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FINANCING SMALL AND MEDIUM ENTERPRISES FOR ECONOMIC



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FINANCING SMALL AND MEDIUM ENTERPRISES FOR ECONOMIC GROWTH A STUDY OF MICROFINANCE BANKS IN SOKOTO METROPOLISTABLE OF CONTENTS

Title page i

Approval page ii

Dedication iii

Acknowledgement iv

Table of contents v

CHAPTER ONE: GENERAL INTRODUCTION

Background of the Study 1Statement of Research Problem 2Objective of the Study 3Research Hypotheses 3Significance of the Study 4Scope of the Study 5Chapter Scheme 5

CHAPTER TWO: LITERATURE REVIEW

Introduction 7Definition of Small and Medium Enterprises 7Small and Medium Enterprises and access to finance 11Sources of Financing Small and Medium Enterprises in Nigeria 12Bank Overdraft (Bank Draft) 13Venture Capital or Risk Capital 17Rotating Savings and Credit Associations (ROSCA) 19Small and Medium Enterprises Equity Investment

Schemes (SMEEIS) 21

The Central Bank of Nigeria Agricultural Credit

Guarantee Scheme 24

Challenges of Small and Medium Enterprises Financing 25

CHAPTER THREE: RESEARCH METHODOLOGY

Introduction 28Sample and Sampling Techniques 29Data Collection Method 29Data Analysis Techniques 30

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

Introduction 31Data Presentation and Analysis 31

CHAPTER FIVE: SUMMARY, FUNDINGS, CONCLUSION AND RECOMMENDATIONS

5.1Introduction465.2Summary46Findings and Conclusion 47

Bibliography 51

Appendix 53

1.1 BACKGROUND OF THE STUDY

Small and Medium Scale Enterprises (SMEs) are the backbone of every economy and are key source of economic growth, dynamism and flexibility in advanced industrialized countries, as well as in emerging and developing economies. SMEs constitute the dominant form of business organization, accounting for over 95% and up to 99% of enterprises depending on the country (Osagie 2004:25). They are responsible for between 60-70% net job creations in less-developed or developing countries.

While not every small business turns into a multinational, they all face the same issue in their early days – finding the money to enable them to start and build up the business. It is harder for them to borrow money from banks  or finding private investors than for larger firms.

Microfinance institutions are semi-formal organization and a subset of flexible structure and systems which provide a wide range of financial and saving needs of small scale enterprises in developing countries where top-town formal financial institutions have failed to address the credit need of the real sector of the economy.

Hence, the intention of this research is to undertake a survey of financing options for small and medium scale enterprises in Sokoto State.

FINANCING SMALL AND MEDIUM ENTERPRISES FOR ECONOMIC GROWTH A STUDY OF MICROFINANCE BANKS IN SOKOTO METROPOLIS

FINANCING SMALL AND MEDIUM ENTERPRISES FOR ECONOMIC GROWTH A STUDY OF MICROFINANCE BANKS IN SOKOTO METROPOLIS

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