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.
1.4 SIGNIFICANCE OF THE STUDY
The project work will be of help to the owner of small-scale business and managers even the intending entrepreneur in their application of fund, it will also review the ability of a owner of small-scale business with respect to the economy and the available resources.
It is expected also to and the owners in planning and controlling of fund in a depressed economy.

Also is the proper application of the available resources.
The study will also be useful as a guide to government agencies and policy makers on small-scale business in kwara state economy.
Finance particularly in kwara state and also in depressed economy, the business available sources of fund during economic depression, the role of entrepreneur of small-scale business in economic depressed and kwara state as it geographical scope of the study.
More so, the research work would cover only four local government areas of the state as its population scope because the researcher belief that those areas are areas where business enterprises are well practice and managed.

The areas are Offa, Ilorin west Kwara state.
Also, every important, the research work would cover certain which forms its industrial scope such as furniture works, fashion designers, block industries and leather work.
Because of time and financial constraint, the research work is limited some local government areas in the state with little or more business oriented activities on which this research as based upon.
Another area of limitation is the finance open to a business.

The sources of fund available to an industries, the impact of a depressed economy on the state business.
Regardless of the constraints, believe that in this research work, the deduction will be useful for generation.
1.5 RESEARCH QUESTION AND HYPOTHESIS
The research question, which would guide this study are as follows:
i. What factor hinder the growth of small scale enterprises during economic depression?
ii. To what extent has the government contributed to the promotion and growth of small scale enterprise in Nigeria.
iii. What are the economic potentials of small scale enterprises.
iv. How could the problem identified above be solved so that the growth of small scale enterprises could be enhanced in Nigeria.
STATEMENT OF HYPOTHESIS?
HYPOTHESIS I
Ho : That there is no relationship between economic depression and growth of small scale enterprises in Nigeria.
HYPOTHESIS II
Ha: That small scale enterprises are economically productive.
1.6 RESEARCH METHODOLOGY
The reliability and validity of any survey depend as upon a number of factors.
Among these, are the method used in gathering and analyzing information for the survey.

In recognition of this, the method for this research are stated.
Two set of data collection would be used in the cause of this study.

This are primary and secondary sources of data.
The primary data is a raw fact collected or gathered for the first time for the purpose of the study.

The primary data are collected through the use of questionnaire and this would be design and said to the respondents.
The use of questionnaire would be supplement with personal interview with appropriate stratified sample selected business.

Questionnaire to be used because of dispel areas to be covered.
The secondary data are data originally or collected for purpose other than solution to the research problems that is research problem other than one question.
The secondary data were obtained from text books, newspaper and business journals which discuss the subject matter would be consulted for information.