THE ROLE OF COMMERCIAL BANKS IN FINANCING SME IN NIGERIA A CASE STUDY OF FIRST BANK PLC

THE ROLE OF COMMERCIAL BANKS IN FINANCING SME IN NIGERIA A CASE STUDY OF FIRST BANK PLC

INTRODUCTION
SMEs definition depends mainly on the level of development of the country. In most developed market
economies like the United States of America, UK and Canada, the definition criterion adopted a mixture of
annual turnover and employment levels. SMEs exist in the form of sole proprietorship and partnership, though
some could be registered as limited liability companies and characterized by ; simple management structure,
informal employer/ In Nigeria, the small and medium industries Enterprises investment scheme (SMIEIS)
defines SMEs as any enterprise with a maximum asset base of N200 million excluding land and working capital
and with a number of staff employed not less than 10 or more than 300 .The federal ministry of commerce
defines SMEs as firms with a total investment (excluding cost of land but including capital) of up to N750,000,
and paid employment of up to fifty persons, Employee relationship, labour intensive operation, simple
technology, fusion of ownership and management and limited access to capital.

THE ROLE OF COMMERCIAL BANKS IN FINANCING SME IN NIGERIA A CASE STUDY OF FIRST BANK PLC