This study focused on the problems of financing of a small scale business with a case study of a garri processing industry in Enugu. Small and Medium Scale enterprises are important in the economic development of many countries (Braun, 2003a, Eunni, Brush & Kasuganti, 2007; Golding, Donaldson, Tennant & Black, 2008; Berisha-Namani, 2009). As such proper financing is paramount. This study focused problems SMEs face in accessing finance considering it’s the main factor to consider while setting up a business. The purpose of this study include: Examine the sources of finance the garri processing industry, Determine the extent of financing from the government and banks, Determine the effect of use of existing financial strategy on the growth of SMEs.

A survey research method was adopted with a systematic sampling technique was used and ANOVA was used for the analysis. After result from the study was discussed some recommendations were provided.




It is necessary to stress the point that to succeed in business require some measure of discipline.  Most industrialist expect to make a reasonable profit from the investment of time and resources, that they have to make in other to bring a project to fruition.

        While this may sound simple enough, the bother line is the fact in an economy wide context, the rate or level of reward that can accrue to various level of effort, discipline and productivity should never be allowed to get out of proportion in relation to effort put in.

        Experience has shown that industrial pursuits have been found to yield for the patient and disciplined industrialist rather than stand for business concern with all kinds of effort mostly unproductive and require no legitimate effort to reap profits in multiple fields.

        After considering the above mentioned statement of facts about industry.  The question is how far are we from being industrialized bearing in mind that it yields for disciplined and patient industrialist, all things being equal.

        Taking cognizance of the fact that a step forward is the beginning of a mile.  Some, therefore Nigeria’s business industrial evolution will only start when positive steps are taken towards adequate financing of small scale business.  The experience of newly industrialized countries has been an eye opener.

Finance is the greatest problem we are likely to face whenever we talk of establishing a small scale industry.  This is the most crucial aspect of business enterprise and a lot of controversy surrounding the problem of inadequate finance. A close look on the small scale industries/business, all over the country would help to throw further light on the effect of lack of fund on growing business.  The drastic effect is mostly felt when one tries to study the rate at which our young industries are gradually collapsing.  Even surviving ones are terribly looking for assistance that they are not sure of.

        Funds are scare, hence the growing industries as regarded in this part of the world as never-do-wells especially Nigeria.  When an economy is shaky, growing industries in that economy tend to suffer most and usually stand the taste of time.  Hence, an increase in the number of causalities in this regard.

        The researcher aimed at exploiting the possibilities, problems of financing small scale business/industries.  The project centers on management and financial problems

1.2 Statement of the Problem

Finance has been identified as the major underlying requirement and an important input factor in the development and industrialization effort.  Plant, machinery and equipment must be paid for as well as the development of managerial and technical expertise. The need for finance is seen as essential in the creation of a general economic environment conducive to sustained economic development. The task of development therefore, must involve the conversion of finance into the requisite factor inputs and the efficient deployment of such inputs.