EFFECT OF BANK LOAN ON SMALL AND MEDIUM SCALE ENTERPRISE (SMES) A STUDY OF SOME SELECTED BUSINESSES IN BAUCHI METROPOLIS
Abstract
ABSTRACT
This study was carried out to investigate the effect of bank loan on small and medium scale enterprises in Bauchi metropolis, Bauchi state. An empirical study of the selected small and medium scale enterprises in Bauchi State, Nigeria. A set of structured questionnaire was used as the instrument of data collection and administered on 10 selected small and medium scale enterprises in Bauchi metropolis, Bauchi, randomly selected using simple random sample size from a population of 87 is 71 respondents at 93% confidence level Data analysis was. The result revealed that positive and significant relationships exist between bank credit facilities and the growth of small and medium scale business enterprises in Bauchi Metropolis. The result also revealed that positive and significant relationship exist between accessibility to bank loans facilities and the performance of the small and medium scale enterprises in Bauchi Metropolis. The data collected also revealed that small and medium scale enterprises growth was hindered as a result of inability to access funds from financial institutions as a result of stringent policies required by banks and other financial institutions. It was concluded that for the Nigeria economy to grow to attain the required socio-economic development, the SMEs must be given the necessary financial support to grow the SMEs must be accorded the desired support of the financial institutions to grow rapidly and contribute their quota to the development of Bauchi. Based on the findings and conclusion drawn, it was Monetary Authorities should endeavor to remove bottlenecks involved in the process of granting banking credit facility to SME’s as this would encourage easy accessibility of loans and other incentives that will improve SME financing and subsequently, economic growth and The federal government should come up with more institutionalize laws that will ensure adequate protection of SMEs from any form of exploitation in a bid to access funds or ensure expansion and growth of their businesses.
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