Impact of Small Medium Enterprises Financing on Economic Development in Nigeria
The paper examines the roles Impact of Small and Medium Enterprises in terms of micro and macro-Economic Development of Nigeria from 1985 to 2019. The study uses secondary method to generate the data. The variables used were SMEs output proxy by service sector output as a component of GDP, Commercial Loans and Advances to SMEs , Savings in the economy, Interest rate and Agricultural Contribution to GDP. The study revealed that SMEs financing has not significant impact on economic development in Nigeria. Multiple regression analysis was use to established the significant of SMEs financing on economic development in Nigeria. The result shows that there is significant difference between SMEs financing (Gross Domestic Product, Agriculture and Savings While Commercial loan and Advance, Interest rate and Foreign Direct Investment have not significant relationship) on economic development of Nigeria. As such, the study recommends that, for Nigeria to achieve significant growth and development economically, the need for deliberate policy is required towards effective and efficient funds and timeframe assessment in order to achieve SMEs objectives most especially the Banking sector and Foreign Direct Investment.
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