Role of Finance on the Growth of Small and Medium Scale Enterprises in Edo State of Nigeria

Abstract

The study determined the role of finance on the growth of small and medium scale enterprises in Edo State, Nigeria. One research question was raised and answered with descriptive statistics of mean and standard deviation. The study adopted a survey research design. A sample of 122 respondents was used for the study. Cronbach Alpha was used to compute the reliability of the instrument and yielded 0.89. The data collected revealed that SMEs growth was hindered as result of inability to access funds from financial institutions as aa result of stringent policies required by banks and other financial institutions. Based on these findings, it was recommended that necessary financial assistance should be given to the sector by government and other stakeholders in order to accelerate the growth of SMEs in the rural communities to reduce the current unemployment as well as reducing the rural-urban migration.

DOI: 10.5901/jesr.2015.v5n1p241