IMPACT OF INSTITUTIONAL FINANCING ON THE PERFORMANCE OF SMALL-SCALE MANUFACTURING INDUSTRIES IN KADUNA STATE

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Date
2011-06
Authors
ABDULSALAM, ZUBAIRU
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Abstract
Various development finance institutions were established to alleviate the major problem of finance that small-scale industries face. Inspite of the intervention of such finance institutions, the performance of most smallscale industries, especially manufacturing, is not encouraging. This may be as a result of funds not adequate to gear-up their performance or their inability to utilise the funds towards the said goal. This research evaluates whether or not the funds from such development finance institutions increases the performance of small-scale manufacturing industries in Kaduna State, using profitability and working capital as indicators. To this end, financial statement of five small-scale manufacturing industries selected at random across the three senatorial zones in the state were made used of for the period of ten (10) years i.e. five years before financing and five years after financing. Two-sample t-test were used to test the hypothesis. It was found that the funds obtained from development finance institutions increases the profitability and working capital of the smallscale manufacturing industries in the state. It is recommended that smallscale manufacturing industries should embrace such funds from development finance institution to improve their performance for growth and development, and the government should provide interest-free loans to small-scale manufacturing industries to strength their performances.
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BEING A THESIS PRESENTED TO THE POSTGRADUATE SCHOOL, AHMADU BELLO UNIVERSITY, ZARIA. IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD OF MASTER OF SCIENCE (M.SC) IN ACCOUNTING AND FINANCE DEPARTMENT OF ACCOUNTING, FACULTY OF ADMINISTRATION, AHMADU BELLO UNIVERSITY, ZARIA
Keywords
INSTITUTIONAL FINANCING,, SMALL-SCALE,, MANUFACTURING INDUSTRIES,
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