Project Body:

Chapter one


  1. Problem identifiction/statement of problem

Over the years, unemployment has been a common problem, which almost every nigerian suffers.

According to nwabueze (2003), “the most affected among these unemployed resources is human labour.

          The government policy makers, economic and social philosophers, private individuals and banks have in one-way o the other contributed tremendously to the control of the economic menace.

          The prime among these unemployment regulators are banks, and thus, this research work aims at uncovering the extent bans have helped in mitigating the teaming unemployed human labour by development of entrepreneurship through;

  1. Deposit/collection/safe-keeping of entrepreneurial evaluates.
  2. Advances/credit extension to entrepreneurs.
  3. Corporate finance services to entrepreneurs.
  4. Money transfer on behalf of the entrepreneurs.
  5. International finance services to the entrepreneurs.

1.2     rationale of study

          The purpose of the research work is to

  1. Examine entrepreneurship as a way for development of the economy.
  2. Suggest way banks can avert the problem encountered during the implementation of the nigerian enterprise promotion decree 1972.
  3. Review the liquidity problem of first bank, in order to know their ability in granting loans and other customers’ related services for development of entrepreneurship in nigeria.
  4. Highlight ways of improving poor branch network in the rural areas, which will enhance their participation in the programme.
  5. To discover the role-played by banks in development of entrepreneurship.
  6. To recommend or advice on the appropriate role these banks will play to solve these problems of entrepreneurship.
  7. To compare the extent these roles of banks will go in solving the problems of these entrepreneurs. 

1.3     significance of the study

          The significance of the study lies in the fact that the findings will help the banks to know the problems faced by small-scale industrialists or the entrepreneurs and therefore help the policy makers to adjust to the existing lending policy and rendering other bank customer services.

          Secondly, the effective implementations of the research work suggestion will not only facilitate the performance of banks but will also crab the high incidence of risk of default on bank loans.

          This research work will equally mean an increase or easier access of small-scale manufacturers to institutional source of finance/fund (banks) that will alleviate their problems of lack of finance and assist the nation in achieving the dream of industrialization.

          Also students who will be writing project may also use this as a reference material.

          Lastly, any verification on the authencity of the allegation that banks are reluctant in financing small-scale industries that will form part of this study will make the work more justifiable.

1.4     background of the study

            According to okafor (1999), it is now a hundred and five (105) years since banks commenced operation in nigeria. Throughout these periods, there were few published and comprehensive reference materials on the role of banks in entrepreneurship development.

          Ntomi (2003) adds that shortly after the nigerian civil war which lasted for three years (1967-1970), the discovery of oil in commercial quantity and the subsequent abandonment of agriculture and mining, many human and material resources were left unemployed. He maintained that the policy makers, economic philosophers and the uno (united nations organization) seeing the state and rate of unemployment in nigeria, gave directives to the banks to extend short and medium term loan to small-scale industrialists especially young school leavers to facilitate self-employment.

          According to anuka (2001), in 1979, this scheme allowed five hundred naira (n500) free interest loan to any qualified school leaver. Presently, soludo argues that owing to the value of naira and the current trend of economic development, entrepreneurship should attract about five hundred thousand naira (n500, 000) with little or no interest attachment, to boost the economic growth and development.

          Though nigerian financial system is not well developed, but that is not to say that many small-scale industrialists have not benefited immensely from this scheme.

1.5     definition of terms

            The following terms are use in this research work expressly or impliedly;

  1. Entrepreneurs; these are people who have the ability to see and evaluate business opportunities, to gather the necessary resources to make advantage of them and to initiate appropriate action to ensure success.
  2. Commercial banks; these are banks owned by shareholders (joint stockholders) that transact business with the general public with fundamental target of profit maximization.
  3. Small-scale industrialists; individuals who establish and operate a business for the principal purpose of furthering personal goals
  4. Merchant banks; these are banks owned by holders that are meant to give long-term loans to people in business.

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