Title: Business Angels And The Financial Performance Of Smes In Osun State, Nigeria
Authors: Mary Adeola Wentzel, Dr. Solomon Adejare Babarinde,
Volume: 9
Issue: 10
Pages: 315-323
Publication Date: 2025/10/28
Abstract:
The effect of business angels on the financial performance of small and medium enterprises is a critical issue that stakeholders in entrepreneurship and economic development must address to strengthen business growth and sustainability. Consequently, there is a need for SMEs in Osun State, Nigeria, to leverage the support of business angels for improved financial outcomes. This study, therefore, examined the influence of individual business angels, corporate business angels, and entrepreneurial business angels on the financial performance of SMEs in Osun State, Nigeria. The study adopted the survey research design. A validated structured questionnaire was used as the data collection instrument for this study. The instrument was validated using Cronbach's Alpha Coefficient at the threshold of 0.700 to confirm the reliability of the research instrument. Total copies of 340 questionnaires were distributed to 340 SMEs owners in the three Senatorial Districts in Osun State, Nigeria and 335 participants responded and completed the survey giving a response rate of 98.5%. The findings showed that individual business angel has a positive and significant effect on the financial performance of SMEs in Osun State, Nigeria (R2= 0.277, ? = 0.526, t = 11.287, p < 0.05). The findings showed that corporate business angel has a positive and significant effect on the financial performance of SMEs in Osun State, Nigeria (R2= 0.094, ? = 0.307, t = 5.892, p < 0.05). The findings showed that entrepreneurial business angel has a positive and significant effect on the financial performance of SMEs in Osun State, Nigeria (R2= 0.320, ? = 0.566, t = 12.520, p < 0.05). The study concluded that business angel intervention would lead to increase in financial performance of SMEs in Osun State, Nigeria. The study recommended among others that policymakers and SME support agencies should create an enabling environment that encourages greater participation of business angels in the entrepreneurial ecosystem in Nigeria.