Impact of Credit Requirement and Availability of Credit on Non-Financial Performance of Small and Medium Enterprises in Bauchi Metropolis, Nigeria

Lawan Garba¹ , R.I. Darazo² , Jamilu Yusuf³

1. Dept. of Accounting and Finance, Faculty of Management Sciences, Abubakar Tafawa Balewa University Bauchi, Nigeria.
2. Dept. of Accounting and Finance, Faculty of Management Sciences, Abubakar Tafawa Balewa University Bauchi, Nigeria.
3. Registry Department, Abubakar Tafawa Balewa University Bauchi, Nigeria.

Section:Research Paper, Product Type: Journal-Paper
Vol.9 , Issue.12 , pp.52-57, Dec-2023

Online published on Dec 31, 2023

Copyright © Lawan Garba, R.I. Darazo, Jamilu Yusuf . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

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Abstract :
This study examines how the credit demands and the accessibility of credit impact the non-financial performance of small and medium enterprises (SMEs) in Bauchi metropolis. It aims to evaluate the correlation between credit demands, credit accessibility, and the non-financial performance of SMEs in this area. To meet this objective, two null hypotheses were formulated to guide the research, drawing on the Growth theory as its theoretical foundation. Employing a survey design method, data were gathered through a structured questionnaire distributed among Three Hundred and Thirty-Five (335) SMEs. Regression analysis, facilitated by IBM SPSS software version 21, was used to analyze the collected data. The findings revealed that both independent variables, namely credit demands and credit accessibility, significantly predicted non-financial performance when considered together. The study recommends, among other things, that SMEs should focus on understanding how changes in financing impact their operations. Furthermore, it underscores the potential for banks` credit to significantly influence the success of SMEs.

Key-Words / Index Term :
Small and Medium; Enterprises; Credit Requirement; Availability of Credit; Non Financial Performance; Nigeria.

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