E3 Journal of Business Management and Economics

E3 Journal of Business Management and Economics Vol. 2 (2) pp. 075-083, August 2011; © E3 Journals; ISSN 2141-7482

Banking Support Services and Small Business Performance: A Study on IBBL Supported Businesses

Abstract

The objective of the study was to evaluate the effects of the investments (financial support services in Islamic banking system) on the growth performance of the small businesses supported by Islamic Bank Bangladesh Limited (IBBL), a leading Islamic bank of Bangladesh. Growth in equity capital, growth in production, growth in employment, growth in sales, and growth in profit were used as performance measures. With a view to collecting data and information from the sampled 70 small entrepreneurs and 8 bank officials of the selected branch of IBBL, both the interview schedule and the mailed questionnaire were used respectively. Findings of the study claimed among others that higher amounts of banking support services had significant positive effects on small business performance measures, average growth in equity and sales in particular. The study ended with some recommendations for the small entrepreneurs, IBBL officials, and policy makers.

Keywords: Support Services, Small Business, Growth Performance