Skip to main content

IMPACT OF RECAPITALIZED COMMERCIAL BANKS ON SMALL MEDIUM ENTERPRISE DEVELOPMENT IN NIGERIA

ATTENTION:
BEFORE YOU READ THE CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!

INFORMATION:
YOU CAN GET THE COMPLETE PROJECT OF THE TOPIC BELOW. THE FULL PROJECT COSTS N5000 ONLY. THE FULL INFORMATION ON HOW TO PAY AND GET THE COMPLETE PROJECT IS AT THE BOTTOM OF THIS PAGE. OR YOU CAN CALL: 08068231953, 08168759420



IMPACT OF RECAPITALIZED COMMERCIAL BANKS ON SMALL MEDIUM ENTERPRISE DEVELOPMENT IN NIGERIA

CHAPTER ONE
INTRODUCTION

1.1 BACKGROUND OF THE STUDY
Small and Medium Enterprises (SMEs) play a vital role in thedevelopment of national economy. Due to their importance and the crucial role they play in economic development and growth of the nation, much attention has been placed on financing of small and medium enterprises, since they are major contributors to the economy of Nigeria. These enterprises are drivers of the economy; therefore policyattention has to be given to them especially in developing economiesbecause of their impact on many sectors of the economy. Their impact isfelt in the following ways: Greater utilization of local raw materials,employment generation, encouragement of rural development, developmentof entrepreneurship, mobilization of local savings, linkages with biggerindustries, provision of regional balance by spreading investments moreevenly, provision of avenue for self employment and provision ofopportunity for training managers and semi skilled workers.
In Nigeria, credit has been recognized as an essential tool for promoting small and Micro Enterprises (SMEs), hence the need for recapitalization of commercial banks in Nigeria. Bank recapitalization which was effective from 2006 is aimed at making Nigerian banks stronger and better in-order to finance all sectors of the economy including the major drivers of the economy-Small and Medium Scale Enterprises. About 70 percent of the population is engaged in the informal sector or in agricultural production. The Federal and State governments have recognized that for sustainable growth and development, the financial empowerment of the people is vital. If this growth strategy is adopted and the latent entrepreneurial capabilities of this large segment of the people is sufficiently stimulated and sustained, then positive multipliers will be felt throughout the economy. To give effect to these aspirations various policies have been instituted over time by the Federal Government to improve rural and urban enterprise production capabilities (Olaitan 2006)
The central Bank of Nigeria on July 6th 2004, announced therecapitalization of banking sector from N2 billion to N25 billion with effectfrom 1st January 2006. This was with a view to make the sectorinternationally competitive, sound and improves its ability to provide creditto all the productive sectors of the economy. In order to meet thisobligation, banks embarked on strategies of merger and acquisition, floatingof new shares and so on. At the end of the exercise, 25 new banks emerged.
It was hoped that the consolidation will make the banks stronger to beable to provide large amount of funds to productive sectors of the economywhich is largely dominated by Small and Medium Enterprises, therebymaking them grow into large firms with enough resources to contribute tothe economic development.
Also, in December 2005, the CBN introduced new Micro-financePolicy (MFP) which was designed to be public and private sector driven.
The purpose of the policy was to strengthen community banks in order forthem to be able to grant collateral and non collateral loans to financemicroeconomic activities in the economy. The policy also aims at providingmany people with access to financial services who otherwise will have noaccess to these services.
Small and Medium Enterprises as said earlier have a crucial role toplay in the development of an economy, they are training grounds for localentrepreneurs, they encourage local savings and ensure equitable distributionof wealth thereby reducing rural- urban migration of human resources.
To this end, government should collaborate with private sector inorder to create an enabling and conducive environment for SME’S in orderto contribute positively towards the development of the economy.
1.2 STATEMENT OF PROBLEM
Bank fraud, poor lending and credit management practices in the Nigerian banking sector forced the Central bank of Nigeria to revisit the capital structure of commercial banks in Nigeria. These among other thingsled the Central Bank of Nigeria (CBN) to give a directive that all banksshould recapitalize from N2 billion to N25 billion with effect from 1stJanuary 2006.
This development led to various financial activities in the Nigerian financial sector with most banks initially opting for additional source of fund from the capital market via floating of shares. Most banks at this stage started inviting members of the public to acquire new shares in-order to meet up with the new minimum capital directed by the central bank of Nigeria. Notwithstanding, some banks were not capable of raising the new minimum capital by themselves, hence the need for mergers and consolidation of banks, reducing the total number of banks in Nigeria to twenty five (25).
However, the consolidation of the banking sector presented new challenges tothe banks which require more efforts to control cost and increase theirefficiency; this in turn has effect the volume of credit facilities granted to small and medium scale enterprises in Nigeria. A study conducted by Iloh et al (2012) reveals the gap between deposit money bankdeposits (DMBD) and commercial bank lending to SMEs from year 2000 upward (the year that saw theend of merchant banks). There is a wide margin between the two variables and while deposit moneybank deposits rose very high, commercial bank lending to SMEs declined from 2004 to 2010. The gapbetween commercial bank deposits and its lending to SMEs reveals the shift in focus from lending toSMEs to lending to major investors (customers). One is made to ask, while the banking sector is said todrive any economy, has Nigerian commercial banks neglected SMEs, which is vital for the growth anddevelopment of the Nigerian economy? Notwithstanding, it is interesting to note that community/Microfinance bank (CMFB) lending to SMEs moved in the same trend with its bank deposit. This implies that ascommunity/microfinance bank deposits increased, it’s lending to SMEs increased. Regardless of thedirect impact of community/microfinance bank on SMEs, SMEs still cry for lack of funding and lending toSMEs in Nigeria is still poor. This is so because their capital, reserve and deposit are very small andinsufficient to meet the needs of small and medium entrepreneurs.





