THE ROLE OF COMMERCIAL BANKS IN SMALL SCALE BUSINESS FINANCING
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THE ROLE OF COMMERCIAL BANKS IN SMALL SCALE BUSINESS FINANCING
ABSTRACT
In the banking business, new products are developed to fulfil the ever-increasing needs of customers.
In this research, four goods were chosen and the extent to which they were able to please clients was measured. SMALL CARD, INTERNATIONAL MONEY TRANSFER, EDUCATIONAL SCHEME, AND INTEGRATED BANKING NETWORK TRANSACTION are the products chosen.
The questionnaire data is presented in tabular form, and percentages and a pie chart are required to analyse it. According to the research, the product was able to please the customer to a very high level.
It was also observed that buyers prefer products that require fund transfers, with the most important factor being ease. The product’s debut increased the bank’s profitability.
1.0 INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Commercial banking in Nigeria, according to Orjih, stretches back to the early colonial period. The decrease in the Banker system of trade and the increase in financial transactions of the colonial government necessitated the establishment of a commercial bank for the protection and transportation of cash.
It is privately owned and operated with the intention of creating a profit for its proprietors.
A small-scale business firm, according to the Small Scale Business Act of 1953, is one that is independently owned and run and is not dominated in its field of operation. limited scale businesses are owned,
managed, and controlled by one or two people, are affected in decision making by family members, have an undifferentiated organisational structure, have a limited market share, and employ fewer than 50 people.
The commercial bank serves specific functions for small businesses in order for them to operate efficiently. Accepting deposits, issuing loan and overdraft facilities, agency services, providing station reports, standing orders, call credit facilities, investment advice, and so on are some of their responsibilities.
The commercial bank’s role enables small scale businesses to properly plan their business, keep adequate records, maintain proper accountability, pursue planned expansion, use professional assistance, improve your business knowledge through apprenticeship programmes and formal education, and so on.
1.2 STATEMENT OF THE PROBLEM AND THE OBJECTIVES OF THE STUDY
The tiny scale Individuals who own businesses confront issues such as undercapitalization, poor business responsibility, poor record keeping, a lack of business education and experience, and inadequate location.
1.3 SIGNIFICANCE OF THE STUDY
These research works are to be used for the aim of learning because it cannot be considered to have been totally treated in one’s work like this. Other researchers can utilise the work as a foundation for future research.
1.4 SCOPE AND LIMITATIONS OF THE STUDY
Although certain publications, textbooks, and magazines were used during the course of the study were in the role of commercial bank in small scale business due to time constraints, the term paper was completed in the allotted time.
1.5 DEFINITION OF TERMS
COMMERCIAL BANK: It is a privately held bank that was founded to make a profit for its owners and to provide loans to customers on a short-term basis.
LOAN: A loan is regarded as problem credit if it is unable to be repaid to a financial facility issued by a bank and meant to be used to finance a specified purpose.
FUND: An increase in the debt or equity account or a drop in the asset account can be regarded as a fund.
FINANCE: The possession of finances when they are required for investment.
CREDIT: Is a type of account payable that is the most common source of short-term credit in small and medium-sized businesses in both developed and emerging economies. It entails purchasing goods and services and deferring payment until a future date agreed upon.
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