SMALL AND MEDIUM ENTERPRISES FUNDING IN NIGERIA AND DEPOSIT MONEY BANKS: AN EMPIRICAL ASSESSMENT

This study examined the link between deposit money banks and the funding of small and medium-sized enterprises in Nigeria using Auchi Metropolis, Edo State, as the reference region. The purpose of this study is to look at how bank sector loans affect small and medium-sized businesses' (SMEs) total contribution to economic growth in Nigeria. The study will also examine the financial sources that these companies employ. Using a descriptive survey research design, this study was conducted. As a result, a random selection technique was used to pick a sample of seven (7) banks for study. This study employed a questionnaire as its research tool, and the study utilized Yamane's techniques to determine the sample size of forty-four (44) participants. The fifty (50) employees make up the sample population. Descriptive and inferential statistics was applied in order to identify trends within the dataset. In the study, frequency tables, percentage analyses, and mean were among the metrics employed along with the chi-square test. The finding reveals that X2c > X2 t; 60.48 > 9.48, that financial discipline on small and medium-sized businesses has a major beneficial impact on deposit money banks in Nigeria, and that X2c > X2 t; 60.69 > 9.48 that lack of collateral security among small and medium enterprises hurts deposit money banks in Nigeria. Conclusions, the financial discipline of small and medium-sized firms plays a significant role in assisting Nigerian deposit money banks in promoting suitable lending facilities. According to the report, deposit money operators should have adequate staff members on standby to monitor borrowers and ensure they adhere to their repayment schedules in order to prevent lenders from seizing the assets of borrowers.

1 29 Mar, 2024

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