INTRODUCTION
1.0  BACKGROUND OF THE STUDY
       This study will have its fundamental root from the contribution of small and medium scale enterprises (SMSE) o the economic development in Nigeria.
Apart from the potential development of small and medium enterprise for ensuring a self reliant industrialization in terms of the ability to rely largely on local raw materials. It is also a good strategy to boost employment and guarantee an even distribution of industrial establishments in the country including the rural area.
In all countries of the world, small and medium enterprises have emerged as an important agent of economic and social transformation. The promotion of small and medium enterprises (SMES) is no longer just the business of the world association for small and medium enterprises (WASME) and other Non-Government organization (NGOS) but as become a major policy thrust in industrialized and developing countries.
In industrialized countries, recent innovation in information technology, industrialized designation and global competition have propelled the spread of small business and forced large cooperation to search for new strategies to gain competitive operations. Small and medium enterprises (SMSE) could help to facilitate mobilization of capital and human resources that could otherwise be left idle.
An important feature associated with small and medium enterprises which is particularly relevant to our current economic problems is that, these industries characteristically, depend less on imported inputs relative to their total capital investment than large scale industry. Small and medium enterprises (SMSE seek to diffuse economic power by helping to check imbalance seek to diffuse economic power by helping to check imbalance between various locality of a country and between different income groups in the same locality.
1.1  STATEMENT OF THE PROBLEM
       As it could be observed, the contribution of small and medium scale enterprises (SMSE) towards the development of Nigeria economy has not been able to achieve the desired progress due mainly to a number of constraints.
This research work has identified the associated problems militating against the contribution of SMSE towards the development of the economy and thus, summarized them as follows:
Given the fact that many factor militate against small and medium enterprise and constitute the development towards the nation economy.
1.2  OBJECTIVE OF THE STUDY
       SMSE have been identified as a fundamental feature of the economy which can generate over 70% of economic activity as well as become the engine of growth required by the Nigerian government for the much needed sustainable development in terms of job and wealth creation.
1.3 RESEARCH QUESTION
       Corollary to the above, therefore this work aims at answering the following research questions.
1.4  SIGNIFICANCE OF THE STUDY
       The study is tailored towards the education of policy makers in Nigeria on the importance of small and medium enterprises (SMSE) in the development of the economy which will in turn improve the standard of living of Nigerian citizens.
In developed countries, small and medium enterprises (SMSE) have remained the dynamic sector of the economy. The East Asia miracle was built on the foundation of throwing small and medium enterprises (SMSE).
Small and medium enterprises are widely seen as a panacea for unemployment and economic recession. Therefore, for the small and medium enterprises to serve the expected role of catalyst for rapid industrial and economic development there is need for more strategy for improved access to development finance for small and medium enterprises that would address the inability to provide collateral security for loan from normal credit institutions. Hence the relevance of this study which aims at other things examines further option for improving the flow of formal credit to small and medium enterprises (SMSE).
1.5  SCOPE AND LIMITATION OF THE STUDY
       This project attempts evaluating the various sources of findings the small and medium enterprises (SMSE) including the special credit programme and schemes introduced over the year in Nigeria to improve small and medium enterprises (SMSE) access to developing finance.
The scope of this study is limited to the available and functioning SMSE in Ilorin metropolis as at the time of this research work.
The study also access the impact of the formal institution and schemes/programme n terms of their ability to boost small and medium enterprises access to credit. It also highlights the major factors that have militated against their effectiveness.
The major limitation of this project centers on the problem of questionnaire the study recognizes. The fact that there are areas that needs probing into but due to lack of sufficient data, insufficient cost in terms of finance and time, such areas could not be covered.
1.6  ORGANIZATION AND PLANNING OF THE RESEARCH
       For ease of presentation, this project is structured into five chapters.
The first chapter introduces the subject matter which includes the background of the study, statement of the problem and the objective of the study. The scope and limitation were also highlighted.
Chapter two provides the review of relevant interaction, various definitions of SMSE and the importance of SMEs in economic development and self reliance.
Chapter three takes a look at the research methodology. This embrace the characteristics of the study population, sample procedure and sample size. If also looks at data collection, instruction and administration.
Chapter four looks at the presentation and analysis of data with regards to various sources of finance available to small and medium enterprises (SMEs). It also enamines the distribution of small and medium enterprises in Ilorin metropolis.
Lastly, chapter five which is the end of the project deals with the summary of the entire write-up, the conclusions and recommendations for improvement.