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Effective Management Of Financial Resources As A Means Of Continues Existence Of A Small Scale Business

Download complete project materials on Effective Management Of Financial Resources As A Means Of Continues Existence Of A Small Scale Business from chapter one to five


The importance of effective use of financial resources as a means of continuous existence of a small scale business. The purpose of the study is to examine the extent to which the soup industry has utilize the resources available to it and how that objective are being achieved in the light of bringing profitability in the business. In other word, the purpose of producing an intended result or fulfilling a function in fact use of financial resources as a means of continuous existence of a small scale business.


It introduce the acceptable and commonly presumed objective of management is the maximum of the value of the firm and efficient financing will require an appropriate combination of capital in the best proportion and obtained from the sources available.

Chapter two: deals with aims at giving the readers an insight of what the topic is all about with careful reference to the work done by various researchers and other author as various textbook.

Chapter three: review the method used in collecting data for the project is analysis, population of the study.

Chapter four base on data analysis and presentation, interpretation and text of hypothesis.

Chapter five is the final chapter that discuss the review of the study, summary, conclusion and recommendation.


Title page





Table of content



Background of the study

Statement of the problem

Significance of the study

Research question

Statement of the hypothesis

Scope of the study

Limitation of the study

Historical background of the case study

Definition of terms

Plans of the study


Literature review

Review of related literature

Resource of the firm

The supply of financial resource to small scale business

Importance of manufacturing adequate return of capital

The use of accounting ratios for measurement

Capital investment theories


Research methodology

Population of the study

Sample size

Source and method of data collection

Method of data analysis


Data presentation, interpretation and analysis

Data presentation

Data interpretation

Data analysis

Research finding


Summary of finding, conclusion and recommendations








The most acceptable and commonly presumed objective of management is the maximization of the value of the firm. (i.e. the maximization of profit relative to investment). This may not be quite so simple as stated. The maximization of profit in the long run for example, may require unprofitable activities in the short run e.g. (to build up customer good will may require damaging industrial conflict), such for sighted activity to the short run may however, put survival in the long run into doubt. Then, the maximized profit required that profit can be both defined and measured accurately and that all factors contributing to it are know and can be taken in to account.

Therefore, efficient financing will require an appropriate combination of capital in the best proportion and obtained from the source available, if such capital is properly employed wealth is created. However, to the business men, capital as a factor or production, is wealth which is used for producing more wealth. Successful capital investment tends to be self generating as a country’s national income increase or grows. It is possible to keep on increasing proportion of capital in requirement. In these circumstance necessary that application and control use in business undertaking be carryout on the basis of sound information in accordance with the best principle financial management.

In business language, financial resources represent the means by which business being carried out and includes working capital which represent the finds used for day today running of the business. Cash is n other form of capital and it is regarded as liquid capital.

The reason that it (cash) can be easily spent for buying goods and services.


Government throughout the would and particularly the under developed ones are turning their attention to small scale industries development as a result of the numerous attempts made to promote economic progress by establishing large scale industries (LSIS) has usually failed to improve the lot of the majority of the population.

Small scale enterprises as a result of this are now viewed as an important element in attaining even and equitable economic development.

In spite of the acclaimed role of these small and medium scale industries in promoting the said economic development, the operation of the sub sector has been constrained by poor access to institutional credit and several other problems which has a large extent contributed to its inefficient financial.

This research, therefore is necessitated by the fact that some lapse still persist despite the numerous assistance render by the financial institutions as well as the various effort put in place by the government to enhance the development of small scale enterprise through the provision and establishment of various specialized source of finance and effective use of them.

The problems could be specifically highlighted thus:

  • Problem of identification i.e. which is medium or small scale outfit.
  • The disseminating attitude towards the small scale enterprises in the distribution of credit in the conventional loan market.
  •  The uncertainties faced by the financial institutions in lending small scale enterprise.
  •  The management of the most small or medium scale industries or business were unable to manage efficiently the little fund realized.

All these problems as a matter of fact are not suppose to be seen where there is proper funding of small and medium scale enterprises by the financial institution.

It is therefore the aim of this study is to get to the root of these problems facing small scale enterprise.


The general objective of this study is to examine the extent to which the soup industry has utilize the resources available to it and how that objective are being achieved in the light of brining profitability in to the business. The study has the following specific objective.

  • a.    To investigate the resources mostly employed by the firm
  • b.   To identify the source of each resources employed by the firm.
  • c.    To determine the combination of the resource so as to be profitable to the firm.
  • d.   To offer policy recommendation from the finding so as to enhance the achievement of the objective of the company.


Significant of this study is to help the small and scale industrialist in Nigeria indentifying various source of finance and efficient use of financial resources open to them so as to ensure continues or serve as a name of continuous existence of small scale industries in Nigeria.

This perhaps will help in lesson the problem of insufficient funding and ineffective use of financial resource that has been hindering and limiting the growth of the subsector in Nigeria.

It is also to enhance proper financing a small scale industries in Nigeria in the nearest future since many small scale industries here folded up mainly because they lack proper financial and effective use of them.


If therefore, hope that the conclusion and recommendation drawn from this study will go to long way to further higher light the relevance and importance of financing and most especially effective use of them to ensure continuous existent of small scale industries in dynamic business sector in Nigeria. It also hoped that the study will form a useful basis for further intensive research in this area and this research report will also serve as a ground work to other researchers in similar filed who might find it as a useful material for reference.


  • What are the brand types of soap product you produced?
  • ü  What are your source of your finance?
  • ü  What are the procedure of producing soap before it be comes consumable?
  • ü  Which among the brand of soap produced is the most viable?
  • ü  What are the performance of the company in the las financial year 2011?
  • ü  Did you encounter problem at all?
  • ü  What is your hope to compete with this economic expression?
  • ü  Is there any available information to show the amount to be invested and techniques to be used?
  • ü  Out of the investment appraisal you mention which of these are mostly applied?


Hypothesis will be made based on the finding in the course of this research and when tested it will confirm or refuse the extents at which finance has served as necessity for small scale industries growth and efficiency.

Null and alternative hypothesis are going to be formulated and tested later to ascertain their validity.

Example of hypothesis formulated are as follows:

  • Ho: Null hypothesis
  • Hi: Alternative hypothesis

Adequate financial planning can ensure constant response to the financing need.

  • Ho: Adequate financial planning can not ensure constant response to the financial need.
  • Hi:  Adequate financial planning can ensure constant response to the financial need.

That the expansion of small scale business could be hindered by finance and effectively used of it management skill, government regulation on material use.

  • Ho: Expansion small scale enterprise cannot be hindered by finance and effectively use of it management skill etc.
  • Hi: Expansion small scale enterprise can be hindered by finance and effectively use of it management skill etc.


This study focuses on the apparatus needed and adopted to make effective use of financial resource available to firm also focuses on the relative performance of industry and its requirement for effective financing.

A clear look of the use of the use of ratios as a standard measure of profit of a firm is made profitable use of financial resources with reference to Salliey Soap Industry Osogbo and comparison of small scale and large join are also considered.

Since the project is in direction of effective use of financial resource of small scale business, the company has been dancing to its responsibilities and challenge in the charging economy is another area of study. However, Salliey Soap Industry is chosen as sample and there is every possibility that suggestion preferred will definitely enhance only soap company but also enhance the productivity of other firms on other industries if objectively pursued.


This work is restricted to small scale industry and especially Salliey Soup Industry, Osogbo because its size distance and of course time constraints in obtaining information since Salliey Soap Industry (through small business) but represents the population of a company and has identical operations production and finance of standard company.


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