THE ROLE OF COMMERCIAL BANKS IN SMALL SCALE ENTREPRENEURIAL DEVELOPMENT IN ENUGU STATE (CASE STUDY OF UBA AND UNION BANK OF NIGERIA PLC.)

ABSTRACT

The subject matter of this research work is to evaluate the extent to which Small Scale entrepreneurs in Enugu 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 establish the role of Commercial Banks in financing Small Scale Enterprises SSEs in Enugu .A review of literature was done to ensure the conclusion of the study. Based on the analysis, 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. Small Scale Enterprises do not provide proper feasibility studies due to poor level of education. The research concluded that 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 both Small Scale Enterprises and commercial banks.

TABLE OF CONTENTS

Title Page i

Approval Page ii

Certification iii

Dedication iv

Acknowledgement v

Abstract vi

Table of Contents vii

CHAPTER ONE: INTRODUCTION

1.1 Background of the study 1

1.2 Statement of the Problem 3

1.3 Objectives of the Study 5

1.4 Research Question 5

1.5 Hypotheses 6

1.6 significance of the Study 6

1.7 Limitations of the Study 7

1.8 Definition of terms 8

CHAPTER TWO: REVIEW OF RELATED LITERATURE

2.1 The meaning of Small Scale Enterprises 9

2.2 Roles and Importance of Small Scale Enterprises SSEs 12

2.3 Funding Needs and sources of Funds For Small Scale Enterprises SSEs 15

2.4 The predominance of Small Scale Enterprises In Nigeria 21

2.5 Problems facing Small Scale Enterprises in Nigeria 24

2.6 Commercial Banks financing Small Scale Enterprises Under the New Central Bank of Nigeria CBN Directive and its likely impact 31

CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY

3.1 Population of the Study 36

3.2 Determination of Sample Size 36

3.3 Instruments of Sample Size 36

3.3.1 Primary Data 37

3.3.2 Secondary Data 37

3.4 Method of Data Collection 37

3.4.1 Questionnaire Administration 38

3.4.2 Interview Method 38

3.5 Method of Data Presentation 38

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

4.1 Data PresentationPrimary Data 40

4.2 Presentation of Questionnaire Results in Percentages 42

4.3 Statistical Tools 53

4.4 Testing of Hypotheses 53

CHAPTER FIVE: SUMMARY OF FINDINGS,CONCLUSIONS AND RECOMMENDATIONS

5.1 Summary of Findings 56

5.2 Conclusion 57

5.3 Recommendations 58

5.4 Suggestions for Further Research 61

Bibliography 62

Appendices 65