| Summary, etc |
This study examines the link between the role of commercial banks and the financing of small andmedium enterprises (SMEs) in Lagos. It highlights the challenges faced by SMEs when seeking loans from commercial banks. The objective of the study is to explore the relationship between commercial banks and SME financing. To gather the necessary information, structured questionnaires were distributed to respondents,including staff members from commercial banks and selected SMEs in Lagos State, Nigeria. The primary data collected was used to test four research hypotheses. The questionnaire method was chosen to ensure unbiased and visible results. The collected data was analyzed using the Statistical Package for the Social Sciences (SPSS).<br/>The findings of this research, based on the responses of 400 participants (44.3% male and 55.8% female), indicate that the majority of respondents agreed or strongly agreed that credit facilities are readily available in commercial banks. Hypothesis one suggests a significant relationship between credit facilities of commercial banks and the operating capital of SMEs. Hypothesis two<br/>indicates a significant relationship between project financing by commercial banks and SME growth. However, hypothesis three suggests no significant relationship between professional business advice from commercial banks and the profit-making of SMEs, while hypothesis four suggests no significant relationship between deposit acceptance by commercial banks and the<br/>interest return of SMEs. Based on the findings, it is recommended that the government plays a more active role in supporting the development of SMEs by offering incentives to both businesses and banks.Commercial banks can provide essential funds to SMEs, even without significant collateral,through venture capital partnerships, thereby offering sustainable financial assistance.<br/>Keywords; Small and Medium Enterprises, Commercial banks, Financing, and Government Agencies |
