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Role of Financial and Support Institutions to Small and Medium Scale Industrialists in Nigeria

Role of Financial and Support Institutions to Small and Medium Scale Industrialists in Nigeria

4)World Bank:-The World Bank promotes this growth of Small and Medium Scale Enterprises in Nigeria the Federal Government of Nigeria also negotiated additional financial assistance from the World Bank to complement other sources of funds available to Small and Medium industrialists. This was resulted into a loan of $270 million which was managed directly by Small and Medium Enterprises apex unit with the Central Bank.(Kayode, 2001).International Finance Corporation also granted 12 billion naira loan to SMEs in Nigeria in 2014(Fieldwork,2014).
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An Examination of Theroles of Government, Financial and Support Institutions to Nigerian Small and Medium Scale Industrialists

An Examination of Theroles of Government, Financial and Support Institutions to Nigerian Small and Medium Scale Industrialists

Small and Medium Scale Enterprises are the engine of economic growth. They have been accepted worldwide as instruments of economic growth and development. In developing nations, governments have made tremendous efforts and establish policy to enhance the capacity of small and medium enterprises. Government over the years has formulated a number of policies aimed at developing small and medium enterprises. While most policies actually failed due to poor implementation, others however succeeded. This necessitated the appraisal of role of government and support institutions to Small and Medium Enterprises in Nigeria.The paper concluded that a lot still need to be done by government in terms of policy formulation and sensitization of the general public on how to access fund for SMEs Industrialists in order to meet the financial needs.
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Role of Government, Financial and Support Institutions to Small and Medium Scale Industrialists in Nigeria

Role of Government, Financial and Support Institutions to Small and Medium Scale Industrialists in Nigeria

Small and Medium Scale Enterprises are the engine of economic growth. They have been accepted worldwide as instruments of economic growth and development. In developing nations, governments have made tremendous efforts and establish policy to enhance the capacity of small and medium enterprises. Government over the years has formulated a number of policies aimed at developing small and medium enterprises. While most policies actually failed due to poor implementation, others however succeeded. This necessitated the appraisal of role of government and support institutions to Small and Medium Enterprises in Nigeria.
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Small and medium scale enterprises: Pivotal to sustainable economic development: The Nigerian experience

Small and medium scale enterprises: Pivotal to sustainable economic development: The Nigerian experience

Statement of research problems : Small Scale Enterprises do not only represent the country’s major opportunities for industrialization, but also contributes majorly to sustainable growth in the area of tax generation, generation of raw material requirements, generation of employment opportunities and also poverty alleviation. In Nigeria, a poor economic condition, which also implies poor finance and inadequate infrastructure, poor managerial competence have been identified as the most crucial factors affecting small scale business enterprises (Ihua, 2009). Despite their critical role in the country, small scale enterprises in Nigeria experience a high failure rate due to the existence of large scale business enterprises which might serve as a competitive force to them, further escalating an already bad situation in the country. While the contributions of small businesses to development are generally acknowledged, entrepreneurs in this sector face many obstacles that limit their long term survival and development. About 50% of Small scale business enterprise fails at the early stages due to weaknesses and challenges of administrative, financial, technological and marketing factors which usually hinder them while carrying out their activities. Small scale enterprise has been observed to experience a high failure rate in Nigeria due to scarcity of resources that faces Small scale businesses as it is the main problem which curbs competitiveness along with structural imbalances facing this sector. It is possible that deficiency in strategy approaches and strategic leadership could be a significant explanation of the failures of small scale business enterprises therefore, one cannot expect an economy to have and develop sustained economic growth and development if the environment is not conducive enough. This study then forms the basis to investigate the contributions of small scale business enterprise to economic development with a view of coming out with conclusions and appropriate recommendations.
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ANALYSIS OF THE ROLE OF MICROFINANCE BANKS ON THE DEVELOPMENT OF SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA

ANALYSIS OF THE ROLE OF MICROFINANCE BANKS ON THE DEVELOPMENT OF SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA

Our result shows that accessibility of credit facility from financial institutions by SMEs in Nigeria has been bedeviled by many problems. This is evident in the responses from the questionnaires to the SMEs operators in the manufacturing sector of the economy. The resultant effect is that there is poor accessibility of credit facility from the financial institutions. There is indeed a great need for our government to wake up to the responsibility of providing avenues that will make funds available and accessible to the sub-sector in addition to providing enabling environments, upgraded infrastructures and favourable policies. These will not only give opportunity for SMEs to grow but will become the greatest pivot and driver of national development. Our focus and strengths should be drawn from other developed nations across the globe that supported SMEs and it worked for them.
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Entrepreneurial Orientation, Technology Orientation and Small and Medium Enterprises Performance in Nigeria: Role of Government Support Policies

