CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The important of small scale business cannot be over emphasized. There is no doubt among intellectuals, policy analysis and student about the economic development of Nations, especially to less developed countries (LCD) like Nigeria.
Some authorities have also agreed that small scale business contributed about 40% of the domestic production (GDP)
Small scale businesses are also known to be a major tool for rural Industrialization and equitable distribution of income.
1.2 STATEMENT OF THE PROBLEM
Several students have identified Financial Constraint as the major obstacle to small scale business development in developing economic including Nigeria for instance, has always constituted a pandemic problem for economic development in Nigeria. He recalled that in the past, a number of schemes have been put in place to provide special credit lines/windows for SME’S but this achieved very limited impact.
The primary focus of this study emanates from the facts that small scale businesses do not have sufficient, finance to carry on their dues to the low saving culture of the people in this part of the world. The reason for this is not for fetch low level of income basically while it is an establishment facts that small scale business facts financial challenges, no research has been conducted to investigate the effect the financial problem on their contribution to economic development.
Asaolu et al (2005) and many other Authors and Research have deducted that the financial challenges mar the development role of small scale business. But this may not be true especially in the case f Nigeria where the informal sector, which is constituted largely by the small scale business play a very important role in the development of the Nation’s economy. Therefore, this study seeks to evaluate the promotion of small scale business in Nigeria and their contribution to economic growth.