Performance of Small and Medium Enterprises in Lagos State: The Implications of Finance
The main aim of this study is to examine the impact of finance on the performance of small and medium enterprises in Lagos State. The research design adopted for this study is survey research design. Data analysis and hypotheses test from 250 SME owners and operators using Pearson correlation and...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Danubius University
2017-10-01
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| Series: | Acta Universitatis Danubius: Oeconomica |
| Subjects: | |
| Online Access: | http://journals.univ-danubius.ro/index.php/oeconomica/article/view/4049/4209 |
| Summary: | The main aim of this study is to examine the impact of finance on the performance of small
and medium enterprises in Lagos State. The research design adopted for this study is survey research
design. Data analysis and hypotheses test from 250 SME owners and operators using Pearson
correlation and regression analysis indicate that, there is a relationship between SME finance and
business performance. Limited information on loan qualification criteria and high interest rate mostly
pose challenge to SMEs in their quest to access finance. Results also show there is significant
relationship between financial management practices and the performance of SMEs. Sequel to
findings of the study, it is recommended that government Flexible arrangements should be put in
place for SMEs in Lagos State to enable them access fund. Government should find way to encourage
financial institution to lend to SMEs by providing guarantees, interest rate subsidies and other
incentives |
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| ISSN: | 2065-0175 2067-340X |