1.3 OBJECTIVES OF STUDY
The primary objective of the study is to examine the effects of bank recapitalization on small and medium scale enterprises in Nigeria. Specific objectives of the study are:
1.     To determine the relationship between Commercial Banks and the performance Small Business Entrepreneurs in Nigeria.
2.     To determine whether bank recapitalization led to increase in funds for financing SMEs.
3.     To examine the accessibility of Small and Medium Enterprise Equity Investment Scheme (SMEEIS) funds to SMEs.
1.4 RESEARCH QUESTIONS
In-order to achieve the above stated objectives, the researcher formulated the following research questions:
1.     What is the relationship between commercial banks and the performance small business entrepreneurs in Nigeria?
2.     Does bank recapitalization increase funding for SMEs?
3.     How accessible are Small and Medium Enterprise Equity Investment Schene Funds to SMEs?
1.5 HYPOTHESIS OF THE STUDY
The following hypotheses are formulated in line with the objectives and research questions of the study:
1.     Ho: There is no significant relationship between Commercial bank and the performance of Small Business Owners in Nigeria.
Hi: There is a significant relationship between Commercial banks and the performance of Small Business Owners in Nigeria.
2.     Ho: Bank Re-capitalization has not led to the increase of funds to SMEs
Hi: Bank recapitalization has led to the increase of Funds to SMEs
3.     Ho: Small and Medium Enterprise Equity Investment Scheme funds are not easily assessable to SMEs
Hi: Small and Medium Enterprise Equity Investment Scheme funds are easily assessable to SMEs
1.6 SIGINIFICANCE OF THE STUDY
Robust economic growth cannot be achieved without putting in place well focused programmes to reduce poverty through empowering the people by increasing their access to factors of production, especially credit. The latent capacity of the poor entrepreneurs would be significantly enhanced through the provision of microfinance services to enable them engage in economic activities and be more self-reliant; increase employment opportunities, enhance household income, and create wealth.
However, the lack of required financial support from the microfinance banks to Micro Business operators in Lagos state has become a major concern in Nigeria. Hence, this study shall be relevant to policy makers in the areas of finding out the impact of micro financing on the small scale investors. Also, this study shall enhance further research in the subject area.
1.7 SCOPE OF THE STUDY
The scope of this research work is the recapitalized commercial banks and theirSME customers in Nigeria. However, due to the fact that there are manycommercial banks with many SME customers, the research is limited toMainstreet Bank, Osun branch and some of their SME customers.
1.8 LIMITATIONS OF THE STUDY
Time and financial constraints were the major limitations of the study. Since the researcher could not afford the cost of reaching out to more banks, money became a challenge. The researcher was also engaged in other school activities which also limited the time used for the project.
1.9 DEFINITION OF TERMS
·        Economy: An economy is the total sum of product and service transactions of value between two agents in a region, be it individuals, organizations or states. An economy consists of the economic system, comprising the production, distribution or trade, and consumption of limited goods and services between two agents, the agents can be individuals, businesses, organizations, or governments.
·        Mergers and Acquisitions: Mergers and acquisitions (abbreviated M&A) is an aspect of corporate strategy, corporate finance and management dealing with the buying, selling, dividing and combining of different companies and similar entities that can help an enterprise grow rapidly in its sector or location of origin, or a new field or new location, without creating a subsidiary, other child entity or using a joint venture.
·        Recapitalization: Recapitalization is a sort of a corporate reorganization involving substantial change in a company's capital structure.
·        SMEs: Small and Medium Enterprises

·        SMEEIS: Small and Medium Enterprise Equity Scheme

HOW TO GET THE FULL PROJECT WORK

PLEASE, print the following instructions and information if you will like to order/buy our complete written material(s).

HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#5000) into our bank Account below, send the following information to
08068231953 or 08168759420

(1)    Your project topics
(2)     Email Address
(3)     Payment Name
(4)    Teller Number
We will send your material(s) immediately we receive bank alert

BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.

OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.

