LOAN PROCUREMENT PROCEDURES FOR SMALL AND MEDIUM SCALE BUSINESSES “PROBLEMS AND PROSPECTS”A CASE STUDY OF SOME SELECTED SMES IN ENUGU METROPOLIS

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ABSTRACT
This research work is focused on the procurement procedures for small and medium scale business – SMEs with regards problem and prospects.
The study examined the background of the study, its scope, statements of problems, objectives of the study, scope and limitation of the study and definition of terms. The existing literature on the role of capital market institutions, method employed in gathering relevant data were examined.
The research work also concerned itself with the historical perspective of small scale and medium scale business in Nigeria and their operations. In addition, data collection, analysis, presentation and interpretations were carried out on the research question using statistical method and drawing conclusion from them.
Finally, for reaching recommendations were made to the management.

TABLE OF CONTENT
Title Page
Approval Page
Dedication
Acknowledgement
Abstract
Table of Content
CHAPTER ONE
INTRODUCTION
Background of the study
1.1 Statement of the research problem
Objective of the Study
Research question.
Significance of the study
Scope of the Study
Methodology
Hypothesis
Definition of terms

CHAPTER TWO
INTRODUCTION
Literature review on SMEs
Definition of SMEs
Historical Development of SMEs
Setting –up of SMEs
Form of business ownership
Organizing and Managing the business
Objectives of SMEs
Sources of fund for SMEs
Basic principles of lending and the five (5) Cs of credit
Problems of SMEs
Procedures for applying for business loan
Government measure to ensure success of SEMs
The Importance of finance to business
Summary of the reviewed literature

CHAPTER THREE
Loan procurement potentials for SMEs in Enugu metropolis
INTRODUCTION
Definition of loan
Research finding
Loan procurement potentials for SMEs in Enugu Metropolis
Problems faced by SMEs on loan procurement
Prospects of SMEs on loan procurement potentials

CHAPTER FOUR
Research methodology
Research Design
Area of the study
Population of the study
Sampling procedure
Instrument for collecting data
Validity of the Instrument
Reliability of the instrument
Method of Administration of the instrument
Method of data analysis
Data presentation
Testing of Hypothesis
Analysis and interpretation of responses

CHAPTER FIVE
Summary
Recommendations
Conclusion
Appendix
Bibliography

CHAPTER ONE

INTRODUCTION:

The sprout of small and medium scale businesses into the Nigerian business environment cannot be overemphasized. To that effect, it is imperative to being to discussion on loan procurement procedures for these small and medium scale businesses with regards to their problems and prospects.
SMEs rely more proportionately on loans to finance their businesses. In developed countries, loans are used as effective tools in fostering and improving SMEs. Besides, loans are in form of stepping – stones for SMEs are high and are such need financial backbone to survive the economic scourge of developing countries like Nigeria and Enugu State in particular.

BACKGROUND OF THE STUDY
It has been a view held by government, academic and business circles that, SMEs should be separate from big firms because of their distinct nature. As such SMEs face a chain of difficulty concerned to large firms or business organizations.
The Nigerian business environment offers many business opportunities. Since the enactment of the Nigerian promotion Decree of 1972, which was later revised in 1977, the economic environment has been conducive and encouraging for business pursuits. Not only that small industries division of the federal ministry of industry was instituted to further the interest of SMEs. In response, SMEs are springing up everyday since its establishment., And in encouraging continuity and growth , the Central Bank of Nigeria (CBN) through its policy guidelines for SMEs for each fiscal year, Oil mineral producing Area Development Commission (OMPADEC), Agricultural Development Bank (ADB), Nigerian Industry Development Bank (NIDB), Nigeria Bank for Commerce and Industry (NBCI), National Association for Small Scale Industries (NASSI), NGOS etc has been making concerted efforts towards assisting SMEs with different forms of loans.
Pathetically, the marketing rate of these SMEs is still relatively high due to lack of knowledge of loan procurements since most of the business operators are either ignorant or not familiar with the procedures and of-course importance of loans.
The need therefore to accord there SMEs special attention in loan procurement and procedures becomes a must do now that the economy of Nigeria is undergoing a total over handling. For there SMEs to function both effectively and efficiently, loans are essentially important the researcher deem it fit to study loan procurement potentials for SMEs and thereby evaluate its problems and prospects.

STATEMENT OF THE RESEARCH PROBLEM
There is no gain saying the fact that, business has been on the increase in Enugu State. This is so because of its being endowed with both human and natural resources and of-course zealous and dedicated people. That gave rise to the springing–up of various businesses. However, this is not without others going out if either difficult or impossible to obtain loans and or overdrafts from banks and other financial institutions. These difficulties led a handful to them operating at a very low level as a result of limited capital base. This inversely led to minimal profit, retardation and eventual death of there businesses. To that effect, this research would like to examine the issues behind such state of affairs.
Could it be as a result of inadequate capital?
Could it be lack of collateral security for loan procurement?;
Could it be as a result of inadequate knowledge of the range of sources of finance potentials open to them?
Or could it be due to businessmen by financial institutions and other bodies? All these and other functions prompted this study. An attempt will therefore be made to answer their questions and also offer some useful suggestions and recommendation.

LOAN PROCUREMENT PROCEDURES FOR SMALL AND MEDIUM SCALE BUSINESSES “PROBLEMS AND PROSPECTS”A CASE STUDY OF SOME SELECTED SMES IN ENUGU METROPOLIS