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Financial Problems Facing Small Scale Industries
[A CASE STUDY OF GLOBAL SOAP AND DETERGENT INDUSTRY ASA-DAM ROAD ILORIN]
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CHAPTER ONE
1.1 INTRODUCTION
One of the prominent features of the economic structure of most developing countries are the small side contribution to government development plan made by industrial sector. Consequently, many of those countries are presently faced with problem of formulating and implementing a well conceived programmed a industrial development plan that will reverse the unfortunate trend ensuring that this dream of a perfect, integrate and consistent patter of industrialization is achieved, such storage must be appropriate to these countries condition and levels of development. it is in this line that small seek industry has been recommended to fill the gap.
The theme of this study is financial problem facing small scale industries is kwara state. The study aims at throwing more light on the basic problem facing small scale industries which is relevant to the Nigeria economy and by viewing the available source of finance in some small scale industries in kwara state.
More over, the present economic situation in the country calls for serious attention to be paid to diversification. A situation where a country depends mainly on a single product for the foreign exchange earning is dangerious. Hence, any effort to develop the impact substituting industries should be encouraged small industries present an opportunity for the country to provide locally and therefore limit to a considerable extent the drain on our foreign exchange.
Lastly, any measure for developing the rural urban migration should pay a greater attention to the public and development of the small scale industries.
1.2 IMPORTANCES OF SMALL SCALE INDUSTRIES
It could be right to also why the research the study important.
The importance of the study originated from the single fact that finance is the life wire of any business. It can be looked at as the ability to purchase things. Finance is sued by a business in its operation just as much as labour and materials purchasing power can transfer from one person to another by lending of money and can thus, be supplied to business of a price just as physical goods and services of labour. Like market and labour finance should be bought in the favorable market and used in the most effective and economical ways
Also the important of small scale industries is better evaluated against the background of the objective laid up for it in peculiar circumstances prevailing in various countries of the world especially it’s contribution towards removal of bottlenecks and other inhibition of industrial growth). Among it’s very grant importance is it’s contribution toward removal of indigenous entrepreneur initiative for modern industrial development as emerging industrialist build up their potential in the small scale industries for the greater task of industrial management.
The prevalent problems of shortage of funds skilled labour is steamed through the encouragement and establishment of industries requiring affordable capital and skilled labour of small scale industries.
The problem of limited market is involved through localization of production centers is primary market area. The income and therefore effective demand of the people is increased through increased employment for the rural labour force.
Furthermore, the scheme permits special earliest facilities to be find the establishment that have nothing to attract the instructional credit agencies and these facilities the acquisition of machinery raw material factory accommodation as well as encouraging manpower training.
Also, the inform, choice of ambitions industrialist in term of technology industry or product lines plant size equipment product process will be greatly reduced when they have personally experienced small specialize industries with requirements commitment and risk,.
Management techniques are also advanced in the small scale industries to facilitate the growth of management and marketing potential of indigenous industrialists as to be able absorb demand change of the growing and complex society.
Small businesses also pre-empty the used lack of knowledge on standard and appealing product designs that are common with small scale industrialist of developing countries.
Lastly, fervently hope that useful ideas would come out for investors on the source of finance and obtaining some when required.
1.3 SCOPE OF STUDY
As earlier mentioned the focus of this study was financial problem facing small scale industries in kwara state the research project examine and studies the related problem and prospects in the investment of small scale industries in kwara state with particular reference to Global soap and detergent industries ilorin located in Ilorin the state capital and as a barometer of activities of small scale industries in other divisional head quarter and in Nigeria at larger. This research work has therefore enunciated the back problem setting small scale industries in raising funds to finance its programme.
More over, the questionnaires which have been distributed and filled deals with certain questions aimed to prove social background of the respondent as it can affect their business life. Other special questions deal with capitalization staff straight government role in is development, assistance needs and recommendations.
Information have been collected from the ministry or trade and industry, kwara state investment corporations federal ministry of trade business registration units official sets.
However in view of the fact that only fifty small scale industries have been served questionnaire all of which were located in ilorin township it was not possible to make a broad nation wide generalizations of the result obtained.
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