THE ROLE OF COMMERCIAL BANKS IN FINANCING SMALL & MEDIUM SIZE ENTERPRISES IN NIGERIA: A STUDY OF SELECTED BANKS AND FIRMS IN ANAMBRA STATE, NIGERIA

The study examined the role of commercial banks in financing small and medium size businesses in Nigeria. The main objective of the study is to examine the role of commercial banks in financing SMEs in Nigeria. Structured questionnaire were distributed to the respondents which includes the commercial banks staff and selected SMEs staff in Anambra State Nigeria. Three research hypotheses were tested using the chi-square. However, the 109 questionnaire administered to the bankers and SMEs were analyzed and presented in tables with the use of percentage and chi-square method. Therefore, the study found that small and medium size businesses encounter problem in the procurement of loans from commercial banks; also, commercial banks have contributed immensely to the development of SMEs through their loans and advances. The research therefore recommended that for small & medium enterprises to survive, there have to be collective effort between them and banks. Also the government should engage more in the development of small & medium size enterprises by creating and embarking on various incentives to encourage both small scale enterprises and commercial banks. JEL: G21, G17, E2