IMPACT OF CREDIT ON THE GROWTH OF SMALL AND MEDIUM ENTERPRISES IN NIGERIA

ABSTRACT

This study tries to look on the impact of credit in Small and medium scale enterprise in Nigeria. Evidence from Nigeria small and medium scale enterprise have been faced with poor funding with developing nations like ours are considered. This however distort the outstanding functions of SME, as the engine and Pivot for the economic growth and national development. No wonder Nigeria has continue to experience high level of emergence of new enterprises that would only exist for two and three years and fizzle out. This study has the objective of determining the impact of credit and SMEs in Nigeria with such variables like collaterals and impact of growth on credit.

This study information was based only in secondary data were journals, magazines, internet, statistical bulletin were used as sources of data collection. Regression analysis was used to test the hypothesis. The study shows that the level of the operation of SMEs has not improved when compared in the other developed nations. SMEs in Nigeria are faced with numerous challenges and such has affect their performances. We therefore recommend that attention and support be given to the sub-sector so as to enhance their performance as the engine of growth and catalyst for socio-economic transformation in Nigeria. The study has provided opportunity for further research into other factors that could affect SMEs credit accessibility, in order to ascertain if such factors actually affect them in equal measures or not.

 

 

 

 

 

 

 

 

TABLE OF CONTENT

Title page……………………………………………………………………...i

Approval………………………………………………………………………ii

Declaration……………………………………………………………………iii

Dedication……………………………………………………………………..iv

Acknowledgement…………………………………………………………….v

Abstract………………………………………………………………………..vi

Table of Content……………………………………………………...………vii

 

CHAPTER ONE

1.1     Background of the study                                                                 1

1.2     Statement of the Problem                                                                3

1.3     Objectives of the Study

1.4     Research Questions

1.5        Hypotheses of Study

1.6     Significance of the Study To SME Operators:                               5

1.7     Scope and limitation of the Study                                                   5

1.8     Definition of terms                                                                           6

References:                                                                                        8

 

CHAPTER TWO

2.1     Historical development of SMEs in Nigeria                                    9

2.2     Conceptual Issues                                                                                      12

2.3     Theoretical Review                                                                          43

2.4

References:                                                                                       61                                                              

 

 

CHAPTER THREE

3.1              Research Design.                                                                              64

3.2    Population of the Study                                                                            64

3.3    Sampling Size and Sampling Technique                                        64

3.4    Instrumentation                                                                               65

3.5    Instrument validation/reliability of Instrument                              65

3,6     Method of Data Analysis                                                                             65

3.7     Model Specification                                                                         66

CHAPTER FOUR

4.1     Data Presentation                                                                                      68

4.2     Test of Hypotheses                                                                           74

4.3     Discussions on Results                                                                     76

4.4     Policy Implications of Results                                                                   77

References:                                                                                       79

CHAPTER FIVE

5.1   Summary of Findings                                                                       82

5.2     Conclusion                                                                                       83

5.3     Recommendations                                                                           84

5.4    Further studies                                                                                 86

References                                                                                        87

APPENDIX I