The Impact of Capital Availability on the Performance of Small-scale Enterprises: A Case Study of Selected Small-scale Business Enterprises in Ondo State, Nigeria

Abstract

Small scale enterprise is a form of business organisation whereby one person secures, organises and controls the factors of production and bears the risks of the business. The line of trade, machinery required, building, land, location would determine the initial capital outlay. The focus of the study is on the impact of capital availability on the level of profit generated, expansion of business enterprises as well as the volume of sales or patronage. Descriptive survey research design was adopted for the study. Convenience sampling was used to select the respondents for the study. The questionnaire, which is the main instrument used to collect relevant information were administered by the researchers personally. The data collected were analyzed using chi-square. From the research carried out, it is noted that adequate capital increases the level of production. Capital increases the level of profit generated by an entrepreneur. Business can only expand when there is enough capital. Capital equally determines the volume of sales of goods produced as well as patronage of some services. Government and other loan providers should endeavour to reduce the intensity of collateral security required from small-scale businessmen.