Preview

Funding Small Scale Enterprises

Powerful Essays
Open Document
Open Document
13524 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Funding Small Scale Enterprises
Financing small scale business enterprises

CHAPTER ONE

1.0 INTRODUCTION

1.1 BACK GROUND OF THE STUDY

Over the years, it has become fashionable for successive government to come up with one economic policy or the other in a bid to bring about improvement in the nation during her regime. The then military administrator in the year 1986 while in power introduced an economic program called Structural Adjustment Programme (SAP) which was foisted on Nigerians as an alternative to IMF/World Bank loan, which they unanimously voted against. During the second republic the government on saddle, in 1982 tried his hand on Austerity Measures under which embargo was placed on employment. In 1995 the military government of the day came up with its own economic policy called vision 2010. This administration is not left out in the scheme of things. Hence this discussion is intended to give a birds eye view to the economic issue; Financing of small scale enterprises in Nigeria. To help address the issue of small scale enterprises in Nigeria the following institution were put in place by the government which include; The Small and Medium Enterprise Development Agency of Nigeria (SMEDAN), The Nigerian Agricultural Corporative and Rural Development Bank (NACRDB), Micro Finance Policy (MFP), National Poverty Eradication Programme (NAPEP), Rural Agricultural Development Training Scheme (RADTS), Rural Handicraft Scheme (RHS), National Economic Empowerment and Development Strategy (NEEDS), Micro Small and Medium Enterprises Sector of the Nigerian Economy (MSMES), Nigerian Employee Consultative Association (NECA), National Economic Reconstruction Fund (NERFUND), and National Directorate of Employment (NDE).

The several policies put in place by Chief Olusegun Obasanjo’s administration shows her great concern towards improving the economy and her commitment towards eradicating the problems of unemployment through the effective operation of the institutions set up to address

You May Also Find These Documents Helpful

  • Good Essays

    The stock market it a public market for trading of company stock and derivatives. Stock markets are important to companies because it’s a good source for raising money for businesses. Businesses are allow to publicly trade or raise additional capital for expansion by selling shares of ownership of a company in a public market. Investors in the stock market may take or move financial prices away from their long term aggregate price tends this may only happen temporarily. If a newly own business owners has little knowledge about the stock market, it can be quite unforgiving. Investors…

    • 857 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Continuing with the scenario from Unit 1, you now need to make a management decision about how to fund your business. You have several options. You can borrow money, sell stock, or license the technology. Chose the type of funding which you prefer. Then, write a 2–3 page paper that reflects your decision-making analysis. In this paper, be sure to include the following:…

    • 880 Words
    • 4 Pages
    Good Essays
  • Good Essays

    There are several advantages to accepting funding from a relative. The first, and most obvious, is that by entering into a partnership to pay back this relative, there is no high rate interest to worry about, as there would be with a bank loan. Also, the relative only has to agree to the assistance, instead of applying for bank approval. There is also no risk of depreciation, as there is with the stock market. However, there is also a very large risk with this type of funding. When using a short or long term loan with a bank, once approval is granted, the funding is guaranteed. When borrowing from a relative, he/she can decide at any time to stop funding for no particular reason.…

    • 1156 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    Small business enterprises are important for the modern market economy in terms of innovation, employment and flexibility. They are the backbone of our economy. Around 98.6% of all businesses are considered small (Goodman, 2006) and every large business was at some point small. Small business enterprises are very different to large business enterprises. They operate in different circumstances, such as having different management techniques, facing different financial constraints and production choices, and bearing different relative regulatory burdens. This report’s aim is to identify some of the key issues facing small business enterprises today, addressed in the Enterprise Finance unit, in order to give better view of the challenges presented in their survival and growth.…

    • 1337 Words
    • 6 Pages
    Powerful Essays
  • Best Essays

    Udechukwu, F.N. 2003. SMALL AND MEDIUM INDUSTRIES EQUITY INVESTMENTS SCHEME (SMIEIS). Central Bank of Nigeria.…

