EMPIRICAL STUDY ON MODERATING EFFECT OF ACCESS TO FINANCE ON THE RELATIONSHIP BETWEEN ENTREPRENEURIAL ORIENTATON AND SMALL AND MEDIUM ENTERPRISES PERFORMANCE IN KANO

Halilu Bello Rogo
Volume 1 Issue 1

Abstract

This study aimed at moderating the effect of access to finance (AF) ion the relationship between entrepreneurial orientation (EO) and small and medium enterprises i(SMEs) performance in Kano State of Nigeria empirically. However, relatively few studies have been conducted on the relationship between EO and SMEs performance. However, relatively few studies have been conducted on the relationship between between EO and SMEs performance. Hence, majority of the studies conducted on the relationship between the construct have presented different findings. In order to bridge the gap, a moderating effect of AF is introduced in this study based ion the suggestions of the literature. The study conducted may be significant to policy makers, government regulators and financial institutions on the need to provide AF to the real and potential entrepreneurs for SMEs development in Kano State, Nigeria. Thus, the data of the study has been obtained using the cross-sectional research approach, data were collected from a sample of i367 SME owner/ managers in Kano state. Accordingly, the data of the study were analyzed by means of Partial Least Square Structural Equation Modeling (PLS-SEM) to determine the effect of the variable of the study. The findings indicated that: EO is promoting SMEs performance in Kano state. The result of the analysis revealed a statistically significant positive effect of EO ion the performance of the Kano state SMEs. Also AF moderated the relationship between EO and SME performance in Kano. The finding of the study offers the government, policy maker, SMEDAN and SMEs owners/ managers with the imperative variable of EO to the performance SMEs in the Kano state of Nigeria. Furthermore, the study may also serve as an added literature to few studies on SMEs performance particularly in emerging economies like Nigeria that has not been explored. i Keywords: Access to Finance, Entrepreneurial Orientation, Small and Medium Enterprises

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