ABSTRACT

THE IMPACT OF BANK LOANS ON SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA

Because of the impact of bank loans on small and medium scale enterprises in Nigeria, small and medium enterprises (SMEs) are the driving force behind economic growth in most countries, the primary goal of this research is to look into the influence of loans on SMEs in Nigeria. So that SMEs’ ability to positively develop and generate economic progress in Nigeria becomes a reality.

The 100 SMEs that made up the study’s sample size were chosen using a simple random selection procedure. A structured questionnaire was created to make the collection of pertinent data for analysis easier. In data presentations and analysis, descriptive statistics, which includes simple percentage graphical charts and visuals, was used strategically.

The study’s findings suggest that a substantial percentage of SMEs benefited from the loans, Surprisingly, the majority of SMEs recognize that loans have helped them increase their returns and sales, putting them in a competitive position. Banks should lower their interest rates and share best practices with their SME customers, particularly on how to use loans efficiently; this will increase their productivity and help SMEs in Nigeria.

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