TABLE OF CONTENTS
Abstract
CHAPTER ONE
1.0 Introduction
1.1 Background of Study
1.2 Statement of Problems
1.3 Research Objectives
1.4 Research Question
1.5 Research Hypothesis
1.6 Scope of Study
1.7 Significance of study
1.8 Limitation of study
1.9 Definition of terms
CHAPTER TWO
2.0 Literature Review
CHAPTER THREE
3.0 Research methodology
3.1 Research Design
3.2 Population of study
3.3 Sampling Design and Procedure
3.4 Data Collection Instrument
3.5 Administration of Data Collection Instrument
3.6 Methods of data analysis
CHAPTER FOUR
4.0 Data Presentation and Analysis
4.1 Data Presentation
4.2 Test of Hypothesis
CHAPTER FIVE
5.0 Summary, Conclusion and Recommendation
5.1 Summary
5.2 Conclusion
5.3 Recommendation
References
Questionnaire
CHAPTER ONE
INTRODUCTION
1.1BACKGROUND TO THE STUDY
For any economy to remain afloat in its bid for survival in today’s globalization, deregulation and liberalization of markets, it needs to have an efficient business financial to direct the allocation of its resources, capital markets and institutions, of which the developmentis an integral part of paramount importance in a dynamic economy as Nigeria.
Capital market is a market for securities (Equity or debt), where business enterprises and government can raise long-term funds. It is also defined as a market in which money is provided for period of longer than a year, as the raising of short term funds take place on market e.g. Money market. The capital market includes stock market (equity securities and bond market, debt). Securities and Exchange Commission (SEC) oversees the capital market in their designated jurisdiction to ensure the investors are protected against fraud among other duties.
Nigeria is still grapping with the problems of low earnings with its attendant balance of payment problems, weak technological industries base resulting in massive importation of machinery and raw material, high rate of unemployment.
Actually, the economic turn down which started in 1978 is very much with us. The decline in Gross Domestic Product (GDP) from N26.9 billion in 1984 to N3.6 billion in 1985 marked the beginning of importation of the world’s cast away goods into our country making Nigeria a dumping ground.
Small scale business is the only way to boost export and redress the gloomy of balance of payment deficit.
Nigeria government recognized this fact in 1971; small scale industries credited scheme was introduced and followed up with the establishment of Nigeria Bank for commerce and industry in 1978. The Central Bank of Nigeria also introduced its small scale business.
Despite all these measure, it is still obvious that small scale business problem is funding. And the actual fact, the growth of the small scale business still centre on proper funding which is missing today.
Capital market is seems as an alternative way of raising funds. The enhancement of an advance and vibrant capital market can lead to utilization of financial resources. The developed capital market also provides access to the foreign capital for domestic industry. In this way, capital market plays a constructive role in the over-all development of an economy generally.
1.2 SIGNIFICANCE OF THE STUDY
Capital market has a great interest to the researcher which will help in increasing g my knowledge and skills. Also, this sector of the economy is one of the important factors and also plays a significant role in the natural economy.
A developed, dynamic and vibrant capital market can immensely contribute for speedy and economic growth and development.
1.3 STATEMENT OF THE PROBLEMS
The Nigeria small scale business is faced with the problems of inadequate and low working capital. This aspect of small has really slowly down their growth and development of small scale business to be at a small-pace consequently.
Mostly they depend mainly on self finance (saving and borrowing from friends and family) and loan from willing providers (bank) who are always reluctant of providing loans for them due to weak financial background or history. Small scale businesses in Nigeria also face the challenges of concentrating risk in the hand of the owner. Thus, such risk can be spread by bringing their business to the stock exchange.
The capital market is also having a fair share of the problems because of the in adequate supply of securities and fall in stock exchange market. Most companies especially the indigenous ones are still reluctant in raising funds through the capital market.
1.4OBJECTIVES OF THE STUDY
a. To inquire the development of the Nigeria Capital Market in the small scale businesses
b. To determine the trend/development of Capital Market
c. To inquire the factors that solely determines the Capital Market.
d. To make appropriate recommendation on the development of the Nigerian Capital Market.