THE EFFECT OF COMMERCIAL BANK CREDIT POLICIES IN PROMOTING SMALL – SCALE BUSINESS ENTERPRISES IN NIGERIA

ABSTRACT

    The effect of commercial Banks credit in promoting small scale enterprises in Nigeria as a matter of fact ought to be mutually supportive since they both depend on each other for its continuous existence. Small-scale enterprises  performance in terms of efficiency and productivity to some extent is a function of the nature of the type of commercial banks credit policies adopted by the government which are usually manifested in collective bargaining in the sense that government gives supportive measure to them (Small –scale operations) while the Small-scale enterprises help increasing employment opportunities and skill acquisition programme for other Small-scale enterprises for technical know how which equally brings about growth and development of a country. This project is divided into five (5) chapters. Chapter one, under which introduction falls and dwells on historical backgrounds of the institution, background of the study, statement of problem, purpose, research questions, scope, limitation and definition of terms. In chapter two, a rewiew of related literature is made showing similar studies with relevant findings, theoretical formulation of work. chapter three considers research methodology, which embodies method of data collection population, sample of study. Sample method and instrument for data collection, method of data collection, validity of instrument and validity and reliability of measuring institution. Chapter four, focus on presentation, analysis and interpretation of research questions from the data gathered the research is rounded up with chapter five which look at discussion of findings conclusion, recommendations and areas for future study.        

CHAPTER ONE
1.0    INTRODUCTION
    Commercial banks credit polices provides a wide range of financial services to individual, small or medium sized firms and corporate clients through its Network of brancher.
    In all its branches bank offers a range of retail banking services, cheap exchange rate, they also offer trade financial services such as granting of loans facilities to small scale enterprises.
    The commercial banks credit polices also help in evaluating new business opportunities and help in effective and efficient running and management of their resources to ensures growth and development in their profit.

1.1    BACKGROUND OF THE STUDY
    In far back 1960 and prior to the role of small business over shadowed by corporation a phenomenon which reprimanded the close relationship between large sacle enterprises and the state in general.
    The commercial banks few years ago saw interest in small scale enterprise and guided to put in place some specialized financing facilities of scheme primarily to boost their ego (small enterprises).
    The focus on small scale enterprises is predicated on their impact and contribution to a diversified productive base as well as their effect in achieving macro objective such as employment generation and promoting of indigenous firms and the technology that will lead to good economic growth, development and stability.

1.2    STATEMENT OF PROBLEMS
    The fundamental problems which constraints small scale industries to credit, is the law level credit rating form formal sources such as bank and the credit schemes managed under the low credit rating of small scale industries.
    Other problem such as transportation inability to export their products, lack of funds to purchase plants and machinery for quick and standard production, expensive cost of raw materials and the issues of not keeping accurate records of their daily transactions.
    This are points that will be examined such condition necessary for credits are extremely stringent and as the most scale entrepreneur cannot meet such requirement for loans to be granted to them.

1.3    OBJECTIVES OF THE STUDY
    The main objectives of business promotion by small scale enterprises includes:-
1.    TO create Awareness
2.    To build preference
3.    To encourage current issuer rather than purchase.
4.    To critically analyze the importance of business promotion, strategy in business particularly small scale enterprise through commercial banks credit facilities.
5.    To identify the long run importance or business promotion is small scale industries.

1.4    SIGNIFICANCE OF THE STUDY
    When we talk about significance of the study were are talking about the importance of the study which are:-
1.    This topic is important to the government with the help of the government small scale enterprise, can employ more hands for higher productivity (Employment to the common man).
2.    Small scale enterprise very useful to the commercial banks, which is with the small scale entrepreneurs. The bank makes profit through the loan they give out.
3.    It is very important to individual because small scale enterprise will make one not to be Jobless, that is with what you have, you can make a living pout it.
4.    This can also boost of out economic if the government can encourage those that have the skill of establishing a small scale enterprises.

1.5    RESEARCHER QUESTIONS
The research questions are used in getting or collecting data that are relevant to this study “Effect of commercial banks credit polices in promoting small scale enterprises in Nigeria area:
1.    What are the effects of commercial banks credit in promoting small scale enterprises in Nigeria.
2.    Are commercial banks living up to their expectation?
3.    Are small scale enterprises credit worthy?
4.    Are small scale enterprises comfortable with commercial banks credit polices?
5.    Are small scale enterprises contributing to the economic growth of Nigeria?

1.6    SCOPE OF THE STUDY
    The coverage of this topic “the effect of commercial banks credit polices in promoting  small bank enterprises in Nigeria” as it relates to business promotion strategies at the grass roots level has a wide scope to be exhausted with in the limited time.
    Also the wide scope can be seen in the delimitation of small scale enterprises which is aimed at expanding or improving the output of productivity of the business through commercial banks credit faculties and leadership style.

1.7    LIMITATION OF THE STUDY  
    It is certain that the study is supposed to go beyond this, but because of the time constrain (Inadequate though research of the problems, the poor attitude of the respondent and the large size of the population of the study.
    These are some of the factors that militates against the research work.

1.8    DEFINITION OF TERMS
1.    Small scale Enterprise: Is defined as all enterprises whether household or college employing less than twenty (20) full time workers and moves power while some other writers, described small scale enterprise as one whole total assets in capital, equipment, plants and working capital and less than twenty five thousand naira (25,000) and employing fewer than fifty (50) workers according to the industrial unit of university of life.
2.    Commercial Bank: It can be defined as a firm/company that undertakes the business of receiving deposits on current, savings or other accounts, paying or collecting cheques drawn or paid in by customers provision of finance, consultancy and advisory services relating to corporate and investment matters.
3.    Credit policies: It can be seen as the status of trusted to pay back money which concerned with getting or using power within a particular group or organization.
4.    Credit: According to the oxford Dictionary credit is defined as a payment that somebody has the right to for a particular reason.
5.    Promotion of small scale Enterprise: This simply means the development or movement of small scale enterprise in the growth of the economy.