BANKS’ FINANCING SMALL SCALE BUSINESS UNIT
(A CASE STUDY OF UNION BANK OF NIGERIA PLC ENUGU BRANCH)
ABSTRACT
The purpose of the project is to know to the extent small businesses in Nigeria has been able to obtain loans and advances from Nigeria commercial bank as a major sources finances  to the economy. The term “small scale business” are those small businesses that fall within the category of business with not more than five hundred thousand naira (N500, 000)  as their annual turnover.
The findings of this study will help to make recommendation and suggestions for improvement of the present situations. Also with the findings of the study, the bank will become conscious of the peculiar problems facing importance to the economic recovery and self reliance.
TABLE OF CONTENTS
Chapter one: Introduction
1.0            Background of the study
1.1            Statement of the problem
1.2            Objective of the study
1.3            Research Question
1.4            Scope of the study
1.5            Significance of the Study
1.6            Limitation of the study
1.7            Definition of Terms
CHAPTER TWO REVIEW OF HE RELATED LITERATURE     
2.0            Review of the Related Literature
2.1            The Theoretical Review
2.1.1  Empirical Review
2.2            Importance of small scale Business
2.3            Assistance provided by Financial Institutes in the Development
of small scale Business
2.3.1    Assistance provided by Commercial Banks
2.3.2    Functions of Nigeria Bank for Commerce and Industries (NBCI)
2.3.3    Functions of Agricultural and co-operative Bank (NACB
2.3.4    Functions of the Nigerian Industrial Development Bank ( NIDB)
2.3.5    Functions of the people’s Bank of Nigeria (PBN)
2.4            Government policies for promoting small and medium
scale enterprises
2.5            The major forms of Financial Assistance
2.6            Problems facing the small scale Businesses
CHAPTER THREE:
3.0            Research Design and methodology
3.1            The Area of Study
3.2            Population of the study
3.3            Sources of Data
3.4            Sampling method
3.5            Research Instrumentation
3.6            Validity and Reliability of Research Instrument
3.7            Method of Investigation
3.8            Research Questionnaire
CHAPTER FOUR:
3.9            Presentation of Data and Analysis of Data
3.10       Presentation and Analysis of Data
3.11       Test of Hypothesis
CHAPTER FIVE:
4.0            Summary of Finding, Conclusion and Recommendations
4.1            Summary of Finding
4.2            Conclusion
4.3            Recommendation
4.4            Bibliography
4.5              Appendix
 CHAPTER ONE
 1.0            BACK GROUND OF THE STUDY
The successive development plans of Nigeria have laid emphasis on the attainment of self reliance. The need for this national objective is because much is from individuals from the view point of providing employment opportunities, self reliance in basic food and material production, high personal income, foreign exchange earnings and the production of industrial raw materials
          In 1971, the government of the east central state statutorily established on office which was lither to a sub-system of the ministry of commerce and industry to be known as “fund for small scale industry (FUSSI) to give credit to prospector investors to enable them establish.
          Many Financial Institutions are involved in small scale business development in Nigeria. Their main functions are to provide funding relief from Financial consequences of uncertainty and advisory services for business enterprises, public and private. Some of the Institutions include: Nigerian Bank for Commerce and Industry (NBCI), Nigerian Agricultural and Co-operative Bank (NACB), Nigerian Industrial Development Bank (NIDB), peoples Bank of Nigeria (PBN), The commercial Bank etc.
          However, the major problems encountered here is on the lack of collateral asset on the granting of loans, high administrative cost of processing small loans, delay in disbursement of approved fund, distress in the banking sector coupled with volatile exchange rate regime and prohibitive interest rate.
          The Institutions also gives assistance to Indigenous businessmen in form of loans and equity to acquire the ownership interest of aliens in business activities. They equally assist businessmen by providing consultancy services.
          With all these, no doubt this will help to revitalize the ailing economy
STATEMENT OF THE PROBLEM
Small scale business have been acclaimed as the engine of growth for most economics. This is because of their inherent ability to offer an excellent breeding ground for entrepreneurial and managerial talents as well as developing a pool of skilled and semi skilled workers. There are three types of credits that are usually required here:
(i) Short –term credit (ii) Long-term loan (iii) Medium-term loan
          However, most problems and challenges encountered to SMEs are: lack of collateral assets on granting of the loans, high administrative costs of processing small loan, delay on disbursement of approved fund, distress in banking sector coupled with volatile exchange rate regime and prohibitive interest rate. It is therefore necessary for all to put heads together to form a meaningful policy that will stimulate a positive take off of our small scale industrial sector.
1.2            OBJECTIVES OF THE STUDY
The primary objectives of this study is to find out how union Bank of Nigeria PLC Enugu branch finance small scale Business unit.      
          Specific objectives of the study are as follows:
(1)     To ascertain the extent to which the union bank has helped to finance small scale business and problems rendering such
(2)    To determine the causes variability in small scale business financing by Union Bank
(3)      To find out the problems encountered by small scale business in obtaining finance Union Bank
(4)   To evaluate various measure introduce to boast industrial production and its financing and how this has effected the realization of the set goals
1.3            RESEARCH QUESTIONS
The following Research question will guide this study.
(1)             How can loan given to small scale business been utilized towards their project?
(2)             In what ways does Union Bank carry there feasibility study of the proposed project before granting loan?
(3)             What are the requirements needed from small scale business in order to obtain loans requested?
(4)             If small scale borrowers are required providing a security what types of security is needed?
 1.4            SCOPE OF THE STUDY
This work is to determine how Bank finance small scale Business unit. The study focused attention on how small scale business obtain loans from Union Bank of Nigeria Limited to attain the needed weight and capacity. The study covers small scale business in Enugu. Small scale businesses used in this study are those indigenously owned fully by Nigeria and with annual turnover not exceeding five hundred thousand (N500, 000).
          In this regard I can easily identify time and transport constraints as a limiting factors.
1.5            SIGNIFICANCE OF THE STUDY
Significant of this study are categories into two:
(1)  Practical Significant
(2)  Academic Significant
 PRACTICAL SIGNIFICANCE
          This work will be beneficial to government and individuals who may wish to go into banking business knowing and taking collective measure in commercial bank business.
          It is also useful to the researcher for it will broaden her knowledge and experiences, coupled with the advantage of getting connection with various people who are professionals in their fields.
 ACADEMIC SIGNIFICANCE
          It will be beneficial to students because it will help them to know the important of the study and also to determine the usefulness of the study in their academic. It is also useful for graduates who have not gotten employment to find something doing for them self. It will also be of immense benefits to students conducting similar research work on the same topic or ones related to it.
1.6      DEFINITION OF TERMS
Bank:  This is a monetary Institution owned by other government or private businessmen for the purpose of profit making.
Business:         This is an organization consisting a person or a group of persons who produce and distribute goods and services for private profit.
Credit: This is the money that Bank gives out ad loans and advances with a future date of repayment.
Finance:        This is the amount of resource in cash or in kind which the owners of the business are prepared to put into the business
Long-term Loan:   This is a types of loan used to financial fixed investment such as factories machines, land etc. This loan covers over five years
Medium- term loan:        This type of loan is for more than one year maturity period but not exceeding three to five years
Short-term loan:    This is the types of credit used to finance yearly operation unit products proceeds. They are mostly for beginners.
Small Scale Business:      This means those enterprises with total assets in capital equipment plant and working capital not exceeding N500.000 and employing not more than 50 full time workers.