EFFECT OF BANK LENDING ON OF SMALL AND MEDIUM ENTERPRISES: A CASE STUDY OF GARKO LGA, KANO STATE

ABSRACT The study was designed to assess the effect of bank lending on Performance of Small and Medium Enterprises, a case study of Garko LGA, Kano State. Specific objective of the study is to assess the performance of SME’s in Garko LGA, Kano State, its process and procedures. Also, the study measures on how to examine the effectiveness of bank lending with other means of financing small and medium enterprises, how it has been able to identify strengths and weakness of SME’s and finally finds out whether all set objectives are achieved. The study population was not considered all in the study, random sampling technique was used, which gives every member of the population an equal opportunity of been selected in the sample size, random sampling technique was adopted to select a total sample size of seventy eight (78) respondents, who are either the entrepreneurs or those that help in the conduction of their business. Data presentation and discussions were supported with tables to make the whole work easy to read and understand by all sundry. The study revealed that the bank lending exercise was not given the seriousness it deserves. And the majority of the respondents have a clear knowledge and meaning of SME. Also respondents seems to be satisfied with the performance of Garko LGA SME’s majority of the SME’s do not patronize banks to raise funds to finance their business rather they rely on their respective individual efforts and other alternative means to source for capital needed for their business venture, so the researcher recommended adequate provision of financial aids and assistance from the government and other institutions to counter lack of available capital for investment which is the major problem facing entrepreneurs in Garko LGA, Kano State.