ROLE OF COMMERCIAL BANK ON ENTREPRENEURIAL DEVELOPMENT OF SMALL SCALE BUSINESS IN MUBI, ADAMAWA STATE, NIGERIA

ABSTRACT The subject matter of this research work is to evaluate the extent to which Small Scale entrepreneurs in Adamawa have been able to obtain loans and raise finance from Nigerian Commercial Banks as a major source of finance to the economy. The main objective of the study is to examine the role of Commercial Banks on entrepreneurial development of small scale business enterprises in Nigeria using UBA Banks and Union Banks Adamawa State. A review of literature was done to ensure the conclusion of the study. The population of the study was 310 which consist of the small scale business owners, staff of UBA Bank and Union Bank Adamawa, while the sample size was 300. The study implore the use of primary sources of data extracted through the use of questionnaire, 300 questionnaires were administered to the respondents. The data collected was analyzed with the use of frequency and simple percentage table as well as Z-Score Test as techniques of analysis. However, the findings of the study shows that commercial banks plays a significant role in the development of small scale business enterprises in Nigeria. The study further reviled that Commercial Banks comply with the Central Bank of Nigeria (CBN) credit guidelines which stipulated that they should set aside 10% of their profit before tax for loan to Small Scale Enterprises (SSEs). Commercial Banks require feasibility report from SSEs before granting loan to them. Also, the result further reviled that Small Scale Enterprises do not provide proper feasibility studies due to poor level of education. In line with the findings of the study, the following recommendations were proffered. For small scale enterprises to survive, there have to be a collective effort between them and banks. Also the government should engage more in the development of Small Scale Enterprises by creating and embarking on various Incentives to encourage hoth Small Scale business Enterprises and commercial banks.