-
Financial A Small Scale Business In Nigeria Effect On Economic Development Prospect And Problems
[A CASE STUDY OF NIGERIAN AGRICULTURAL AND COOPERATIVE BANK LIMITED ILORIN]
CHAPTER ONE -- [Total Page(s) 4]
Page 1 of 4
-
-
-
CHAPTER ONE
1.0 INTRODUCTION
The concept of financial small scale business in Nigeria or service by a firm or organisation is creating awareness to the product or service in order to promote the sales of the product produced.
Business activities all over the world whether those engage in production of product or those that render service they all have an objective to achieve that is done through how their product or services will get known to their customers this is done through financial.
Financing is nay communicative activity whose purpose is to more forward a product or services and idea on where to get the product or service.
Financing a small scale business in Nigeria provides the stimulus upon which sales progress is based on, without good financing power business remain stigmatic therefore wealth expansion of any business comes from financed equally any emphasis on introducing promotion to business also parallel with sales of its product or services by increase the quality sold, its price or a combination or both enhance its public made business known that if a better product is produced, customers will not take special pain to infirm, themselves of its want satisfying attribute and where it can be purchased.
Hence the need for effective efficient promotion in any organisation the level of financing contribution incurred into business is highly incomparable to one another.
Finances only way of ensure survival and tactical market to maintain or achieve and economy development. Highly volume of sales can be only achieved through the use financing the business like advertisement, sales, promotion and relations personal selling.
1.1 STATEMENT OF GENERAL PROBLEM FACING SMALL SCALE BUSINESS IN NIGERIA
Problem of small scale business can be general or specific problem of a general nature may in involve the legal aspect of the business access to credit and raw materials and the lack of appropriate technical and managerial assistance.
(A) COMMERCIAL BANKS
These are the problem arising as a result of the financial institutions in advances loan to a small business and these talk in the categories.
(I) LACK OF ADEQUATE TRAINED PERSONAL
Because the small business can usually pay only minimum wages, has to fringe benefit and effort low jobs security and few promotional opportunity. It is reasonably to expert difficulties in recruiting high caliber employees. Also they lack adequate number of qualified professional staff as a result of payment two can evaluate loan application with objectively and also monitor business performance and provide professional advice in a containing basis.
(II) LOAN RECOVERY THREATS
Once loans are given, hardly does banker take sufficient interest in the affairs of the business beyond then, adopting legal action for loan recovery whom monitors have degenerated before then, bankers continue to perform their bureaucratic role of administrators, sending notice of recovering of installation interest and remainders to follow the notice and default notice for final interest rate.
(III) HIGH RATE FAILURE SMALL BUSINESS
The high rate of euthanasia among small business ands in some cases lack of financial integrity among the operator of small scale industries are sernous incubation to the enterprising banker. There is no exaggeration when loans to small scale industries are tagged.
(B) PROBLEM ASSOCIATED WITH GOVERNMENT
In promoting the growth of small scale industries in order to increases their contribution to the growth of the development of the economy, the problem in the domain of government are listed below.
(I) MANPOWER SHORTAGE
Government specialized institution for industries development and promotional agencies lack adequate skilled manpower to evaluate and assess loan application to the small business.
(2) lack of efficient supervision
Monitoring of business performance of the enterprises to which loan have been given provision of efficient and effective extensive service, etc. do not receives the attention they reserves, dearly this can only be done if there are adequate member of trained officers, extension officer, technician officers etc.
(3) HIGH RATE OF DEFAULT
When ever government funds have borrowed the default rate in repayment is high because of political commention of borrowers on because the loans was extended without proper appraisal.
(4) INFRASTRUCTURE
There is inadequate supply of efficient infrastructure such as water, electricity, tender roads and other means of communication is a sinequan on to the efficient performance of small scale enterprises.
CHAPTER ONE -- [Total Page(s) 4]
Page 1 of 4
-
