EFFECT OF FINANCING SMALL SCALE INDUSTRIES ON BUSINESS GROWTH IN IMO STATE (A STUDY OF MIFID TABLE WATER MBAITOLI)

This study is on challenges of financing small scale industries for business growth in Imo state, in the quest to draw conclusion to the work, the research formulated research objectives, the research questions was also derived from the research objective. Two major hypotheses were formulated. The method of data collection was both the primary and secondary data. While the simple percentage method was used for data analysis. The findings revealed that There is significant relationship between unfavourable government policies and business profitability as seen in the testing of hypothesis generated in chapter one, more so, small scale business owners prefer to use other means of financing their business other than going to the bank for finance. This is caused by the aforementioned reasons above. It was concluded that Despite the great contribution of the micro-industry to national economic development, this category had been neglected by government, the same was the banks and other formal financial organizations abandoned them. They suffer poor technology, inadequate infrastructure, poorly packaged, managed and promoted incentives, and worse still, poor access to finance, information and the real growth. However, It was recommended among others that government can help in reducing the processes involved in seeking funds by small scale business owners to finance their business. This should be done if the government intends to have a sustainable economic development. Also, the government agencies that are established to support small scale business in the country should be closely monitored to avoid diversification of the fund meant for small scale business.