THE ROLE OF COMMERCIAL BANKS IN FINANCING SMALL SCALE BUSINESS IN DELTA STATE
(A CASE STUDY OF SPARE PART DEALER IN DELTA STATE)
ABSTRACT
Many developing countries have subsequently become interested in assessing the role that small scale establishment might play in their industrial strategies and development. It was based on this research work was carried out, to know the role that bank play in financing small scale industries in Delta State using small scale business as a case study.  
The small sale business also attract infrastructure in any areas they are established the reduced rural Urban migration. They are the basis for industrialization of every nation. Most of the large business we have now started as small-scale businesses and eventually grew.
The study also revealed that small scale businesses has made some tremendous contribution towards the development of Delta State, although sometimes they fail.
The study revealed that they are some problem and opportunities that when properly harnessed could lead to an enhanced performance of the small scale businesses some of the opportunities include stability of government policies, ensuring proper distribution of small scale industries in migration.
Government can also introduce subsidized transportation rate to enhance transportation of raw materials and finished products for business sites. There should be a reorientation of attitude of small businessmen towards setting up and managing their own business.
TABLE OF CONTENTS
CHAPTER ONE
Introduction                         
Background of the study                     
Statement of  research problems        
Objectives of study                     
Significance of study                    
Research Questions                     
Scope and limitation of study             
Sources of  Data and method of data            
Definition of terms                    
CHAPTER TWO
Literature Review                 
2.1    Introduction                         
2.2    Meaning and characteristics                     
2.3    Importance /roles of small scale industries     
2.4    General Problems Encountered by Small
Scale Business                          
The Role Banks in Financing small scale  
business in Nigeria                        
Small scale business sources of fund and use of fund
Prospects and liability for promotion        
CHAPTER THREE
Introduction                                 
Sampling  Area                             
Nature and sources of Data Collection        
Sampling Procedure                        
Questionnaire Design                     
Method of Data Analysis                  
CHAPTER FOUR  -  Presentation and analysis of Data    
4.1    Introduction                             
4.2    Analysis                                 
4.3    Testing of hypothesis                    
CHAPTER FIVE
 Summary                        
5.2    Conclusions                             
5.3    Recommendation based on the study             
5.4    Recommendation for further study                
    References                                
    Appendix                                    
CHAPTER ONE
INTRODUCTION
1.1    BACKGROUND OF THE STUDY
 Nigeria is a country greatly endowed with many natural and human resources. The business environment apparently offers opportunities for many entrepreneurial ventures. Ironically, despite these endowments her state of economic development leaves much to be designed factor alone, it is without doubt an important component in the process of economic development. In fact the start up and development of small business remains one of the major ingredients of continual growth in any national economy. Consequently, in the quest for Nigeria’s economic development the role of indigenous entrepreneurship is likely to be much more important in small business than in large undertakings that were generally favoured by planners in the past.
Perhaps, it is the realization of these facts that promoted both the federal and state governments to have been rigorously impressing on the establishment of small business. As a result, there has been an appreciable rise in start up of varieties of business ventures, especially the owner manager concerns. Many such business ventures rise and fell, others still struggling to keep their heads above water while some others have managed to make some head way.
The justification for this project derives from the fact that most research work in Nigeria in the area of small business concentrate only on type, classification and how to originate them. There is little or no in-depth study on the variables that account for its sustainability, growth and development. The literature gap above created a myth by default; it gave prospective entrepreneurs a false impression of what it takes to run a small business. Many underestimate the actual requirement for joining the growing empire of the booming business world. The reality however, is that many were not able to experiment on their lofty business ideals and many of these who managed to get in are still struggling to survive.
Working within the background of the importance of this class of business in stimulating faster economic development and the urgent need and desire to abridge the knowledge gap existing this sector that this project came into being. It seek to throw more light on the in-depth issues impacting on the role of a commercial bank in financing small-scale business in Delta State.
