The primary objective of this study is to identify, research and explore the sources of funding available to SMEs in Enugu. For this purpose, data from primary and secondary sources were collected. The primary means of data collection was questionnaires. Data were tabulated as frequencies, distributions in data analysis, percent frequency methods were used, and hypotheses were tested using the chi-square method as the 52 significance level. A study to explore and utilize available funding sources for SMEs in Enugu State has been carefully prepared to strengthen SME funding sources for growth and employment development in the state and Nigeria as a whole. SMEs is the engine of economics growth and for promoting equitable development. As a result of this, radical decisions and recommendation encountered in financing SMEs, like quality of human resources, favorable macrocosmic environment, adequate infrastructural facilities, access to capital and access to market information and technology for growth and development.




Small and medium scale enterprises (SMEs) occupy a place of pride in virtually every country of state. Because of the significant roles SMEs play in the growth and development of various economics, SMEs have aptly been referred to as “the engine of growth” and “catalysts for social-economic transformation of any country” SMEs represent a veritable vehicle for the achievement of national economic objectives of employment generation and poverty reduction at low investment cost as well as the development of entrepreneurial capabilities including indigenous technology. Other intrinsic benefit of vibrant SMEs include access to the infrastructure facilities occasioned by the existence of such SMEs in their surroundings, the stimulation of such SMEs in their surroundings, the stimulation of economics activities such as suppliers of various items and distributive trades for items produce and or needed by the SMEs, stemming from rural urban migration, enhancement of standard of living of the employees of SMEs and their dependants as well as those who are directly or indirectly associated with them. Ajose (2010) supports these facts, pointing out that SMEs are the linchpin of economic growth and the first port of call for the business world.

Small and medium-sized enterprises (SMEs) are a highly diverse group of companies, typically operating in the services, trade, agribusiness and manufacturing sectors. These include village craftsmen, small machine shops, computer software companies, and a variety of other businesses with a wide range of sophistication and skills. Some are dynamic, innovative and growth-oriented, while others are happy to be small and perhaps family owned. SMEs typically operate in the formal sector of the economy and primarily employ workers. Small businesses are often categorized by number of employees and/or asset values. Size classifications vary within regions and between countries in terms of the size of the economy and its funding. It is important to note that SMEs have both minimum and maximum size (inegbenebor, 2006).

Small businesses have played a key role in the growth, development and industrialization of many economies around the world. In the case of Nigeria, a combination of issues ranging from SMEs’ own attitudes and habits, to environmental factors, government instability and frequent changes in government policy have led SMEs to perform with low expectations. The enabling business environment for SMEs remains fragile in Nigeria. Small business assistance programs are poorly coordinated and do not have the necessary reach to reach all sectors of small businesses. Almost all microfinance institutions (MFIs) are said to provide loans to these companies. However, project lending and risk capital for SMEs is virtually unviable. The private equity and venture capital funds embellished in Nigeria are few and later primarily to the needs of expansion of established business and privatized companies.

However, as Hallberg (2000) observes, government assistance strategies in both development and developing countries often try to achieve a combination of equity objectives (alleviating poverty and addressing social, ethic and gender inequalities ) and efficiency objectives (rising the productivity and profitability of firms). Like wise, Ojo (2003) argues that all these SME assistance programs have failed to promote the development of SMEs.

This was echoed by Tumkella (2003) who observers that all these programmes could not achieve their expected desire due largely to abuses, poor project evolution and monitoring as well as moral hazards involved in using public funds for the purpose of promoting private sector enterprises.

However, the purposes of this study is to determine how polices can be utilized effectively to foster the development and the sources of finds available to SMEs and such as enhance economic growth and development. Nigeria’s socioeconomic development can only be achieved by bringing together all relevant and important sectors and subsectors of Nigeria. Nigeria as a nation exhibits a degree of sectoral categorization, which has hampered the country’s ability to adequately account for the factors contributing to changes in national income and economic growth. We have the information and data you need for sound and effective policymaking.

1.11 Problem Description

Me. The reluctance of retail banks to lend to SMEs due to their poor creditworthiness has hindered their growth for many years. ii. Lack of funds, whether to set up a new one.

iii. The inability to attract financial credit or resources hinders or constrains the growth of SMEs.

IV. Higher interest rates on loans discouraging potential SMEs. v. Inadequate financing hinders small business growth.

1.12 Purpose of the survey

Me. Explore the sources of funding available to SMEs in Nigeria.

ii. identify the challenges SMEs face in raising capital;

iii. Examine the contribution of SMEs to the Nigerian economy.

