DETERMINANTS OF DEPOSIT MONEY BANKS CREDIT TO SMALL AND MEDIUM SCALE ENTERPRISES FINANCING IN NIGERIA.

Business and Entrepreneurship

The study examined the determinants of deposit money banks credit to small scale enterprise in Nigeria. Small and medium scale enterprise plays very important roles in the economic growth and development of a nation; it provides employment opportunities, encourages and sustains self-reliance. It is quite unfortunate that despite the numerous roles which small and medium scale enterprise plays in the economy, small and medium scale enterprises still face some challenges of the need for startup capital, the need for working capital and the need for expansion capital. The major objective of this study is to assess the determinants of deposit money banks credit to small scale enterprises in Nigeria. Multiple regression analysis was used to achieve the stated objective. Data was sourced from CBN statistical bulletin. It was revealed that there exist a strong relationship between the dependent variable and independent variable. It was also reviewed in the determinant of SMEs credit equation that the relationship between dependent and Independent variables was statistically significant at 5%. Also, in Anova result p-value is 0.030 which is lesser than 0.05. The study recommends that the Nigerian deposit money banks should mobilized enough deposit and always make loans to small and medium enterprises in other to enhance economy growth and development in Nigeria. There should be guarantee of long term loans to small and medium scale enterprises from the government.

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