EMPIRICAL ANALYSIS OF SME FINANCING AND ECONOMIC GROWTH IN NIGERIA

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EMPIRICAL ANALYSIS OF SME FINANCING AND ECONOMIC GROWTH IN NIGERIA

ABSTRACT

 

The main purpose of this study is to Empirically  Analyze  Sme Financing And Economic Growth In Nigeria.. Sample size of  270 was  drawn from the population of 828 registered SMEs in Enugu State in which a total of two hundred and seventy (270) copies of the questionnaire were administered out of which two hundred and forty (240) copies representing (89%) of the questionnaire were properly completed and retrieved while thirty (30) copies representing (11%) were not retrieved. The  instruments  used to gather information for this study includes both primary and secondary sources. The main instrument of data collection was the questionnaire. The data were presented in tables as  frequency distribution in the data analysis, the techniques of percentage frequencies were used. The hypothesis was tested with chi-square method at 5% significance level. Having analysed the data, the following were the major findings, that there is improper implementation of its policies towards small and medium scale enterprises in Nigeria; that small and medium scale enterprises provide effective means of stimulating indigenous entrepreneurship; that poor management practices, financial problems, lack of capital, lack of infrastructural facilities etc, hinder the performance  of  small  and  medium  scale   enterprises   in   Nigeria.   The   study   concludes  that the role played by the government towards promotion and development of  small  and  medium scale enterprises in Nigeria is highly effective, in the sense that government supported small and medium scale enterprises through favourable investment policies, institutional  and fiscal policy, protective business law and financial incentives; that small and medium scale enterprises had immensely contributed to the economic growth and development in Nigeria for they have been recognized as indispensable components of national development in both developed and developing economies; that there are various confronting constraints to the development of small and medium scale enterprises such as lack of planning, inimical  government regulations, poor marketing strategies etc; that there is significant support given to small and medium scale enterprises in Nigeria by government and other  individual  bodies. Hence, it therefore recommends that government should ensure that there will be no improper implementation of its policies towards small and medium scale enterprises and should not in the area of incentive and infrastructural development  neglect business activities to facilitate small  and medium scale enterprises in Nigeria. That government should also adequately support small and medium scale enterprises financially to avoid lack of capital. Moreso, small and medium  scale enterprises should ensure that  they solve their internal problems which  hinder the success  of the small and medium scale enterprises. For instance, they should ensure that there is effective management practices or expertise, effective accounting standards, adequate manpower  and  avoid financial indiscipline and corruption in order to boost their performances.

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