Abstract
This study empirically
examined the nexus between credit access and performance of small and medium
scale enterprises (SMEs) in Oyo State, Nigeria. Also, the study aimed at
exploring the relationship between deposit money banks’ credit related charges
and SMEs performance in the study area. To accomplish these objectives, an
empirical survey was carried out among a sample of 381respondents, out of seven
thousand nine hundred and eighty-seven (7987) registered SMEs owners in the state (NBS,
2021).
The study utilized a questionnaire as the instrument of data collection. The
data collected were coded and analyzed using regression analysis through the
aid of Statistical Package for Social Sciences (SPSS) version 25. Findings reveled that the relationship between bank
credit and SMEs performance is negaive but significant. In the same vein, bank credit related charges negatively but significantly
affected SMEs performance in Oyo state within the period captured in this
study. This implies that SMEs owners in the
state did not enjoy the services of the deposit money banks and their related
credit charges, thereby limiting their potentials. It is recommended, among other things that Deposit Money
Banks (DMBs) should make credit facility available at a lesser cost so as to
keep SMEs thriving in the state.
Key words: Credit accessibility, Enterprises’ performance, Small and medium enterprises, Credit related charges.
DOI: www.doi.org/10.36349/fujpam.2024.v3i02.004
author/Ishola, J.A., Ojelade, M.O., Ajayi, Jo.K., Amusat, R.B. & Ahmed, J.A.
journal/FUJPAM Vol. 3, No. 2