An Examination Of The Role Of Payment Service Banks On The Growth Of Micro, Small And Medium Enterprises In Ilorin Metropolis

Abstract

This study examined the role of payment service banks (PSBs) on the growth of Micro, small and medium scale (MSMEs) businesses in Ilorin metropolis. Grounded on the theory of resource-based theory, the study sought to investigate how the presence and utilization of payment service banks affects the development and expansion of micro, small and medium-sized enterprises in Ilorin metropolis. The descriptive survey research method was used. Questionnaire served as instrument of data collection wherein a total of 1660 registered MSMEs in Ilorin, Kwara State served as the population of the study. From the population, 323 respondents were sampled using Krajcie and Morgan sample size table, thus, 316 were generated and analyzed. The data generated were analyzed using simple descriptive and statistical tools to test the relationship between the variables. Findings from the study revealed that awareness, perception, financial advisory, and ease of transaction all play significant roles in the growth and development of small and medium enterprises in Ilorin metropolis of Kwara State. The study concluded that the ease of transactions within banks has been recognized as a critical factor that augments MSME growth, as stakeholders firmly believe in the efficiency and convenience of banking services. The study however recommended among others that government bodies, financial institutions, and industry associations should collaborate on initiatives to inform and educate stakeholders about the services and products offered by payment service banks, thus fostering the growth of MSMEs.