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

Lawan Garba¹ , Abubakar Abubakar Mohammed² , Yau Garba³ , Lawan Garba Mohammed⁴

1. Dept. of Accounting and Finance, Faculty of Management Sciences, Abubakar Tafawa Balewa University Bauchi, Nigeria.
2. Dept. of Estate Management and Valuation, Faculty of Environmental Technology, Abubakar Tafawa Balewa University Bauchi, Nigeria.
3. Dept. of Business Education, Faculty of Education, University of Maiduguri, Nigeria.
4. Dept. of Business Administration, Faculty of Management Sciences, Yobe State University Damaturu, Nigeria.

Section:Research Paper, Product Type: Journal-Paper
Vol.10 , Issue.1 , pp.13-20, Jan-2024

Online published on Jan 31, 2024

Copyright © Lawan Garba, Abubakar Abubakar Mohammed, Yau Garba, Lawan Garba Mohammed . 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 aimed to investigate the influence of credit availability and credit procedures on the non-financial performance of small and medium enterprises (SMEs) in the Bauchi metropolis. The primary objective was to evaluate the correlation between credit availability, credit procedures, and the non-financial performance of SMEs in Bauchi metropolis. To guide the research, two null hypotheses were formulated in line with the study`s objectives. The theoretical foundation of the study rested on the Growth theory. The research employed a survey design method, utilizing a structured questionnaire to gather data from a sample of Three Hundred and Thirty-Five (335) SMEs. Data analysis was conducted using regression analysis with the assistance of Statistical Package for Social Sciences (IBM SPSS) software version 21. The results indicated that the independent variables, namely availability of credit and credit procedures, were significant joint predictors of non-financial performance. Consequently, it is recommended, among other suggestions, that SMEs should elucidate a significant proportion of changes in SMEs financing. This study emphasizes that Banks` Credit has the potential to empower SMEs.

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

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