SMALL SCALE BUSINESS IN NIGERIA


    Finance can also be referred to as funds ;that is to say Finance therefore is also branch of economics that funding for small scale business can also be said to be a way of financing the small scale businesses. concerned with providing funds to individuals, businesses, and governments. Finance allows these entities to use credit instead of cash to purchase goods and invest in projects. For example, an individual can borrow money from a bank to buy a home. An industrial firm can raise money through investors to build a new factory. Governments can issue bonds to raise money for projects.

Finance plays an important role in the economy. As banks, credit unions, and other financial institutions provide credit, they help expand the economy by directing funds from savers to borrowers. For example, a bank acquires large amounts of money from the deposits of individual savers. The bank does not let this money sit idle but instead provides loans to borrowers who might then build a house or expand a business. The savings of millions of people percolate through many financial institutions, spurring economic growth. Small scale business are business that individuals or group of persons can start with a small amount of money at times they are later able to get loans from banks to enable them expand the business.
      We can categories funding sources in terms of their conventional orientation,time duration,and intra-ultra considerations.We see from the analysis thus far that the business firm is best suited for the intra-ultra considerations which covers the time duration classification as well.In view of their nature classifying funding sources best applies to private households more than other economic units.It is not that the other categorizations do not apply,esp when we know that individuals can source funds through a number of internal and external sources including,his personal savings and earnings,loans and overdrafts  from banks and other non-bank institutions,sales of commercial papers and short term securities held,hire purchase and leasing agreements,trade credits,receivables financing and bills discounting.Other external sources may include disposal of assets and property,sale of long term securities such as stocks and shares through the activities of stock brokers.
   Conventionally,the individual can source funds from the formal sources mentioned above.Traditionally,he can obtain funds from the informal financial system with sources including esusu,local money lenders,relatives and friends,revolving credit arrangements,age-grade associations,extended family credit arrangements, etc.

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SOURCES OF FUND FOR SMALL SCALE BUSINESS IN NIGERIA GOVERNMENT ATTEMPTS TO BOOST SMALL SCALE BUSINESS IN NIGERIA. WHY SMALL SCALE BUSINESS FAIL

ABGO;M.U 2009, Entrepreneurship theory and practice:An integrated approach, Enugu  Nigeria.

EZEAMAMA;M.C 2010, Fundamentals of financial management (A practical guide), Enugu  Nigeria.

ANGUS;N.M  1999, Financial management (theory and application) Anambra  Nigeria.

CHINEDU;B.E   1996, Finance dynamics (principles,techniques and applications), Portharcourt  Nigeria.
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