The Impact Of Deposit Money Banks (DMBs) On The Survival Of Mıcro Scale Enterprises (Caterıng And Outdoor Servıces) in Nıgeria

Abstract

The study focused on the impact of Deposit Money Banks (DMBs) on the survival of micro scale enterprises (outdoor catering services) in Nigeria. It would be difficult to discuss outdoor catering services without considering the pivot that assists its operations; the fulcrum of its operation is the informal sector of the economy. It is however obvious that catering is a good example of micro scale entrepreneurial business that supports the development of the nation’s national growth. The economy of any nation depends on the contributions of all sectors particularly the micro scale enterprises (MSEs). The important role of MSEs in the national economy cannot be over emphasized given their enormous role in the transformation of rural economy. Primary source of data i.e. questionnaire and interview were used in the study. A simple Ordinary Least Square (OLS) method was further adopted to statistically analyze the responses of the respondents gathered though the research instrument so as achieve a reasonable conclusion for the study. The paper concluded that the growth of MSEs does not depend significantly on the support and activities of Deposit Money banks (DMBs) in Nigeria because of the stringent lending conditions and other funding requirements by most banks. The paper recommended that there is urgent need by government to review the reform in the banking subsector so that DMBs can effectively fund MSEs’ activities with long-term, low interest rate facilities; in order to assist the its survival both in short and long run to meet long-term plans, and to enhance national economic growth and development.