FINANCING SMALL SCALE INDUSTRY
Oredo is one of the local government area in Edo state. Its headquarter is Benin city which incidentally is the capital and administrative centre of Edo state. Oredo is situated between latitude 60 and 60, 120N and longitude 50 ,45 E. The traditional inheritance of Edo state Government Areas are Binis who are the Edo speaking people. However, English language is used for day to day commercial activities in the area.
Economic activities of the people in Benin city are many and varial ,the traditional occupation of the people are farming, sculpture, cloth weaving, poultry, brass-casting, blacksmith, menting, traditional e.t.c
Today, however industries and large commercial concerns are fast springing up, Benin has a good number of industries. It has the infrastructure and the market potentialities to encourage industries which are market oriented.
According to peter M.A, which says in the basic business management 1972 that states among Benin many Economic activities are saw-millers, rubber processing, manufacture of confectioneries, making of soft drinks, breweries of lager beer and poultry keeping which is the main focus of the study.
The elites and educated ones in Oredo local government area are mainly civil and public servants employed in government offices, marcentle houses and in banks in Benin city are mainly commercial and others, they undertake all normal banking services and other miscellaneous services. The dormant economic activities of the people as earlier mentioned can be from through personal selling, borrowing from friends, relations, Banks and other financial institution as well as ploughing back profit.
Ensminger M.E state that the term poultry covers rather a wide variety of birds consisting of several spaces. It includes chicken, duck, geese, guneia fowl e.t.c.
In most villages in Oredo local government area, a large number of domestic fowls are found roaring about. This is the local way of rearing birds under the free range condition. A farmer may own one or more hen or cocks. Virtually no care is taken of the birds can pick up for themselves by hatching there. As a result, much finance was not needed because production was on a substance basis.
In some places like Benin city, Sapele and Uromi to mention just a few, the poultry industry has been seen as a specialized industries by the people. Poultry industries has not attained the maximum level of output because of lack of co-ordinated policy at both the national and state level with regard to financing technological and managerial assistance not withstanding poultry farming yields the quickest return of all known living stock farming. It can also be established with a minimum cost. This industry provide several employment opportunity both in the private and public sector of the economy. About 30% of the Nigeria labour force has been attributed to small scale industries ,so emphasis is now on commercial production and effective management of this lucrative business for the government to help finance this important industries.
1.2 STATEMENT OF THE PROBLEM
The system of financing poultry industries has numerous problems which have led to poor performance of small scale poultry industries in Oredo local government areas.
1.3 RESEARCH QUESTION
1. Does financial constrain makes it difficult for these poultry farmers innovate or carry out research work. acquire new plants and machines as well as capital for improvement
2. Does lack of improved method of poultry management affect the production level.
3. It is true that government and other organizations are fully involved in poultry management in poultry industries.
4. Despite the quick rate of turnover in poultry business, are there still enough competent farmers.
5. Does a survey carried out in Benin city shows that these farms were related, neglected in terms of credit allocation?
In view of the above stated, problem comprehensive study has been carried out on the causes of these problems and with a view of finding solution or remedies.
1.4 OBJECTIVES OF STUDY
The main objectives of these study is to examine the various source of finance available to small scale poultry industries in Oredo local government area. A complimentary objectives is to identify the problems encountered by poultry farmers in obtaining loans in other to enhance their contributors to the economic development of this nation in general and Edo state in particular.
The hypothesis of this study is that the poor performance in the poultry industries is depended on the following.
i There is no significant difference between poor finance and lack of skilled management in a small scale poultry industries.
ii There is no significant differences between poor farmers performance and good capital utilization rate
Data’s for this study will be obtained mainly by relying on available published data, such as the use of libral research working through past project, journals magazines and the natural duties.
To obtain primary data, I have to pay a visit to the poultry farmers, ministry of financial institutions were also visited in addition, interviews were conducted orally questionnaires were used.
1.8 THE NEED FOR STUDY
Besides adequate man power, need finance to finance another major contributed to the growth of any industry one will readily find out that even associated with the growth of industries centre on finance hence the research of its nature (source and problems of financing small scale poultry industries.
This study can be recommended to the state federal government and financial houses for a deep and wider study.
1.9 DEFINATION OF MAJOR CONCEPTS AND TERMS
1. POULTRY: Consist monthly of local reared under free range conclusion. It is the different categories of birds, duck, chicken e.t.c.
2 POULTRY INDUSTRY: Is a farm yard where birds are reared for the roduction of eggs, and where feeds are purchased for the birds.
3. DOMESTICATED: Rearing of birds in the poultry farm.
4. FINANCE: It is concerned with the raising and management of funds y big firms.
5. SHORT TERM CREDIT: This is a loan that is suppose to be paid back later or a short period of time.
6. LONG TERM CREDIT: Repayment of loans made over several years profit.
7. CREDIT: Credit is the borrowing of money by the farmers from credit institution in other to increase production.
8. INPUTS: These resources which are used in production process.
9. OUTPUTS: The total item produce such as eggs on birds at a given period of time.
10. FINANCIAL HOUSE: These are government private institution that assists investors financially in carrying out their business effectively.