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THE PROBLEMS OF FINANCIAL SMALL SCALE INDUSTRIES IN NIGERIA

(A CASE STUDY OF ALPHA PAPER MILL LTD. OGIDI)

 

ABSTRACT

        This project work was on attempt to investigate the problems of financing small scale industries in Nigeria.

        The main objectives were:-

  1. To examine the financing of small scale industries in general and Alpha Paper Mill Ltd, Ogidi in particular and an aid to profit maximization and increases in the level of employment.
  2. To  assess to what extent the  government and other financial constitutions have helped through provision of financial assistance to the industry.
  3. To provide information and other sources of capital to enable the Alpha Paper Mill to take advantage of it and broaden its capital outlay.

The study  were based on the  following research questions.

  1. To what-extent is it true that inadequate finds hamper the growth and survival of small scale industries in general with particulars references to Alpha paper Mill Ltd, Ogidi?
  2. As a small business, does it have financial problems impending its operations and what sources of fund available to them? If not what sources of find that the company should undertak.
  3. To what extend would improved capital outlay enhance the business fortunes of Alpha Paper Mills Industry

The researcher therefore made the following  recommendations:

  1. Government should set-up loan of loan to small scale industries.  The need for this has greater urgency show than before of the  increasing financial difficulties of small scale business under Structural Adjustment Programme (SAP).
  2. Government through the central bank should adopt the policy tah will make it easier for small scale industries to secure loan from commercial banks.

 

CHAPTER ONE

INTRODUCTION

  1. BACKGROUND OF THE STUDY

 

Finance has been identified as one of the major factors for the development of small scale  industries  in Nigeria for the establishment  of small scale business in Nigeria, the first factor to consider is the socialability and source of fund for setting up the industry.  Small scale business is an organization real can be measured by various characteristics and some of these are its sales volume, capital investment, ownership structure and the number of paid employees.

Small scale industry has been given different definitions by people and authorities at different times.  However, the levels of capital employed remain a relevant factor for identifying the small scale industry operation.

 

Based on the general notion in  the third National Development plan  1976-1980 a small scale industry means an industrial undertaking  involving total investment of up to but not exceeding (N150,000).

 

 



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