ACCESS TO DEBT FINANCE ON THE PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES (SMEs) IN NIGERIA

Abstract

This paper examines the relationship between access to debt finance (affordability, timeliness and adequate capital) and the performance of small and medium scale enterprises (SMEs) in Nigeria. The objective of the study is to determine the relationship between affordability, timeliness, adequacy and performance of small-scale enterprises in Nigeria. The study utilized different related literatures sourced from current journal articles, textbooks, and previous research of scholars that are related to the study. Some of the preliminary findings showed that all the factors in affordability and adequacy have a positive relationship with the performance of SMEs. However, timeliness has a negative relationship with the performance of SMEs in Nigeria. Therefore, the study recommended that the Government should give loans and other financial assistance to small business owners at lower interest charges so that they can boost their business. Additionally, the technicalities involved in the issuance of facilities by the banks should be addressed. Because the loans are not issued on a short-term basis mostly, the loans are given on a long-term basis, thereby, the 
technicalities involved take longer periods. Moreover, proper adequate funding of business can boost the performance of that business; therefore, authorities concern should provide proper capital debt finance to the SMEs in the country. Thus, their performance will increase and thereby create employment, and job opportunities and pay taxes to the government.