HOW TO IDENTIFY SCAM/FRAUD
As a result of fraud in Nigeria, people don’t believe there are good online businesses in Nigeria.

But on this site, we have provided “table of content and chapter one” of all our project topics and materials in order to convince you that we have the complete materials.

Secondly, we have provided our Bank Account on this site. Our Bank Account contains all information about the owner of this website. For your own security, all payment should be made in the bank.

No Fraudulent company uses Bank Account as a means of payment, because Bank Account contains the overall information of the owner

CAUTION/WARNING
Please, DO NOT COPY any of our materials on this website WORD-TO-WORD. These materials are to assist, direct you during your project.  Study the materials carefully and use the information in them to develop your own new copy. Copying these materials word-to-word is CHEATING/ ILLEGAL because it affects Educational standard, and we will not be held responsible for it. If you must copy word-to-word please do not order/buy.

That you ordered this material shows you have agreed not to copy word-to-word.


FOR MORE INFORMATION, CALL:
08068231953 or 08168759420



AFFILIATE LINKS:


Comments

Popular posts from this blog

PUBLIC RELATIONS AS A TOOL FOR INDUSTRIAL HARMONY. (A CASE STUDY OF CONSTRUCTION INDUSTRY)

  ATTENTION: BEFORE YOU READ THE ABSTRACT OR CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!   INFORMATION: YOU CAN GET THE COMPLETE PROJECT OF THE TOPIC BELOW. THE FULL PROJECT COSTS N5,000 ONLY. THE FULL INFORMATION ON HOW TO PAY AND GET THE COMPLETE PROJECT IS AT THE BOTTOM OF THIS PAGE. OR YOU CAN CALL: 08068231953, 08168759420       PUBLIC RELATIONS AS A TOOL FOR INDUSTRIAL HARMONY. (A CASE STUDY OF CONSTRUCTION INDUSTRY) ABSTRACT There has been a meaningful contribution by researchers on this subject; public Relations. So this project developed after a series of consultation and research. In order to put to rest the about is the mind of many as to whether public relation is necessary in an industry or organization, I strongly believe that the industry is the means through which public relation is mostly propagat

EFFECTS OF KARGASOK TEA ON BLOOD PRESSURE OF NORMOTENSIV MAN

ATTENTION: BEFORE YOU READ THE CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU! INFORMATION: YOU CAN GET THE COMPLETE PROJECT OF THE TOPIC BELOW. THE FULL PROJECT COSTS N5000 ONLY. THE FULL INFORMATION ON HOW TO PAY AND GET THE COMPLETE PROJECT IS AT THE BOTTOM OF THIS PAGE. OR YOU CAN CALL: 08068231953, 08168759420 EFFECTS OF KARGASOK TEA ON BLOOD PRESSURE OF NORMOTENSIV MAN TABLE OF CONTENTS DECLARATION DEDICATION ACKNOWLEDGEMENT LIST OF CONTENTS LIST OF TABLES LIST OF FIGURES ABSTRACT CHAPTER ONE 1.0 INTRODUCTION AND LITERATURE REVIEW 1.1 SOURCE AND HISTORY OF KARGASOK TEA 1.2 PHARMACOLOGICAL COMPONENTS OF KARGASOK TEA 1.3 NORMAL REGULATION OF BLOOD PRESSURE 1.4 ETIOLOGY OF HYPERTENSION 1.5 BASIC PHARMACOLOGY OF ANTIHYPERTENSIVE AGENTS 1.6 SIGNIFICANCE OF RESEARCH PROJECT CHAPTER TWO 2.0 MATERIAL AND METHODS 2.1 PREPARATION OF KARGASOK TEA 2.2 QUESTIONNAIRES OF KARGASOK TEA 2.

PUBLIC RELATIONS AS A TOOL FOR INDUSTRIAL HARMONY. (A CASE STUDY OF CONSTRUCTION INDUSTRY)

  ATTENTION: BEFORE YOU READ THE ABSTRACT OR CHAPTER ONE OF THE PROJECT TOPIC BELOW, PLEASE READ THE INFORMATION BELOW.THANK YOU!   INFORMATION: YOU CAN GET THE COMPLETE PROJECT OF THE TOPIC BELOW. THE FULL PROJECT COSTS N5,000 ONLY. THE FULL INFORMATION ON HOW TO PAY AND GET THE COMPLETE PROJECT IS AT THE BOTTOM OF THIS PAGE. OR YOU CAN CALL: 08068231953, 08168759420       PUBLIC RELATIONS AS A TOOL FOR INDUSTRIAL HARMONY. (A CASE STUDY OF CONSTRUCTION INDUSTRY) ABSTRACT There has been a meaningful contribution by researchers on this subject; public Relations. So this project developed after a series of consultation and research. In order to put to rest the about is the mind of many as to whether public relation is necessary in an industry or organization, I strongly believe that the industry is the means through which public relation is mostly propagat