ABSTRACT

One major challenge facing management of every modern organization is how to improve productivity and co-operate performance through the use of available motivational productivity and corporate performance as well as 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. Against this backdrop, the study therefore examines the effects of Deposit money bank loans on small and medium scale enterprise (A case study of Eco Bank) with a view to determine the effect on productivity, Co-operate performance and growth of the organization in Nigerian Economy. To achieve these objectives, the researcher carried out a comprehensive study on the business at all level of the organization and Eco Bank, using the questionnaires and oral interview as the study instrument. For simplicity and better reader's understanding data gathered and collected on this study was presented and analyzed using frequency tables, simple percentages, and multiple regressions. The findings of the study showed that Deposit money Bank loans have created a positive effect on SMEs in Nigerian Economy with limitation on the rate of loan grant. This has resulted into employment opportunities, development and improved well being of the people. On the other hand, the research also revealed that inadequate capital, lack of managerial expertise, high loan default, political instability, x inconsistency in government as well as government transitions are the problems of SMEs in Nigeria. Hence, the researcher, proposed recommendations for mitigating these problems as follows; financial institutions 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, etc Finally, bank loan has not done much more contribution as expected in developing and financing the growth of SMEs in Nigeria.