Survey of Sources of Capital among Traders of Wunti Market in Bauchi Metropolis

Abstract

Lack of funding is the number one reason given for the failure of so many small businesses. Why? Success today hinges not only on providing a quality and timely product or service, but also on knowing how to finance the business.  One of the major determinants in establishing any firm is Capital and most failure of trading/business enterprise is associated with absence or inadequate Capital. Hassan (2009) defined Capital as the resources or money used for and required in carrying out the activities of the business venture. The objectives of this study is to undertake an in depth study so as to identify the sources of capital among traders of Wunti Market in Bauchi Metropolis and in so doing identify whether the traders are aware of the existence of formal institutions that provide such services and the associated problems encountered or act as hindrance to accessing such facilities. The survey made use of both primary and secondary data. Data was presented in tabular and chart forms for understanding and easy analysis. The study found that most the traders source there capital from past savings and assistance from well wishers. Those enterprises that got their capital from the formal sector complained of the difficulty in accessing such funds and repayment arrangement is not suitable. The research concluded that Government being the prime mover of economic activities, should come up with an arrangement for those funds set aside for the promotion of trade reaches the desired traders, awareness campaigns should be organized to educate the traders on how to access funds from the formal sector and Central Bank in collaboration with commercial banks should develop a new strategy in encouraging traders to utilized the funds available to commercial banks.