THE IMPACT OF BANK LOAN ON SMALL AND MEDIUM SCALE ENTERPRISE IN NIGERIA
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 5000
ABSTRACT
This study was carried out to examine the Impact of Bank Loan On Small And Medium Scale Enterprise in Nigeria using selected banks and SMEs in Lagos state as a case study. Specifically, the study examined the impact of commercial banks on small and medium scaled enterprises development in Nigeria, examine the extent to which small scale enterprises in Nigeria have been able to obtain loans and advances from Commercial Banks for business development, examine the relationship between commercial bank loans and development of SMEs in Nigeria, and examine the relationship between commercial bank deposit and development of SMEs in Nigeria. The study employed the survey descriptive research design. A total of 200 responses were validated from the survey. From the responses obtained and analysed, the findings revealed that there is significant relationship between Total asset of commercial banks and development of SMEs in Nigeria, there is significant relationship between commercial bank loans and development of SMEs in Nigeria, and there is significant relationship between commercial bank deposit and development of SMEs in Nigeria. The study therefore recommends that the government should cut down the interest rate since interest rates are not favorable to investors in the sense that the cost of funds could undermine profits and cause a loss of the investment. Interest rates in Nigeria officially are as high as 23.6% and this has a 84 negative impact on the ability of small and medium scale industries to obtain credit from the banks. Also, the government should be consistent in its industrial policies so as to enable manufacturing firms to factor tariff measures into their trade decisions. Moreso, the government should provide adequate infrastructural facilities like electricity, roads and water supply for the SMEs as this will reduce the high cost of doing business. This will encourage banks to fund the SMEs as their investment will be recouped. Furthermore, the government should regard SMEs should regard SMEs as the ‘eggs’ that hatch big businesses. Apart from the adequate incentives in above, the government should support SMEs by bulk purchasing their products and retailing them both for the domestic market and for exports.
Related Project Materials
The impact of climate change on the preservation of rock engravings in Eket Local Government Area, Akwa Ibom State
Background of the Study
Rock engravings serve as enduring testimonies to ancient cultures; however, their preservation is...
An Evaluation of the Role of Venture Capital in Promoting Innovation in Nigeria
Background of the Study
Venture capital (VC) plays a critical role in fostering innovation by providing the necessary fund...
The Effect of Decentralization Policies on Local Infrastructure Development in Mararaba Local Government, Nasarawa State
Chapter One: Introduction
1.1 Background of the Study
Decentralization is often seen as a powerful tool for enhancing local gov...
An evaluation of the role of women in political campaign organizations in Lafia Local Government Area, Nasarawa State
Background of the Study
Women’s participation in political campaign organizations has been a crucial factor in shapin...
An Assessment of Pragmatic Functions in Nigerian Business Negotiations: A Comparative Analysis of Email and In-Person Meetings
Background of the Study
Business negotiations in Nigeria often occur through multiple channels, including digital communic...
An Evaluation of the Integration of Nurse Practitioners into Hospital Management Teams in Kaduna State
Background of the Study
Nurse practitioners (NPs) have traditionally played a clinical role in patien...
An Appraisal of Family Planning Education and Its Influence on Contraceptive Use in Kogi State
Background of the Study
Family planning education is crucial for promoting reproductive health, particu...
The effect of acculturation on traditional naming ceremonies in Umuahia North Local Government, Abia State
Background of the Study:
Acculturation, the process by which individuals and communities adapt to cultural changes, has sig...
PYROLYSIS OF SHEA BUTTER SHELL TO PRODUCE BIO-BASED PRODUCTS
ABSTRACT
This research work focused on the production of bio-based products and response optimization of bio-oil yield operating paramete...
The Impact of Auditing on Revenue Collection in Dass Local Government Area
Background of the Study
Revenue collection is a fundamental aspect of local government operations, ensuring that suffici...
