Credit accessibility and small and medium sized enterprises (SMEs) in Osun state, Nigeria
DOI:
https://doi.org/10.32890/gbmr2024.16.1.1Abstract
The study investigated credit accessibility among small and medium sized enterprises (SMEs) in Osun state, Nigeria. Specifically, the study analyzed factors that influences SMEs’ access to credit and ascertained the extent to which government institutional funds and credit schemes have contributed to the accessibility of credit by SMEs in Osun State. Descriptive survey research design was employed for the study. A total of 238 small and medium- sized enterprises were randomly selected for the study. Data was obtained through the use of a structured questionnaire. Both descriptive statistics and logit regression model were used to analyze the data obtained. The result shows that government institutional funds have a positive significant (P < 0.05) influence on credit accessibility by small and medium- sized enterprises in the study area. The study also revealed that high bank interest rates and high level documentation have significant ((P < 0.05) negative effect on accessibility of funds by small and medium- sized enterprises. The study therefore recommends that government should put policy measures in place to regulate the interest rate charged by banks on SME loans. Secondly, government, financial institutions, and other stakeholders need to take proactive measures to facilitate credit accessibility for SMEs.
Downloads
References
Downloads
Published
Issue
Section
License
Copyright (c) 2024 Global Business Management Review (GBMR)
This work is licensed under a Creative Commons Attribution 4.0 International License.
Disclaimer
Global Business Management Review (GBMR) has taken all reasonable measures to ensure that material contained in this website is the original work of the author(s). However, the Journal gives no warranty and accepts no responsibility for the accuracy or the completeness of the material; no reliance should be made by any user on the material. The user should check with the authors for confirmation.
Articles published in the Global Business Management Review (GBMR) do not represent the views held by the editors and members of the editorial board. Authors are responsible for all aspects of their articles except the editorial screen design.
Submission of an article is done with the understanding that the article has not been published before (except in the form of an abstract or as part of a published lecture, or thesis) that it is not under consideration for publication somewhere else; that if and when the article is accepted for publication, the author's consent to automatic transfer of the copyright to the publisher.
