European Journal of Accounting, Finance and Investment

The Impact Of Deposite Money Bank Lending To The Growth Of Small Scale Enterprises In Nigeria

Genevive Chinomso Akhilomen

Imo State University Owerri

NDUBUISI MARCELLINUS NWARU

EMMANUEL OSAJIE AKHILOMEN

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Abstract

This study aimed at evaluating the impact of Deposit money bank lending to the growth of small scale enterprises in Nigeria. Until the early nineties, small scale enterprises has been the means of contributing to the achievement of nation’s economic development objectives which include; employment generation, output expansion, income redistribution, promotion of indigenous entrepreneurship and technology. This study therefore empirically examined the impact of Deposit money bank lending on the growth of small scale enterprises. With the output of small scale enterprises, Deposit money bank credit to small-scale enterprise, lending rate and exchange rate. Data was analyzed using multiple regression model of E-view over a period of twenty five years. Different test were performed in eliminating white noise. The result revealed that Deposit money bank lending  has a negative and significant effect on  the growth of small scale enterprises also the lending rate has an adverse effect on the growth of small scale enterprises . The study recommends that the government should formulate policy that will eradicate high rate of the loan granted by Deposit money bank and also a way for them to have access to desired capital or finance, controlling long protocols and unwillingness of financial institution in lending money. Involving, micro-finance banks so as to be able to reach out those in rural areas.

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Author Biographies

NDUBUISI MARCELLINUS NWARU

NDUBUISI MARCELLINUS NWARU IS A PROFFESSOR OF ECONOMICS IN IMO STATE UNIVERSITY OWERRI, IMO STATE  NIGERIA.

EMMANUEL OSAJIE AKHILOMEN

EMMANUEL OSAJIE AKHILOMEN IS A RELATIONSHIP MANAGER, HE HAS OVER FIFTEEN YEARS WORKING EXPERIENCE WITH THE COMMERCIAL BANK IN NIGERIA.