Entrepreneurial Orientation, Technology Orientation and Small and Medium Enterprises Performance in Nigeria: Role of Government Support Policies

Furthermore, in emerging nations at the same level of development with Nigeria, SMEs contributes immensely to their GDP than what is currently observed in Nigeria. This can be attributed to lack of commitment in building a strong SME sector, difficulty in sourcing finance and financial incentives, near absence of basic and technological infrastructure, inadequate legal and regulatory framework, and a commitment to building domestic expertise and knowledge (Olayiwola & Okodua, 2013; Oyelaran- oyeyinka, 2010).Therefore, in Nigeria, the development of the SME sector is not only a key issue for industrial development, but also for the socio-economic advancement of the nation and in light of recent events in the Nigerian macroeconomic environment and the central government commitment, SMEs have compelling growth potential and like other emerging economies are likely to constitute a significant portion of GDP in the near future.
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ANALYSIS OF THE ROLE OF MICROFINANCE BANKS ON THE DEVELOPMENT OF SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA

ANALYSIS OF THE ROLE OF MICROFINANCE BANKS ON THE DEVELOPMENT OF SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA

Small and Medium Scale Enterprises in Nigeria constitutes a greater percentage (75%) of all the registered companies in Nigeria. They have been in existence for a long t ime as majorit y o f SMEs' grew from Cottage Industries. The operations of SMEs' are found in all the areas of human endeavours: Manufacturing, Production, information, Services, Agriculture, Hotel and Restaurants, Financial Intermediation, Real Estate, Education, Building and Constructions, Mining and Quarrying. For SMEs' to operate in these sub-sectors of the economy, they are not left without controls. Federal government through the apex bank (CBN) monitors the activities of SMEs to ensure that they work in line with the set standards in other countries. The government set several agencies like small and medium scale industries equity investment schemes (SMIEIS),small and medium enterprise development agency(SMEDAN), Nigerian agricultural Cooperative and rural development bank,(NACRDB), Bank of industry(BOI), Nigerian bank for commerce and industry(NBCI), Nigerian industrial development Bank (NIDB). They are set to moderate, monitor, finance and control SMEs' to ensure that they are resurrected to be the major driver of our economic development and growth (Onugu, 2005).
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An Investigation of The Problems of Small and Medium Scale Enterprises in Nigeria

An Investigation of The Problems of Small and Medium Scale Enterprises in Nigeria

This paper investigates the problems of small and medium enterprises in Nigeria with a view to re-examining the major factors militating against the performance of the small and medium enterprises subsector to the Nigeria economy and recommends solutions to make the sub-sector strong and vibrant in order to play the crucial role in Nigeria economy growth and development. A total of 400 SMEs were randomly selected from a cross section of a population of 1600 SMEs spread among all the local governments of Oyo State, Nigeria and covering all forms partnership sole proprietorship, public and private limited and unlimited companies took part in the study.The results of the study indicate that SMEs have performed below expectation due to a combination of problems which ranges from financial constraint, attitude and habits of SMEs themselves through frequent policy changes and somersault government instability and environmental related factor. The paper concluded that government should take a practical radical approach and focus on addressing the identified problems the availability of managerial capacity of SMEs in Nigeria.
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The Role of Deposit Money Banks’ Loan Facilities in Financing Small and Medium-Scale Enterprises in Nigeria

The Role of Deposit Money Banks’ Loan Facilities in Financing Small and Medium-Scale Enterprises in Nigeria

The supply theory proposed that the presence of the commercial banks in supplying financial needs, such as assets, equity, liabilities and other commercial related services to SMEs are remarkable. The demand for it enhances resourceful apportionment of wealth from excess units to shortfall units, thus leading other commercial segments in their growing route to a viable business (Patrick, 1996; Ubesie, Onvaguluchi & Mbah, 2017). This theory serves two purposes: firstly, wealth allocations from outmoded subdivisions to contemporary divisions; and secondly, it encourages and motivates an innovative response (SMEs) in the current segments of the economy. The advocates of this theory believed that the accomplishments of commercial banks serve as an expedient utensil for growing the prolific capacity of SMEs. They opined that nations with the well-developed economic structure incline to cultivate quicker. Schumpeter (1911) takes stalwartly reinforced of funding to causal correlation among funding of small-medium enterprises and the country’s economic growth.
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The role of human, financial and social capital in the performance of small manufacturing and servicingfirms

