BANK CREDIT ACCESSIBILITY AND PERFORMANCE OF SMES IN KWARA STATE, NIGERIA: A PLS-SEM ANALYSIS
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Date
2020
Journal Title
Journal ISSN
Volume Title
Publisher
Copernican Journal of Finance & Accounting
Abstract
This study examines the effect deposit money banks credit accessibility
on SMEs performance in Kwara State, Nigeria. The population of the study consists of
three hundred and eighty-two (382) respondents and one hundred and ninety-eight
(198) were randomly selected as the sample size of the study. Data were drawn from
the primary source to elicit responses from SME owners/managers. Descriptive statis tics and Partial least square - Structural Equation Model (PLS-SEM) estimation tech
niques were employed to analyse the data collected. The study revealed that deposit
money banks credit accessibility has a positive significant effect on SME performance
(T=10.795, β=0.043) at 5% significance level and credit related charges (interest) also
has a positive significant effect on SME performance (T=10.690, β =0.458). This im
plies that provision of finance by deposit money banks at relatively low cost play an im
portant role in boosting the performance of SMEs. The study therefore concluded that
SMEs in Kwara State are faced with the problem of access to finance as they are not ful
ly benefiting from the credit facilities of the deposit money banks. The study therefore
recommended that deposit money banks should put in place a more SME friendly credit
administration system for SMEs to enable them access fund easily and affordably.