IV. Investigate whether inadequate financing is hampering the growth of Nigerian SMEs.

v. An assessment of the contribution of commercial banks to lending to SMEs in Nigeria. 1.13 Research Question.

Me. Are there any problems in raising funds for the growth and development of SMEs?

ii. Are there any policy programs in place by the government to ensure the growth of SMEs in Nigeria? iii. Lack of funding hinders the growth of SMEs in Nigeria.

IV. Are you aware of government policy programs designed to help small businesses?

v. How does your company raise capital?

1.14 Research hypothesis

1) Ho:
SMEs don’t have trouble raising capital

There are problems small businesses face for financing

2) Ho:
There are no policy programs set by the government to ensure the growth of SMEs in Enugu.

There are policy programs set by the government to ensure the growth of SMEs in Enugu.

3) Ho:
Insufficient funds are not a hindrance to the growth of small businesses in Enugu.

Inadequate financing hinders the growth of small businesses in Enugu.

1.15 Significance of the survey

This research will help make a significant contribution to the search for available funding sources for small businesses. This study is important as it helps assess the activity of the CV segment in the industrial sector. Small and medium-sized enterprises. These have enormous potential to promote economic growth and development (Oni and Danily a, 2012). Evaluations should be conducted with special attention to their funding and should therefore complement the existing literature on this subject. The research also helps solve the problems and challenges that small businesses face with financing. The result will be ample infrastructure facilities and creativity for small and medium enterprises, which will drive job opportunities, growth and development of the Enugu economy.

1.16 Scope of investigation

This study focuses on funding sources available to small and medium enterprises (SMEs) in Enugu. This study aims to assess the availability, accessibility, and relevance for the growth and development of SMEs in Enugu State by financial institutions such as commercial banks, microfinance banks, and programmes. pay more attention to loans offered to

Most of the information and data required for the study are collected from existing literature and relevant government agencies such as the Central Bank of Nigeria.

1.17 Research Limitations

Firstly, financial constraints due to the country’s current economic situation make it difficult for researchers to visit Enugu SMEs as infrequently as possible in order not to defeat the purpose and main purpose of their research. became. When the research has finally and successfully achieved the objectives of the research work.

Second, due to different academic schedules of researchers, there was not enough time for researchers to visit all relevant fields including small business libraries and commercial banks.

In addition, the researchers were also haunted by the lack of response from various levels of commercial bank staff and SME managers. The unavailability of research materials also led to a significant limitation of this research work.

1.18 Research Plan.

This research is divided into his five chapters. The first chapter, the introductory part, presents the research background, problems, research objectives, research questions, research hypotheses and significance, research scope, and research limitations. Chapter 2 reviews the existing literature on the sources of funding available to SMEs, the limits of funding, and the role of SMEs in economic development.

Chapter 3 describes the research methods used in the research. Chapter 4 focuses on the data and analysis presented, while part of this study is Chapter 5, which aims to briefly present a summary of results, conclusions, and recommendations. increase. References

Doyle, EP (2001) McDonald’s and Evans Bank Practices, 3rd ed.

Exejelue A.C (2000) Rationale for research project management:
His FEB publisher in Africa, Onitsha.

Adelaja B.O. (2003), Seamier’s paper on Financing SMEs, under SMIES, SMIEIS submitted to the Central Bank of Nigeria (CBN). Lagos, August, No. 4, pp. +00-114.

Oyelaran-oyeyinka (2003), SME Financing and Development in Nigeria. Economic and Financial Report of the Central Bank of Nigeria. Volume 24, No. 4, December.

Ajose (2010), Building Small Businesses:
Nigeria’s development strategy. Jos Journal of Economics, Volume 4, Issue 1.

Inegbenebor (2006) Sources of funding for SMEs in Nigeria:
Nigerian Central Bank Seminar on SMIEIS

Hallberg (2000) Development of SMEs:
Arabian Journal of Business and Management Review. Vol. 1, No. 7, pp. 16-29. Ojo (2003) Building SMEs:
Strategies for economic development in Nigeria. Journal Economics, Volume 4, Issue 1.

Tumkella (2003) Financing SMEs:
Management Review Vol. 4, No. 1.

Development of Oni and Danilya SME:
Arabian Journal of Business and Management Review. Volume 1, Issue 7, Pages 16-29.


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