Abstract
The paper summarizes the arguments and counterarguments within the scientific discussion on credit risk management and entrepreneurship development in Nigeria with focus on small and medium scale industries in Ondo State. The objective of the study is to examine the effect of credit risk management on entrepreneurship development. The study adopted the use of descriptive statistics and regression analysis method to test the hypothesis formulated. The results indicated that entrepreneurship development is being hampered by ineffective credit risk management. The findings has shown that Small Scale Enterprise still suffers greatly from inadequate policy on fund raising, lack of risk management personnel, lack of credit advisory unit in loan houses and Inability to determine appropriate source of funding which significantly affects their level of development. The findings of this study have also found out that the Nigerian markets are filled with numerous business opportunities. Based on the findings, it was recommended that increased government support, uninterrupted power supply and communication link, provision of skilled manpower and computer wizard in operation of payment system, collaboration among banks, provision of adequate security and fight against corruption would assists and improve the growth and development of entrepreneurship in Nigeria.
Highlights
Every purposeful and responsible government quest to improve the living standard of its people on a continual basis (Azende, 2011).According to Kpelai (2009) asserts that SMEs are the engine room for the growth of any developing economy, because they form the bulk of business activities in developed and developing economies like Nigeria
The questions that guide the study are (i) what is the effect of credit risk management on entrepreneurship development in Ondo State? (ii) What is the relationship between level of access credit facilities and business expansion among SMEs in Ondo State? (iii) What are the effects of the constraints faced in accessing finance on entrepreneurship development? The broad objective of this study is to examine credit risk management and entrepreneurship development in Nigeria with a focus on small scale industries in Ondo State
The study has shown that poor credit risk management serves as a drawback in the stride towards achieving improved entrepreneurship development
Summary
Every purposeful and responsible government quest to improve the living standard of its people on a continual basis (Azende, 2011).According to Kpelai (2009) asserts that SMEs are the engine room for the growth of any developing economy, because they form the bulk of business activities in developed and developing economies like Nigeria. Credit risk management is a structured approach to managing uncertainties through risk assessment, developing strategies to manage it, and mitigation of risk using managerial resources. According to Plourd (2009), the importance of risk management is escalated above issues such as long-term and short-term financing constrains. Proclaiming the existence of a risk management strategy is insufficient, enterprises need to actively engage www.cribfb.com/journal/index.php/ijsmes International Journal of Small and Medium Enterprises
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