THE ROLE OF COMMERCIAL BANKS IN THE PERFORMANCE OF SMALL SCALE ENTERPRISES IN NIGERIA : A CASE STUDY OF FIRST BANK NIGERIA

ABSTRACT

This study was intended to examine the role of commercial banks in the performance of small-scale enterprises. This study was guided by the following objectives; to analyse the contribution of commercial banks towards the development of small-scale enterprises in Nigeria, to examine the relationship between commercial banks’ support and the performance of small-scale enterprises, to identify factors that promotes or stunts the effective performance of the small-scale enterprises and to investigate the relationship between economic development and the small-scale enterprises. The study employed the descriptive and explanatory design; questionnaires in addition to library research were applied in order to collect data. Primary and secondary data sources were used and data was analyzed using the chi square statistical tool at 5% level of significance which was presented in frequency tables and percentage. The respondents under the study were 100 staff each of UBA and First Bank of Nigeria. The study findings revealed that Commercial banks recognize the need of granting loans to the small-scale enterprises as means of generating employment and enhancing growth of the economy; based on the findings from the study, banks should not discriminate from lending to small-scale enterprises (SSEs) as there are no more restrictions restricting them from doing so.