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Financial Bootstrapping and Small Business Growth in Lagos Metropolis, Nigeria

Author

Listed:
  • Ik MUO

    (Department of Business Administration, Faculty of Administration and Management Sciences, Olabisi Onabanjo University, Ago-Iwoye, Nigeria)

  • Moruff Sanjo OLADIMEJI

    (Department of Business Administration, Faculty of Administration and Management Sciences, Olabisi Onabanjo University, Ago-Iwoye, Nigeria)

  • O. I. OKUNBADEJO

    (Department of Business Administration, Faculty of Administration and Management Sciences, Olabisi Onabanjo University, Ago-Iwoye, Nigeria)

Abstract

This study sought to examine the effect of financial bootstrapping on small business growth in Lagos metropolis, Nigeria. The study adopted a survey research design and the primary data was sourced through structured questionnaire. Simple random sampling was used to obtain a sample of 207 small business owners in Lagos metropolis. However out of the 207 copies of the questionnaire administered, only 149 copies were duly filled and returned which shows a response rate of 71.98%. Descriptive statistics and regression analysis were adopted as the statistical analysis techniques. The results revealed that owners related finance is not statistically significant to small business growth because the half of Beta value is less than standard error value (?/2 .05% confident level), It is also revealed that delay payment has a negative and insignificant effect on the growth of small businesses in Lagos metropolis (?= -.012; P-value= .855). The overall results indicate that financial bootstrapping does not have significant effect on small business growth in Lagos metropolis. The study recommends that government should formulate policies to encourage financial institutions to offer credit facilities for small business owners which will enable them to complement their financial bootstrapping strategies.

Suggested Citation

  • Ik MUO & Moruff Sanjo OLADIMEJI & O. I. OKUNBADEJO, 2020. "Financial Bootstrapping and Small Business Growth in Lagos Metropolis, Nigeria," Business & Management Compass, University of Economics Varna, issue 2, pages 198-213.
    • Handle: RePEc:vrn:journl:y:2020:i:2:p:198-213
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Owners’ related finance; joint utilization of resources; delay payment; small business growth;
    All these keywords.

    JEL classification:

    • M1 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

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