    • 4373 Words
    • 18 Pages
    Best Essays
  • Satisfactory Essays

    QUESTION: TO WHAT EXTENT DO CAN IT BE SAID THAT GHANA CANNOT DEVELOP WITHOUT THE ACTIVITIES OF SMEs OPERATORS…

    • 584 Words
    • 3 Pages
    Satisfactory Essays
  • Powerful Essays

    Kesseven Padachi C

    • 9686 Words
    • 52 Pages

    Watson, R., & Wilson, N. (2002). ‘Small and Medium Size Enterprise Financing: A note on some of the implications of a Pecking Order’, Journal of Business Finance and Accounting, Vol. 29 No. 3/4, pp. 557-578.…

    • 9686 Words
    • 52 Pages
    Powerful Essays
  • Best Essays

    MSME Lending Norms

    • 3241 Words
    • 13 Pages

    Micro, Small and Medium Enterprises (MSME’S) play a major role in most global economies. This calls for a better understanding of the financing aspects of MSME’S.…

    • 3241 Words
    • 13 Pages
    Best Essays
  • Powerful Essays

    This research is about the lending practices to the small medium enterprises, specially through financial institutions; as this is the only sources of financing to such types of companies. The equity market for small and medium enterprises is also not well developed in our country, and secondly to finance these types of companies through equity market would cost a lot to them, which would stop the development of this, one of the most important sectors of the economy.…

    • 11559 Words
    • 36 Pages
    Powerful Essays
  • Good Essays

    Sme Finance

    • 1231 Words
    • 5 Pages

    SME finance is the funding of small and medium sized enterprises, and represents a major function of the general business finance market – in which capital for different types of firms are supplied, acquired, and costed or priced. Capital is supplied through the business finance market in the form of bank loans and overdrafts; leasing and hire-purchase arrangements; equity/corporate bond issues; venture capital or private equity; and asset-based finance such as factoring and invoice discounting.…

    • 1231 Words
    • 5 Pages
    Good Essays
  • Good Essays

    not exh~bit p p o r t ~ n i s mas well as the tendency to exploit the power…

    • 9594 Words
    • 39 Pages
    Good Essays
  • Good Essays

    Following the advice given by her Brazilian colleague, Ngozi Okonji Iweala set out to create an economic team that could come up with a “comprehensive strategy” that would be used to create reforms for Nigeria. The came up with a medium term plan that they believed had to pass three test: a. it should have a diagnosis of the socio-economic problems in Nigeria, b. it should propose a solution, c. solutions should be readily translated into specific actions that produce results. The plan they came up with was called National Economic Empowerment & Development Strategy (NEEDS). It was a plan for Nigeria by Nigerians.…

    • 584 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    The business name is Mcraj Arts & Designs - catering and decoration busi. it started on 04 December 2010. It was funded by Department of Youth on the 29th June 2010.…

    • 2501 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    The Nigerian economy has had a truncated history. In the period 1960-70, the Gross Domestic Product (GDP) recorded 3.1 per cent growth annually. During the oil boom era, roughly 1970-78, QDP grew positively by 6.2 per cent annually - a remarkable growth. However, in the 1980s, GDP had negative growth rates. In the period 1988-1997 which con stitutes the period of structural adjustment and eco nomic liberalisation, the QDP responded to economic adjustment policies and grew at a positive rate of 4.0. In the years after independence, indus try and manufacturing sectors had positive growth rates except for the period 1980-1988 where indus try and manufacturing grew negatively by - 3.2 per cent and - 2.9 per cent respectively. The growth of agriculture for the periods 1960-70 and 1970-78 was unsatisfactory. In the early 1960s, the agricul tural sector suffered from low commodity prices while the oil boom contributed to the negative growth of agriculture in the 1970s. The boom in the oil sector lured labour away from the rural sector to urban centres.The contribution of agriculture to GDP, which was 63 percent in 1960, declined to 34 per cent in 1988, not because the industrial sector increased its share but due to neglect of the agricultural sec tor. It was therefore not surprising that by 1975, the economy had become a net importer of basic food items. The apparent increase in industry and man ufacturing from 1978 to 1988, was due to activities in the mining sub-sector,…

    • 4639 Words
    • 19 Pages
    Powerful Essays