The problem and prospect of financing small scale industries in nigeria (a case study of bencos busienss centre enugu)

Thesis Abstract

Abstract
Small scale industries play a significant role in the economic development of Nigeria by creating jobs, promoting entrepreneurship, and contributing to the GDP. However, these businesses face numerous challenges, with access to finance being a major obstacle. This study focuses on the problem and prospect of financing small scale industries in Nigeria, using Bencos Business Centre in Enugu as a case study. The research employs a qualitative approach, utilizing interviews and surveys to gather data from owners, managers, and financial institutions. The findings reveal that small scale industries in Nigeria face challenges such as high interest rates, collateral requirements, and lack of financial literacy. These obstacles limit their ability to access funding from traditional financial institutions. Despite these challenges, there are prospects for improving financing for small scale industries in Nigeria. The study identifies potential solutions such as government intervention through the provision of targeted funding schemes, capacity building programs to enhance financial literacy among entrepreneurs, and the promotion of alternative financing options like venture capital and angel investors. The case study of Bencos Business Centre in Enugu highlights the specific challenges faced by small scale industries in Nigeria and the strategies they employ to overcome these obstacles. The owner of Bencos Business Centre emphasizes the importance of building relationships with financial institutions, maintaining good credit history, and exploring non-traditional financing sources. Overall, the study underscores the importance of addressing the financing needs of small scale industries in Nigeria to promote their growth and sustainability. By implementing targeted policies and programs to improve access to finance, the government can support the development of these businesses and harness their potential for job creation and economic growth. Through a combination of government intervention, financial literacy initiatives, and the promotion of alternative financing options, small scale industries in Nigeria can overcome their financing challenges and thrive in the competitive business environment.