This study on “Impact of the Nigerian Capital market in Financing Small and Medium Scale Enterprises (SMEs) in Nigeria” is intended to identify and consequently analyze the financial incentives available to SMEs in the Nigerian capital market. It provides solution to the financial gap existing between large enterprises and small and medium scale enterprises in terms of availability of financial resources referred to as the missing middle. The methodology adopted in conducting the research was a survey design. The independent variable of the study was the Nigerian capital market while the dependent variable was small and medium scale enterprises. A disproportionate stratified random sampling technique was adopted to select a representative sample SMEs. Questionnaire was used as instrument for data collection. The questionnaire was developed on a four-likert scale ranging from one to four (i.e. from strongly disagree to strongly agree) while, the hypothesis developed was tested using Chi-square (X2). Tables and percentage was adopted to analyze the hypotheses of the study. Base on the findings, it was concluded that SMEs always see the Nigerian Capital Market as a good source of capital for them since equity financing is always cheaper for long-term financing. Yet, many SMEs still entertain some fears in approaching the Nigeria capital market such as: the fear of losing their total control over their companies, and the fear of sharing their profit with other investors as well as hostile takeover of their companies by other investors. The study recommended that the cost of borrowing should be reviewed in order to encourage more enterprises to come into the market so as to expand and deepen the market. The Nigerian stock market needed to be built up with mass participation of SMEs to attain a meaningful sustainable growth and development. There are also needs to formulate investment friendly regulations; keep low inflationary rate; provide favorable government policies and provide stable macroeconomic framework for the sustainability of informal and SMEs sector in the developing countries.





1.1     Background to the Study


Production of goods and services in the most efficient manner has continued to be the only viable and reliable option for growth, development, and survival of world economies. Despite the importance of production, it is impossible for a sustained high productive level to be attained without a well-developed industrial sector. Industries normally operate either on a large or small scale both in the public and private sector. In Nigeria, the private sector enterprises cover a wide range of different types of industries as distinguished by various criteria such as size, sector, ownership structure, employment and technology.

The small-scale industries cover the entire range of economic activity sectors and are very heterogeneous groups (Hallberg, 2011) They include a wide variety of firms – village handicraft, restaurants, bakeries, poultry farming, hair dressing, barbers shops just to mention a few. The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), (2011) classify industries into small and medium scale enterprises (SMEs).

The significance of small and medium scale enterprises to growth, productivity and competitiveness of the economies of developing countries is universally recognized. Small and medium scale enterprises are generally acknowledged in (Kasekende& Opondo, 2003) as the bedrock of the industrial development of world economies. They are more innovative than larger firms are. Small and medium scale enterprises usually provide training grounds for entrepreneurs even as they generally rely more on the use of local materials. SMEs development can play a key role in entrepreneurs’ development through their contributions to economic advancement and social empowerment.

In Oteh (2011), the Global Entrepreneurship Monitor 2009, a research program aimed at assessing the national level of entrepreneurial activity in selected countries, conducted an entrepreneurship and economic growth study on 37 countries. According to the study, the economic growth of a country is directly correlated with its level of entrepreneurial activity. The study reveals that, there is a high correlation between economic growth and entrepreneurial activity in industrialized countries, hence to achieve Nigeria Vision 20:20 then greater attentions should be paid on very vibrant and robust enterprises. Entrepreneurs create new enterprises, new commercial activities and new sectors, which have a positive multiplier effect on the economy. Entrepreneurial activities are very crucial to fostering economic and social progress in the country. The development of SMEs in Nigeria is therefore an essential element in the growth strategy. Notwithstanding the widely acknowledged role of SMEs in fostering economic growth and development, SMEs have continued to face a variety of constraints (Adelaja, 2004) and majorly that of finance.

This is quite common in many African countries, including Nigeria, where access to finance was the second most important constraint to doing business after inadequate supply of infrastructure. This is because; the conditions for financing SMEs are more restrictive to those of large enterprises. This has also confirmed the fact that, inadequate finance is a serious challenge that must be tackled before there could be any meaningful progress in the SMEs sub-sector.

