CHAPTER ONE

INTRODUCTION

• BACKGROUND OF THE STUDY

The study of the role of government agencies towards the development of small scale enterprises is quite interesting. These enterprise have a very important impact on the life of everybody in the society. Small independence business are everywhere and in every line of work, they can also be seen in every community. This business is as old as man. So virtually everything is done in life involved the element of business. Small scale enterprise constitutes an importance in todays business activities or system. The role of small scale enterprise in our economic history however, has been one of the distribution and contribution.

Although its relative importance has decline with the growth of the big business, small scale business is till major contribution to the countries economy. Business in Nigeria today is made up of both large and small business. Today small scale enterprise have to enjoy more prestige than ever before because of its vital contribution to the nations economy. So vital is small scale business. There are successful small scale enterprise operating like the manufacturing plants, retails, stores, wholesales, drugs, computers, construction firms and hundred of other type of business.

Nigeria population was estimated to be 140 million in 2007 with about 75% of this made up of small scale enterprise operators. Lack of full study of government agencies in the development of these enterprises especially, the financial institution made it impossible to   know the size, structure and function of these small scale business to the development of the economy.

Government agencies are charged with the responsibilities among others to carryout duties and deliver utilities as may be regulated from time to time on behalf of the government for the purpose of uplifting the standard of living. Government agencies such as bank of industry (BOI) is charged with the responsibility like provision of medium and long term finances by way of equity funding, loan and lease financing, guarantees, investment in corporate bonds business development services, co-financing, working capital finance and    promotion of small scale enterprises and industries project, co-sponsoring financial institutions and small scale enterprises.

This bank of industry was formerly originated from Nigerian industrial development bank limited was established in 1964 following the reconstruction of the investment company of Nigeria limited (ICON) NIDB was set up primarily to accelerate Nigerian industrialization.

The bank was to conceive shortly after Nigerian attains independence in 1960. The idea was to set up development financial institution to serve as a dedicated window for channeling fund from within and outside the country to the young nation states industrial sector. Economic reconstruction fund (NERFUND) in the last regime of Obasanjo administration is renamed as BOI.