Impact Funding On The Performance Of Small Scale Industries In Asaba Urban. The Study Adopted A Descriptive Survey Design

ABSTRACT

This study was carried out to ascertain the Impact funding on the performance of small scale industries in Asaba Urban. The study adopted a descriptive survey design. The population of the study comprised of 150 small-scale industry owners in Asaba Urban while the sample of the study was sixty (60) small-scale industries owners in Asaba Urban, Oshimili South Local Government Area of Delta State drawn through simple random sampling technique to serve as the representative of the entire population. The instrument used for data collection is a structured questionnaire, which was structured by the researcher and validated by two experts; one from school of Business Education and one from Educational Measurement and Evaluation Departments of Federal College of Education (Technical) Asaba, Delta State. 60 copies of the validated instrument were administered on the selected small-scale industry owners in the study area by the researchers and two (2) research assistants; 56 items were retrieved and analyzed sing mean statistics. Based on the analysis, the study found among others that small scale industries play vital role in the socio-economic development of Asaba Urban and small scale industries encounter problems such as lack of finance, trained manpower, marketing, multiple taxation, poor management and government policies. On the basis of the findings, the study recommended among others that government should increase the funding of small scale industries to improve their performance, financial institutions should endeavor to give loans with little interest to small scale industries to better their service delivery and government should reduce the amount of taxes payed by small scale industries for maximum impact.

CHAPTER ONE

INTRODUCTION

Background to the Study

The impact of small scale industries to any country whether developing or developed cannot be over emphasized. Small scale industries are considered to be one of the driving forces in economic development. They stimulate private ownership and entrepreneurship skills, they are feasible and can adapt to changing market demand, they supply situations, they generate employment, help diversify economic activities and also make significant contributions to export and trade. According to the guidelines for accessing credit facilities for small scale enterprises in Nigeria by Moruku (2017) “There is potential in small scale enterprises to create employment, reduce unemployment and poverty, utilize local raw materials, output expansion and transformation of indigenous technology, reduce intermediate goods, promote even development and reduce income inequalities.

The definition of Small scale industries varies from one scholar to another, one country to another and from one time to another in the same country. The word small can be subjective. A large corporation employing millions of people worldwide might see a local company with twenty thousand employees as small. Every business size is defined by the number of people it employ, the money it brings in and the industry in which it operate. To address the fact that size definition is complicated, the small business administration has developed strict standards for defining whether a business qualifies as a small enterprise. A small scale business is one marked by limited number of employees and a limited flow of finance and materials. Professor Bates (2017) defines small scale industries as “an industry having fewer than five hundred employees with a small size of distribution.

Taking a critical look at the small scale industries, it would be observed that what would be seen would embrace such things as: an industry with a labour size of eleven to one hundred workers and a total cost of fifty million naira including working capital and excluding cost of land. All these are put together to form a small scale industry and their impact cannot be over emphasized. Countries do not operate in vacuum, they rely on small scale industries for the utilization and transformation of local material. They help to reduce unemployment and poverty rate. The Oxford English Dictionary defines impact as the action of one object coming forcibly into contact with another of a strong effect (positive or negative) on somebody or something. Research impact is the good that researchers can do in the world, it consist of the non-academic benefits that arise whether directly or indirectly from research. Knowledge exchange is a precursor to impact, and this happens through learning, when the data and information from research becomes knowledge that people can benefit from or use. What we regard as funding, comes in form of financing a program or project but funding do not only come as finance but also as an act of providing resources (money, raw materials or other values) to finance a need, program or project.

There is hardly a country that has no desire for expansion and development, the major problem could be finance, lack of raw and material resources. This, in view of growing unemployment and indignity poverty inflicts on and threat to the survival of human kind, thus no effort should be spared in nurturing, supporting and sustaining small scale industries.

Statement of the Problem

It is well known that small scale industries have a huge impact on the economic development of any country, despite the fact that government growth with decreasing employment and providing a well-trained labour force have been pursed since the oil boom era, but often as we see that lack of funding of small scale industries and why is it so? In some cases, the small scale business owners are ignorant or not educated on government empowerment programs or the importance and use of fund in general and as such, they develop non-chalant attitude towards acquiring government fund or proper use of the funds given to them in expanding their business.

Finance not yielding profit could also happen, when these funds are not properly utilize or it could be based on people mentality that once the funds are given, it could be used for anything the business operator desires and they do not realize that expansion of business is more important. This shameful attitude towards poor granting or misuse of funds could lead to a lot ranging from lack of growth in business, lack of expansion and others.

Purpose of the Study

The purpose of this study is to investigate the impact of funding on the performance of small scale industries, thus helping developing and developed country for economic development.

1. To find out the roles of small scale industries in Asaba Urban.
2. To analyze the problems encounter in funding small scale industries in Asaba Urban.

• To identify the features as well as source of capital for small scale industries in Asaba Urban.

1. To enumerate the impact of small scale industries in terms of revenue generation in Asaba Urban.

Research questions

The following questions have being formulated to give insight to funding small scale industries and their performance:

1. What are the roles of small scale industries in Asaba Urban?
2. How does the government fund small scale industries in Asaba Urban?

• What are the problems of small scale industries in Asaba Urban?

1. What are the impact of small scale industries in Asaba Urban?

Significance of the study

This study intends to examine the impact of funding on the performance of small scale industries, the finding and recommendation of the study will help rectify the problems encounter in funding small scale industries. This research is also carried out so as to highlight the importance of funding small scale industries to promote economic development.

In completion of this study, it will enable the operators of small scale industries to see how important their activities are as regard to their operations. The study will help:

1. Commercial banks to access and appraisal the role in financing small scale industries.
2. Entrepreneurs to establish new and viable progress.

• Small scale industry operators to know how to access and use funds granted to them

1. Small scale enterpreneurs to know their impact in the economic development of the country where it operates
2. Serve as a source of reference or guide to future researchers who may want to replicate the study

Scope of the study

The scope of the study is to investigate the impact of funding on the performance of small scale industries. This research study would examine, explain and evaluate strategies in at resolving problems of funding small scale industries in Asaba Urban, Oshimili South Local Government Area of Delta State.

Pages:  50

Category: Project

Format:  Word & PDF               

Chapters: 1-5                                          

Source: Imsuinfo                                     

Material contains Table of Content, Abstract and References.