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LEASING AS A MAJOR FINANCING DEVICE FOR SMALL SCALE INDUSTRIES IN ENUGU URBAN (A CASE STUDY OF HAPEL NIG. LTD)

TABLE OF CONTENT

CHAPTER ONE

Introduction                                                                   1

1.1     Background of the study                                                         1

Statement of the problem                                              4

Objective of the study                                                    4

Scope of the study                                                                   5

Research questions                                                        6

Significance of the study                                                7

CHAPTER TWO

Review of literature                                                       8

2.1     Definition of small scale enterprise                                8

2.2     Financing enemies for small scale enterprise                 10

2.3     Concept and evolution of leasing                                   18

2.4     Types of leasing                                                             21

2.5     Central bank guidelines and leasing                               26

2.6     Summary of related literature                                        28

CHAPTER THREE

Methodology                                                                 30

3.1     Research design                                                             30

Area of study                                                                 30

Population of the study                                                           30

Sample and sampling procedure                                    31

Instrument for data collection                                        32

Validation of the research instruments                          32

Reliability of the research instruments                           33

Method of data collection                                              33

Method of data analysis                                                          34

CHAPTER FOUR

Data presentation and results                                        35

CHAPTER FIVE

Discussion, implications, recommendations                            44

5.1     Summary of findings                                                     44

Discussion of results                                                      45

Conclusion                                                                     50

Implications of the study                                                         50

Recommendations                                                                   51

Suggestions for further studies                                                53

Limitation of the study                                                  53

References                                                                      55

Appendix                                                                       56

LISTS OF TABLES

Table 2.1:             Bank loans to small-scale enterprises as at

31st December 2000

Table 2.2              Actual lease portfolio of merchant banks loans advance

and advances mattered against central bank prescribed ceiling.

Table 4.1              Responses from the respondents on the extent of small-scale industries obtaining adequate institutional credit.

Table 4.2             Responses from the respondents on if they are aware of

the lease financing technique whereby companies can procure required plant and machinery without making an outright payment for them.

Table 4.3:             Responses from the respondents on if their company

made any effort in order to finance their company through leasing.

Table 4.4:             Responses from the respondents on if the use of leasing

resulted to any advantage.

Table 4.5:            Response from the respondents on if their company will

be in the positive to advise other companies to resort to leasing as means of finance to their companies.

Table 4.6:             Responses from respondents on whether merchant banks

help small scale enterprise in getting lease facilities.

Table 4.7:             Responses from respondents on whether merchant banks

helps small scale enterprise in getting lease facilities in accordance to with the central bank prescribed ceiling on lease portfolio.

ABSTRACT

Small-scale enterprises like Hapel Nigeria limited generally suffer from lack of adequate finance. The introduction of the structural adjustment programme compounded the problem such that the enterprise could hardly finance the fixed capital requirements.

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