IMPACT OF COMMERCIAL BANKS ON ENTREPRENEURSHIP DEVELOPMENT
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ABSTRACT
The study focused on the Impact of Commercial Banks on Entrepreneurship Development, Vintage Farm Elele was chosen as a target population for the study. It aims at ascertaining the factor that makes country to enable on entrepreneurship development, and also determines the extent to which commercial banks affect entrepreneurship development. The data for this study was collected from the primary source as well as the secondary source. The conceptual and the theoretical frame work for this study was also an opinion in the review of related contracture the researcher therefore, findings, recommendations and conclusions was made that commercial banks play a vital role on entrepreneurship development in a country.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The commercial banks are contributing a lot towards the promotion of entrepreneurship. The banks first function in entrepreneurship development was by giving assistance to indigenously business men obtain funds. In the form of loans and quality to acquire the ownership interest of aliens in business activities. Potential entrepreneurs also obtain funds from the bank to shares or buy the entire business activities schedule. Commercial bank is one of the major impacts to entrepreneur development. Nigerian Bank for Commerce and Industry (NBCI) assists business men by providing consultancy service; in identification of visasic projects commercial banks is the type of bank that provides services such as accepting deposits, making business loans, and offering basic investment products. Commercial banks can also refer to a bank on a division of a bank that mostly deals with deposits and loans from corporations or large business, as opposed to individual members of the pulse. Entrepreneurship development in Nigeria, the entrepreneurs plays a vital role in the process of economic growth and development. According to Iwueze A. (1986) says entrepreneurship development in Nigeria said that an entrepreneur is a creator, an organizer of an enterprise for the pulse, a resourceful person with a dream. Entrepreneurs are bold men and women who have initiative and the ability to lead, manage and take the consequences. They are men of action, risk takers, missioners, creative and highly respected of their ability to effectively and efficiently concubine the functions of management to achieve the goals. The loans giving by the commercial bank to vintage farm will help the business to be out standing in the competitive market and retain their profit customer as well as preserving their capital basic.
1.2 STATEMENT OF THE PROBLEM
The most problem of entrepreneurship development are lack of funds and difficulty in serving loans from banks financial limitations constitute a serious setback to the entrepreneurship they complain that banks are reluctant to grant them credit and even alleged that they often have to offer loan(s). This inability of an entrepreneurs to provide tangible collateral securities for loans make him a misfit in the competitive struggle for limited funds in our snappy economy (Onuoha B.C 1994 183-184). The desire of quick returns in business and application of fraudulent practices are inimical to sustain entrepreneurship growth and also lack of adequate planning, many enterprises do not hire trained and qualified manager to run their business for them. The problem of the study also embedded on the essence of infrastructure facilities for smooth running of the business example, regular and electricity supply, a functioning telephone system which could reduce the number if times to entrepreneur is on the road, good roads etc. The main problem that this research study is connected is how commercial banks have been contributing to the development of an entrepreneurship development.
1.3 OBJECTIVES OF THE STUDY
The objectives of this study shall revolved around the following areas;
To determine the impact of commercial banks to entrepreneurship development.
To determine major problem encountered by these entrepreneurs.
To make recommendation based on the findings, which still be great help to other entrepreneurs and new aspirants into the basins.
To determine are of government assistance and are where assistance is lacking.
To determine the various entrepreneurship centers and their activities in the area of study.
1.4 RESEARCH QUESTIONS
In order to carry out a thorough investigation in the subject under consideration, the following research questions shall be formulated;
- How has commercial banks contributed to the development of an entrepreneurship development?
- What are problems do entrepreneurs encounter in setting up their business?
- Why has commercial banks decline in granting loan and advances to entrepreneurship sectors?
- Are bank unwilling to lend to entrepreneurship business if yes why is this so, and what need to be done about it?
- And why commercial banks performed granting advances to oil sector than entrepreneurship?
1.5 SIGNIFICANCE OF THE STUDY
In view of the sensitively of this study, is of great importance of entrepreneurs as a guild in business and also the public who are interested in entrepreneurship sector and acquaint them of the prevailing interest route and also why commercial banks should always have in their order of priority of granting loan and advances to the sector to bring back the glory of entrepreneurship skill.
In addition, it is expected that the findings will help to bridge the gap that may exist or may have existed and to make entrepreneurship business more effective and efficient in the cause of carrying out the business.
1.6 SCOPE OF THE STUDY
The scope of this study shall be the staffs at vintage farmland, Elele, Ikwere L.G.A, Rivers State. This is because the researcher is adopting a case study approach in his investigation on the variable under consideration.
1.7 LIMITATION OF THE STUDY
To carry out a research of this magnitude is always difficult and associated with a lot of constraints. In the process of carrying out this investigation, the researcher encounters the following limitations, which include:-
Funds: -As an undergraduate pursuing a study in the higher institution, one is limited to fund. A researcher of this magnitude need to be properly funded in order to arrive at a valid conclusion the variable under carrying out his research was not readily available to the researcher, thereby making the study limited to vintage farm, Elele.
Negative attitude of some interviewed: -Some of the people interviewed were not ready to give out the required information needed to the fact that, they think the researcher wants to know about them of researcher objectives.
1.8 DEFINITION OF TERMS
For easy and concise understanding of this work it is necessary that vital terms be defined;
Commercial Bank:- A commercial banks is a profit base financial institution that grants loans accepts deposits, and offers other financial services such as overdraft facilities, credit creation, agency function and electronic transfer of funds.
Development:- Development is the process of advancing, molding, changing and improving the skill, knowledge, creative ability as well as planning and execution of training programme.
Entrepreneurship:- This is the application of enterprise skills specifically to creating and growing organizations in other to identify and build on opportunities and receiving rewards.
Entrepreneur:- An entrepreneur is a person who makes money by starting or running businesses, especially when this involves taking financial risks.
Impact:- These talks about the powerful effect that something has on somebody or something.
Loan and Advances:- This is the kind of assistance usually in money (funds), granted to customer for development or establishment small scale industries finances of L.P.O (Local Purchase Order) and so on, which always attracts an interest.