THE EFFECT OF FINANCING ON PERFORMANCE OF SMALL AND MEDIUM SCALE

Abstract
The Main objective of the project is to find out the effect of financing on performance of Small and Medium Scale (SMEs) in Pankshin local Government Area of Plateau State. The researcher employed a surveyed research design using one hundred (100) respondents with structured questionnaire under four (4) likert Scales to gain relevant information from the respondents. Thus, from the major findings, it was gathered that, Small and Medium Scale enterprise (SMEs) entails the bedrock of the industrial development of any country. Conclusion and recommendations were forwarded.

TABLE OF CONTENTS
Cover page – – – – – – – – – – i
Title page – – – – – – – – – – ii
Declaration – – – – – – – – – – iii
Approval – – – – – – – – – – iv
Dedication – – – – – – – – – – v
Acknowledgement – – – – – – – – – vi
Abstract – – – – – – – – – – vii
Table of contents – – – – – – – – – viii-x
CHAPTER ONE
INTRODUCTION
1.1 Background of the study – – – – – – –
1.2 Statement of the problem – – – – – – –
1.3 Objectives of the study – – – – – – –
1.4 Research Question – – – – – – –
1.5 Research Hypothesis – – – – – – –
1.6 Significance of the study – – – – – – –
1.7 Delimitation of the study – – – – – – –
1.8 Operational definition of terms – – – – – –
CHAPTER TWO
LITERATURE REVIEW
2.1 Conceptual framework – – – – – – –
2.2 The concept of small and medium – – – – – –
2.3 Role of the small and medium scale Business
Sub-Sector in the economy – – – – – – –
2.4 Significance of the SMEs Sub-Sector in the Nigerian economy –
2.5 characteristics of SMEs in Nigeria – – – – – –
2.6 problems and challenges of SMEs in Nigeria – – – –
2.7 The importance of SMEs Access to finance for Nigeria’s Development –
2.8 The state of microfinance in Nigeria – – – – –
2.9 Ways of financing and managing SMEs – – – – –
2.10 Sources of Business finance for SMEs – – – – -CHAPTER THREE
RESEARCH METHOD AND PROCEDURES
3.1 Research Design – – – – – – – –
3.2 Population of the Study – – – – – – –
3.3 Sample and Sampling Techniques – – – – – –
3.4 Instrument for Data Collection – – – – – –
3.5 Validity of Instrument – – – – – – –
3.6 Method of Data Collection – – – – – – –
3.7 Method of Data Analysis – – – – – – –
CHAPTER FOUR
DATA ANALYSIS AND PRESENTATION
4.1 Presentation of Preliminary Data – – – – – –
4.2 Demography Presentation – – – – – – –
4.3 Analysis of Questionnaire – – – – – – –
4.4 Testing of Hypothesis – – – – – – –
4.5 Discussion of Major Findings – – – – – –
CHAPTER FIVE
5.1 Summary of findings – – – – – – – –
5.2 Conclusion – – – – – – – – –
5.3 Recommendations – – – – – – – –
5.4 Limitation of the study – – – – – – –
5.5 Suggestion for further studies – – – – – –
References – – – – – – – – – –
Appendix – – – – – – – – – –

CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The production of goods and services in the most efficient manner has continued to be the only viable and reliable option for development, growth and survival of any economy. SMEs have been fully recognized by government and development experts as the main engine of economic growth and a major factor by extension in promoting the realization of the financial systems strategy 2020.This is because the development of this sub-sector is an essential element in the growth strategy, not only in contributing to improved standard of living; they also bring substantial local capital formation and achieve high level of productivity and capacity. From a planning stand point, SMEs are increasingly recognized as the principal catalysts for achieving equitable and Sustainable industrial diversification and dispersal and in most countries SMEs account books, questioners and other material will be the sources of information for the research for well over half of the total share of employment, sales and value added (Udechukwu, 2003). This is not surprising because the industrial sector in Nigeria has no significant record of meaningful contribution to economic development since independence in 1960 because it has not experienced any notable growth, traceable to indigenous industrial entrepreneurship (Adewale, 2007). The Nigerian economy, since the early seventies, has been dependent on oil products. As a result of the enormity of revenue generated from oil, very little attention has been paid to proper development of the industrial sector. The reason for the lackluster performance of the industrial sector is mostly associated with the poor attention paid to the promotion and development of the small and medium scale sub-sector, which is accepted worldwide to be the engine of economic growth and the basic foundation for the industrialization process of any nation that desires to experience solid development. This is more so because entrepreneurship development is a critical aspect of skills development and keystone for economic revival and growth.
1.2 STATEMENT OF THE PROBLEM
Several research conducted have identified financial constraint as the major obstacle to Small and Medium Scale Enterprises Development in developing countries including Nigeria. For instance, Adelaja (2003) argued that the access to institutional finance has always constituted a pandemic problem for SME development in Nigeria. He recalled that in the past, a number of schemes have been put in place to provide special credit lines/windows for SMEs but this achieved very limited impact. The primary focus of this study emanates from the fact that small scale enterprises owners do not have sufficient finance to carry on their due to the low saving culture of the people in this part of the world. The reason for this is not far fetch: low level of income basically. While it is an established fact that Small and Medium Scale Enterprises face financial challenges, no research has been conducted to investigate the effect the financing the performance of small and medium scale business in pankshin. Abigail (2005) and many other authors and researchers have deduced that the financial challenges mar the developmental role of Small and Medium Scale Enterprises.
Therefore there is need to examine the effectiveness and efficiency in the implementation of accounting record in small and medium scale businesses. Enterprises face accounting challenges. Therefore the study seeks to evaluate the Accounting practices of small and medium scale enterprises (SMEs).

1.3 OBJECTIVES OF THE STUDY
The objectives of this research is to:
1. To examine the sources of finance of SMEs.
2. To examine how SMEs manages and Utilizes finance.
3. To examine the challenges faced by SMEs in raising finance.
4. To suggest ways that can improve funding and financing SMEs
1.4 RESEARCH QUESTIONS
The research question provide a framework and guidelines through which substantial knowledge of the research study can be understood.
The research question asked includes:
1. What are the sources of finance of SMEs?
2. How do SMEs manage Expenditure and utilization of finance?
3. What challenges do SMEs face in raising finance?
4. What can be done to curb the problem faced by SMEs in economic development?
1.5 RESEARCH HYPOTHESIS
The relevant research hypotheses for this study are specified in null form as follows:
Ho: There is no any significant effect of financing on the performance of small and medium scale enterprises in PankshinLGA.
1.6 SIGNIFICANCE OF THE STUDY
The study is significant as it would add to existing literature on financing (debt and equity) and how it affects small and medium scale enterprises and the economic growth of Nigeria. It will serve as a guide to further research, academic work and as a self-help study material for those who might wish to get firsthand knowledge about financing SMEs and how it benefit business enterprises.
1.7 DELIMITATION OF THE STUDY
However research was limited to small and medium scale enterprises operator in pankshin LGA (plateau state) due the schedule of the researcher
1.8 OPERATIONAL DEFINITION OF TERMS
SME; Small and Medium Scale Enterprise
FINANCING; Financing is the process of providing funds for business activities, making purchases or investing
PERFORMANCE: The accomplishment of a given task measured against preset known standards of accuracy, completeness, cost, and speed