THE IMPACT OF BANK LOANS ON MALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA
ABSTRACT
Small and Medium enterprises are the catalyst for economic growth in most economies thus, the fundamental
objective of this study is to investigate the impact of loans on Small and Medium Enterprises (SMEs) in Nigeria. So
that the ability of SMEs to develop positively and drive economic growth in the Nigeria will become real. Simple
random sampling technique was employed in selecting the 100 SMEs that constituted the sample size of the
research. Structured
questionnaire was designed
to facilitate the acquisition
of relevant data which was
used for analysis.
Descriptive statistics which
involves simple percentage graphical charts and illustrations was tactically applied in data presentations and analysis.
The findings of the study reveal that significant number of the SMEs benefitted from the loans even though only few
of them were capable enough to secure the required amount needed. Interestingly, majority of the SMEs
acknowledge positive contributions of loans towards increasing their returns and sales thus placing them in the
competitive arena. It is recommended that Banks should review their interest rate downwards and also share best
practices with their SME customers especially on the efficient use of loans; this will boost their productivity and support SM.
THE IMPACT OF BANK LOANS ON MALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA