ABSTRACT

 The purpose of this research work was to Evaluate the Impact Of Deposit Money Banks Loans On The Performance Of Small Scale Enterprises In Nigeria. The problem that has been identified which formed the basis for our hypothesis is the limited small scale enterprises programme in Nigeria. The cause of this limited small scale enterprise programme in Nigeria can be traced to lack of finance and the effect of this can be seen in the rate of unemployment in the country today. This researcher applied correlation coefficient to carryout test of hypothesis and analyzes city. Two hypotheses were formulated and statistical tool was used to test them. Based on the result of our tests, the following findings were made: that the loans and advances of deposit money banks to small scale enterprises in Nigeria is not enough to enhance the performance of the sector; that banks demand collateral and security conditions that arc far stiffer than they demand from large scale firms and are usually more prepared to charge lower interest rates for bigger firms; that the reluctance of banks to give loan to small scale enterprises has contributed to their poor performance in the country; that deposit money bank loans to small scale enterprises have a negative effect on small scale enterprises programmes in Nigeria and that deposit money banks loans to small scale enterprises also have a negative effect on total employment. The following recommendations are made based on these findings: greater discipline and possibly a code of conduct should be enforced by the association of small scale industries to ensure that its members act with decorum especially in managing borrowed funds; Government should formulate policies that will compel commercial banks to relax their restrictive regulations and operations which discourages borrowings, and offer more credit facilities for SMEs; Government should also empower the SMEs to access and get credits from commercial banks through formal and informal entrepreneurship education; There is also need to provide adequate incentives to banks that fund small scale enterprises, for that will help to encourage them. It is therefore believed that if these findings and recommendations are adhered to and well implemented, there will be improvement in the performance of small scale enterprises in Nigeria.