Small and medium scale enterprises in Nigeria suffer from lack of access to appropriate (term and cost) funds from both the money and capital markets. This is due in part to the perception of higher risk resulting in high mortality rate of the business, information asymmetry, poorly prepared project proposals, inadequate collateral, absence of, or unverified history of past credit(s) obtained and lack of adequate accounting records of the company’s transaction. In some cases, there are virtual absence of capital market facilities and instruments that SMEs can access. (Bates, 2010) The capital market in Nigeria is still evolving while other conventional sources have no confidence in the credit worthiness of SMEs. Non-bank financial intermediaries such as micro credit institutions could play a greater role in lending to SMEs. Nevertheless, some of these institutions may not consider SMEs credit worthy. .

Small and medium scale enterprises therefore rely on their retained earnings, informal savings and loan associations, which are unpredictable and insecure with little scope for risk sharing as their major source of capital. Many African countries have to deal with this chasm between the role of micro credit institutions and that of larger financial institutions. This is the space where SMEs operate and is referred to in the African Commission’s Report as the missing middle. (Oteh, 2011). Yet, the panacea for solving problems of economic growth in Nigeria often resides in adequate financing of small-scale industries. The missing middle or financial gap is a serious challenge in a fast-changing knowledge based economy because of the speed of innovation. Innovative SMEs with high growth potential, many in high- technology sectors, have played a pivotal role in raising productivity and maintaining competitiveness in recent years. Nonetheless, innovative product and services need investment to flourish, however great their potential might be. SMEs depend on capital accumulation, and capital accumulation requires investment and an equivalent amount of saving to match it. Two of the most important issues in developing countries, are how to stimulate investment, and how to bring about an increase in the level of saving to fund increased investment.

Most importantly, well functioning financial systems are heavily based on trust. An investor who deposits money in the bank or contacts his/her broker to buy stocks place his/her money and trust in the hands of the financial institution that provides her with advice and transaction services (Madura, 1996).

No wonder, Kneown (1996) stressed that, one reason why underdeveloped countries are underdeveloped is because, they lack a financial system that has the confidence of those who must use it. Particularly, the stock market crash of 2008 affected the Nigeria financial sector adversely. It generated a pessimistic outlook on the economy that led to a decline in the demand for loans and higher percentage of loan defaults, causing a consequent decline in the stock prices. Despite all these illicit practices in the financial sector, the Nigerian capital market is potentially the most viable source of capital for industries in Nigeria.

The primary focus of this research work emanates from the fact that, there exist a wide financial gap between the capacity of micro financial institutions and that of larger financial institutions. While large loans are available to a certain degree for large-scale industries, there is an evident lack of access to medium and small-scale finance for SMEs. In trying to bring a solution to this problem, the Central Bank stipulated that 20% of banks’ credit should be granted as loan to Small Scale Enterprises. This was not adhered to because, most loans granted to small scale holders were not repaid and so the banks did not consider them as creditworthy. In the light of these, the research has explored the financial incentives available to small-scale enterprises especially in the Nigerian capital market in order to provide the financial information needed by entrepreneurs.




1.2     Statement of Problem

In Nigeria, most small and medium enterprise ownership is indigenous. In major countries small and medium enterprises contribute close to half of the net output of the private sector and a significant proportion of the Gross Domestic product (GDP). In Nigeria however, it is being postulated that there are no adequate records to show for such growth by the small and medium enterprises. Considering the socio-economic importance and advantages to the nation, which include provision of employment, consumer and producer goods, promotion of indigenous technology, raw materials utilization, entrepreneurial Spirit, rural and industrial development.

