – Review of Related Literature
2.0 Introduction – – – – – – – – – 8
2.1
Theoretical Framework of small scale- – – – — 8
2.2
Conceptual framework of commercial bank- – – – – 9
2.3
Functions of commercial banking – – – – – 11
2.4
Definition of small-scale business – – – –
– – 15
2.5
Small and Medium scale
policy in Nigeria – – –
– – 18
2.6
Review of related study – – – – – 22
CHAPTER THREE – Summary,
conclusion and Recommendations
3.0 Introduction – – – – – – – – – 25
3.1
Research design – – – – – – – – 25
3.2
Area of the study – – – – – – – – – 25
3.3
Population of the study – – – – – – – 26
3.4
Sample and sampling size – – – – – – – 26
3.5
Data collection instrument – – – – – – – 26
3.6
Administration of research – – – – – – 26
3.7
Procedures for presentation and analysis of data – – – 26
CHAPTER FOUR: Data presentation and analysis
4.0
Introduction – – – – – – – – – 27
4.1
Data Presentation – – – – – – – – – 27
4.2
Test of hypothesis – – – – – – – – 35
CHAPTER FIVE: Summary, Conclusions and Recommendations
5.1
Summary – – – – – – – – – 38
5.2
Conclusion – – – – – – – – – 38
5.3
Recommendations- – – – – – – – – 39
Bibliography – – – – – – – – – 43
Appendix – – – – – – – – – – 44
CHAPTER ONE
INTRODUCTION
1.0
BACKGROUND TO THE STUDY
In
developing countries like Nigeria small-scale businesses serves as the
foundation upon which industrial development is based. This is because small –
scale enterprises promote stable industrial base and ensure a balanced
distribution of industrial development (NwankoG.O 1991).
However, a close look at
the performance of small – scale businesses in Nigeria portrays a situation of
neglect, apathy and general underdevelopment. This situation had seriously
hampered the rapid growth of this important sub sector of the economy, pathetic
situation could be attributed to a number of problems hindering the development
of small – scale businesses such as managerial problems, marketing problems,
lack of high caliber of employees and lack of quantitative data among others.
The above-mentioned factors have hindered the development of small-scale
business. The acute shortage of required capital to meet the business
operational requirements has cultivated has cultivated the fluctuating
performance and its declining role in the development of nations economy. The
difficulties of small-scale businesses in obtaining required credit facilities
and varieties of credit issues has further complication the financial problem
facing these industries.
The problem of obtaining
the right financial facilities from the formal money markets at the right
quality and good satisfying terms is also a serious factor.
These
enterprises have a very important impact on the life of everybody in the
society. Small independence businesses are every where and in every line of
work, they can also be seen in every community. This business is as old as man
so virtually everything is does in life involve an element of business.
The role of
Small scale enterprises in our economic history however has been one of
distribution and contribution. Although its relative important had decline with
the growth of the big business Small scale business is still making major
contribution to the country economic. Business Nigeria today is made up of both
large and small business.
Today Small
scale enterprises have to enjoy more prestige than ever before because of it
vital contribution to he nation economy. So vital is small business put few it
any apart of our economy could work
without its steady stream of production and services in every major industry
there are successful Small scale enterprises operate manufacturing plants,
retail stores, whole sales, drugs computers, construction firms and hundreds of
other types of business.
Government
agencies are charged with the responsibilities among others to carry out duties
and deliver utilities as may be regulated from time to time on behalf of the
government for the purpose of uplifting the standard of living Government
agencies such as Commercial Bank (COMMERCIAL BANK) is charged with responsibilities
like provision of medium and long term finances by way of equity finding loan
and lease financing, guarantees, investment in corporate Bonds business
development service, co-financing, working capital finance and promotion of
Small scale enterprises and industrial project, co-sponsoring financial
institutions and Small scale enterprises.
This book of
Industry was formerly originated from Nigeria Industrial development bank
limited was established in 1964 following the reconstitution of the Investment
Company of Nigeria Limited (ICON)
NIDB was set up primarily to
accelerate Nigerian industrialization
Uzuaga W.
(1981), the bank was to conceive shortly after Nigerian attains independence in
1964. The idea was to set up development financial institution to service as a
dedicated window for channeling fund from within and outside the country to the
young nation states Industrial sector.
The bank
(NIOB) was recently merged with Nigeria bank for commerce and industry (NBCI)
and national Economic Reconstruction Fund (NERFUND) in the present Obasanjo
administration is renamed as Bank of Industries.
1.2 STATEMENT OF
PROBLEM
The most
obvious problems of Commercial Banks is how to provide efficient financial
resources technical assistance security on loan given out to customer (SSE)
evaluation of project that are financed which may take more time than stated at
the beginning. Also the project time table, which depends on nature and
complexity of the project, it may take one to two years some times longer from
when project was identified to when it was commissioned
On the part of
Small scale enterprises (SSE) how effective are they utilizing the services
renders to them by the Commercial banks. Also are they able to cope with the
policies adopted by the Commercial banks in obtaining loan and other services rendered
such as interest rate on capital collateral facilities and the made of
government.
1.3 OBJECTIVE OF THE
STUDY
The aim and
objective of the study is:
i.
To analyse various the impact of Commercial banks in financing
Small business
ii.
To Examine government role in financing small business in
Kaduna South local government
iii.
To analyse the various way by which small business has
contributed to the growth of Nigeria economy
iv.
To investigate the problem faced by small business in
obtaining loan from commercial bank
1.4
RESEARCH QUESTION
1. What are the impacts of
Commercial banks in financing Small business?
2. What are roles of
government in financing small business in Kaduna South local government?
3. What are the various way
by which small business has contributed to the growth of Nigeria economy?
4. What are the problems
faced by small business in obtaining loan from commercial bank?
1.5
SIGNIFICANCE OF THE STUDY
The
significance of the study is to serve as reference material to other students
who may write or make research on similar topic and serve as recommendation to
solve problems pertaining to the financing of Small business enterprises. It
also to serves as recommendation to Commercial Banks in discharging its
functions the customer as well as the mode of rendering services to the
customers (SSE).
This research
also serve as a requisite for the award of National Diploma in Banking and
Finance Kaduna polytechnic. And it also go to be beneficial to Kaduna South
Local Government staff who will use the recommended made at the end of this
research work.
1.6
SCOPE
AND LIMITATION OF THE STUDY
This study will cover the
area of activities and role played by the Commercial banks in Financing Small business
enterprises in Kaduna South Local Government Area
It is not an easy assignment for a student to
conduct a research work without encountering two or more problems one of such
problems faced by the researcher was lack of adequate information, which the
research could obtain for necessary research work as some of the organizations
officials formed to be very busy and require for some signatory from the
department before giving out information to be used. Moreso finance pose as a
great challenge in carrying out this research work. On the other hand the
academic workload couple with this research was very tedious considering the
date fix for the completion and submission of this work