INFLUENCE OF ENTREPRENEURIAL FINANCING ON THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES (SMEs) IN OSUN STATE, NIGERIA.
Abstract
This study examined the influence of Entrepreneurial financing on the performance of Small and Medium Enterprises (SMEs), with a focus on microfinance loans. Specifically, the study identified the predominant sources of entrepreneurial financing available to SMEs in Osun State; ascertained the extent to which microfinance loan enhances SMEs’ expansion and the challenges faced by SMEs in accessing microfinance loan in the study area. The study employed a cross section research design. The population of this study included all the registered SMEs with the SMEDAN, out of which a total of 353 SMEs were selected as sample size using sampling technique. Data were collected with the use of questionnaires, and analysed with both descriptive and inferential statistics. The results revealed that personal savings with (43.6%) constituted the predominant source of finance to SMEs operators in the study area, while sources such as crowdfunding, cooperative societies, NGO/Donor-supported financing e.t c financings were rarely or never used by this SMEs. It was also revealed that microfinance loans have a positive and significant influence on the performance of SMEs in the study area. The study concluded that loans obtainable at reasonable rates are critical to the success of SMEs expansion. Therefore, the study recommended that microfinance banks should review microfinance interest rates to make them more affordable for small businesses.
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Published in UNIPORT JOURNAL OF BUSINESS, ACCOUNTING & FINANCE MANAGEMENT
ISSN: 1596-9911
This article appears in our peer-reviewed academic journal
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