THE ROLE OF COMMERCIAL BANKS IN SMALL SCALE ENTREPRENEURIAL DEVELOPMENT IN ENUGU STATE (CASE STUDY OF UBA AND UNION BANK OF NIGERIA PLC.)

ABSTRACT
The subject matter of this research work is to evaluate the extent to which Small Scale entrepreneurs in Enugu have been able to obtain loans and raise finance from Nigerian Commercial Banks as a major source of finance to the economy. The main objective of the study is to establish the role of Commercial Banks in financing Small Scale Enterprises (SSEs) in Enugu .A review of literature was done to ensure the conclusion of the study. Based on the analysis, Commercial Banks comply with the Central Bank of Nigeria (CBN) credit guidelines which stipulated that they should set aside 10% of their profit before tax for loan to Small Scale Enterprises (SSEs).Commercial Banks require feasibility report from SSEs before granting loan to them. Small Scale Enterprises do not provide proper feasibility studies due to poor level of education. The research concluded that for small scale enterprises to survive, there have to be a collective effort between them and banks. Also the government should engage more in the development of Small Scale Enterprises by creating and embarking on various incentives to encourage both Small Scale Enterprises and commercial banks.


TABLE OF CONTENTS Title Page ------------------------------------------ i
Approval Page ------------------------------------------------------------------------- ii
Certification ---------------------------------------------------------------------------- iii
Dedication ------------------------------------------------------------------------------ iv
Acknowledgement ------------------------------------------------------------------- v
Abstract ------------------------------------------------------------------------------- vi
Table of Contents -------------------------------------------------------------------- vii
CHAPTER ONE: INTRODUCTION
1.1 Background of the study -----------------------------------------------------1
1.2 Statement of the Problem -------------------------------------------------- 3
1.3 Objectives of the Study ------------------------------------------------------ 5
1.4 Research Question ------------------------------------------------------------ 5
1.5 Hypotheses ----------------------------------------------------------------------6
1.6 significance of the Study ---------------------------------------------------- 6
1.7 Limitations of the Study ----------------------------------------------------- 7
1.8 Definition of terms ------------------------------------------------------------ 8

CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.1 The meaning of Small Scale Enterprises -------------------------------- 9
 2.2 Roles and Importance of Small Scale Enterprises (SSEs) ----------- 12
2.3 Funding Needs and sources of Funds For Small Scale Enterprises (SSEs) --------------------------------------- 15
 2.4 The predominance of Small Scale Enterprises In Nigeria ---------------------------------------------------------------------- 21
2.5 Problems facing Small Scale Enterprises in Nigeria ----------------- 24
2.6 Commercial Banks financing Small Scale Enterprises Under the New Central Bank of Nigeria (CBN) Directive and its likely impact ------------------------------------------- 31

CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY
3.1 Population of the Study --------------------------------------------------- 36
3.2 Determination of Sample Size ------------------------------------------- 36
3.3 Instruments of Sample Size ---------------------------------------------- 36
3.3.1 Primary Data -------------------------------------------------------------- 37
3.3.2 Secondary Data ----------------------------------------------------------- 37
3.4 Method of Data Collection ----------------------------------------------- 37
3.4.1 Questionnaire Administration ---------------------------------------- 38
3.4.2 Interview Method -------------------------------------------------------- 38
3.5 Method of Data Presentation ------------------------------------------- 38

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Data Presentation-Primary Data --------------------------------------- 40
4.2 Presentation of Questionnaire Results in Percentages ---------- 42
4.3 Statistical Tools ------------------------------------------------------------- 53
4.4 Testing of Hypotheses ---------------------------------------------------- 53

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1 Summary of Findings ----------------------------------------------------- 56
5.2 Conclusion ------------------------------------------------------------------- 57
5.3 Recommendations -------------------------------------------------------- 58
5.4 Suggestions for Further Research ------------------------------------- 61
Bibliography ---------------------------------------------------------------- 62
Appendices --------------------------------------------------------------- -- 65