п»їCONTENT OF PROPOSAL
Qualifications OF Pitch
Question and Objective
Techniques of analysis
Opportunity. And limitation
Plan of study
AWE JUMOKE BOLANLE
Exploration proposal. Upon
FINANCING SMALL , MEDIUM SIZE. INDUSTRIES IN NIGERIA
TASK TOPICВ: AUTO FINANCING STRATEGIES FOR SMALL AND MEDIUM SIZE INDUSTRIES IN NIGERIA
Interest in the role of small and medium-sized enterprises (SMEs) in the creation process has been in the forefront of insurance plan debates in developing countries. The advantages believed for SMEs are different, including: the encouragement of entrepreneurship; the higher likelihood that SMEs will utilise work intensive systems and thus offer an immediate influence on employment generation; they can usually be founded rapidly and put into procedure to produce quick returns. SME development may encourage the process of both inter- and intra-regional decentralisation; and, they may well become a countervailing force against the economic power of larger corporations. More usually the development of SMEs is seen as accelerating the achievements of larger economic and socio-economic aims, including poverty alleviation.
Staley and Frein (1965) discover a вЂdevelopmental approach' to SME advertising which has as its objective the creation of вЂeconomically practical enterprises which will stand by themselves feet with out perpetual subsidy and can produce a positive contribution to the regarding real cash flow and therefore to better living levels'. This approach emphasises the importance of efficiency in new SMEs. Small manufacturers must be prompted to adopt new methods, transfer to new lines of production and in the long-run, wherever feasible, they must be encouraged to get medium- or maybe large-scale manufacturers.
More recent problems associated with the progress and efficiency of smaller sized enterprises has also become dominant. Using the circumstance of Upper Italy, Piore and Sabel (1984) have got argued that small companies are more useful because they have adopted a versatile specialisation way. Correspondingly, there have been growing involvement in whether the[desktop] has or can be duplicated in developing countries (Schmitz, 1989; Pederson, 1994; Schmitz and Musyck, 1994; Schmitz, 1995).
The role of finance have been viewed as a crucial element pertaining to the development of small , and medium-sized companies. Previous studies have highlighted the limited access to money available to small enterprises in comparison to larger organisations and the effects for their growth and development (Levy, 1993). Typically, smaller sized enterprises face higher ventures costs than larger corporations in obtaining credit. Insufficient funding is the major problem facing SMEs (Peel and Pat, 1996). Poor management and accounting procedures have affected the ability of smaller enterprises to raise financial. Information asymmetries associated with loaning to modest borrowers possess restricted the flow of finance to smaller enterprises. In spite of these claims yet , some research shows a large number of little enterprises fail because of non-financial reasons (Liedholm, McPherson and Chuta, 1994).
The panacea for fixing problems of economic development in growing countries typically reside in the introduction of small scale industries. The business of those industrial sectors has been the focal point of industrial development of many countries such as India, Malaysia, Pakistan, Indonesia and Nigeria to say a few. It is expected that the gains to become derived from the establishment of small-scale industries will be converted into the technology of job at a minimal investment expense. These industrial sectors will also be in a position to harness raw materials locally and serve as organic inputs to the large-scale industries.
STATEMENT OF RESEARCH PROBLEMВ
The growth of output of any overall economy depends on...
Anderson D (1982) вЂSmall Industry in Producing Countries: An analysis of Issues', World Advancement (10), 14, 913-948В
Bates J (1971), The Financing of Small enterprise, London: Fairly sweet and Maxwell
Levy W (1993), " Obstacles to Developing Indigenous Small and Method Enterprises: A great Empirical AssessmentвЂќ, The World Bank Economic Assessment 7 (1), 65-83
Schmitz H and Musyck B (1994) " Industrial Zones in The european union: Policy Lessons for Developing Countries? вЂќ, World Expansion, 22 (6), 889-910
Staley E and Morse L (1965), Modern day Small-Scale Market for Developing Countries, McGraw-Hill