Effect of Financing Small Scale Business in a Depressed Economy ( A Case Study of Might Investment)

CHAPTER ONE

1.1      INTRODUCTION

In the recent years, the experience has shown that it is a known fact that is both developing and developed nations, that small-scale business from the bedrock for rapid and sustainable growth and development of national economics. Therefore, in reality, Nigeria is underdeveloped nation where small-scale business are not well developed to number of factors, improper finance and economy depression and the government has emphasized and encourage the development of large industries which are party owned by Nigeria and foreigners.

         Small-scale business finance by interested investors requires the business to be a sound management good business and long term survival. It is understandable that the main objective behind the establishment of a small-scale business is to make a profit, and the continued survival of the business but, in most cases, small-scale businesses fail even with good ideals because of finance and economic depression. In a depressed economy, careful financial planning is a continuing necessity. A current shortage of funds is seen and agreed that finance is a pillar of any small-scale business. Finance constitute the major success factor if a small-scale business is financed in an economic depression depending upon the yardstick and investor is using in lending, it’s money to the growth of the business. It must be categorically stated that a banking institution is not the only way of raising funds for a small-scale business, we also have individual financial and credit facilities granted by suppliers.