DEPOSIT MONEY BANKS’ SERVICES AND PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN KWARA STATE, NIGERIA

The efficacy of SMEs in developing an economy cannot be undermined. However, this effect has been jeopardized with poor services extended by financial institutions. The efficiency of bank financing and associated services is commonly poor due to insufficient infrastructure, poor managerial capacity as well as unstable macro-economic environment. This study examined the performance of medium-sized and small businesses in the Kwara state of Nigeria with respect to the services rendered by commercial banks. In order to gather primary data for this study, 150 copies of the questionnaire were distributed. The investigation employed descriptive statistics and ordered logit regression to analyse the gathered data. The study's findings showed that loans and advances, supervisory functions, and interest rates all of them were at the 5% significant level, with the exception of advising services, which had a negative impact on the performance of small and medium-sized enterprises in Kwara state. In conclusion, the services offered by deposit money banks have a big impact on the performance of small and medium-sized enterprises in Kwara State. Therefore, the research recommends that deposit money banks improve the loans they offer to small and medium-sized enterprises, which will improve their performance in Kwara State.