Financing small scale business enterprises
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 small scale enterprises. The implementation of these policies have so far been successful but limited to some tier of government, basically the Federal and the State government. There is anadoted evidence that a good number of unemployed youths are interested in the policies of the small scale enterprises and as well in the implementation but are yet to experience it at the rural areas. Mr. President, as a show of his personal commitment to the success of the policies of small scale enterprises in Nigeria, had chaired and personally commissioned some of the policies.
For effectiveness and good delivery of goods and services of a small scale enterprise, the consideration of some factors will be of importance as the survival of any business today does not only depend on the availability of capital to run it but also some other business factors which include; availability of resources, managerial personnel, location, manpower, economic system of the country, marketing strategy and other business ethics. Ethics in business can not be ruled out if such an enterprise must remain on the track. Enforcing these ethics bring in a leadership role which also have a place to stay in the success of a small scale enterprise. As a result of economic viability of small scale enterprises, government of both the developed and the developing nations have adopted deliberate policies to develop small scale enterprises thus enabling them (SSE’s) to stand the test of foreign trade (Exporting).
The definition of small scale enterprise varies from one nation to another. The following are some definitions by government ministries, institutions, committees and some authors;
The small scale enterprises have been variously defined. The Federal Ministry of Industries (1973) defined it as “all manufacturing units with a total capital investment of up to 60.000 and paid employment of up to 50 persons.
The Central Bank of Nigeria (CBN) for the purpose of its credit guidelines to...
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