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

Lawan Garba¹ , Muktar Haruna² , Hafiz Usman Ahmed³ , Sirajo Ladan⁴

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. Dept. of Accounting and Finance, Faculty of Management Sciences, Abubakar Tafawa Balewa University Bauchi, Nigeria.
4. Dept. of Accounting and Finance, Faculty of Management Sciences, Abubakar Tafawa Balewa University Bauchi, Nigeria.

Section:Research Paper, Product Type: Journal-Paper
Vol.12 , Issue.1 , pp.1-8, Mar-2024

Online published on Mar 31, 2024

Copyright © Lawan Garba, Muktar Haruna, Hafiz Usman Ahmed, Sirajo Ladan . 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 seeks to explore the influence of credit procedures and credit requirements on the non-financial performance of small and medium enterprises (SMEs) in Bauchi metropolis. The aim is to evaluate the correlation between credit procedures, credit requirements, and the non-financial performance of SMEs in Bauchi metropolis. Two null hypotheses were formulated to guide the research objectives. The study is theoretically grounded in Growth theory. A survey design method was employed for the research design, utilizing a structured questionnaire to gather data from a sample of Three Hundred and Thirty-Five (335) SMEs. Regression analysis, conducted using the Statistical Package for Social Sciences (IBM SPSS) software version 21, was applied to analyze the collected data. The findings indicated that the independent variables (i.e., credit procedures and credit requirements) were significant joint predictors of non-financial performance. Recommendations include SMEs gaining clarity on a substantial proportion of changes in SME financing, and the study suggests that Banks Credit has the potential to empower SMEs.

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

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