Unfortunately, small and medium scale enterprises have relatively limited access to loan capital. They depend highly on financial resources of their owners and sometimes from friends and relatives, and retained earnings from the business as it expands. Most times all these proved grossly inadequate for finance needed projects as small scale enterprises grows further, market funds become imperative. The statements of problem that shall be addressed by this work are essentially:

  • What is the impact of the Capital Market in financing small and medium enterprises (SMEs)
  • How well small and medium enterprises benefited from the activities of the capital market in Nigeria
  • What is the relationship between capital market and other sources of finance for small and medium enterprise

Has the performance of small and medium enterprises impacted in the increase of Gross Domestic Product






The rate of consumption of a particular product is not only determined by the desire of the consumer but also by the level of adverting of the product to the consumer. Advertising therefore is regarded as a very important part of marketing mix. This project is aimed at investigating the impact of advertising on the consumption of noodle foods in Nigeria. In actualizing this, questionnaires where designed and shared among different age brackets and sex and the responses obtained help in drawing possible conclusion to this project that was realized. advertising plays a vital role in the consumption of noodle food in Nigeria. Possible recommendation where made in order to improve on the advertising strategies to enhance further consumption of noodle foods.





        The central focus of any firm should be the maximization of customer’s satisfaction. The marketing manager has control of number of factors called the marketing mix. In attempting to satisfy customers desire one of those factors is the forms  of promotional activities. advertising is one of the most important elements of promotion.

        Many companies consider  advertising  as a superior promotion tools to personal selling, sales promotion or publicity. This is because adverting provides multiple presentations of masses of people with one message, compared with personal selling that involve individual contact with each prospect. Also sales promotion frequently, requires individual contacts publicity may provides multiple presentation like advertising, but the firm has limited control one the message content and placement.  While advertising is given such a credit, it is crucial to our understanding  therefore, that we appreciated from  the start  the place of adverting in marketing.

        Advertising is a form of paid communication designed to sell a product or service or disseminate an idea to the public is the promotional tools. Advertising is just one of the elements that make up promotional mix. Other element in the marketing  mix include sales promotion, direct mail etc the important of advertising has been appreciated by all organization (public and private) because it helps in marketing and non marketing activities, it is used to announce new product,  invite enquires, educate consumer, retrieved lost sales, recruits new staff, attract investors and make a special product etc it is a favorable means of communication between  them and their audience.





        The public occasionally misunderstand role of advertising, its nature, the public mostly says advertising is noisy are at times annoying. Advertising has both economic and social problems in our environment.

        Three major broad-based problems about adverting are:

  1. Despite its economic importance in our society, the general public has a poor understanding of this forms of mass communication, since advertising is persuassive, it sometimes accused and therefore subject to adverse reaction.
  2. The researcher will also measure the effectiveness needed at different level of demand supply in honey well noodles foods.

The researcher will assess the promotional mix of marketing department that contribute towards sales. This will evaluate the method of determining advertising budget towards the boosting of sales



Corporate Governance And Market For Audit Services

PROJECT TOPIC- Corporate Governance and Market for Audit Services


The purpose of this study is to examine whether efficient corporate governance regime dependent on the level of competitiveness of the market for audit services. A further objective is to provide an insight into how weak corporate governance practice leads to corporate failure. The researcher used primary source of data towards obtaining authentic information on the topic. However, the issues now bother on whether independence of auditors contributes to the growth of effective and efficient corporate governance and f efficient and effective corporate governance contribute the economic growth of the nation in general. In testing the hypothesis chi-square was used. The summary of findings includes the efficient cooperation governance regime which dependent on the level of competitiveness of the market for audit services and conclusion was made, that for quantitative governance, it is imperative for an organization to seek for reliable audit services. Recommendation was made on the fact that there is need for a regulatory framework for auditors in Nigeria, for this we improve their performance and positively affect the growth of Nigerian economy.



1.1   Background to the Study

Corporate governance is all about running an organization in a way that guarantees that its owners are stakeholders receiving a fair return on their investment. Corporate governance has been part of research since Berle and Mean’s (1932) publication on “Separation of Corporate Ownership from Control”. The important of separation of ownership from management is vital feature of modern firm.

Corporate governance is concerned with the way in which all parties interested in the well.-being of the firm attempt to ensure that managers and other members take measure or adopt mechanism that safeguard the interest of the shareholders. Clarkson and Deck (1997) define corporate governance as the process of a virtuous circle that links the shareholders to the board, to the management, to the staff, to the customer and to the community at large.

