DEVELOPMENT OF SMALL SCALE BUSINESS IN NIGERIA
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DEVELOPMENT OF SMALL SCALE BUSINESS IN NIGERIA
Chapter one
INTRODUCTION
Background of the study
Commercial banks make significant contributions to the growth of small businesses in the country, particularly through the different activities they perform on a daily basis. The potential entrepreneurs so profit from the activities and help provided by these financial institutions.
Commercial banks’ attention on small-scale firms can be assessed in terms of their influence and prospective contributions to the overall economic development. Small businesses also contribute to the achievement of macroeconomic goals such as job creation, economic power diffusion, and indigenous technology development.
Small-scale businesses have contributed to economic development by creating job opportunities, diversifying production, and innovating, among other things, but they have been unable to do so effectively due to a variety of constraints, the most significant of which is financial constraint.
The financing of an enterprise, whether small or large, is one of the primary difficulties that enterprises face even before they begin, therefore appropriate capital is required for the substance of small businesses.
However, there are other sources of capital, including internally created finding trade credit, bank loans, and shares. When discussing the impact of commercial banks‘ activities on the development of small-scale enterprises, with a focus on the First Bank of Nigeria plc, it is also crucial to understand the evolution of the bank itself.
Sir Are John, an English shipping mogul, created First Bank of Nigeria Plc, one of Nigeria’s oldest and largest banks, in 1894 in the office of Elder Deupster’s company in Lagos. When banking began in Nigeria in 1892
the bank was originally known as the Bank of the British for West Africa (BBWA), later changed to Standard Bank or Nigerian, and is presently known as First Bank of Nigeria plc.
It has the greatest network of branches. Its world headquarters are in London, with two hundred and eighty-two (2&2) branches dispersed across the federation. However, for the purposes of this study, the researcher would limit his findings to the efforts of small-scale businesses in Nigeria.
STATEMENT OF PROBLEM
Most commercial banks in Nigeria are undercapitalized, which means they have a low capital/asset ratio. There is a scarcity of management technical and operational professionals
despite the fact that most employers now consciously provide scholarships to employees in order to boost their performance. Banking sectors play an important part in any country’s economy.
Currently, no economy in the world can function without banks and other financial institutions. This realisation enables First Bank of Nigeria Plc to act as a catalyst in the management and expansion of small-scale businesses.
One step taken by the government to grasp a Mclhmenta and the long-term restriction of the national economy in order to encourage the construction of small-scale enterprises to improve rural development and expand population, which enables the placement of government objectives.
Concerning food self-sufficiency, as well as meeting the needs of agro-allied businesses and reducing foreign exchange expenditure on such imports. The goal of this initiative is to identify commercial banks, encourage small-scale firms, and identify problems that may hamper their contributions. An attempt will also be made to add effective medicines into the system in order to improve it.
OBJECTIVE OF THE STUDY
The purpose of this research is to determine the influence of commercial banks’ actions on the development of small-scale businesses using First Bank of Nigeria Plc. Thus, its objectives are as follows:
Identify the variables that work against the formation of small-scale businesses.
Identify the issues of promoting and building scale businesses.
To determine the regulation that mandates them to invest a particular amount of their profits in the injustice of small and medium-sized businesses, as well as the percentage of profit required.
To identify the involvement of First Bank of Nigeria Plc, a commercial bank, in the development of small-scale businesses.
to estimate the impact of the participation of First Bank of Nigeria plc in the development of small-scale businesses.
RESEARCH QUESTION:
What are the obstacles to starting a small business?
What are the challenges of promoting and developing on a small scale?
Which regulations mandate banks to invest a particular percentage of their profits in the equity of small and medium-sized businesses, and how much of the profit is required?
What role has First Bank of Nigeria plc had in the development of small-scale businesses?
What is the impact of First Bank of Nigeria plc’s contribution to the development of small-scale businesses?
What more ways could the exciting commercial bank help the successful performance of large businesses?
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