The Impact of SMEs Financing on Business Growth in Nigeria: A Study of Keffi and Mararaba Metropolis

Zirra Clifford Tizhe Oaya and Charles J. Mambula I.
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Zirra Clifford Tizhe Oaya: FCPA, MBA, Department of Business Administration Faculty of Administration, Nasarawa State University, Keffi, Nigeria
Charles J. Mambula I.: Ph.D, Associate Professor & Chair Department of Management School of Business Langston University

International Journal of Innovation and Economic Development, 2017, vol. 3, issue 2, 44-55

Abstract: The impact of SMEs financing on business growth in Nigeria using Keffi and Mararaba Metropolis as a case study was assessed in this work. Descriptive research designs as well t-test statistics for the test of hypotheses were utilized. Hypotheses applied for the study includes: banks credits to SMEs have no significant impact on growth of Nigeria economy as well as interest rates charged on credits has no effect on SMEs business expansion in Nigeria. Access to finance was found to be sine qua non for successful entrepreneurial development while in respect of interest rate charged on SMEs loans and advances; the entrepreneurs ability to borrow was not hindered. The study therefore recommends strong availability to finance for successful growth of SMEs through different channels like microfinance banks and institutions in addition to formal and informal financial institutions. In addition, the scheme could be further expanded vide various tax palliatives. It is also recommended that the government should provide suitable incentives for the growth and effective performance of SMEs. There should also be close liaison between Nigeria Stock Exchange and family business to raise cheap funds for the growth of SMEs.

Keywords: SMEs; Loans and advances; Interest rates; Business expansion; Economic development. (search for similar items in EconPapers)
JEL-codes: M00 (search for similar items in EconPapers)
Date: 2017
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Persistent link: https://EconPapers.repec.org/RePEc:mgs:ijoied:v:3:y:2017:i:2:p:44-55

DOI: 10.18775/ijied.1849-7551-7020.2015.32.2004

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