Government are often seen making so many efforts in developing the small and medium scale enterprises(SMSE), this enormous effort stem from the fact that the activities of the SMSE contribute enormously to the gross domestic product, employment generation and manpower development of the country.

 It should be noted that there is no consensus or acceptable definition of small-scale enterprise, as each author defines it on his own perspective of what is “small” or “big” what is consider “small” to Mr. “A” may be “big” to Mr. “B” vice versa some people would undoubtedly consider all businesses that had not more than a specified number of employees (5 to 10) to be small, others would believe that a small business is one that operates only in the local area, and still others would classify business as small by the kind of firm such as the local drug store, dress shop, neighborhood store or shoe-makers at the street (Ile, 2001; Nwuzor,2012).
            However, small-scale enterprise is an enterprise that has relatively little capital investment that produce in small quantities and as a result control a small share of the market that employ not more than fifty (50) workers and in which management, marketing and entrepreneurial functions are vested in the proprietor small-scale enterprise is characterized by independent management, no much specialization because the proprietors handles or supervises the financing, production and personnel issues of the enterprise.
            Unfortunately, despite the numerous roles small-scale enterprises play in the economic growth and development of a nation, the effectiveness of small-scale enterprises is still being undermined by many factors, which have adverse effect on their roles to economic growth and development. Some of these factors (problems) include: under-capitalization (problem of finance), poor record keeping, poor business accountability, poor or wrong location, poor planning, lack of experience, poor management, inadequate credit control, poor inventory control, disaster, inadequate infrastructural facilities, lack of skilled manpower among others.
            Among the above identified problems, the problem of finance seems to be the greatest problem. Many of the small-scale enterprises are under-capitalized. They have limited resources of finance and this creates the problem of not buying merchandize independently at best price, in adequate quality and quantity. The inability to attract financial credit has stifled the growth of small-scale enterprise. Commercial banks which were expected to be the launch-pad for the development of small-scale enterprise through the provision of loans have failed to give adequate support to them. Stiff collateral security demanded by banks offer means that small-scale industrialist is unable to meet these provisions, consequently losing the chance to obtain loan. In addition, high interest rates charged on loans have scared off potential small-scale entrepreneurs. The problem of financing small-scale business, calls for urgent state and federal (national) attention.

Small-scale enterprise plays very important roles in the economic growth and development of a nation. It provides employment opportunities, encourages and sustains self-reliance, provides technical inventions and innovations promotes competition in the market which acts as a check in the activities of monopolists, utilize waste product from big firm for further production.
            It is quite unfortunate that despite the numerous roles which small-scale enterprise plays in the economy, its operation have not been effective owing to problem of finance. The problem of finance facing small-scale enterprise is in three dimensions, namely; the need for start-up capital, the need for working capital, and the need for expansion capital.
Thus, in the course of carrying out the research work, the following research questions ware addressed to include;
1.               How does lack of finance affect the effectiveness of small-scale enterprise?
2.               Does lack of accountability affect the effective operations of small-scale enterprise?
3.               Is poor financial management a problem to small-scale enterprise?
4.               Does incompetence of management undermine the effectiveness of small-scale enterprise?
5.               Is there any hope of adequate finance for small-scale enterprise?

The main purpose of the study is to examine the problems and prospects of financing small-scale enterprise. Specially, the study is designed to:
1.        Examine the problems of financing small-scale enterprise.
2.       Find-out the sources of finance available to small-scale enterprise.
3.       Ascertain the prospects of financing small-scale
4.      Examine the strategies for improving the effectiveness of small-scale enterprise.

In the course of this research, the following research questions will guide the researcher in carrying out the research work.
1.                  H1: lack of finance is a problem to small-scale enterprise.
Ho: lack of finance is not a problem to small-scale enterprise.
2.                  H1: High interest rate charged on loans by banks is a problem of financing small-scale enterprise.
Ho : high interest rates charged on loans by banks is not a problem of financing small-scale enterprise.

Enterprise is one of the features of economic development and growth. The role of small-scale enterprises in Nigeria cannot be overlooked, in the sense that small-scale enterprise has played a vital role in the development of our economy, in the developing countries like ours (Nigeria).
            This research work would form an avenue for providing information for both present and potential small-scale enterprises because of the variius avenues available to them for developing their human and material resources for the over the well-being of the national economy. Finally, this research work would serve a useful guide to students also that are in economics, business management and other related courses to use it as a reference material. And also it will encourage entrepreneurs to keep proper accounting records to ascertain the financial position of their enterprises.
This research work is restricted to ascertain the problems and prospects of financing small-scale enterprises in Nigeria using Bida local government area of Niger state as a case study. It should also be noted that this research work is not only limited to identifying the problems but also aimed at suggesting possible solutions were necessary. This research work is undertaken to examine the problems of financing small-scale enterprise, to ascertain the prospects of financing small-scale enterprises, as well as examining the strategies for improving the effectiveness of small scale enterprise. A number of constraints were encountered in the quest of this research work.

            These limitations include:
1.         TIME CONSTRAINT: The time required for this study is just not enough. This is because the research work is being done at the same time when serious academic work goes on in the school.
2.         FINANCIAL CONSTRAINT: Limited funds posed a serious problem to this study, it manifested in the form of high transportation cost, high cost of typing and photocopying and other expenses.
3.         DATE CONSTRAINT: Data collection imposed serious problems due to delay encountered on most of the institution on data publication needed for this research work.
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