Impact of Banks and Other Financial Institutions In Enhancing The Growth of Entrepreneurial Development: An Empirical Study of South-South Nigeria
This study was carried out to investigate the impact of banks and other financial institutions in enhancing the growth of entrepreneurial development: An empirical study of South-South, Nigeria. A set of structured questionnaire was used as the instrument for data collection and administered on 335 entrepreneurs in the South-South, Nigeria randomly selected using YaroYemane formula. Applying this formula, the sample size from a population of 2056 is 335 respondents at 95% confidence level. Three hundred and thirty five copies of questionnaire were distributed to the respondents and 288 copies were recovered giving a recovery rate of 85.9%. Data analysis was made and the hypotheses formulated were tested using Kruskal Wallis-oneway analysis of variance by rank. For the first hypothesis and the second hypothesis was tested using independent t-test statistics. The findings revealed that positive and significant relationship exists between banks and other financial institutions in providing loans to promote entrepreneurship development in South-South, Nigeria. Another finding revealed that positive and significant relationship exists between banks and other financial institutions in providing advisory services to promote entrepreneurship development in South-South, Nigeria. It was concluded that banks and other financial institutions play a very significant role for the performance and survival of entrepreneurs in South-South Nigeria. The study however, recommended that banks should keep a constant vigil over the enterprises being financed by them. The banks must ensure that funds are being properly utilized in business. This can be possible if a proper monitoring system on credit administration and utilization is established in the banks. The banks must ensure that the enterprises live above failure that may result from poor management despite the best intention of the entrepreneurs. Banks should endeavour to expand their advertising functions in order to educate customers on their services which by now may not be knowledgeable to many Nigerians, most especially services in relation to lending schemes and also banks should ensure the ultimate viability of every enterprise, banks have to take over the reigns of the enterprises and play a constructive role in order to attain this feat.