Framework for the utilisation of external funding and the performance of small and medium enterprises in Lagos state, Nigeria
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Authors
Dabale, Wehnam Peter
Issue Date
2025-05
Type
Thesis
Language
en
Keywords
External funding , Small and medium enterprise (SME) , Performance , Funding framework , Investment strategies , Economic impact , Entrepreneurial growth , Sustainability , SDG 8 Decent Work and Economic Growth
Alternative Title
Abstract
This study examined the framework for utilising external funding and its effect on the performance of Nigerian small and medium enterprises. To elucidate the present study, the financial growth theory, financial market theory, and pecking order theory were the theoretical lenses used to develop the framework for utilising external funding and examining the performance of small and medium enterprises. Qualitative and quantitative methods were used to collect the primary data. A cross-sectional survey was used for the quantitative analysis and in-depth interviews were used for the qualitative analysis. Four local government areas in Lagos State, Nigeria, were selected through a systematic sampling procedure. The study population comprised registered small and medium enterprises. Quantitative data were collected from 342 participants using purposeful sampling, while qualitative data were collected from 18 participants. Using Stata, a partial least squares structural equation model, the relationships between external funding and small and medium enterprise performance and small and medium enterprise performance and access to funding was examined. Thematic analysis was applied to the qualitative data. Substantial evidence from the qualitative and quantitative analyses regarding the relationship between policy initiatives and overdrafts supports the notion that policy initiatives are critical in the framework of external funding availability for small and medium enterprises. In light of the funding challenges of small and medium enterprises, this study recommends that the government intervene in the factor markets of small and medium enterprises to influence the legal framework for obtaining external funding. Additionally, any government policy initiative must enable and support regulatory framework efficiencies to improve business accessibility and ease business engagement to mitigate these challenges.
Description
Text in English