 Firms’ Performance and Lending Constraints in NigeriaT.M. Obamuyi
Journal of Entrepreneurship and Innovation in Emerging Economies, 2010, vol. 19, issue 2, 179-190 Abstract: This study analyses how banks’ lending affects firms’ performance and identifies some of the factors that have constrained finance to the Small and Medium Enterprises (SMEs) sector, both on the supply and demand sides. The article is based on the case study of sample of 260 SMEs and interviews with managers of commercial banks in Ondo State, Nigeria. The results show that the firms that received bank loans performed better than those without loans. The study reveals that firms were reluctant to obtain loans from the banks because of high interest rates and stringent lending policies. The banks were also constrained due to the poor credit worthiness of the firms. The government should formulate policies that will compel banks to relax their stringent regulations which discourage borrowings. There should be entrepreneurial education for the entrepreneurs on financial recordings and business management. Keywords: firm performance; lending constraints; SMEs in Nigeria (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:sae:jouent:v:19:y:2010:i:2:p:179-190 DOI: 10.1177/097135571001900205 Access Statistics for this article More articles in Journal of Entrepreneurship and Innovation in Emerging Economies from Entrepreneurship Development Institute of India |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.