Research: The Challenges Of Accessing Financing For SMEs In Nigeria

Small and Medium Enterprises play an important role in developing countries by contributing to national growth. Many scholars like Ojukwu (2006) and Eze (2015) believe that SMEs are the building block of any developing country. According to the National Bureau of Statistics, SMEs in Nigeria contribute about 48% of the national Gross Domestic Product and 84% of employment. The GDP for Nigeria increased from $57 Billion in 1999 to $398 Billion in 2018 growing at an average annual rate of 11.74%. Despite these contributions, the sector has been neglected. The economic environment does not favour new business start-ups. Obtaining financial services at affordable rates, the structure of the financial sector, awareness of funding opportunities, collateral requirements and small business support services have all been significant challenges affecting SMEs in Nigeria. These challenges tend to affect the growth of SMEs. It appears that little attention has been paid to these challenges which may be detrimental to the survival of SMEs.

When SMEs do not survive, it affects the economy in terms of high unemployment, poverty, a lower standard of living, and an increase in crime (Myslimi & Kacani, 2016). It is believed that this situation can be reversed to increase private sector growth. The contemplated research will examine the above through the analysis of theories on Social Justice, Economic Development, Entrepreneurship and SME Funding Strategy. An attempt to construct a new conceptual model or framework that better integrates theory with praxis is the fundamental goal of the research. In particular, the research will examine the challenges of accessing to financing for SMEs in Nigeria through a research triangulation method including a literature review, content analysis, interview and questionnaire administration.

About The Researcher

Ms. Stella Okoroafor is a Professional PhD Candidate in Finance. She holds a M.Sc. in Accounting and a Post-Graduate Diploma in Education from Imo State University in Owerri, Nigeria. She also holds an MBA in Financial Management from the Federal University of Technology Owerri and a B. Sc. in Accounting from Abia State University in Uturu. She also holds a post-graduate Diploma in Human Resource Management from Humber College in Ontario, Canada. She has 14 years of college experience in accounting as a Lecturer at the Alvan Ikoku Federal College of Education in Nigeria where she has held the position of Head of the Accounting Department. Previous to that, she worked at Nzeogu and Co. Chartered Accountants in Imo State, Nigeria. She has published many articles, books and book chapters on Accounting, MIS, Business Finance and Labour Economics. She is also a Certified Teacher in the Province of Ontario, Canada.