Role Of Banks In The Development Of Entrepreneurship

INTRODUCTION
This chapter deals specifically on the background of the study, significant of the study, research questions, scope of the study and definition of the terms.

Background of the Study
According to Egart (2008 page 36), it is now a hundred and nine (109) years, since the commencement of commercial banking operation in Nigeria. Throughout the periods, there were few publishing and comprehensive reference materials on the role of banks in entrepreneurial development.
Immante (2007 page 98), add that shortly after the Nigerian civil war which casted for three (3) years from (1967-1970), there was a discovery of oil in commercial quantity at olobiri, Bayalsa state in 1953 which lead to the subsequent abandonment of Agriculture and mining, many human and material resources which were left unemployment. He stress that economic philosophers, policy makers and the United Nations organization (UNO) seeing the rate and state of unemployment in Nigeria gave directives to banks to extend short and long-term loan to small-scale individualist especially young school leavers (graduates) to facilitate staff employment.
According to Ataisi (2005 page 109) in 1979, this scheme allowed five hundred naria (#500) free interest loan to any qualified school leaver; presently samisi lamido samisi, the central bank executive governor argues that owing to the value of naira and the current trend of economic development entrepreneurship should attract about five hundred thousand naria (#500,000.00) with little or no interest attachment t o boast the growth of the economic and development.
Through Nigeria financial system is not well developed that is not to say that small-scale industrialist have not benefited tremendously from their scheme.

Statement of the problem
Over some decades, unemployment has been one of the major common problems which Nigeria and continent of Africa suffers. According to Atausen (2003 page 40) the most affected among these unemployment resources is human larbor.
The government, private individuals and banks had individuals and banks had in one way or the other intensity effort as to the control of their economic surge.
The ultimate among these unemployment regulators are banker, thus this work is aim at uncovering the extent at which banks had helped in contributing teaming unemployed human labour by development of entrepreneurship through:
• International financial services to the entrepreneurship through
• Co-operate financial services to the entrepreneur
• Money transfer on behalf of the entrepreneur
• Advance credit extension to the entrepreneur
The research work is meant to identify the ‘( The role of Banks in the Development of Entrepreneurship in Nigeria(A case study of the first Bank Okpara Avenue, Enugu)

Purpose of the study
The purpose of the research work is to
a. Examine entrepreneurship as away for developing the economy.
b. To recommend or advice on the appropriate role these banks will play to solve these problem of entrepreneurship.
c. To discover the role played by banks in the development of entrepreneurship.
d. To compare the extent those roles of banks will go in solving the problems of these entrepreneurs.
e. Suggest ways banks can avert the problem encountered during the enplementetion of the Nigerian enterprise promotion decree 1972.
f. Highlight ways of emproving poor branch network in rural areas which will enhance their participation in the program
g. Review the liquidity problem of banks in order to know their ability in granting loans and other customer related service for development of entrepreneurship in Nigeria.

Significant of the Study
i. The significance of the study holes to the fact that the finding will help the banks to know the problems faced by small-scale industries or the entrepreneur and therefore help the policy makers to adjust to existing leading policy and rending other bank costomer service
ii. The effective implementation of the research work suggestion will not only facilitate the performance of banks but also crab the light incidence of risk of default on bank loans.
iii. This research work will equally means an increase or easier access of small- scale manufactures to institutional source of finance/fund that will alleviate their problems of lack of finance and assist the nations in achieving the dream of industrialization . Also student who will be writing project may also use as a reference material .
Iv Any verification of the authencity of the allegahim that banks are reluctant in financing small-scale industries that will form part of this study will make the work more justifiable.

Research Questions
i. What are the factors militating against the implementation of entrepreneurship development?
ii Dose the study has any significance of entrepreneurial
development?
iii What are the terms used in this research work?
iv What are the roles of banks in the development of entrepreneurship.

Scope of the Study
The study lead emphasis on the roles of commercial banks in the development of entrepreneurship in Nigeria with reference to First bank Okpara Avenue, Enugu, Enugu State.

Definition of Terms
The following terms are used in this research work expressly or impliedly.
(A) Mustapha (2009 page 108), define Entrepreneur as a person of very high aptitude risk associated with the production process. Entrepreneur can be viewed as a person that wants to work for him or herself, it is sometimes synonymous with self employment.
(B) Commercial Banks: These are banks that works with business, commercial banks handle banking needs for large and small-scale business, including
– Basic accounts such as saving and checking
– Lending money for real and capital purchase.
Commercial banks are private owned (banks) or financial institution which accepts, demand and time deposits, makes loan to individual and organization and provides services such as documentary collections, international banking, trade financing. Some large proportion of a commercial bank deposit is payable on demand, it prefers to make short-terms loans instead of long-term ones which are handle by organization such as development finance companies and home mortgage companies.
(C) Small-Scale: Small industries units are those engage in manufacture, processing or preservation of goods and whose investment in plant and machinery (direct cost) does not exceed Rs. Small-scale industries are also call (mon and pop) is a business that is privately owned and operated with small number of employees and relatively low volume of sales. Small business are normally privately owned co-operations, partnership or sole proprietors.
(D) Merchant Banks: These are financial institutions that specialize in services such as acceptance of bill of exchange, hire purchase or installment buying, international trade financing, long-term loans and management of investment portfolios. Merchant banks also advice on acquisition, mergers and take overs.