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FINANCING OF SMALL AND MEDIUM SCALE ENTERPRISES IN ENUGU STATE NIGERIA (A STUDY OF ENUGU STATE)

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Abstract

This study sought to investigate available financing for the small and medium-scale enterprises in Enugu State Nigeria and how this impacts on the ability or otherwise of the Small and Medium Enterprises to contribute to the economic development of the State. A total of 51SMEs were randomly selected in Enugu State. The instrument of data collection was questionnaire. The questionnaire was designed in such a manner that it enabled the research to collect relevant information in the area of study. Data collected through questionnaire were analyzed using tables and percentages while Analysis of Variance (ANOVA) was used to test the research hypotheses. Result of hypothesis one indicates that SMEs operators have no problem to fund their start-up operation while the result of hypothesis two shows that government and banks have not funded SMEs properly in Enugu State. The study revealed that government policies have helped in no small measure to mar the contributions of SMEs to the economic development of Nigeria. Such policies include unstable foreign currency exchange rate, insufficient funding of development, inability to curtail insurgency in Northern Nigeria, epileptic power supply and lack of other infrastructural facilities (58.82%).