Small-scale enterprises like Hapel Nigeria limited generally suffer from lack of adequate finance. The introduction of the structural adjustment programme compounded the problem such that the enterprise could hardly finance the fixed capital requirements.  In this circumstance, small-scale enterprise like Hapel Nigeria Limited would seek for a financing device that would enable them to obtain the use of required equipment without making outright payment. Leasing seems to be the answer. This study therefore, attempts to establish a case for leasing as a major financing device for small-scale enterprise by assessing the effectiveness of the source of finance available to them.In terms of review of related literature, financing means for small-scale enterprise like Hapel Nigeria Limited was discussed and the Nigerian bank for commerce and industry was seen as the greatest supplier of credit to small-scale enterprise. The concept and evolution of leasing was looked into and thus leasing was seen as a contract between a leasor and lessee giving lessee possession and use of a specific asset on payment of rentals over a period. In terms of methodology, the descriptive and historical research method is used. Data generated from the questionnaire administered and interviews were analyzed. Based on the analysis of data, some interesting findings were made. In the first place, it was found that many small-scale enterprises engage in manufacturing business and most of the small-scale enterprises about 99.9% of them were aware of leasing financing technique. Most of the small-scale enterprises acquire the use of their required equipments through lease transactions. It was also found that the levels of awareness among small-scale enterprise acquire the use of their required equipments through lease transitions. It was also found that the level of awareness among small scale enterprise like Hapel Nigeria Limited make effort to use lease financing techniques in their business transactions and this leasing has brought a lot of increase in their level of productivity. The conclusion based on the findings was that leasing should be increasingly used by small-scale enterprise to activate the problem of financing burden in small-scale enterprises. The researcher made some recommendations viz: The Central Bank should effect changes in its credit guidelines with respect to leasing. Secondly, adequate publicity should be mounted to maintain and increase the level of awareness of leasing among small-scale enterprises.       

Title page i

Approval page ii

Dedication iii

Acknowledgment iv

Table of contents vi

List of tables x

Abstract xii

1.1 Background of the study 1

1.2 Statement of the problem 4

1.3 Objective of the study 4

1.4 Scope of the study 5

1.5 Research questions 6

1.6 Significance of the study   7

2.1 Definition of small scale enterprise 8

2.2 Financing enemies for small scale enterprise 10

2.3 Concept and evolution of leasing 18

2.4 Types of leasing 21

2.5 Central bank guidelines and leasing 26

2.6 Summary of related literature 28

3.1 Research design 30

3.2 Area of study 30

3.3 Population of the study 30

3.4 Sample and sampling procedure 31

3.5 Instrument for data collection 32

3.6 Validation of the research instruments 32

3.7 Reliability of the research instruments 33

3.8 Method of data collection 33

3.9 Method of data analysis 34

4.0 Data presentation and results 35

5.0 Discussion, implications, recommendations 44

5.1 Summary of findings 44

5.2 Discussion of results 45

5.3 Conclusion 50

5.4 Implications of the study 50

5.5 Recommendations 51

5.6 Suggestions for further studies 53

5.7 Limitation of the study 53

Table 2.1: Bank loans to small-scale enterprises as at 31st December 2000 

Table 2.2 Actual lease portfolio of merchant banks loans advance and advances mattered against central bank prescribed ceiling. 

Table 4.1 Responses from the respondents on the extent of small-scale industries obtaining adequate institutional credit.   

 Table 4.2 Responses from the respondents on if they are aware of 

the lease financing technique whereby companies can procure required plant and machinery without making an outright payment for them.   

Table 4.3: Responses from the respondents on if their company made any effort in order to finance their company through leasing. 

Table 4.4: Responses from the respondents on if the use of leasing resulted to any advantage. 

Table 4.5: Response from the respondents on if their company will be in the positive to advise other companies to resort to leasing as means of finance to their companies.  

Table 4.6: Responses from respondents on whether merchant banks help small scale enterprise in getting lease facilities.   

Table 4.7: Responses from respondents on whether merchant banks helps small scale enterprise in getting lease facilities in accordance to with the central bank prescribed ceiling on lease portfolio.