Financial Intermediation and Micro Small and Medium Scale Entrepreneurs in Nigeria

Abstract

This research is to examine the role of financial intermediation in promoting the growth and development of Micro Small and Medium Scale Entrepreneurs in Nigeria.

The primary data was collected through structured questionnaires containing both closed and open ended questions. The data was analysed using descriptive statistics such as frequency, percentages, and tables.

The findings show that most of the respondents agreed with the fact that, they did not received a lot of support from the financial intermediaries; Support received by few showed that it enhanced business growth as accounted by 12.4 percent from the statistical analysis of the respondents.

Furthermore, the growth of businesses was found to be attributed to the nature of support received by the entrepreneurs.

The findings of the study showed the role played by financial intermediaries in promoting MSMEs’ growth in Kano metropolis which consists of seven Local Government Area and these include; Gwale, Fagge, Dala, Nasarawa, Kano Municipal and Tarauni.

The metropolis was chosen as a result of old and new emerging businesses to have been concentrated within the region.

Introduction

1.1 Background of Study

The Micro Small and Medium Scale enterprises are sub-sector of the industrial sector which plays a crucial role in the industrial development (Ahmed, 2006).

Following the adaptation of economic reform programme in Nigeria in 1981, there have been several decisions to switch from capital intensive and large scale industrial projects which was based on the philosophy of import development to the development of Small and Medium Scale Enterprises,

which have better prospect for developing domestic economy, thereby generating the required goods and services that will propel the economy of Nigeria towards development.

It is based on this premises that (Ojo, 2009), argued that one of the responses to the challenges of development in developing countries particularly, in Nigeria, is the encouragement of entrepreneurial development scheme.

Despite abundant natural resources, the country still finds it very difficult to discover her developmental bearing since Independence.

Quality and adequate infrastructural provision has remained a night-mare, the real sector among others have witnessed downward performance while unemployment rate is on the increase.

Most of the poor and unemployed Nigerians in order to better their lots have resorted to the establishment of their own businesses.

References

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