Abstract:
ABSTRACT
Finance is a key input in the development and growth of business enterprise. One of the reasons why firms form linkages and relations with one another as well as with financial institutions is to access credit for business growth. Credit contributes to enterprises development in a number of ways. Access to external resources allows for flexibility in resource allocation and reduces the impact of cash flow problems on firm activity. Small and Medium Scale Enterprises (SMEs) performance is largely connected with availability of banks’ credit as this enhances investment, thereby contributing to the overall development of the economy. This research is aim to find out the effect of bank credits on Small and Medium Scale Enterprises performance. Much research has been conducted in various countries in Nigeria, Kenya, Ethiopia and other countries in Europe. The data for this study were purposely collected through the secondary sources and analyzed using content analysis approach. Through several studies findings in this work suggest that the access to external sources of financing through bank loan is an important factor that influences the investment growth. The paper provides some important conclusions and implications for policymakers and entrepreneurs.