A typical firm is characterized by numerous owners having no management function and managers with no equity interest in the firm. Shareholders or owners of equity are large in numbers and an average shareholder. Control a minute proportion of the shares of the firm. This gives rise to shareholders to take no interest in monitoring of managers, who are left to themselves and maybe pursuing interest different from those of the owners of equity.

Corporate governance has found a way to address this problem which arises and a number of significant researches have been conducted towards resolving it. Magdi and Nedareh (2002) emphasize the need for auditor’ s to act in the interest of the stakeholders particularly minority shareholders or investors by ensuring that only action that facilitate delivery of optimum returns and other favourable outcome are taken at all times.

One of the stated policies on corporate governance is to protect the outside shareholders claim of the firm assets. There is no one simple factor that contributes to institutional problems than the lack of effective governance. The governance of a county for example refers to the power and action of the legislature. The narrow view perceives corporate governance in terms of issue relating to shareholder protection, management control and the popular principal agency problems of economic theory.

No company can achieve the principle of good corporate governance without a reliable audit services. Okolo (1998) define audit as a conscientious and objective examination and inquiry into any statement of account relating to money or money worth, the underlying document and the physical assets were possible as will enable the auditor to form an opinion as to whether or not the financial statement present a true and fair view of whatever it purposes to represent and to report accordingly.

Audit is an independent examination of an expression of an opinion on the financial statement of an enterprise. The auditor dictates the successful and unsuccessful project. A research was carried out in US audit market, indicating the serve to monitor management, contribution to companies over all corporate governance thereby protecting shareholders interests. Although in some countries like Germany, the demand for auditing as a monitoring mechanism may be limited since the companies there relied more on debt than on equity capital.

The demand for auditing as a monitoring mechanism in Germany is limited since private debt holders, as the major capital providers have more direct oversight of management relative to dispersed minority shareholders. German law also limits audit firm liabilities, suggesting the auditing does not play an insurgence role in Germany as it does in other countries like United States.

PROJECT TOPIC- Corporate Governance and Market for Audit Services

1.2   Statement of Problem

Corporate governance practice is still growing in Nigeria and has not reached a mature stage. As a result, financial reporting suffered some set back which weaken investors’ confidence on publishing financial statements. According to Sarbanes-Oxley Act (2002), corporate governance has been identified as a tool for sound financial system. Poor corporate governance has recently caused corporate failures all over the world thereby causing inefficient financial system.

The market for audit services is highly competitive, for this reason the audit market that is supposed to give a helping hand has also failed in many countries like Nigeria. Auditors are supposed to give reliable and competent financial information to protect the shareholders wealth in the favour of management for them to be re-appointed in the next Annual General Meeting.

1.3   Research Questions

In the course of this study the following research questions where formulated.

  1. What is the influence of composition of auditors on firm performances?
  2. What is the relationship between board size and firm financial performance?

iii.    What is the relationship between separation of the posts of CEO and board chair have to do with firm performance?

  1. What is the extent of shareholding related to firm financial performance?

1.4   Objective of the Study

The essence of this study is to find out if efficient
corporate governance regime dependent on the level of competitiveness of the market for audit services. The following are also the reason for this study to;

  1. Know the influence of composition of auditors on firm performances.
  2. Determine the relationship between board size and firm financial performance.

iii.    Determine the relationship between separation of the posts of CEO and board chair have to do with firm performance.

  1. Ascertain the extent of shareholding related to firm financial performance.

1.5   Statement of Hypotheses

The assumption made to direct the trust of this study is:

Hypothesis One

HO:   Efficient corporate governance regime does not dependent on the level of competitiveness of the market for audit services.

HI:    Efficient corporate governance regime dependent on the level of competitiveness of the market for audit services.

Hypothesis Two

HO:    There is no significance relationship between board size and firm financial performance.

HI:   There is significance relationship between board size and firm financial.

1.6   Significance of the Study

This study will be significance in the following ways;

  1. Researchers: It is our design that this study will provide additional insights into the relationship between corporate governance mechanism and market for audit services.
  2. Nigeria Stock Exchange: It is hope that the evidence would serve as important quantitative information into the cauldron of policy in the developing Stock Exchange Market in Nigeria.

iii.    The Nation: The need for the study of this kind is even more important in an environment like Nigeria which is characterized by growing calls for effective corporate governance especially in the quoted companies.