The role of human, financial and social capital in the performance of small manufacturing and servicingfirms

Small scale businesses have continued to struggle in different sectors of the economy of both developed and developing countries. They empower economic development by encouraging entrepreneurship, generating employment and reducing poverty. Statistically, they constitute nearly 90% of the total number of firms in most developing countries, provide 80% of total employment and account for over 50% of the gross domestic product (Rogers, 2002; Central Bank of Nigeria (CBN), 2000). In Nigeria in particular, small firms in the service and manufacturing sectors constitute over 35% and 22% respectively of the total number of small businesses (Okafor, 2007). They dominate the activities of small businesses, and play significant roles in the provision of goods and services for economic development. The two types of businesses havedistinguishing characteristics. Manufacturing businesses are more likely to acquire high level of fixed assets than servicing type of businesses. Fixed assets help to produce goods which are sold to generate revenue. The obvious fact is that manufacturing firms need funds to lease/buy machinesfor production, employ highly skilled, qualified and experienced employees and develop new markets for goods and services. Service businesses are more likely to be established either at home or in rented offices. As a result of that characteristic, many of them are likely to require less fixed assets, but more human capital. The study of Hisrich (1989) indicates that service businesses are less likely to apply, attract, or secure bank loans because they lack required fixed assets (real estate, machinery and plant and
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The causal effect of bank management ratios on rural lending and small and medium scale enterprises in Nigeria

The causal effect of bank management ratios on rural lending and small and medium scale enterprises in Nigeria

This study examines the causal relationship of selected bank financial ratios on lending to small and medium Enterprise (SMEs) in Nigeria. The data used for this study were gathered from Central Bank of Nigeria (CBN) statistical Bulletin for a period of 27 years (1983 – 2010). Granger causality and OLS were applied to a set of differenced bank financial ratios and it was found that a critical gap in bank intermediation still exists in the lending to SME sector in Nigeria. A positive relationship exists between ratio of Rural Loan to Deposit (RRLD) and aggregate liquidity ratio (LR) while the causal relationship flows from cash reserve ratio to liquidity ratio. The result suggests that the excess liquidity in the banking system between 1983 – 2010 did not improve the flow of credit to SMEs in Nigeria. Consequently, the banks have failed in their social role of financing the SMEs by restricting the spread of fiat money contrary to the expectations of the Keynes – Schumpeter model. There is also no evidence to show that the banks are dealing significantly with the problem of information asymmetries through improved relationship lending to the SMEs in Nigeria. Monetary Policy should therefore target critically bank variables (LR, CRR and LDR) while ensuring compliance with prudential standards and balancing aggregate portfolios between large and small businesses. Restoring the mandatory credit allocation regime could also help in improving SMEs lending.
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THE RELEVANCE OF FINANCIAL MANAGEMENT TOOLS TO THE GROWTH OF SMALL AND MEDIUM SCALE ENTERPRISES (SMES) IN NIGERIA

THE RELEVANCE OF FINANCIAL MANAGEMENT TOOLS TO THE GROWTH OF SMALL AND MEDIUM SCALE ENTERPRISES (SMES) IN NIGERIA

Thus, qualitative and quantitative financial details provide required information about the quality of a firm in terms of size, profitability and leverage levels (Merve and Niskanen, 2010); as well as asset base and sales volume (Okafor, 2007). Researchers argue that firms that excel in such variables enjoy easier access to credit at lower interest rate and lower collateral requirements (Okafor, 2007; Cole and Wolken, 1995; Ennew and Binks, 1995). According to Ajagu, 2005, Small and Medium Enterprises (SMEs) occupy a place of pride in virtually every country of the world. Because of their significant roles in the growth and development of various economics, they have been suitably referred to as “the engine and catalysts for socio-economic transformation of any country”. SMEs are the strongest promise we have for industrial growth. Ajayi and Jegede, 2015 posit that Small and Medium Scale Enterprises have drawn a lot of interest among scholars, policy makers, business owners and people in general. The term SMEs covers a wide range of perceptions and measures, varying from country to country and between the sources reporting SME statistics. Some of the commonly used criterions are the number of employees, total net assets, sales and investment level. However, the most common definition used is based on employment, but, there is a variation in defining the upper and lower size limit of an SME (Ayyagari, Beck & Demirguc-Kunt, 2006).
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Small and medium scale business performance in Nigeria: Challenges faced from an intellectual capital perspective

