THE ROLE OF BANK OF INDUSTRY TOWARDS THE DEVELOPMENT OF SMALL SCALE ENTERPRISES

THE ROLE OF BANK OF INDUSTRY TOWARDS THE DEVELOPMENT OF SMALL SCALE ENTERPRISES

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ABSTRACT

This research work is conducted on the role of bank of industry towards the development of small scale enterprises. The aims and objectives of the study is to analyze the various role played by bank of industry in developing small scale enterprises as well as the activities of government policies, such as provision of infrastructural facilities. The researcher uses the questionnaire and interview method to collect the data from the respondents. The analysis and crossed tabulation of data gathered were done using the mean statistical method with the 1-5 Likert rating scale for proper accuracy in arriving at a dependable decision rule. Lastly the researcher concluded that, the bank of industry was able to maintain its customer because they do welcome whatever kind of financial assistance, he finally recommended that, the government should also endeavour to appoint the workers to teach the entrepreneur who does not have the advantage of attending seminar or workshops especially the illiterate ones.

 

CHAPTER ONE

Introduction        –       –       –       –       –       –       –       –       1

  1. Background of the study       –       –       –       –       –       1
  2. Statement of the problem     –       –       –       –       –       3
  3. Objectives of the study –       –       –       –       –       –       4
  4. Significance of the study       –       –       –       –       –       5
  5. Research questions      –       –       –       –       –       –       5
  6. Scope of the study       –       –       –       –       –       –       6
  7. Limitation of the study  –       –       –       –       –       –       6
  8. Definition of terms       –       –       –       –       –       –       6

CHAPTER TWO

Literature Review

2.0    Introduction        –       –       –       –       –       –       –       8

2.1    Conceptual Framework of small scale enterprises       –       9

2.2    Definition   –       –       –       –       –       –       –       –       12

2.3    Reasons for small scale enterprises –       –       –       19

2.4    Reward for entrepreneurs      –       –       –       –       –       21

2.5    Bank of Industry  –       –                –       –       –       –       25

2.6    Government and small scale enterprises   –       –       –       28

2.7    Summary of Review      –       –       –       –       –       –       37

CHAPTER THREE

Research Methodology

  1. Introduction        –       –       –       –       –       –       –       38
  2. Research design  –       –       –       –       –       –       –       38
  3. Area of study      –       –       –       –       –       –       –       39
  4. Population of the study –       –       –       –       –       –       39
  5. Sample size and sampling technique        –       –       –       40
  6. Instruments for data collection       –       –       –       –       40
  7. Validation of the instrument  –       –       –       –       –       41
  8. Reliability of the instrument   –       –       –       –       –       42
  9. Methods of data collection
  10. Method of data analysis        –       –       –       –       –       43

 

 

CHAPTER FOUR

Data presentation and analysis

  1. Introduction        –       –       –       –       –       –       –       45
  2. Characteristics of the respondents  –       –       –       –       47
  3. Presentation of data and analysis in table –       –       50
  4. Test of hypothesis        –       –       –       –       –       –       54
  5. Research questions and answer      –       –       –       –       58
  6. Research findings –       –       –       –       –       –       60
  7. Discussion of findings   –       –       –       –       –       –       61

CHAPTER FIVE

Summary, Conclusions and Recommendations

  1. Introduction        –       –       –       –       –       –       –       63
    1. Summary    –       –       –       –       –       –       –       –       63
    2. Conclusion –       –       –       –       –       –       –       –       66
    3. Recommendations-      –       –       –       –       –       –       66
  2.        –       –       –       –       –       –       –       –       70

Appendix    –       –       –       –       –       –       –       –       –       73

 

CHAPTER ONE

INTRODUCTION

  1. BACKGROUND OF THE STUDY

The study of the role of government agencies towards the development of small scale enterprises is quite interesting. These enterprise have a very important impact on the life of everybody in the society. Small independence business are everywhere 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 done in life involved the element of business. Small scale enterprise constitutes an importance in todays business activities or system. The role of small scale enterprise in our economic history however, has been one of the distribution and contribution.

Although its relative importance has decline with the growth of the big business, small scale business is till major contribution to the countries economy. Business in Nigeria today is made up of both large and small business. Today small scale enterprise have to enjoy more prestige than ever before because of its vital contribution to the nations economy. So vital is small scale business. There are successful small scale enterprise operating like the manufacturing plants, retails, stores, wholesales, drugs, computers, construction firms and hundred of other type of business.

Nigeria population was estimated to be 140 million in 2007 with about 75% of this made up of small scale enterprise operators. Lack of full study of government agencies in the development of these enterprises especially, the financial institution made it impossible to   know the size, structure and function of these small scale business to the development of the economy.

Government agencies are charged with the responsibilities among others to carryout 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 bank of industry (BOI) is charged with the responsibility like provision of medium and long term finances by way of equity funding, loan and lease financing, guarantees, investment in corporate bonds business development services, co-financing, working capital finance and    promotion of small scale enterprises and industries project, co-sponsoring financial institutions and small scale enterprises.

This bank of industry was formerly originated from Nigerian industrial development bank limited was established in 1964 following the reconstruction of the investment company of Nigeria limited (ICON) NIDB was set up primarily to accelerate Nigerian industrialization.

The bank was to conceive shortly after Nigerian attains independence in 1960. The idea was to set up development financial institution to serve as a dedicated window for channeling fund from within and outside the country to the young nation states industrial sector. Economic reconstruction fund (NERFUND) in the last regime of Obasanjo administration is renamed as BOI.

  1. STATEMENT OF THE PROBLEM

Most government agencies have undergone number of re-organization especially bank of industry (BOI) which affect their forces and activities that leads to effective performance and lack of proper control on their activities.

The most obvious problems of Bank of