Financing of Small and Medium Scale Enterprises: A Panacea To Poverty Reduction in Nigeria (1999-2021)

Ogundele, Abiodun Thomas; Jacob, Idem Udosen; Awodiran, Muideen Adeseye

doi:10.1109/sibf56821.2022.9939948

Cited by 2 publications

(3 citation statements)

References 6 publications

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“…Sangodapo (2020) argued that SMEs positively influence employment generation, however, there was a gap between SMEs' generated employment and poverty reduction. Ogundele et al (2022) showed that financing of SMEs through credits and interest was not significantly related to poverty reduction.…”

Section: Literature Reviewmentioning

confidence: 96%

“…Although private banks have often made funds available for SMEs but this has continued to deteriorate. For instance, the lending of commercial banks to SMEs as a percentage of total credit to the economy is reported to be about 7.58 percent, 0.14 percent, and 0.32 percent, respectively, in 2000, 2010, and 2020 (Ogundele et al, 2022). Some studies examine the relationship between small and medium-sized enterprises (SMEs) and monetary policy instruments and offer limited and mixed results.…”

Section: Introductionmentioning

confidence: 99%

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The Casualty Evidence for Interest Rates and SME’s Outputs Relation from A Developing Economy

Daniel Gbadebo

2023

RMS

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Purpose Small and medium-scale enterprises (SMEs) play a significant role in many economies. Governments often employ various policies, especially monetary policy, to support their operations. This study aims to illustrate the interdependence between SMEs' output growth and monetary policy instruments, specifically the interest rate. Methodology The study utilized data spanning 1980 to 2021 to investigate evidence of symmetric Granger causality and asymmetric causality between interest rates and SMEs' outputs in Nigeria. Findings The symmetric approach reveals unidirectional causality evidence from the interest rate to SME output, without potential feedback effects. The asymmetric causality demonstrates that both positive and negative shocks in interest rates drive shocks in SMEs' outputs, but not vice versa. Conclusion The study concludes, among other findings, that to enhance the impact of policies on SMEs' outputs, authorities should establish state agencies as coordinating units to monitor policy implementation. Additionally, efforts should be directed towards putting adequate infrastructural facilities in place for the proper operation of the SMEs. Practical Implications The study provides insights indicating that positive (negative) shocks in the interest rate cause negative (positive) shocks in SMEs output, thus aligning with the associated economic theory.

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Section: Literature Reviewmentioning

confidence: 96%

Section: Introductionmentioning

confidence: 99%

The Casualty Evidence for Interest Rates and SME’s Outputs Relation from A Developing Economy

Daniel Gbadebo

2023

RMS

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“…For instance, amongst other studies includingAcho and Abuh (2018),Bello et al (2018) Eze and Okpala (2015),Gbam (2017),Ilegbinosa and Jumbo (2015),Omonigbo (2017),Opafunso and Adepoju (2014), considered the influence on economic growth. Some, such asAdebayo (2020), Kareem et al (2022,Ogundele et al (2022),Sangodapo (2020), and others, focused on the effect of SMEs on employment creation and/or poverty reduction.The studies utilised different approaches including survey design, self-developed questionnaire and qualitative analysis as well as different quantitative secondary data methods founded on extent estimation assumptions.Based on Survey and primary data collection evidence, includingSafiriyu and Njogo (2012),Muritala et al (2013),Opafunso and Adepoju (2014), and others, show the relationship between SMEs, poverty, and/or growth.Safiriyu and Njogo (2012) find that SMEs creates employment and improves sustainable development in Lagos.Muritala et al. (2013) show how SMEs predict Nigerian economic growth, and find that poor management, inadequate financial support, lack of training and experience, corruption, insufficient profits, shortage in product/service demands and poor infrastructure, were challenges experienced by the SMEs in the country Opafunso and Adepoju (2014).…”

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confidence: 99%

Does Small, and Medium Enterprises Aid Poverty Reduction in Nigeria? Robust Evidence From Alternative Poverty Indicators

Gbadebo

2024

J. of Law and Sust. Develop.

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Purpose: Nigeria is amongst countries dedicated to attaining the SDGs by 2030. The Nigerian government, through budgetary allocation, policies and programmes, has pursue interest to empower the SMEs with the aim to create employment and reduce poverty. The of the article is to demonstrate how the activities of the SMEs affect reduces unemployment in the country. Methods: The paper applies the ARDL method to examine whether SMEs’ have effect poverty reduction. The estimation shows how SME contribution to GDP, alongside other independent variables - industrial output to GDP, and interest rate - transmit to impact poverty index. Results and Conclusions: The findings show that SMEs have significant negative effects on the two indicators for poverty reduction. The increase in in the SMEs outputs lowers the percentage of the Nigerian poor surviving on less than $5.50 and less than $1.90 per day. The result further shows that the interest rate is positively signed, supposing, in the long run increase interest rate, increase the poverty level according to both measures. Implications: The study suggests that the government should adequately fund the SME to enable them play major roles as medium to ensure reduction in the poverty rates in Nigeria. Originality/Value: The study adds values to extant literature by considering two robust indicators of poverty - the poverty headcount ratio and the poverty incidence – in considering the effect of SMEs’ outputs.

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Financing of Small and Medium Scale Enterprises: A Panacea To Poverty Reduction in Nigeria (1999-2021)

Cited by 2 publications

References 6 publications

The Casualty Evidence for Interest Rates and SME’s Outputs Relation from A Developing Economy

The Casualty Evidence for Interest Rates and SME’s Outputs Relation from A Developing Economy

Does Small, and Medium Enterprises Aid Poverty Reduction in Nigeria? Robust Evidence From Alternative Poverty Indicators

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