Small and medium scale business performance in Nigeria: Challenges faced from an intellectual capital perspective

Technology sophistication in terms of innovation can give SMEs a better opportunity to compete in the markets and soon this will be a competitive necessity for survival in all organizations. At the moment lack of Nigerian government policies that support technology adoption and integration in SMEs appear to be under performing and less competitive due to electricity and financial constraints among others (Adenikinju, 2005; Musawa & Wahab, 2012). Folorunso, Olusegun, Gabriel, Awe, Sharma, Sushil, and Zhang, (2006) acknowledged human capital (education), cost of implementation of the technology and the rest. Kuteyi (2009) as cited in Musawa and Wahab (2012) identified lack of funding and non-utilization of Technology as one of the major policy factor that affect the developments of Nigerian SMEs. Ovia (2000) have categorized internal and external barriers that impede adoption of technology by SMEs in a developing country. The internal barriers include entrepreneur characteristics, firm characteristics, cost and return on investment, and external barriers include: infrastructure, social, cultural, political, legal and regulatory. It has long been established that modern economies depend more, for their development and growth, on the intellectual capital possessed by their managers than on the quantum of natural resources available to a nation.
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Determinants of Small and Medium Enterprises Performance in Nigeria: The Role of Government Support Policy

Determinants of Small and Medium Enterprises Performance in Nigeria: The Role of Government Support Policy

The sample in this study was selected by using stratified random sampling were the population embraces a number of distinct categories. The sample was then organized by these categories into separate strata and each stratum was sampled as an independent sub-population, out of which individual elements wererandomly selected. Similarly, measurements used in the questionnaire were adapted from previous studied and modified to suit Nigerian context. The items on EO were adapted from [10], CM items adapted from [5], government support items adapted from [44] while SME performance items adapted from [48] all in 7 point-likert scale. According to [36] and [37] annual report, about 8,662 registered SMEs were available in the northeast Nigeria which is the target population of this study. The sample size for the study based on Dillman’sformula [13] is 368 and out of this, only two hundred and fifty-six (256) questionnaires were returned, 240 usable questionnaires went for final analysis, yielding a 65% response rate. SPSS 22v and PLS-SEM 2.0 were used in the analysis.
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EVALUATION OF OPERATIONAL PERFORMANCE OF SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA

EVALUATION OF OPERATIONAL PERFORMANCE OF SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA

Small Industries Development Bank of India is a non-independent financial institution aimed to aid the growth and development of micro, small and medium-scale enterprises (MSME) in India. Set up on April 2, 1990 through an act of parliament, it was incorporated initially as a wholly owned subsidiary of Industrial Development Bank of India. Currently the ownership is held by 33 Government of India owned / controlled institutions. Beginning as a refinancing agency to banks and state level financial institutions for their credit to small industries, it has expanded its activities, including direct credit to the SME through 100 branches in all major industrial clusters in India. Besides, it has been playing the development role in several ways such as support to micro-finance institutions for capacity building and on lending. Recently it has opened seven branches christened as Micro Finance branches, aimed especially at dispensing loans up to INR5 lakhs.
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Sustainability of Small and Medium Scale Enterprises in Rural Ghana: The Role of Microfinance Institutions

Sustainability of Small and Medium Scale Enterprises in Rural Ghana: The Role of Microfinance Institutions

Regarding absorbing shocks and exposure, about 32% of SMEs indicated that access to microfinance products and services have positively impacted on the SMEs capacity to respond to unforeseen natural disasters such as fire outbreak and theft cases. Training in financial management practices especially credit repayment and savings according to the SMEs has supported the SMEs to recover from shocks quickly. However, the MFIs expressed concern about the lack of insurance policies for the SMEs but were quick to indicate that educational programmes are being rolled out to educate SMEs on the importance of insurance to better cushion SMEs in event of natural disasters. Though the SMEs were unwilling to provide data on the earnings and productivity, 45% of the SMEs indicated that the availability of microfinance products and services have facilitated their operations particularly in the area of increasing yields and earnings. This situation has sustained the activities of SMEs. It was noted that SMEs which have operated over the past 5 years
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Role of Women Entrepreneur on the Growth of Small and Medium Scale Enterprise

