ASSESSMENT
OF NATIONAL POVERTY ERADICATION PROGRAMME (NAPEP) IN FINANCING SMALL SCALE
INDUSTRIES IN KADUNA STATE
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The research work is to assess the Impact of National
Poverty Eradication Programme (NAPEP) in financing small scale industries. The
role of government agencies towards the development of small scale enterprises
is quite interesting. These enterprises have a very important impact on the
life of everybody in the society. Small independence businesses are everywhere
and in every line of work, they can also be seen in every community. This
business is as old as man. So virtually everything is done in life involved the
element of business. Small scale enterprise constitutes an importance in
today’s business activities or system. The role of small scale enterprise in
our economic history however, has been one of the distribution and
contributions.
Although
its relative importance has decline with the growth of the big business, small
scale business is still the major contribution to the countries economy.
Business in Nigeria today is made up of both large and small business. Today
small scale enterprise have to enjoy more prestige than ever before because of
its vital contribution to the nation’s economy. So vital is small scale
business. There are successful small scale enterprise operating like the
manufacturing plants, retails, stores, wholesales, drugs, computers,
construction firms and hundreds of other type of business.
Nigeria
population was estimated to be 140 million in 2007 with about 75% of this made
up of small scale enterprise operators. Lack of full study of government
agencies in the development of these enterprises especially, the financial
institution made it impossible to know
the size, structure and function of these small scale business to the
development of the economy.
Government
agencies are charged with the responsibilities among others to carryout duties
and deliver utilities as may be regulated from time to time on behalf of the
government for the purpose of uplifting the standard of living. Government
agencies such as the National Poverty Eradication Programme (NAPEP).
NAPEP
aims at eradicating absolute poverty in Nigeria, through the streamlining and
rationalizing of exiting alleviation institutions and implementation of
relevant schemes and programmes. NAPEP was established in 2001.
Different ministries and agencies were recognized as core poverty alleviation
ministries and agencies. Some of these ministries and agencies are:
Agricultural and Rural Development, Education, water resources, Industry,
employment, labour and productivity.
1.2 STATEMENT
OF THE PROBLEM
Most
government agencies have undergone number of re-organization especially which
affect their forces and activities that lead to effective performance and lack
of proper control on their activities.
The
most obvious problems of NAPEP is how to produce or provide efficient financial
resources, technical assistance, security on loan given out to customers,
evaluation of projects that are financed which may take more time than stated
at the beginning. Also, the project time
table, which depends on nature and complexity of the project, it may take one
to two years sometimes longer from when the project was identified to when it
was commissioned.
On
the part of small scale enterprises (SSE) how effective are they utilizing the
services rendered to them by NAPEP. Also are they able to cope with the
policies adopted by this agency in obtaining loan and other services rendered
such as interest rate on capital collateral facilities and the role of
government.
1.3 OBJECTIVES
OF THE STUDY
1. To
assess the impact of NAPEP in financing of small scale businesses in Kaduna
state.
2. To
analyze the various ways by which NAPEP has contributed effectively to the
development of the economy.
3. To
find out the role of small scale business in the development of the economy in
Kaduna.
4. To
highlight some of the government policies that help in financing and developing
small scale enterprises.
1.4 SIGNIFICANCE
OF THE STUDY
The
significance of this study cannot be overemphasized as it is a prerequisite for
the award of Higher National Diploma in Business Administration as such it is
important to the researcher.
The
study will also enable government officials, that is, the bureaucrats and
policy makers to know whether the programme actually contributes positively on
the lives of the people especially in Kaduna State, so that both government and
policy makers can adopt the policy programme, as well as implementation
strategies that will avoid mismanagement and misdirection of the nation’s
scarce resources.
The
study is also significant as it seeks to verify whether the policy programme is
beneficial with its impact being felt on Small Scale Enterprises.
The
study will in the end suggest possible ways through which government policy
programmes can be improved or effectively implemented, especially those
programmes that relates to the economic wellbeing of the people.
The study will apart from addition to
general knowledge, will also reveal issues that can be of theoretical
importance to the academicians in other field.
1.5 RESEARCH QUESTIONS
1 What
is the impact of NAPEP in financing of small scale business in Kaduna state?
2 What
are the various ways by which NAPEP has contributed effectively to the
development of the economy?
3 What
is the role of small scale business in the development of economy in Kaduna?
4 What
are some of the government policies that help in financing and developing small
scale enterprises?
1.6 SCOPE
OF THE STUDY
The researcher for the purpose of this
project work wishes to limit her study to National Poverty Eradication
Programme (NAPEP) as it relates to financing of small scale enterprises. This
study will cover the area of activities and role played by the government
agency
1.7 LIMITATIONS OF THE STUDY
In
any research undertake it is usually associated with some constraints. Some of
the constraints of this research work include the following:
a. Available data: in no small measure,
incomplete and inaccurate data also provide a lot of difficulty in carrying out
this research work. As a matter of fact it is because most of the senior staff
were either too busy running their official responsibility that made them
hardly to give the researcher the needed time to gather information or they
were not just willing to do that, though some did cooperate just like most
senior staff.
b. Time constraint: this was the biggest
constraint faced by the researcher because combing rigorous drilling of the
institution i.e. lectures, assignment (both individual and group), test etc. on
carrying out the research work made it virtually impossible to dedicate all the
time needed to carry out this research work mostly easily.
1.8 DEFINITION OF TERMS
Entrepreneur:
A person who makes money by starting or running business, especially when this
involves taking business risks.
Business:
Activity of making, buying, selling or supply goods and services for money.
Industries: The
production of goods from raw materials. The people and activities involved in
producing a particular thing or service.
Capital:
Amount of money that is invested or is used to start a business.
Poverty:
The state of being poor, conditions of abject/extreme poverty.
Alleviation:
To make, less severe, ease.
Investment:
the act of investing money. The act of giving time or effort to a particular
task in order to make it successful.
Marketing:
This is a total system of business activities designed to plan price, promote
and distribute wants, satisfying product and services to present to a potential
customer at profit.