CHAPTER ONE

INTRODUCTION

• BACKGROUND OF THE STUDY

The commercial banks are contributing a lot towards the development of small scale business in the country especially in the various functions they carryout in the day-to-day operation. The potential entrepreneurs are therefore the benefits from the functions and assistance rendered by these financial institutions. The focus of commercial banks on small scale enterprises can be viewed based on their impact and potential contributions to broads’ economic development. Small-scale business also helps to achieve macro-economic objectives such as employment, diffusion of economic power and development of indigenous technology. small scale business have contributed to the development of the economy by creativity employment opportunities, enchanting a diversified production based, innovating amongst other but they could not these effectively because they are faced with various constraints paramount among all is financial constraint. The financing of an enterprise whether small or large is one of the major problems on enterprise even before its commencement thus there is the need for availability of adequate capital for the substance of small business. However, there are different sources  of capital such as internally generated found trade credit, bank loans, shares etc. in exiting the impact of commercial banks activities on the development of small scales businesses with special emphasis on the first bank of Nigeria plc, it is equally necessary any to know the evolution of bank itself. First Bank of Nigeria Plc, one of the oldest and largest bank in Nigeria was founded by a shipping magnate from liver pol. the English man, sir are john commenced business in Lagos in 1894 in the office of elder Deupster’s company. in 1892 when the business of banking started in Nigeria, bank was first known as bank of the British for west Africa (BBWA) latter change to standard bank or Nigerian and now known as first bank of Nigeria plc, it has the largest network of branches. It’s world headquarter is in the city of London with two hundred and eighty two (2&2) branches spread over the federation. But for the purpose of this research work, the researcher will limit his findings to the effort of small scale business in Nigeria.

• STATEMENT OF PROBLEM

Most of the commercial banks in Nigeria are poorly capitalized, which means that they have a low capital/asset ratio. The lack managerial technical and operational personnel although most of them now consciously award scholarship to their worker to improve their performance. The banking sectors play a vital role in the economic of any nation. Presently, no economy in the world can survive without bank and other financial institutions. This realization enables the First Bank of Nigeria Plc, to serve as a catalyst in the management and growth of small scale business. One steps adopted by the government for understanding an Mclhmenta and enduring restricting of the national economy in push encouraging the establishment of small scale enterprise to enhance rural development increase population facilitates location of government objectives. Concerning self sufficiency in food and also to provide for the requirement of agro-allied industries and to serve the foreign exchange spending on such importation. The focus of this project therefore is to ascertain the commercial banks, promote small scale enterprises and factors that can impede this contribution. Attempt will also be made on able remedies that should be introduced into the system for better.

• OBJECTIVE OF THE STUDY

This project aims at identifying the impact of commercial banks activities on the development of small-scale business using first bank of Nigeria plc. Thus its objectives include the following;

1. Identify those factors that imitates against the establishment of small scale business
2. To identify the problems of promoting and developing scale business
3. To ascertain the regulation that requires investing certain percentage of their profit in the inequity of small and scale enterprises, and percentage of the profit required.
4. To identify the roles of first bank of Nigeria plc a commercial bank in the development of small scale business.
5. to determine the impact of the contribution of first bank of Nigeria plc, in the development of small scale business

• RESEARCH QUESTION

1. What are the factors that militate against the establishment of small scale business?
2. What are the problems of promoting or developing small scale?
3. Which regulation requires banks to invest certain percentages of their profits in the equity of small and medium scale enterprises and what percentage of the profit is requires?
4. What are the contributions played by first bank of Nigeria plc, on the development of small scale business?
5. What are the impacts of the contribution of first bank of Nigeria plc, in the development of small scale business?
6. What other ways could the exciting commercial bank aid the effective performance of scale business?