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CAPITAL ACQUISITION AND ITS EFFECTS ON SMALL SCALE ENTERPRISES IN ENUGU STATE (A CASE STUDY OF SOME SELECTED SMALL – SCALE ENTER – PRICES IN ENUGU STATE)

CAPITAL ACQUISITION AND ITS EFFECTS ON SMALL SCALE ENTERPRISES IN ENUGU STATE.


(A CASE STUDY OF SOME SELECTED SMALL – SCALE ENTER – PRICES IN ENUGU STATE)

ABSTRACT


          This research work title “capital Acquisition and its effects on small –scale enterprises is aimed at unveiling the various source of capital available to small scale business and cost attached to each source for adequate decision making in the choice of each. It is also aimed at spotlighting the causes of inconsistency in the operations of small business in the state.

To achieve the above certain hypothesis are developed. Tested and analyzed through the help of questionnaires distributed to the various small scale business under study. The response which constitutes the data collected.

The testing of these hypothesis was done through the use of Ch—square.

[X2 = (O – e)2]

The decision rule was either to accept the alternative hypothesis or the null hypothesis. After testing the hypothesis formulated, the alternative hypothesis was accepted that “the capital acquired by small –scale enterprises has significant effects on its growth and expansion  for the development of small – scale enterprises.

PROPOSAL


Project topic:

“capital acquisition and effects on small scale enterprises in Enugu state” a case study of some selected small scale enterprises in Enugu state.

 

Capital acquisition remains an indispensable variable in and aspect of small scale enterprises development. It roles in the life of the enterprise development. Industry, commerce, health, educational, tourism, amongst others are unquestionable remarkable. Because capital Acquisition is the engine and primary basis of the growth and success of a small scale enterprises. It is accorded much attention because 75% the success of the small scale enterprises is dependent on the capital Acquisition of the enterprises.

It is the intension of this research to study and investigate on the capital Acquisition relevance, effects and importance’s on  small scale enterprises. The problems associated with capital Acquisition and the government polices affecting small scale enterprises.

A case study scale selected small scale enterprises in Enugu state will be used in carrying out the research work. The researcher will visit the case study and administer questionnaires to respondents and there will also review of related literature, use of library materials, journals and magazines. These will make up the primary and secondary data needed for project work.

Conclusion and recommendations will be on the data collect and analyzed.

CHAPTER ONE

INTRODUCTION                                                                            1

  • BACKGROUND TO STUDY 2

  • OBJECTIVE OF THE STUDY 3

  • STATEMENT OF THE PROBLEM 3

  • HYPOTHESIS 3

  • SIGNIFICANCE OF THE STUDY 4

  • SCOPE AND LIMITATION OF THE STUDY 5

  • DEFINITION OF TERMS 6


 

CHAPTER TWO

LITERATURE REVIEW                                                        7

  • ROLE OF SMALL – SCALE BUSINESS IN THE DEVELOPMENT OF THE ECONOMY 7

  • GOVERNMENT POLICIES AFFECTING


SMALL –SCALE BUSINESS                           11

  • SOURCES OF CAPITAL FOR SMALL BUSINESS 12

  • FACTORS AFFECTING CHOICE OF CAPITAL 28

  • EFFECTS OF CAPITAL ON THE OPERATION,


GROWTH AND EXPANSION OF SMALL SCALE BUSINESS                                                                                       32

 

CHAPTER THREE

  • INTRODUCTION           37

  • SOURCE OF DATA COLLECTION 37

  • INTERVIEW QUESTION 39

  • POPULATION AND SIZE DETERMINATION 40

  • METHODS OF INVESTIGATION 43


CHAPTER FOUR

  • INTRODUCTION 45

  • PRESENTATION OF DATA 45

  • TEST OF HYPOTHESIS 68


CHAPTER FIVE

FINDING, CONCLUSION AND RECOMMENDATION

  • INTRODUCTION 72

  • SUMMARY OF FINDINGS 72

  • CONCLUSION 75

  • RECOMMENDATION 75


BIBLIOGRAPHY                                                                   80

 

 

 




CHAPTER ONE

  • BACKGROUND TO STUDY


Recent years have seen small – scale enterprises coming up tremendously due to the resulting evils of crime, social instability, political unrest and unemployment that plagues Nigeria and bite very hard on the large scale industries.

