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Finance Options for Small and Medium Scale Enterprises in Nigeria: an Empirical Analysis

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  • Oluitan Roseline
  • Kehinde James

Abstract

This paper examines the role of finance for small and medium scale enterprises in Nigeria and the finance options available. The study covers 1992 to 2010 and observes that most enterprises are dependent on informal sources which have very low impact on their growth. Finance from banks has the largest impact but fraught with issues as lenders are unwilling due to information asymmetry and moral hazards The capital market source follows the banking source, but equally not readily available. This results in truncation of many proposals or their untimely exit. If enterprises are to really develop, the banking and capital market source should be given adequate motivation and support. The current scenario is inadequate for the expected output.

Suggested Citation

  • Oluitan Roseline & Kehinde James, 2014. "Finance Options for Small and Medium Scale Enterprises in Nigeria: an Empirical Analysis," International Journal of Empirical Finance, Research Academy of Social Sciences, vol. 2(3), pages 123-129.
    • Handle: RePEc:rss:jnljef:v2i3p3
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    References listed on IDEAS

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    1. Blandina Oliveira & Adelino Fortunato, 2006. "Firm Growth and Liquidity Constraints: A Dynamic Analysis," Small Business Economics, Springer, vol. 27(2), pages 139-156, October.
    2. Ogujiuba Kanayo & Ohuche Friday & Adenuga Adeniyi, 2004. "Credit Availability to Small and Medium Scale Enterprises in," Macroeconomics 0411002, University Library of Munich, Germany.
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    Cited by:

    1. Shamsi S. Bawaneh & Asma’a Al-kayyali, 2014. "Financial Issues Facing Entrepreneurs," International Journal of Empirical Finance, Research Academy of Social Sciences, vol. 3(2), pages 97-103.

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