Abstract

Lending among other services is being rendered by deposit money banks, this is done to enable their customers have access to financial support towards the development of their business activities as well as economic development. Data for the study was collected from the 96 registered small scale business enterprises in Akure, Ondo State, that were randomly selected. Descriptive statistics were used to analyse the socio economic characteristics of the respondents, while the Ordinary Least Squares (OLS) regression technique was used to analyse profit function of the respondents. The factors influencing the output of small scale business and its profitability model was developed and estimated profit function obtained in the study revealed that all the independent variables have positive coefficients while number of the family members have negative effect on independent variables. Findings revealed that financing of small scale enterprise is an issue of interest in the effort to raise production and productivity. This is as a result of the implementation of bank policies affecting the small scale enterprise. The study recommends that there is need to reengineer the finance system to accommodate the small scale enterprise and investments.