ABSTRACT
This study was on the study of recapitalized commercial banks and their SME customers in Nigeria. This study was guided by the following objectives; to determine the relationship between Commercial Banks and the performance of Small Business Entrepreneurs in Nigeria, to determine whether bank recapitalization led to increase in funds for financing SMEs and to examine the accessibility of Small and Medium Enterprise Equity Investment Scheme (SMEEIS) funds to SMEs. The study employed the descriptive and explanatory design; questionnaires in addition to library research were applied in order to collect data. Primary and secondary data sources were used and data was analyzed using the chi-square statistical tool at 5% level of significance which was presented in frequency tables and percentage. The respondents under the study were 60 SME owners Port Harcourt branch. The study findings revealed that there is a positive significant relationship between commercial banks and the performance of small business owners in Nigeria although the relationship is 70% but if more effort is added at least they can be up 90% efficient in their assistance; based on the findings from the study, the Nigerian banks and indeed all stakeholders should improve on the funds made available to SMEs in Nigeria.
CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY
Obio/Akpor Local Government Area in the metropolis of Port Harcourt is one of the major centres of economic activities in Nigeria and one of the major cities of the Niger Delta, located in Rivers State. The Local Government Area covers 260 km2 and at the 2006 Census, held a population of 878,890 with about 70% of the population engaging in Small and Medium scale Enterprises (SMEs) or in agricultural production. Small and Medium Enterprises (SMEs) play a vital role in the development of any national economy. Due to their importance and the crucial role they play in the economic development and growth of any nation, much attention has been placed on the financing of small and medium enterprises, since they are major contributors to the economy of Nigeria. These enterprises are drivers of the economy; therefore policy attention has to be given to them especially in developing economies because of their impact on many sectors of the economy. Their impact is felt in the following ways: Greater utilization of local raw materials, employment generation, encouragement of rural development, development of entrepreneurship, mobilization of local savings, linkages with bigger industries, provision of regional balance by spreading investments more evenly, provision of avenue for self employment and provision of opportunity for training managers and semi skilled workers.
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