ABSTRACT

The small-scale businesses are recognized as integral component of economic development and a crucial element in the effort to lift countries out of poverty. They are the driving force for economic growth, job creation, and poverty reduction in developing countries. They have been the means through which accelerated economic growth and rapid industrialization have been achieved. Furthermore, small scale businesses have been recognized as a feeder service to large-scale industries. While the contributions of small businesses to development are generally acknowledged, entrepreneurs in this sector face many challenges that limit their long-term survival, growth and development. Some researches into small-business development have shown that the rate of failure of small scale businesses in developing countries is higher than in the developed world as a result of inadequate support and incentive programmes by financial institutions. This thesis assesses the contributions of Union Bank Nigeria Plc and Fidelity Bank Plc on the development and growth of small-scale businesses in Abia State. In this study, five research objectives were indentified which includes: to highlight the roles of small-scale businesses in economic development; to examine the various challenges facing small scale businesses operating in Abia State; to determine the various measures that can be introduced by the banks to boost the operations of small scale businesses in Abia State, among others. Also, five research questions were posed and five research hypotheses were formulated respectively. The researcher adopted survey design. Data were collected from the staff of the two selected banks and operators of small-scale businesses in Ariaria International Market located in Aba City, Abia State using questionnaire. Observations were also done. Using Taro Yamane formula, 276 sample size was drawn from 891 population under study. However, 250 copies of questionnaire retrieved were used for the analyses of data. The instrument was validated using the construct validity and Cronbach alpha for the reliability. All the Hypotheses were tested with Correlation analyses and Simple Linear Regression, while ANOVA and T test analyses were used to analyze all the data. Results of the study among others principally show that there are roles played by small-scale businesses in economic development; there are significant challenges facing small scale businesses operating in Abia State, there are positive measures that can be introduced by the banks to boost the operations of small scale businesses in Abia State, there are federal government activities and policies that affect small-scale businesses in Nigeria among others. The above results led to the recommendations that Union Bank Nigeria Plc and Fidelity Bank Plc should endeavour to maintain their significant assistance which aids in the promotion of small-scale businesses in Abia State and other banks should join forces with Union Bank Nigeria Plc and Fidelity Bank Plc, through their lending activities, to see to the development and growth of small-scale businesses in Abia State, Nigeria.

Keywords:

Banks, Assessment, Contributions, Development, Growth, Small-scale businesses.