BANK LENDING, ENTREPRENEURIAL SKILLS AND SUSTAINABILITY OF SMALL SCALE ENTERPRISES IN NIGERIA

Small-scale enterprises (SSEs) play a critical role in the economic development of Nigeria, contributing significantly to employment generation, poverty alleviation, and grassroots industrialization. However, the sustainability of these enterprises remains a major concern due to combination of financial constraints, limited access to formal credit, and insufficient entrepreneurial capacity. This study investigates the interrelationship between bank lending, entrepreneurial skills and sustainability of small-scale enterprises i n Nigeria. Specifically, it examines how access t o bank credit influences the growth and continuity o f SSEs, the role o f entrepreneurial skills in effective financial management and business strategy, and how the synergy between financing and skill acquisition contributes to long tern sustainability.Using a mixed-method approach, the study employed both quantitative and qualitative data collected from cross-section of SSE operators, commercial bank officials, and policy stakeholders across selected Nigerian states. The quantitative data were analyzed using regression and correlation techniques to determine the strength of relationships among variables, while thematic analysis was applied t o qualitative responses t o understand contextual challenges and policy implications. Findings reveal that although bank lending i s a crucial driver o f enterprise sustainability, many SSEs in Nigeria faces significant barriers in accessing formal credit due to high collateral demands, stringent lending conditions, and perceived risk by financial institutions. Furthermore, the presence of strong entrepreneurial skills such as financial literacy, business planning, innovation, and risk management significantly enhances the effective utilization of credit and contributes to business survival and growth.The paper recommends a multifaceted policy approach, including the design of SME friendly bank lending frameworks, entrepreneurial skill development programs, and the establishment of public- private partnerships aimed at creating a n enabling environment for small-scale enterprises. The study concludes that both access to bank loans and strong entrepreneurial skills are important for the long-term success of small-scale enterprises. I t recommends that banks should businesses and that government and NOs should support training programs to improve entrepreneurial skills among small business owners.