CHAPTER ONE
1.1    INTRODUCTION
In the recent years, the experience has shown that it is a known fact that is both developing and developed nations, that small-scale business from the bedrock for rapid and sustainable growth and development of national economics.
Therefore, in reality, Nigeria is underdeveloped nation where small-scale business are not well developed to number of factors, improper finance and economy depression and the government has emphasized and encourage the development of large industries which are party owned by Nigeria and foreigners.
    Small-scale business finance by an interested investors requires the business to be a sound management good business and long term survival.
    It is understandable that the main objective behind the establishment of small-scale business is to make profit, and the continuous survival of the business but, in most cases, small-scale business to fail even with good ideals because of finance and economy depression.
    In a depressed economy, careful finance planning is a continuing necessity. A current shortage of funds is see and agreed that finance is pillar of any small-scale business.
    Finance constitute the major success factor if a small-scale business is financed in economy depression depends upon the yardstick and investor is using in lending, it’s money to the growth of business.
    It must be categorically state that banking institution is not the only way of raising fund for a small-scale business, we also have individual financials and credit facilities granted by suppliers.
    Some of the small-scale business ranges from sole-traders, wholesalers, retail business, partnership enterprises, co-operatives societies such as food processing, leather industries, garment industries, printing, candle making, soap and detergent making, agricultural processing and block industries.
    As a catalyst to the economies the importance of small-scale business need not to be over emphasized especially in a less industrial state like, kwara state which has in recent times been given reasonable suitable incentives, mostly design to complement finance and management to these small-scale business so as to create employment opportunities and boost the economic activities of Kwara State, mobilization of resources and minimize rural-urban drift.
    With above introduction, small-scale business is very important if the national economy will have to develop.
1.2    STATEMENT OF RESEARCH PROBLEM
The small scale industry is acknowledged to have huge potential for employment generation and wealth creation is any economy yet in Nigeria, the sector has stagnated and remains relatively small in term of it contribution to GDP or to gainful employment. Activity mix in the sector is also quite limited-dominated by import dependent processes and factors. Although, there is no reliable data, imprecise indicators show that capacity utilization in the sector has improved perceptibly in the period since 1999. But the sector is still faced with a number of constraints (such as low patronage, low technical know, limited market, poor infrastructures, lack of incentives etc.) with lack of credit availability as the principal constraint. It is in the light that the main thrust of this research work will focus on the effect of structural rigidity which often characterize economic depression on the growth of small industries in Nigerians.
1.3    AIMS AND OBJECTIVES OF THE STUDY
The objective of this study is to analyze and highlight the utmost relevance of small-scale business finance in Kwara State economy in a manner to find ways to improving areas that are below business expectation.
The predominance of small scale in kwara state coupled with the ineffectiveness of the banks in meeting the needs of small-scale business and economic depression which affect the while, which makes one presume that government should rise up to the task.
Furthermore, the objectives of this study are:
-    Examining the state of small-scale business in a depressed economy.
-    To examine the different alternative sources of finance opened to small-scale business in the development of less developed state as kwara state.
-    To examine the role of small-scale business in the development of less developed state as kwara state.