STATEMENT OF THE RESEARCH PROBLEM
Study proved that small-scale business firms make meaningful contributions to most economics. This is business small-scale business are like seeds that germinate annual grow into big business by yielding much bigger capital than what they started with and also grow from employing numerous workers.
In America 91% of all manufacturing industries employ fewer than hundred people which are generally considered to be the limit of small-scale industries. In Germany the most 80%, united kingdom 95% and in Japan 79% most firms still have fewer than fifty employees. These statistics throw light in the relative preponderance of small-scale business geographical, boundaries not with standing.
Nevertheless, the accessibility of small business to credit in Nigeria is vital to business success, the morality rate of these business is high the consequences are obvious, the loss of unemployment of workers who consequently, loss their sources of income. Under this suppliers lose their customers when a business fails and this means a loss of business tittles. The whole society feels the impact of business will reduce the contribution to the gross national product (GNP) reduced income from taxes which will thereby reduce budged income for the period. This study is designed critically to evaluate the extent to which banks respond to the financial needs of small-scale firms in Delta State.
This research therefore kill an important gap in the literature on the role of commercial banks in financing small-scale spare parts dealers in Delta State.
OBJECTIVES OF THE STUDY
The objective of the study involves
To ascertain the various sources of fund available to the small-scale business operators in Delta State.
To determine the extent to which the banks have been able to support the business of this class of firms.
To determine the problems of financing small-scale business in Nigeria and finding ways of eliminating such problems.
To ascertain whether the absence of proper financial reporting has anything to do with the ability of these classes of firms to source for adequate funds to enhance their operation.
SIGNIFICANCE OF THE STUDY
It is obvious that small scale business contributes immensely to National wealth this study becomes very significance as it will identify and analyze the role of banks in financing small-scale business in Delta State.
The study will x-ray the plight of small firms in Delta State. Information provided could be used by government to sustain her effort in introducing measures that can promote the growth of small scale industries in Delta State.
The study also focused on why small-scale industries had not found it easy to secure loans and advances from banks. Information provided by this research therefore will help proprietors and to attract financial support from banks.
RESEARCH QUESTIONS
To what extent are banks involved in the provision of funds to small-scale business in Delta State.
How has security of loans affected the ability of proprietors to attract credit for their business.
In what way has absence of financial reports made it difficult for small-scale business operators to obtain financial assistance from banks.
In what ways have the level of education of proprietors and mangers of small-scale business in Delta State affected in attraction of financial assistance from banks.
SCOPE AND LIMITATION OF THE STUDY
This study is restricted to the role of bank in financing small-scale business in Delta State.
During the causes of questionnaire and personal interviews series of problems where encountered in gathering information just from owners of small scale business activities or information most especially loan disbursed to them by banks. A great number of them that is proprietors of small firms refused discussion in details with strangers. They alleged that similar interviews in the past did not provide any benefit to them.
SOURCES OF DATA AND METHOD OF DATA ANALYSIS
Primary and secondary sources of data where used in this study. The collection instrument used for the primary data was the questionnaires which were personally administered while the secondary data was made up of test books, published journals articles and other important materials.
Chapter two consists of literature review, meaning and characteristics, importance and role of small-scale industries, general problem encountered by small-scale industries etc.
Chapter three consists of methodology, introduction research design, sampling procedure, questionnaire design data collection and analysis method.
Chapter four consists of data analysis, introduction data presentation, questionnaire and analysis of data.
Chapter five consists of discussion, conclusions and recommendations.
DEFINITION OF TERMS
1. Banks:     This is defined as an organization whose principle operations are concerned with the accumulation of the temporarily idle money of the general public for the purpose of advancing to others for expenditures.
2. Industry:    This is the production of goods especially factories.
3. Production:     This is the process of making or growing things to be sold as products or the amount that is produced.
4.  Technology:    This is the knowledge about scientific or  industrial methods or the use of these methods.