  1. Auditors: It is also going to be useful for the ongoing privatization programme that government of Nigeria is doing. Corporate governance encourages market for Audit Services to improve the growth of the Nation.

1.7   Scope of the Study

The study involves essentially corporate governance application and demand for audit service in corporate outfits in Nigeria. It is designed to cover the various issues in corporate governance and market for audit services in Nigeria. However, it should be noted that corporate governance is applicable to countries, state owned enterprises, private limited companies and pubic limited companies. There will be a general study of corporate governance and market for audit services from 2010 – 2014, that is four years. With special reference to Benin City, Edo state using a sample size of 50 for effective survey.  

1.8   Limitations of the Study

The study is impeded by a number of limitations such as reliability of financial report of firms or companies used for the study as some of the companies may not be sincere enough to report their activities the way they are. The time stipulated for the completion of the research work also serves as limitation of the study.

The smallness of the sample size, reluctance of respondents to filling the questionnaires and the difficulty in determining who actually filled the questionnaires in situations where it was not filled immediately were also issues encountered. Lastly, statistical tools which include correlation and regression analyses have their own limitations also.

1.9   Definition of Terms

  1. Audit Committee: A committee of board of director’s with responsibilities, for a range of audit related issues and in particular the conduct of the external and the company’s relationship with its auditors.
  2. Efficient Market Hypothesis: In finance, the efficient market hypothesis (EMH) asset that financial market are efficient.

iii.    External Auditors: It refers to that audit professional who perform independent annual audits of organization financial statements.

  1. Financial Statement: A statement containing financial information, the main financial statement of a company is the balance sheet and profit and loss account in the annual report and accounts.
  2. Internal Auditors: They are employee of an enterprise who is specifically assigned by the management to conduct a review of the accounting and internal control system.
  3. Independence: Free from the influence of another individual.

vii.   Principle for Corporate Governance: This can be defined as the relationship among the company’s participant which depend on certain principle and standard.

viii.  Strong Corporate Governance: This means firm with the independent board of directors and independent audit.

PROJECT TOPIC- Corporate Governance and Market for Audit Services




The research study was designed to find out the problems that have been affecting the effect of entrepreneurship on the growth and development of the Nigeria economy. Entrepreneurship had had a stunted growth because of difficulties encountered by entrepreneur getting loan from financial institution. In view of the purpose of study, the simple descriptive survey design was adopted and a total number of 50 respondents from some selected small scale business in Nigeria were randomly selected to get their responses based on the purpose of this study. Findings of the study revealed that entrepreneurship help to provide speed and accuracy to employment and help to fight crime among youth and also create more job opportunities in the economy. It was recommended that government and top management of public institutions should pay more attention to the need and promotion of entrepreneurship in the society and also the study of entrepreneurship should be largely introduced into higher institutions to enable young school leaver to be confident in themselves to avoid crime in the country.




1.1   Background to the Study

Throughout the theoretical history of entrepreneurship schools, from multiple disciplines, in the social sciences have grappled with a diverse set of interpretations and definitions to conceptualize this abstract idea. Over time, some writers have identified entrepreneurship with the function of uncertainty bearing others with the coordination of productive resources, others with the introduction of Innovation, others still with the provision of capital.
British economists such as Adam Smith, David Ricardo and John Stewart will briefly touch on the concept of entrepreneurship through the referred to it under the broad English term of “Business Management.”

The word entrepreneur is derived from the French capitalist defined it as a risk taking Innovative Individual who established and manages a business of the purpose of profit and growth.

The contribution of small and medium scale business to the economy include employment and income generation, thereby enhancing Gross Domestic product in Nigeria, this will also clear the fact that not every new small business is entrepreneurial or represent entrepreneurship.




1.2   Statement of Problem

The effect and need to find adequate solution as the growth of the economy in Nigeria is a matter that should be put aside by a mere wave of hands this is one to the fact, the entrepreneurship has been discovered to be the effect to the growth of the economy in Nigeria.