CHAPTER ONE
1.0    INTRODUCTION
1.2    BACKGROUND OF THE STUDY
    What is Nigeria Bank of companies? They are industries specialized in the provision of equity capital and loan for medium and long term loan investment to businesses, engaged in industries and commerce only.
    On the other hand, the Nigeria bank of companies was established to accomplish such specialized roles in the development of the economy marked the emergence of specialized banking in Nigeria. These are the Nigeria industrial Development Bank (NIDB) and the Nigeria bank for commerce (NBCI) and the federal mortgage bank of Nigeria (FMBN) they are Lagos established to take care of the agricultural and housing needs of the economy as these were not adequately catered for by the conventional banks.
    The Nigeria development bank also provides financial capital for industries either by way of loan grants of equity share. Initiation and proportion of industrial project especially those that are of a small scale business. And also the people and community banks are also important in sources of finance to small scale business ventures.
    The importance of small-scale business enterprises in the survival of Nigerian economy cannot be over emphasized. They have moved from subsistence for pre-indigenization period to a position of importance in the country industrialization process. In view of the importance of small scale industries in the development of any nation which is desired to have rapid and balance industrials development and which cannot affoed to ignore its small scale industrial sectors support. In this regard, the acquisition and utilization of financial resources are very important to every business venture specific attention on the small-scale businesses is base on the expected impact and potential contribution as well as their accelerated effect in achieving macro objectives pertaining to full employment, income, distribution and the development of local technology.
    Adequately, financial condition is necessary for the survival of small-scale businesses, whether the financial resources come from personal savings industrial sponsors, borrowed from bank or the public. The right financial mix is important for the success of this business venture. Banks as one of the major source of financial assistance to  business venture by the way of loans to supplement the shortfall inequity capital and management support to assist project to ensure survival. In many business, loan have become indispensable where sizeable amount of working capital is usually tied down in receiving incentives, bank loan usually supplement such shortage in working capital.
    there is no doubt that factors of production including capital are in short supply. Given the fact of this relative scarcity in capital coupled with the indispensability in any form in business organizations. A number of banks have been established with the objective of increasing the supply of capital to these business ventures. In Nigeria, commercial banks have been set up side by side with development banks as additional sources of capital to business ventures especially small-scale businesses.
1.2    STATEMENT OF RESEARCH PROBLEM
    In spite of the role of industrialization in general to the enhancement of the standard of living of people. The relevance and important role of small-scale business organization, in numbers of problem continue to impede the growth and development of small scale industries in Nigeria. Some of these problems responsible for the slow pace of industrial development in Nigeria are as follows.
i.    Inadequate technical know how?
ii.    Inadequate capital and funds and maintenance of infrastructure necessary for industrial growth
iii.    Lack of consistent, clear and purposeful industrial policy. It’s within the context of these problems that we shall be looking at the prospect of achieving government aspiration about designing policies to stimulate the growth of small scale venture in Nigeria.
Almost all the previous researchers in industrial development in Nigeria. It has been arrange argued that all other problems resolve around this very importance issues of lack of adequate fund for investment. It placed the problem of inadequate funds as the upper most impeding problem to the growth of industrial development in Nigeria. It is a sort of vicious circle because the people are poor, it becomes a very difficult task to raise substantial capital through private sources for commencement and expansion of industrial venture.
    Inadequate fund makes it impossible to hire the service of technical expert and purchase of modern equipment. This limits the scope of operation and robbed the business of the advantage in the economy of large-scale operation, thus, teaching how to achieve little return on investment.
    This in turn leads to stagnation of business that is no growth expansion. The extent to which capital shortage has inferred with industrial growth in the country which might have been exaggerated by previous authors. However, the importance which this government attached to find solution, to tie identified problems and the adequate supply of capital to business organization especially small scale ones for industrial growth and development in Nigeria which will be stressed in this project.