IMPACT OF COMMERCIAL BANKS ON ENTREPRENEURSHIP DEVELOPMENT

(A STUDY OF KEKESON’S FARM LIMITED)

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ABSTRACT

This study focused on the impact of commercial banks on entrepreneurship development. KEKSON farm AGIP 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 a opinion in the revive of related contracture the researcher therefore, findings recommendations and conclusi-on was made that that commercial banks play a vital role on entrepreneurship development in a country.

 

 

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND INFORMATION

The commercial banks are contributing a lot towards the promotion of entrepreneurship. The banks first function in entrepreneurship development was by giving assistance to indigenous business men obtain funds. In the form of loans and quality to acquire the own ship interest of aliens in business activities. Potential entrepreneurs also obtain funds from the bank to buy up shares or buy the entire business activities schedule. Commercial bank is one of the major impact to entrepreneurs development. Nigerian bank for commerce and industry (NBCI) assists business men by providing consultancy service; in identification of visasie projects commercial banks is the type of bank that provides service such as accepting deposits, making business loans, and offering basic investment products. Commercial banks can also refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses, as opposed to individual members of the pulse.

Entrepreneurship development in Nigeria, the entrepreneurs plays a vita role in the process of economic growth and development. According to lwueze A. (1986) says entrepreneurship development in Nigeria said that an entrepreneur is a contractor, 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 kekeson farm will help the business to be out standing in the competitive market and retain their profit customers as well as preserving their capital basic.

1.2   STATEMENT OF THE PROBLEM

The most problems of entrepreneurship development are lack of fund and difficulty in serving loans from banks financial limitations constitute a serious set back to the entrepreneurship they complain that banks are reluctant to grant them credit and even alleged that they often have to offer loans(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 of times the entrepreneur is one 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 OBJECTIVE OF THE STUDY

The objectives of this study shall revolve around the following areas:

 To determine the impact of commercial banks to entrepreneurship development.

 To determine major problems on 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 area of government assistance and area 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

  1. How has commercial banks contributed to the development of an entrepreneurship development?
  2. What are problems do entrepreneurs encounter in setting up their business?
  3. Why has commercial banks decline in granting loan and advances to entrepreneurship sectors?
  4. Are banks unwilling to lend to entrepreneurship business if yes why is this so, and what need to be done about it?
  5. And why commercial banks performed granting advances to oil sector than entrepreneurship?

1.5 SIGNIFICANCE OF THE STUDY

In view of the sensitivity of this study, is of great importance to entrepreneurs as a guide 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 th glory of entrepreneurship skills.

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 activities.

1.6 SCOPE OF THE STUDY

The scope of this study shall be the staffs of kekekson farmland, Agip, Port Harcourt. This is because the researcher is adopting a case study approach in his investigation on the variable under consideration.

1.7 LIMITATIONS 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 carry 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 research of this magnitude need to be properly funded in order to arrive at a valid conclusion on the variable under carryout this research was not readily available to the researcher; hence, fund prose a major constraint to the researcher, thereby making this study limited to kekeson farm, Agip.

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 their of researchers objectives.

1.8 DEFINITIONS OF TERMS

For easy and concise understanding of this work it is necessary that vital terms be defined:

  1. a) Commercial banks:- Commercial banks or any financial institution in respect to loan and advances granted to their customs in form of handing mortgage finances and sow to be able to carter for a lot of over-heads and remains in business.
  2. b) Development:- is the process of importing, mulding changing and developing the skills, knowledge, creative ability as well as planning and execution of training programme.
  3. c) Entrepreneur:- is a person who starts, organize a commercial enterprise especially one having financial risk.
  4. d) Loan and advances:- this kind of assistance usually in money (funds), granted for customer for development or establishment of small scale industries finances of P.L.O (Local Purchase Order) so on, which always attracted an interested.

 

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