CHAPTER ONE

INTRODUCTION

1.1       Background to the Study

1.2       Statement of the Research Problem

1.3       Objective of the Study

1.4       Formulation of Hypothesis

1.5       Justification of the Study

1.6       Scope of the Study

1.8       Limitations of the Study

1.9       Definition of Terms

CHAPTER TWO

LITERATURE REVIEW

2.1       Conceptual Review

2.1.1    The Meaning of Small and Medium Scale Enterprise 

2.1.2    Types of Micro and Small Scale Enterprise:

2.1.3    The Contribution of Small Scale Industries to the Nigerian Economy 

The critical causes on why financing small and medium scale industries by commercial banks in Nigeria have not been very effective were evaluated. Not only are the SMEs starved with financial back-up, they are also faced with other external problems such as high interest rates, inconsistency in government industrial policies, lack of infrastructural facilities and internally; poor management practices, high rate of business failure, poor accounting standards, shortage of skilled manpower and financial indiscipline. In view of these numerous problems, this research work was conducted so as to come out with solutions as this will pave way for banks to have more confidence in financing these SMEs efficiently and effectively as against hitherto , their stringent lending policies and the risk averse behavior of funding. This has become necessary as it is a well known fact that the survival, growth and development of SMEs of any country depend largely on funding with other factors put in place. In the light of the findings in this research work, some recommendations and suggestions were made to the government, commercial banks and the small and medium scale entrepreneurs themselves which if implemented will not only sustain the survival, growth and development of this sector, it will also provide employment opportunities and improve the economic situation of Nigeria.