ABSTRACT

This study was carried out to assess the contribution of commercial banks to entrepreneurship development in Nigeria.Purposive sampling was used to the select there spondents along with snowballing sampling as the first respondents who accessed the loan helped the researcher to identify others whom they knew did the same until there search ercollected sufficient data from them. Sample size was 85SMEs.Primary data were collected using structured question naires and interview guide.Descriptive statistics by use of frequencies and percentages was used to analyze responses. Correlation analysis was used to determine the relationship between creditd eterminant factors and profit while regression analysis was used to examine the creditd eterminant factors effecting Entrepreneur’ profitability.

Results showed that,grant and amount of loan provided by GTB bank had significant relationship with profit (p-value<0.01). Loan hadal so significant contribution to profit (p-value <0.05).Short age of human resources development(entrepreneurial skills),bank financial restrictive regulations andlackof market information hampered more profit gains. It was recommended that, the bank should provide higher amount so floan to entrepreneurs with low interest rates .Business management trainings hould bere gularly provided to cope with the changing business situations, but more relevant to firms on enterprise exercises. SMEs should employ well trained and skilled personnel while considering the costs of human resourced envelopment (trainings)in their general operation costs form oreent entrepreneurial skills as well as customer care. The commercial bank should relaxres trictive regulations which may discourage borrowing and offering more credit facilities for SMEs in Anambra state.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND INFORMATION

Small and medium-sized enterprises (SMEs) are the backbone of all economies and area key source of economic growth, dynamism and flexibility in advanced in dustrialized countries as well asin emerging and developing economies (Oni,2021). SMEs constitute the dominant form of business organization, accounting for over 95% and up to 99% of enterprises depend in gon the country.They are responsible for between 60-70% net job creation in Organization for Economic Cooperation nd Development (OECD) countries.However,small business esare particularly important for bringing innovative products or techniques to the market(Edmiston,2007).

There is no consensus of SME definition as various countries had different definitions depending on the phase of economic development and their prevailing social conditions (Berry et al, 2002). In this, various indexes are used by membere conomies to define the term such as number of employees, invested capital, total amount of assets,salesvolume(turnover)and production capability (Ayyagari,2006). In the context of Nigeria, micro enterprises are those engaging up to 4people, in most cases family members or employing capital amounting up to Tshs.5.0 million.Them ajority of micro enterprises allunder the informal sector. Small enterprises are mostly formalized undertaking sengaging between 5 and 49 employees or with capital investment fromTshs.5milliontoTshs.200million. Medium enterprises employ between 50 and99 people or use capital investment from Tshs.200 million to Tshs.800 million (URT, 2003).