FINANCIAL ACCESS AND PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES (SMEs) IN EDO NORTH SENATORIAL ZONE OF NIGERIA
Jimoh Awwa and Momoh Idris
Volume 7 Issue 1
Abstract
The inability of small and medium scale enterprises in Nigeria to access funds with ease in nation’s financial institutions has been identified as a major obstacle to SMEs operations in Nigeria. This study, examines how financial access influences the performance of small and medium scale enterprises in Nigeria with emphasis on Edo North Senatorial Zone of Nigeria. The study focuses on areas of turnover rate, profitability level and market share of the firms. The questionnaire was adopted as the instrument of data collection in the study, with the collated data analyzed using the Chi- Square statistical tool. The result of the study showed that financial access significantly influences the turnover rate, profitability level and market share of the studied firms. Recommendations were however made on how to improve SMEs access to capital in Nigeria. Commercial banks and financial lending institutions should open a window for SMEs loans, additionally the central bank of Nigeria through its special directives and moral suasion tools of controlling commercial banks to classify, expand and smoothing protocol in credit facilities to SMEs, among others.
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