The Role Of Commercial Banks In Small Scale Entrepreneurial Development In Enugu State

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.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The post-independence Nigerian government adopted the entrepreneurship government which constrained it to assume the role of entrepreneur and the urge to offset the economic neglect of the colonial government and that resulted in engaging in ambitious

industrialization programmes. When the Nigerian industrial Development Bank Limited (NIDB) was established in 1964 for the purpose of speeding up the industrialization process, its mandate was to promote industrial projects which were large enough to make applicable contribution to the national economy. However, the collapse of the oil boom in the early 1980’s exposed the inherent weaknesses of this importation of inputs resulted in large idle capacities, thereby creeping many gross domestic product (GDP) declined in the face of the strong national aspiration for the restructuring of the economy and reduction of the dependence on petroleum. Small and medium scale enterprises have since become the focus of national industrial policy. In pursuit of self-reliance in a developing country particularly in Nigeria, the central government enacted a decree called “Enterprises promotion Decree” when there was need for small scale enterprises in the promotion of economic development. This has since been at the fore front of development strategies.

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APA

Resources, A. (2023). The Role Of Commercial Banks In Small Scale Entrepreneurial Development In Enugu State. Afribary. Retrieved from https://afribary.com/works/the-role-of-commercial-banks-in-small-scale-entrepreneurial-development-in-enugu-state

MLA 8th

Resources, Africana "The Role Of Commercial Banks In Small Scale Entrepreneurial Development In Enugu State" Afribary. Afribary, 05 Jun. 2023, https://afribary.com/works/the-role-of-commercial-banks-in-small-scale-entrepreneurial-development-in-enugu-state. Accessed 18 Dec. 2024.

MLA7

Resources, Africana . "The Role Of Commercial Banks In Small Scale Entrepreneurial Development In Enugu State". Afribary, Afribary, 05 Jun. 2023. Web. 18 Dec. 2024. < https://afribary.com/works/the-role-of-commercial-banks-in-small-scale-entrepreneurial-development-in-enugu-state >.

Chicago

Resources, Africana . "The Role Of Commercial Banks In Small Scale Entrepreneurial Development In Enugu State" Afribary (2023). Accessed December 18, 2024. https://afribary.com/works/the-role-of-commercial-banks-in-small-scale-entrepreneurial-development-in-enugu-state

The Role Of Commercial Banks In Small Scale Entrepreneurial Development In Enugu State

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