Authors :
Gbenga I . Olorunsola; Nwankwo, Alexius Ndudi
Volume/Issue :
Volume 8 - 2023, Issue 3 - March
Google Scholar :
https://bit.ly/3TmGbDi
Scribd :
https://bit.ly/3FSCKPi
DOI :
https://doi.org/10.5281/zenodo.7771010
Abstract :
In one of their publications, the Development
Finance Department of the CBN noted that Small and
Medium-Sized Enterprises (SMEs) are essential to any
nation's economic growth. It has been discovered that
small and medium-sized businesses (SMEs) have
tremendous potential for employment generation,
technological advancement, output diversification, the
nation’s entrepreneurship development, forward growth,
and eventual integration into large-scale industries. The
increasing significance of small and medium-sized
enterprises (SMEs) and the contributions they make to
the nation's economic development necessitate that they
receive the necessary assistance and resources,
particularly access to financial resources, in order to
increase their economic contribution; However, for a
variety of reasons, including assumptions and facts, this
has not been the case. Financial intermediaries are the
most unprepared stakeholders in the provision of the
necessary finance for bridging the gap between the SME's
financial needs and available funds. Despite the potential
that SMEs have demonstrated, they still do not feel
comfortable considering them top in loan/credit
allocation and pricing. Access to lending or other external
sources of financing is one of the factors that determines
the growth, survival, and development of a business,
including small and medium enterprises, according to
previous and recent research. This is especially true for
small and medium-sized businesses, which face a number
of obstacles when trying to get credit financing from
banks and other financial institutions. Some of these
obstacles are said to be caused by banks and financial
institutions not having enough information to evaluate the
credit opportunity. This paper examines the performance
and growth of Nigerian SMEs as well as their access to
credit. The findings and conclusion showed that the
performance and growth of small and medium-sized
enterprises (SMEs) in Nigeria are influenced by their
access to credit; however, SMEs in Nigeria have less
access to credit than large corporations. Despite the
difficulties and setbacks that SMEs face, they have always
demonstrated the potential for greater performance,
growth, and retention of their position as a significant
contributor to the country's GDP if they have access to the
necessary credit.
In one of their publications, the Development
Finance Department of the CBN noted that Small and
Medium-Sized Enterprises (SMEs) are essential to any
nation's economic growth. It has been discovered that
small and medium-sized businesses (SMEs) have
tremendous potential for employment generation,
technological advancement, output diversification, the
nation’s entrepreneurship development, forward growth,
and eventual integration into large-scale industries. The
increasing significance of small and medium-sized
enterprises (SMEs) and the contributions they make to
the nation's economic development necessitate that they
receive the necessary assistance and resources,
particularly access to financial resources, in order to
increase their economic contribution; However, for a
variety of reasons, including assumptions and facts, this
has not been the case. Financial intermediaries are the
most unprepared stakeholders in the provision of the
necessary finance for bridging the gap between the SME's
financial needs and available funds. Despite the potential
that SMEs have demonstrated, they still do not feel
comfortable considering them top in loan/credit
allocation and pricing. Access to lending or other external
sources of financing is one of the factors that determines
the growth, survival, and development of a business,
including small and medium enterprises, according to
previous and recent research. This is especially true for
small and medium-sized businesses, which face a number
of obstacles when trying to get credit financing from
banks and other financial institutions. Some of these
obstacles are said to be caused by banks and financial
institutions not having enough information to evaluate the
credit opportunity. This paper examines the performance
and growth of Nigerian SMEs as well as their access to
credit. The findings and conclusion showed that the
performance and growth of small and medium-sized
enterprises (SMEs) in Nigeria are influenced by their
access to credit; however, SMEs in Nigeria have less
access to credit than large corporations. Despite the
difficulties and setbacks that SMEs face, they have always
demonstrated the potential for greater performance,
growth, and retention of their position as a significant
contributor to the country's GDP if they have access to the
necessary credit.