Financing Small and Business Enterprises for Economic Development in Nigeria as a Motivation

Financing Small and Business Enterprises for Economic Development in Nigeria as a Motivation
Author: Ambreen Khaskhelly
Publisher:
Total Pages: 12
Release: 2015
Genre:
ISBN:

The main objectives of this paper were to review the government policies for SMEs in Nigeria. Examine source of finance and incentives for SMEs to present an analysis of Nigerian firms and access to credit for SMEs and finally recommend strategies for the promotion of SMEs in Nigeria. The major conclusions drawn from this paper were available data and records indicate that the performance of SMEs in Nigeria has not justified the establishment of Micro Credit Institutions. Analysis on Nigerian firms shows that about 52% of Micro Firms have access to external finance, while 82% of small and 89% of medium scale firms have access also. While large firms have almost 100% access to external finance. The analysis further revealed that almost 50% of Micro, 39% and 37% of small and medium scale firms sampled report being credit constrained as opposed to 25% of the very large firms. This shows that small and medium scale firms are discriminated against credit market. About 25.2% of the small business and 23.2% of medium scale business sampled complained of high interest charges and claimed that because of this, they could not secure loans. It is recommended that specialised SMEs banking and support programmes need to be set up. The small loan scheme needs to be reviewed and mobile banking services need to be organised to make credit accessible to SMEs. A clear policy commitment needs to be made to improve access to credit to rural areas. Finally, government should create an enabling environment that will discourage corruption and bureaucratic bottlenecks.

Investment In Startups And Small Business Financing

Investment In Startups And Small Business Financing
Author: Farhad Taghizadeh-hesary
Publisher: World Scientific
Total Pages: 425
Release: 2021-08-03
Genre: Business & Economics
ISBN: 981123583X

Successful startups and small businesses can play a significant role in economic growth and job creation. They also contribute to economic dynamism by spurring innovation and injecting competition. Startups are known to introduce new products and services that can create new value in the economy. It is notable that most startups exit within their first ten years, and most surviving young businesses do not grow but remain small. Startups and small businesses face several obstacles to their development. Accessing capital is a crucial constraint on their growth. Most startups and small businesses have difficulties getting the funds they need because of their lack of a performance track record and lack of collateral, making it difficult for lenders or investors to assess their risk. Besides, they are in the early stages of development and face a very high possibility of failure, which significantly raises financing and investment risk.Investment in Startups and Small Business Financing provides 12 thematic and case studies on new methods for bringing private investment (loans or equity) to startups and easing small businesses' access to finance (debt and capital). The contributors are senior-level policy experts and researchers from governments, think tanks, academia, and international organizations. The chapters are authored in a policy-oriented way to be understandable for the readers with a different background. This book is a precious source for the governments for adopting the right policies to develop small businesses and startups and valuable for the researchers in economics, business, and finance.

The Future of Entrepreneurship in Africa

The Future of Entrepreneurship in Africa
Author: Robert E. Hinson
Publisher: CRC Press
Total Pages: 179
Release: 2023-08-22
Genre: Business & Economics
ISBN: 1000912043

Entrepreneurial and Small Business Development in Africa focuses on entrepreneurial development and the development of small businesses in Africa. The central idea of this book is that entrepreneurial development and small business development are connected. Entrepreneurship is lauded as an engine of growth (economic development and job creation), with small businesses often contributing to new job creation. Also, entrepreneurship and small business development are the heart of many countries’ economies. The decision to focus on entrepreneurial development and small business development is that first, there is a consensus that most entrepreneurial activities are aimed at creating small new ventures. Second, countries that give special attention to entrepreneurship stand a chance of industrialization. Third, Africa has been reported as having a rich entrepreneurial landscape as the continent’s wealthiest individuals generated their wealth as trailblazing entrepreneurs. Fourth, small-scale entrepreneurs and businesses form the backbone of economic activities across the continent. A motivation to focus on entrepreneurial and small business development is the generally accepted view that start-ups in Africa are growing calling for understanding into how to enhance productivity, efficiencies, and application of new technologies. The book aims to enhance the understanding of stakeholders (business owners, governments, practitioners) to overturn challenges such as inadequate start-up capital, competition, lack of employees with the right skills, and low use of technology. The ability to develop entrepreneurship in Africa, and the role of small-medium enterprises cannot be underestimated. The promotion of entrepreneurship in Africa is crucial as it creates jobs, provides decent livelihoods, and contributes to GDP. Most entrepreneurial initiatives in developing economies entail identifying opportunities and new venture creation. It is worth recognizing that most new ventures created take the form of small businesses and the entrepreneurial processes involve entrepreneurs’ knowledge and skills, identifying opportunities, involvement in setting up a business and managing the business. The various aspects of this book focus on many entrepreneurial activities that are undertaken on the African continent. This book is focused on African countries since there is a reason to be optimistic about the prospects for growth and entrepreneurship. To achieve entrepreneurial success in African countries, the African Development Bank (2021) proposes that there must be a link between macro and firm-level characteristics that will serve as the mix of entrepreneurship in societies. This book, therefore, considers some macro-level factors such as education, training, and skills development, technological developments, government programs, and entrepreneurial challenges and opportunities. At the firm-level, this book focuses on entrepreneurial initiatives such as branding and marketing.

