Empirical Analysis Of Effect Of Deposit Money Bank Loans On The Performance Of Small Scale Enterprises (A Case Of Some Selected Companies In Aba, Abia State)

ABSTRACT

The research work is an effort to reviews the effect of deposit money bank loans on the performance of small-scale enterprises. It is no doubt that small-scale entrepreneurs find it extremely difficult to start up businesses of their own. It is also a known fact that getting bank loan is not an easy task either. This work tries to reveal the pros and cons associated with the issuance of bank loans and also goes further to find if the loans have impact on the performance of small-scale enterprises. The researcher has adopted sound, statistically based research methodology, with the various test under 1 % level of significant, the hypotheses were found fit to substantiate the various proposals earlier mentioned. The linear regression model and descriptive statistics were used to determine whether there is a relationship between bank loans and the performance of small-scale enterprises and to also determine whether the small-scale enterprises depend on access to loan capital from deposit money banks respectively. The researcher makes use of primary and secondary data. In the final analysis, it was discovered that the bank loans has positive effect on the performance of the small-scale enterprises. In conclusion, the research revealed that bank loans contribute immensely to the capital base of small-scale enterprises.