European Journal of Business, Economics and Accountancy Vol. 6, No.
3, 2018
ISSN 2056-6018
THE ROLE OF COMMERCIAL BANKS IN FINANCING SMALL &
MEDIUM SIZE ENTERPRISES IN NIGERIA
John-Akamelu Chitom Racheal
Entrepreneurship Studies Unit
Faculty Of Management Sciences
Nnamdi Azikiwe University Awka, NIGERIA
&
Muogbo Uju, S. PhD
Entrepreneurship Studies Department
Faculty Of Management Sciences
Chukwuemeka Odumegwu Ojukwu University Igbariam, NIGERIA
ABSTRACT
The study examined the role of commercial banks in financing small and medium size
businesses in Nigeria. The main objective of the study is to examine the role of commercial
banks in financing SMEs in Nigeria. Structured questionnaire were distributed to the
respondents which includes the commercial banks staff and selected SMEs staff in Anambra
State Nigeria. Three research hypotheses were tested using the chi-square. However, the 109
questionnaire administered to the bankers and SMEs were analyzed and presented in tables
with the use of percentage and chi-square method. Therefore, the study found that small and
medium size businesses encounter problem in the procurement of loans from commercial
banks; also commercial banks have contributed immensely to the development of SMEs
through their loans and advances. The research therefore recommended that for small &
medium enterprises to survive, there have to be collective effort between them and banks.
Also the government should engage more in the development of small & medium size
enterprises by creating and embarking on various incentives to encourage both small scale
enterprises and commercial banks.
Keywords: Small & Medium Sized Enterprises, Commercial banks, government agencies,
Financing.
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