The Impact of Informal Capital Market on the Development of Small Scale Industries in Nigeria

Abstract

This research seeks to establish that the small scale industries could be developed through the informal capital market participation provided it is well supported and managed. Obtained for the purpose of this work were secondary data from randomly selected thirty small scales industries and a cooperative society in Osun state. The data were analyzed through the use of SPSS, and the results obtained were made to gain insight on the whole economy. The study found out that the informal capital market plays an active role in small scale industries development and thereby helps in the development of the economy at large. The study however, concludes that massive awareness programmes and campaigns should be conducted on the relevance of informal capital market to the development of small scale industries in Nigeria. This study recommends that Informal capital market should be given proper recognition and adequate consideration in the nation’s financial system. To this effect, government should redesign her regulatory policies to formalize and standardize the operations of the market. However, such regulations should not be framed in a way that will totally cripple or paralyze the market’s activities, but effectively enhance its performance for maximum contribution to development.