Role of Women Entrepreneur on the Growth of Small and Medium Scale Enterprise

Economic development of any nation lies on the capacity of entrepreneurs to be innovators in creating new businesses which would therefore aid in economic growth. In many part of the world including developing countries like Nigeria, entrepreneurship has been traditional associated with the male gender. From the sociological view, it is stated that ‘men are more entrepreneurial than women due to typecasts and roles that are attributed to men assigning the female roles within housework, childcare and elders’ (Eagly, 1987). There has been a shift from efforts to support equal opportunities in gender to issues relating to unemployment (Holienkaa, Jančovičováa, & Kovačičováa, 2016). This places entrepreneurship in the position of job creation both in job opportunities and self-employment for others. With this, the research on women entrepreneurship has become focused on unveiling the unexploited sources of economic growth.
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ACCOUNTING INFORMATION AND THE SURVIVAL OF SMALL SCALE BUSINESSES   IN NIGERIA: THE NEXUS OF NECESSITY

ACCOUNTING INFORMATION AND THE SURVIVAL OF SMALL SCALE BUSINESSES IN NIGERIA: THE NEXUS OF NECESSITY

Overtime, the challenges of SMEs have been identified as poor access to capital market and low propensity to access financing through debt, lack of access to relevant information for decision-making and strategic planning, financial indiscipline and shortage of skilled manpower, inadequate training for staff to meet the demands of operating a business in present day society, inadequate infrastructure, poor implementation of government policies and programs targeted towards the success of SMEs, volatile exchange rate, high rate of interest on borrowing from financial institutions. These challenges make it difficult for SMEs to thrive. There are professionals that can provide advisory services to SMEs in spite of these challenges. Accountants are one of such professionals and providers of professional support of businesses (Jay and Schaper, 2003). According to Ismail and King (2005), accounting services can provide SMEs with the professional support needed to manage their costing, expenditure, cash flow, and provide information that can support monitoring and control functions of businesses. For example, financial accounting and reporting is a crucial issue for SMEs because they are required to submit financial statements to financial institutions for loan consideration. This is also one of the reasons for the International Financial Reporting Standards (IFRS) for SMEs. The IFRS for SMEs is a financial reporting standard that can be used for preparation of financial statements for SMEs. These financial statements include the income statement and statement of financial position. These standards need to be applied by an accountant. Accountability is a crucial issue for SMEs. It is the obligation of businesses to account for their operations, and disclose their results to stakeholders. By disclosing financial results, businesses are accountable to the persons who have contributed to the capital. Accounting services also help in proper record keeping. One of the requirements of business for obtaining credit facilities is the existence of financial statements. In most cases, the presence of proper records as the transactions arise reduces fraud. When transactions are not recorded as and when they arise, there is tendency to unmask what the real posting should be. Also, separation of accounting functions from management can help to reduce fraud.
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The Development of Demand for Small and Medium Industries in Indonesia

The Development of Demand for Small and Medium Industries in Indonesia

There are several determinants of business success, namely the ability to develop and implement company plans, both short and long term and the capability and management potential. Companies can meet the capital needs to run a business. In the midst of the global crisis that hit the world in 2008-2009, Indonesia became one of the countries affected by the global crisis, although we have learned from previous experience that the SME sector is facing the era of the global crisis is the absence of a clear division of tasks between administration and operations. Most SMEs are managed by individuals who concurrently are owners and managers of the company, and utilize the workforce from their family and close relatives. Most small businesses are characterized by not having legal entity status. The main problem faced in meeting the needs of the workforce is unskilled and expensive labor. The regeneration of skilled craftsmen and workers is relatively slow. In the field of marketing, the problem is related to the number of competitors engaged in the same industry, the relative lack of foreign language skills as an obstacle in negotiating and penetrating overseas markets. And one of the strategic steps to secure SMEs from the threats and challenges of the global crisis is to strengthen multi-facets.
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EFFECT OF CUSTOMER SERVICES ON SUCCESS OF SMALL AND MEDIUM
SCALE ENTERPRISES AND SUSTAINABLE DEVELOPMENT IN NIGERIA

EFFECT OF CUSTOMER SERVICES ON SUCCESS OF SMALL AND MEDIUM SCALE ENTERPRISES AND SUSTAINABLE DEVELOPMENT IN NIGERIA

From the foregoing, it could be seen that SMEs are potent tools for achieving sustainable development in Nigeria. This owes to the fact that they are drivers of economic growth and development. This important sector of the economy is however, facing a lot of challenges which lead to high mortality rate among them. This paper thus, focuses on effect of customer services on success of small and medium scale and sustainable in Nigeria. This is because it sees customer services such as rendering personalized services to the customers, advising customers on the right product to choose, listening to the customers’ complains and empathizing in dealing with the customers as variables which can lead to their success and consequently, sustainable development in Nigeria.
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