AN APPRAISAL OF THE EFFECTS OF SMALL AND MEDIUM INDUSTRIES EQUITY INVESTMENT SCHEME (SMIEIS) ON BANK LENDING: A CASE STUDY OF SOME SELECTED BANKS
AN APPRAISAL OF THE EFFECTS OF SMALL AND MEDIUM INDUSTRIES EQUITY INVESTMENT SCHEME (SMIEIS) ON BANK LENDING: A CASE STUDY OF SOME SELECTED BANKS
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Date
2005-10
Authors
HASSAN, Bello
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Abstract
Small Scale Industries play a vital role as a vehicle for rapid
industrialization, sustainable economic development, poverty
alleviation and employment generation. Various policy
measures in the past were introduced by the government to
assist them. The Bankers’ Committee in its voluntary initiative, at
its 246th Meeting on December 21, 1999 approved the
establishment of the Small and Medium Industries Equity
Investment Scheme (SMIEIS). The scheme, going by the initial
guidelines, required all banks to set aside 10% of their Profit
Before Tax (PBT) for equity investment and promotion of Small
and Medium Enterprises. Despite the fact that funds had been
set aside for investment in the SMIs, by the banks, not much was
actually disbursed to potential users. Total normal bank lending
to small and medium scale enterprises have been on the
decline since the inception of the scheme.
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The study therefore sought to find out why less than 45% of the
funds set aside as at December, 2004 were disbursed and
whether there is any correlation between the SMIES and normal
bank lending to small scale industries.
Both primary and secondary data were used in the study.
Similarly parametric and non-parametric tools were employed
in the analysis.
Using T-test, the study discovered that there was no significant
correlation between SMIEIS and normal bank lending. Similarly,
many factors like lack of awareness, fear of loosing ownership,
lack of adequate skills amongst other were identified as the
cause of the low patronage of the scheme.
The study concluded with a recommendation on what is
considered as the critical success factors of the scheme and
the survival of the small scale industries in Nigeria.
Description
BEING A PROJECT SUBMITTED TO THE POSTGRADUATE SCHOOL IN
PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE
DEGREE OF MASTERS OF BUSINESS ADMINISTRATION (MBA) OF
AHMADU BELLO UNIVERSITY, ZARIA
DEPARTMENT OF BUSINESS ADMINISTRATION,
FACULTY OF ADMINISTRATION,
AHMADU BELLO UNIVERSITY
OCTOBER, 2005
Keywords
APPRAISAL,, EFFECTS,, SMALL AND MEDIUM,, SMALL AND MEDIUM,, EQUITY,, INVESTMENT,, SCHEME,, BANK,, LENDING,, CASE STUDY,, SELECTED,, BANKS