ABSTRACT

One of the major challenges facing management of every modern organization is how to improve productivity and corporate performance through the use of available motivational incentives. However, given the complexity of human behavior in relation to organizational and environmental condition, these challenges look more insurmountable. The study therefore examine the effects of Deposit money bank Loan on small and medium scale enterprise (a case study of oceanic Bank of Nigeria PLC) with a view to deteiinine the effect on productivity, corporate performance and growth of the organization in Nigerians economy. To achieve these objectives the researcher carried out a comprehension study on the businessmen at all level of the organization and oceanic bank, using the questionnaires and oral interview as the study instrument. For simplicity and better reader's understanding data gathered and collated in this study was presented and analyzed using frequency tables, simple percentages, and multiple regression. The findings of the study showed that Deposit money bank loans have created a positive effects on SMEs in Nigerian Economy, this has resulted into employment opportunities, economic development and improved wellbeing of the people. The research also revealed that inadequate capital, lack of managerial expertise, high loan default, political instability inconsistency in government policies are the problems of SMEs in Nigeria. Therefore financial institution in Nigeria should give more attention to the SMEs sub-sector. There is need for the government to strengthen the institutional channels employed to render support services to SMEs to overcome technical, management and marketing problems. The SMEs entrepreneurs should endeavor to pay the interest and the principal on loans given to them as at when due.