Financial Problems Facing Small Scale Industries (A Case Study of Doyin Investment Limited Asa-Dam Road Ilorin)

CHAPTER ONE

1.1     INTRODUCTION

          One of the prominent features of the economic structure of most developing countries is the small side contribution to government development plan made by industrial sector. Consequently, many of those countries are presently faced with problem of formulating and implementing a well conceived programmed a industrial development plan that will reverse the unfortunate trend ensuring that this dream of a perfect, integrate and consistent patter of industrialization is achieved, such storage must be appropriate to these countries condition and levels of development. It is in this line that small scale industry has been recommended to fill the gap.

          The theme of this study is financial problem facing small scale industries is Kwara state. The study aims at throwing more light on the basic problem facing small scale industries which is relevant to the Nigeria economy and by viewing the available source of finance in some small scale industries in Kwara state.

          Moreover, the present economic situation in the country calls for serious attention to be paid to diversification. A situation where a country depends mainly on a single product for the foreign exchange earning is dangerous. Hence, any effort to develop the impact substituting industries should be encouraged small industries present an opportunity for the country to provide locally and therefore limit to a considerable extent the drain on our foreign exchange.

          Lastly, any measure for developing the rural urban migration should pay a greater attention to the public and development of the small scale industries.

1.2     IMPORTANCE OF SMALL SCALE INDUSTRIES

          It could be right to also why the research the study important.

The importance of the study originated from the single fact that finance is the life wire of any business. It can be looked at as the ability to purchase things. Finance is sued by a business in its operation just as much as labour and materials purchasing power can transfer from one person to another by lending of money and can thus, be supplied to business of a price just as physical goods and services of labour. Like market and labour, finance should be bought in the favourable market and used in the most effective and economical ways. Also the importance of small scale industries is better evaluated  against the background of the objective laid up for it in peculiar circumstances prevailing in various countries of the world especially it’s a contribution towards removal of bottlenecks and other inhibition of industrial growth). Among its very grant importance is its contribution toward removal of indigenous entrepreneur initiative for modern industrial development as emerging industrialist build up their potential in the small scale industries for the greater task of industrial management.