Access to Finance and its Implications for Micro, Small and Medium Business Enterprises (MSMEs) Growth: A Case Study of Financial Institutions and Alternative Financing Channels in Nigeria

This study employs a mixed-methods approach to examine the impact of alternative financing channels on the growth of Micro, Small, and Medium Enterprises (MSMEs) in Nigeria, with a comparative analysis of traditional financial institutions. Using a combination of quantitative data analysis and thematic qualitative insights, the research explores how various financing options, including crowdfunding and angel investors, contribute to MSME development and sustainability. Secondary data were sourced from financial reports, government publications, and industry analyses, while qualitative data were gathered through interviews with MSME owners and financial institution representatives. The findings reveal that alternative financing channels significantly enhance MSME growth by providing accessible, flexible, and innovative funding solutions. Microfinance institutions help businesses overcome barriers through small-scale loans, crowdfunding platforms democratize access to initial funding and foster market validation, and angel investors provide both financial resources and strategic mentorship. However, traditional financial institutions remain essential for offering larger loans and a broader range of financial services, albeit with more stringent requirements and longer approval processes. Comparative and thematic analyses highlight the importance of a balanced financing ecosystem that integrates both traditional and alternative channels. The study recommends policy measures to promote alternative financing and enhance financial literacy among MSME owners, ensuring sustainable growth..