Funding Small Scale Enterprises

Powerful Essays
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

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