CHAPTER ONE
1.0    INTRODUCTION
    Many people have the anonymous belief that Nigeria can become industrialized only through the establishment of large industries. But if one should look critically in to the industries development of the economically developed countries it shows that for a genuine industrial take off in a number and improving the performance of indigenous owned small-scale industries, In the investigation of the entrepreneurial phenomena Enmill (1934) observed that the characteristics features of an entrepreneur include direction supervision, control and risk taking. It is affinity for risk, which distinguishes him from the manager. But according to Schumpeter (1934) emphasized innovation rather than risk taking as the most important distinction between the two. In his opinion an entrepreneur’s goal broadly defined, is to develop new product or services as well as new method of production identify new market, discover new sources of supply and develop how organization forms.
    It is no gain saving that the industrial section has contributed immensely, to the economics and social development in Nigeria, the importance of the small-scale industries has been recognized by the federal government of Nigeria claimed that play especially to the creation of employment opportunities, mobilization of local resources and the diminution of rural-urban migration.
    Small-scale industries are indispensable in the national economy. Since large scale industries depend on it. Hence the path to rapid economic development will depend to a large extent on the efficiency of this sector.
    Therefore, the importance of the industrial sector in modern economic is universally accepted the developing countries have since 1990’s. Shown greater interest in the promotion of the growth of small scale industries (SSI) for three main reasons.
(a) The failure of past industrial police, which anchored on the establishment of large firms to generate self sustaining growth.
(b) Increased emphasis on self reliant to development and greater attention paid to aspect of development other investment and output growth.
(c) This other elements of growth small-scale industry sector (SSI) contribute to include more economic use of resources more employment creation p unit of capital investment. Mobilization of domestic savings bar investment, development, great utilization of level resources and more equitable income distribution. Another justification for the interest, in the experience that growing and dynamic small enterprises have growing in to large ones and have contributed substantially to national development objectives.
1.1    STATEMENT OF THE PROBLEM
    All over the World, inadequate access to finance is one of the major objectives inhibiting the establishment and growth of small business firms.
    The finance problem of the small business firm is more serious in the developing countries than in the developed countries in developing countries like Nigeria.
    There is need for improved ways of financing the small business firms but at the same time the needs are difficult to satiety.
    For a very long time now the medium and large scale firms, have been receiving more financing alternation at the expense of the small firms.
1. While the Nigeria industrial development bank (NIDB) and the Nigeria Bank for Commerce and Industry (NBCI) reserve their financial assistance for the medium and large scale enterprise, the small business firms cannot be said to have such special development institution set up solely to cater for their finance needs. It was until 1973 that the Nigeria Bank for Commerce and Industry under took the responsibility of channeling and coordinate loans and credit to small business firms. Since then, the Nigeria Bank for Commerce and Industry has been playing the role of an apex institution.
2. The small scale industries in Nigeria have other problems apart from that of finance; managerial inefficiency is one of such problems. Other include lack of infrastructural facilities, mobility to attract skilled manpower poor making facilities and inaccurate accounting records keeping, this study will however focus attention on the problems of growth and development facing small scale industries.