Finance in the actual sense is the blood or life wire of enterprise system so haring easy access to it is important, but managing it will be more important to the economic development of a business enterprise in the state and country as a whole. According to A.S Hornsbly. ”finance is a science of management especially public fund” (money), from the above dictionary meaning of finance, it is expected that investor’s money be managed in such a way that could be of great benefit to them.

It is on this background and in view of the fact that small –scale enterprises have come to stay and one find it necessary to appraise their financial management.

This work will be concentrated on capital (finance) acquisition and its effect on small scale enterprises in Enugu state.

 

  • AIMS AND OBJECTIVE OF THE STUDY


                    Business enterprises depends greatly on finance for adequate growth and expansion at all levels of operation since small business enterprises play a great roles in the economic development of Enugu state, this study, aims at providing the varying effects the acquisition of capital has on the development of small –scale enterprise.

It also aims at providing recommendation undertaking and how they are properly managed to effect adequate development and growth of small –scale business in the state.

 

 

 

 

 

  • STATEMENT OF THE PROBLEM


The problem of acquiring capital to set up small scale enterprises is not peculiar to Enugu state alone but affect other state and developing counties also.

In recent times we have witnessed enterprises rising each day to reach their peak in the next day and suddenly go right down again and even repudiates in less than no time.

This research work is set to address the  following problems.

  1. To what extent has finance; at all is actually constraint to the growth of small business enterprises in the state.

  2. Is lack of effective management of the acquired capital a hindrance to the growth of small –scale enterprises in Enugu state.


 

  • HYPOTHESIS


                   Hypothesis are testable statements, logical or conjectural proposition requiring fact and their interpretation to determine their validity. Basically, there are two types of hypothesis, there are the null hypothesis (NH) and the alternative hypothesis (AH). The null hypothesis is the that is stated as a “no difference” form. The alternative hypothesis on the other hand is on that will have to be accepted if the statically null test fails. For the purpose of this study. The following hypothesis have been formed.

Ho1 – The capital acquired by small scale enterprises has significant effects on its growth and expansion

Ho2 – The management of finance (that is, the capital acquired is responsible for the development of small – scale enterprises

 

  • SIGNIFICANCE OF THE STUDY


                   This research work will be benefit for the following:-

  1. Future researchers:- This will act as reference material for future research purpose.

  2. entrepreneurs:- These include both the existing and pot entail entrepreneurs to make amendments where there are short comings for effective running of small scales business in the state .

  3. It will also be of benefit to analysis who wishes to carry out research on the related topic.


 

1.6    SCOPE AND LIMITATION OF THE STUDY

This research work is to study the various sources of finance available to business enterprises in Enugu state as a whole.

Due to some limiting factors, the work only covers some small scale enterprises in Enugu North and South, 9th and Nnsukka towns as against the entire state. The coverage of this work is limited because of the lukewarm attitude of some business owners to disclose all the information needed or the restriction of certain information provided to be published there are also time and  constraint due to other academic works.

1.7    DEFINITION OF TERMS

Capital  - capital is the fund used in financing a business or to capital can be cash or assets.

Acquisition this simple means acquiring to acquire or get possession of something. Acquisition in this respect refers to how to acquire funds or finance.

Hypothesis – this is guard for the research topic. It tells on the relationship between capital acquisition and small – scale business and its or relation.

 

Questionnaire – A paper containing questions requiring answer sent to people to filled for the purpose of finding facts. It is also a device for data collections

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