ABSTRACT

This project work was on attempt to investigate the problems of financing small scale industries in Nigeria.
The main objectives were:-
1) To examine the financing of small scale industries in general and Alpha Paper Mill Ltd, Ogidi in particular and an aid to profit maximization and increases in the level of employment.
2) To assess to what extent the government and other financial constitutions have helped through provision of financial assistance to the industry.
3) To provide information and other sources of capital to enable the Alpha Paper Mill to take advantage of it and broaden its capital outlay.
The study were based on the following research questions.
1) To what-extent is it true that inadequate finds hamper the growth and survival of small scale industries in general with particulars references to Alpha paper Mill Ltd, Ogidi?
2) As a small business, does it have financial problems impending its operations and what sources of fund available to them? If not what sources of find that the company should undertak.
3) To what extend would improved capital outlay enhance the business fortunes of Alpha Paper Mills Industry
The researcher therefore made the following recommendations:
1) Government should set-up loan of loan to small scale industries. The need for this has greater urgency show than before of the increasing financial difficulties of small scale business under Structural Adjustment Programme (SAP).
2) Government through the central bank should adopt the policy tah will make it easier for small scale industries to secure loan from commercial banks.

CHAPTER ONE

INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Finance has been identified as one of the major factors for the development of small scale industries in Nigeria for the establishment of small scale business in Nigeria, the first factor to consider is the socialability and source of fund for setting up the industry. Small scale business is an organization real can be measured by various characteristics and some of these are its sales volume, capital investment, ownership structure and the number of paid employees.
Small scale industry has been given different definitions by people and authorities at different times. However, the levels of capital employed remain a relevant factor for identifying the small scale industry operation.
Based on the general notion in the third National Development plan 1976-1980 a small scale industry means an industrial undertaking involving total investment of up to but not exceeding (N150,000).
Having examined the definition with regard to the concept of small scale business, it is deemed necessary for the proper of this study to provide a basic framework by adopting a more common definitions. Small scale industry could be defined as one which is independency owned and operated. This definition is similar in scope to the one defined above by the authority in that it-emphasizes independent ownership and management and relative small scale size in its area of generation.
Some small scale business start having problems from their very beginning due to amount of capital invested by the owner. This is because immediately the initial capital is used up, the business is finished.

1.2 STATEMENT OF PROBLEMS.
1) Alpha Paper Mill Ltd, Ogidi are not able to take business ventures with high yielding potential because of the numerous problems in obtaining adequate fund.
2) These financing problems of Alpha Paper Mill hampered all important-objectives of the business, its growth and survival.
3) Alpha paper Mill Ltd has not been able to expand and grow because of lack of sufficient funds for the purpose.

1.3 THE OBJECTIVES OF THE STUDY
This study is basically aimed at the following.
1) To examine the financing of small scale industries in general and Alpha paper Mill ltd Ogidi in particular and an aid to profit maximization and increases in the level of employment.
2) To assess to what extent the government and other financial institution have helped through provision of financial assistance to the industry.
3) To provide information and other sources of capital to enable the Alpha Paper Mill Ltd to take advantage of it and and broaden its capital outlay.

1.4 SCOPE OF THE STUDY
The study will cover the company operations with particulars regard to finding as well as other external sources of funds.

1.5 BASIC RESEARCH QUESTIONS
Here are basic research questions that the study will be based on and they are as follows:-
i) To what extent is it true that adequate funds hamper the growth and survival re-small scale industries in general with a particular reference to Alpha Paper Mill Ltd Ogidi.
ii) As a small business, does it have financial problems impending its operations and what sources of finance are available to them? If not what other sources of fund that the company should undertake.
iii) To t would improved capital outlay enhance the business fortunes of Alpha Paper Mills Industry.

1.6 SIGNIFICANCE OF THE STUDY
Alpha Paper Mill Ltd, Ogidi is chosen for the case study of these financing problems facing small scale industries in Nigeria because it typically represents a small scale industries concern end is likely to be confronted by the financing problems. In view of the above, the significance are to find out:
i. What causes the problems.
ii. How far the company has been aware of the problems and how far it has gone in solving them.
iii. Ways of eliminating the problems.
It is the writers opinion that it will be immense value to the management in particular and in the whole nation in general. It will also provide information for intending small scale industrialists, academicians. Besides, it is to ped that it will induce the government – to re-examine the stage towards its policies and strategies for the development of nations indigenous firms.