The Role Of Bank In Small And Medium Business Enterprise In Nigeria

The Role Of Bank In Small And Medium Business Enterprise In Nigeria

Abstract

The exploration study examines the part of marketable bank in financing small scale enterprises in Uyo, Akwa Ibom State. The primary purpose of the study is to examine how SMEs can be developed through the intervention of the banking sector. Descriptive exploration design was espoused. The population of the study is the entire SMEs in Akwa Ibom state and United Bank for Africa( UBA). Questionnaires were used as an instrument of primary data collection. intentional slice fashion was used to elect the sample; correlation analysis was employed using ki- forecourt. Findings revealed that there’s a positive correlation between loans subventions by banks and the growth and development of SMEs in Akwa Ibom State also, that SMEs can not be concentrated in Akwa Ibom State if they aren’t effectively financed due to the relationship that exists between the banks and SMEs. It was recommended that guidelines schemes by marketable banks to finance SMEs needs to be flexible to accommodate the small and medium scale entrepreneurs.

Chapter One

Preface

Background to the Study

Thepost-independence Nigerian government espoused the entrepreneurship government which constrained it to assume the part of entrepreneur and the appetite to neutralize the profitable neglect of the social government and that redounded in engaging in ambitious industrialization programmes. When the Nigerian artificial Development Bank Limited( NIDB) was established in 1964 for the purpose of speeding up the industrialization process, its accreditation was to promote artificial systems which were large enough to make applicable donation to the public frugality. still, the collapse of the oil painting smash in the early 1980’s exposed the essential sins of this importation of inputs redounded in large idle capacities, thereby creeping numerous gross domestic product( GDP) declined in the face of the strong public aspiration for the restructuring of the frugality and reduction of the dependence on petroleum. Small and medium scale enterprises have since come the focus of public artificial policy. In pursuit of tone- reliance in a developing country particularly in Nigeria, the central government legislated a decree called “ Enterprises creation Decree ” when there was need for small scale enterprises in the creation of profitable development. This has ago been at the frontward front of development strategies.