Global Financial Development Report 2014

Global Financial Development Report 2014
Author: World Bank Group
Publisher: World Bank Publications
Total Pages: 226
Release: 2013-11-07
Genre: Business & Economics
ISBN: 0821399853

The second issue in a new series, Global Financial Development Report 2014 takes a step back and re-examines financial inclusion from the perspective of new global datasets and new evidence. It builds on a critical mass of new research and operational work produced by World Bank Group staff as well as outside researchers and contributors.

Financing Small Scale Businesses in Lagos Metropolis of Nigeria

Financing Small Scale Businesses in Lagos Metropolis of Nigeria
Author: Evelyn Alaye-Ogan
Publisher: LAP Lambert Academic Publishing
Total Pages: 88
Release: 2012-04
Genre:
ISBN: 9783659110610

Small scale businesses have been known to be agents of economic growth and development in different economies. It is not surprising that governments give them a priority place in their national plans. Nigeria is full of these businesses, accounting for over 80% of all businesses. How have these businesses fared in contributing to economic growth and national development in Nigeria? This study takes on the issue of financing these businesses in a way they can effectively function as agents of national development. It critically discusses the financing issues and challenges of the small scale businesses in Lagos metropolis of Nigeria. How can these businesses be adequately funded in Nigeria? What are the sources of such finance? The study is a useful guide to new entrepreneurs, those in Diaspora, government agencies and organized private sector alike, that are interested in setting up small scale businesses in Nigeria. It is also useful to the government as it brings out the gaps between the small scale businesses and government agencies responsible for supporting SSBs in financial policy making and implementation, to enable them function as real agents of economic growth.

SMEs Financing and Its Effects on Nigerian Economic Growth

SMEs Financing and Its Effects on Nigerian Economic Growth
Author: J. N. Taiwo
Publisher:
Total Pages: 18
Release: 2018
Genre:
ISBN:

Small and Medium Enterprises play key roles in transition and developing countries (OECD, 2002). These firms typically account for more than 90% of all firms outside the white-collar jobs sector, constituting a major source of employment and generates significant domestic and export earnings. OECD, (2005) stressed that SME development emerges as a key instrument in poverty reduction efforts, therefore, SME obviously contributes to economic, social development and poverty reduction. World Bank review on small business activities establishes the commitment of the World Bank Group to the development of the SMEs sector as a core element in its strategy to foster economic growth, employment and poverty alleviation (World Bank, 2012).

Small Business Financing in Nigeria

Small Business Financing in Nigeria
Author: Olayinka Moses
Publisher:
Total Pages: 6
Release: 2014
Genre:
ISBN:

Small businesses are often faced with funding challenges in developing economies which constraints their growth and long term survival. This study examines the existence and role of business Angels as a source financial, human and social capital to overcome challenges of funding for small businesses in Nigeria. The research aims to strengthen the framework that seeks to provide detail understanding of the benefits that business angels can bring to small business in developing economies, considering the gap that exists in this regard. Data for the study were obtained using questionnaires and analyzed using Kolmogorov-Simirov (KS) test. The finding reveals, that Angel financing is a viable alternate source for financing small businesses in Nigeria. Recommendations proffered include the need for publicity on the activities of angels to support other government programmes on small business financing. There should also be an enabling environment for angel venture networks to participate in economic growth and development of small businesses in Nigeria.

Funding Entrepreneurial Firms and Small Businesses and the Financing of Modernism - Empirical Findings

Funding Entrepreneurial Firms and Small Businesses and the Financing of Modernism - Empirical Findings
Author: Matthew Ebebhoahon
Publisher:
Total Pages: 36
Release: 2015
Genre:
ISBN:

Nigeria is a viable country for business and good investment to make more income irrespective of the lingering economic crisis, the country is currently going through. Nigerian economy in the 21st Century is faced with diverse and massive challenges. This is giving Nigeria's economy huge endowments of natural and human resources and it is unacceptable because some Asian countries such as Singapore and Malaysia, which has similar colonial legacy and features, and related natural resources gifts, have witnessed significant growth in the development of their economies since 1965 when they were in the same level or behind Nigeria.Nigeria has lots of mineral resources and great business prospect. Hence, individuals and corporate bodies source for funds to start up their various businesses as well as create employment with good work environment. The plan of starting a business in Nigeria requires that investors or entrepreneurs must be ready to take risk so as to achieve the aim of the business.Taking risk in business covers sources of finance especially when considering the life-span of the business and its militating factors which may end the existence of the business. Here some of the factors include, but not limited to, environmental factors, political factors, religious factors, constitutional factors, social factors, etc.Presently, we are in a period of lack of capital and restriction of credit where businesses are frustrated by the strict policy to access capital of any kind. From observation, Nigeria's economy will depend on companies being given easy access to finance they require to invest.Loan from the Bank is the main common source of external finance for many SMEs and entrepreneurs that depend on traditional debt to aid their establishment, cash flow and investment needs. Although bank financing will continue to be important for the SME sector, more different options to finance SME could support long-term investment and reduce the weakness of the sector to any change in the credit market.It suffices to say that it is important to broaden the range of financing instruments available to SMEs and entrepreneurs, in order to help them continue to grow, improve and employ.