SMALL AND MEDIUM SCALE ENTERPRISES (SMEs) FINANCING AND ECONOMIC GROWTH IN NIGERIA

June 2019 | AJBFMR


Corresponding Author E-mail: osemeke2k2002@yahoo.com
Published: 08 June 2019

Abstracts


This study focused on the financing of Small and Medium Enterprises (SMEs) and economic growth in Nigeria. It specifically examined the influence of loans to SMEs, loan interest, inflation rate, and exchange rate implications on SMEs and economic growth. It is a time series survey for periods of twenty-three (23) years (1992-2014) and data were obtained using the Central Bank of Nigeria (CBN) statistical bulletin. It employed descriptive statistics and statistical tool is the ordinary least square technique. The paper showed that loans to SMEs have an affirmative effect on economic growth, and exchange rate has adverse effect on economic growth in Nigeria. The paper recommends that SMEs could be encouraged by government in form of tax holiday and subventions during inflation and recession periods, the Nigerian apex bank should release foreign exchanges or currencies to SMEs owners who import certain goods for their operations and SMEs charged low-interest rate by banks approached for loans.

Keywords:

Loans, Inflation rate, Interest rate, Exchange rate, SMEs, Economic Growth

Read: [Full Text - PDF]