|
|
| |
| The Role of Finance in the Survival of Small Medium Scale Business in Nigeria
Download PDF
|
OLATEJU Idowu Adegboyega and IBIKUNLE, Oladipo Ibidokun
|
Abstract:
This study examinedt he role of finance in the survival of small medium scale business in Nigeria. The research design adopted was the survey method. The population of this study are business owners who are customers of United Bank of Africa (UBA), Dugbe branch, Ibadan. United Bank for Africa. In this study, 360 business owners were selected. The findings showed that some of the challenges encountered by SMEs in assessing funds are high interest rates of bank, lack of collateral, high level of taxation by government and lack of business plan. Further findings shoed that the various sources of finances (Cooperative, personal savings, friends/families and Micro finance) jointly significantly influenced SME survival [(R2 = .254; F (4,359) = 6.145; p < .05)] accounting for about 25.4% of the variance observable in SME survival. In addition, the result of the coefficients of multiple determination for the model shows that the independent contribution of Cooperative, personal savings and Micro finance were significant ((? = .373; t = 1.062; p< .000), (? = .106; t = 1.577; p< .000) and (? =- .213; t = -4.091; p< .000) while the independent contribution of finance from friends/families was not statistically significant. It was recommended that the government at all levels in Nigeria should be encouraged to float Microfinance institutions in order to enable SMEs access enough funds for their businesses.
|
|
|
| | |