Entrepreneurship In Nigeria

Entrepreneurial Development in Nigeria: The Role of Banks

By

Jeroh, Edirin
Department of Accounting and Finance
Delta State University, Abraka.
E-mail: [e-mail]

2007

Entrepreneurial Development in Nigeria: The Role of Banks

Abstract
This paper examines the role of banks in the development of entrepreneurship in Nigeria since entrepreneurs expect banks to provide them with financial and other necessary assistance in order to promote and support their enterprises. The highlights of the findings are that: the assistance rendered by banks is not entirely to the satisfaction of entrepreneurs; no supportive input like training is made available by banks; there is the existence of a huge Non-Performing Assets (NPAs)

This was considered essential as pointed by Mathur (1998), when he opined that it is necessary for motivating and assisting prospective and potential entrepreneurs to set up their own ventures to contribute in production, employment and tapping of unutilized resources. Also, Agbonifoh et al (1999), noted that “entrepreneurship is a crucial factor in economic development”. They however added that it is a means by which productive activities are indigenously owned and controlled even as it enables an economy to mobilize resources and talents that might not otherwise be put into productive use. This will at least reduce the unemployment menace which Nafukho (1998), described to have reached an alarming proportion. Hisrich and Peters (1998), explained that the study of entrepreneurship has relevance today, not only because it helps entrepreneurs better fulfill their personal needs, but because of the economic contribution of the new ventures. According to Hisrich and Peters (1998, pp. ), “more than increasing national income by creating new jobs, entrepreneurship acts as a positive force in economic growth by serving as the bridge between innovation and the market place”. Ekanem (2005), summarized the importance of entrepreneurship to include ensuring rapid development, increased utilization of local resources, provision of a training ground for

It was found that in addition to financial assistance, banks also render technical help to their customers. Although, it appears to be evident that most of their customers were not aware of such assistance/services. This study also found that the few customers who were aware of the technical assistance given by banks complained that they could not get any significant help compared to their demands and expectations regarding technical assistance from banks. This finding is in line with that of Mathur (1998), who lamented that banks do not give significant assistance to customers requesting for technical help to sustain their businesses. In addition to the above, it was revealed from this study that some entrepreneurs are not aware of some of the loan/advance schemes available in banks. This is supported by the work of Onojafe (2002), who however suggested that banks should widen their advertising functions, so as to educate their customers on silent functions or services they render, which by now are not to the knowledge of many