BANK CREDIT FACILITIES AND PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES

ABSTRACT

The topic of this study is bank credit facilities and performance of small and medium scale enterprises (SMEs) with respect toEdo State. The specific of the objective wasto: identify the pattern of bank credit facilities obtained on the Performance of Small and Medium-Scale Enterprises (SMEs); investigate the impact of short-term loans on the performance of SMEs; know the impact of medium-term loans on the performance of SMEs; examine the impact of long-term loans on the performance of SMEs and detect the impact of cash and credit overdraft on the performance of SMEs in Edo State.The population of the study was comprised of all the registered SMEs in Benin of Oredo Local Government Area. According to SMEDAN (2017) there are eleven thousand eight hundred and seven-nine (11,879) registered SMEs (SMEDAN, 2017).  The population size was hundred (100) which was gotten from total population using Taro Yamane (Yamane, 1973) formula. The instrument used by the researcher for the study was a structured questionnaire. The questionnaire contained sixteen (16) items which was divided into two (2) parts. Part A requires the respondents to give their personal data, as the respondents had to make choice of ticking in the boxes containing the most appropriate options. And the questionnaire was used for the collection of data. The primary data collected through the questionnaire for this project, was analyzed using descriptive statistics and percentage analysis. The percentages was enable us draw inferences on the degree of occurrence of the variables measured within the study sample. Also, the use of regression statistics model was adopted in testing the hypothesis of the data generated for the study. Adopting a Survey research design, the researcher discovered that the bank credit facilities have gone a long way in alleviating poverty and boosting the capital base of small and medium scale businesses in the area. It also helped the entrepreneurs to establish their businesses and create employment opportunity. The researcher therefore recommends among other things that more financial institutions should target the rural areas in other to create more employment opportunities and reduce poverty.