Statement of Problem
An important feature associated with small and medium scale industries, which is particularly relevant to our economic problem, is that these industries characteristically depend less on imported inputs relatively to their local capital investment than large firm. In view of the economic situation and alarming rate of the unemployment in society, it is important to determine the effective of government policies on small and medium enterprises have on our economic development and their impact on the society at large.
The study of intents to examine constraints encountered by small and medium scale industries. Hence, the federal government continues to lay emphasis on self-reliance industrialization through the encouragement of small and medium scale industrial development. New lending schemes and credit institution at both local and federal levels has been establishing to encourage the development.
They include the national economic reconstruction fund (NERFUND), the national, Directorate of Community Bank and other Development Bank.
Inspite of these measures, small and medium scale industries in all parts of the federation has continued to face high rate of business failures because of their reliance of foreign raw material imputs. Small and medium scale industries are the pivoted on then which any developing economy like Nigeria stands. They creates more jobs per units of investment then large scale ones the there is a problem as to whether their poor performance in as a result of dependence of foreign raw material inputs. This problem raised this question, will the establishment of small and medium scale raw material processing industries such as palm oil processing plant help to boost the development of small and medium scale enterprises in Nsukka zone in particular and the country in general it is the answer to this question that is focus in this research.
1.3 Objective of the Study
The objectives of this study are as follows:
1. To find out the commercial banks that assist small and medium scale enterprises as stipulated by the government.
2. To find out if government policies affect the production of palm oil at Nsukka.
3. To determine the attitude of people towards innovation and how it affect the source of raw material for production.
4. To determine if the small scale industries can produce at a large commercial quantity.
5. To make general and specific recommendation based on the finding of the study.
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