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The every economy a critical look into it will reveal that the need and desire of people are sissified by numerous small-scale manufactures not withstanding the existence of big business organizations which are locally and internationally famous. Small-scale industries contribute immensely in the growth and development of an economy through their contributions to the national income of such economy. infact small scale industries were the mainstay of every economy world wide. Inspite of the contribution of small-scale industries financial constraint ahs been confronting their growth and development. It is because of this that the researcher decided to delve into the influence of poor financing on the operation of small scale industries in Nigeria. A critical look showed that this teething problem of finance was caused by inability of small scale industrialist to sources fund externally through the issue of shares to the public loan overdraft, grant etc. this implies that for the financing of operations of small scale industries the fund sourced internally have proved inadequate for the operations of the industries In collection of data to know the reason behind this poor financing so that a useful solution will be offered the use of questionnaires and interview were employed. The use of questionnaires and interview analyzed to ascertain the truthfulness and authenticity of data collected. In doing this the use of co-efficient of variation (C.V) was adopted in which case the response with he lower or lowest co-efficient of variation is rejected. At the end of the study it was discovered that: a. Inadequate capital contributed to the failures of small scale industries. b. Lack of proper management which resulted from inadequate fund to employ competent employees contributed to the failure of small scale industries. c. Absence of eternal equity contributed to the failure of small scale industries. Following the result from the study. It could be concluded that if adequate fund is provided to them the performance of small scale industries will be improve upon. To wipe-out this ugly trend some suggestion and recommendations were offered - The gearing of the firms should be increased. - Staff should be well remunerated and motivated. - Government should be given grants and tax relief’s to small scale industrialists - Finally the should go for external sources of fund to finance their operation. Therefore if the suggestions and recommendation proffered by the researcher in this study as strictly adhered to the objective of growth and development of the small scale industries will be achieved thereby improve the state of Nigeria economy.

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