This research work aims at investigating the problems encountered by small and medium scale enterprises in obtaining bank loans with particular reference to Union Bank Nig. Plc, Ogui Road, Enugu.It is a common knowledge that Banks often favour the large − scale industries in credit extension scheme. This is because of their higher equity base, availability of collaterals and lower risk. Further still, they have a more organized management team and employ professionals with greater skills.
In this study therefore, efforts are made to identify the problems usually encountered by small and medium scale enterprises in raising money from bank. These problems could be broken down into technical problems, managerial or environmental constraints and financial problems. Nevertheless, have identifi9ed these problems some suggestions on how to ameliorate such inherent difficulties were offered.
1.1 Introduction
In this section, Problems Facing Small and Medium Scale Enterprises in Obtaining Bank Loans is discussed, with relevant and recent citations. As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the aim and objectives of the study. Others are significance of the study, scope of work, research hypothesis and questions, limitation of the study and definition of terms.