EXTENT BANK COLLATERAL SECURITY DEMAND ON LOANS AFFECT THE GROWTH OF SMALL SCALE ENTERPRISES IN ONITSHA, ANAMBRA STATE

Abstract

Small scale enterprises are catalyst in achieving nation's economic objectives, but not without constraints that impede their growth. This paper ascertained the extent bank collateral Security demand on loans affect the growth of small scale enterprises in Onitsha, Anambra State. One research question guided the study, while one null hypothesis was tested at 0.05 level of significance. Descriptive survey research design was adopted for the study and a population of 352 owners of small scale enterprises in Onitsha, Anambra State was used for
the study. Data were collected for the study using validated structured questionnaire on a five -point rating scale. The internal consistency of the instrument yielded an index value of 0.83, which was established with
Cronbach Co-efficient Alpha. The findings of the study revealed among others that bank collateral securities demands on loan affected the growth of small scale enterprises at moderate, low and very low extents. However, the study showed that gender did not affect the opinion of the small scale enterprises on the extent collateral security demand affect the growth of their enterprises in Onitsha, Anambra State. Based on the findings of the study, it was recommended among others that entrepreneurs' in Onitsha, Anambra State
should embark on capacity building of their members to ensure better understanding of financial institutions requirements for loan and the collateral demands on them.

Key Words: collateral securities, growth and small scale enterprises