INSURANCE COMPANIES AND GROWTH OF SMALL AND MEDIUM SCALE ENERPRISES IN NIGERIA

ABSTRACT

This study examined the role of insurance companies in the growth of SMEs in Nigeria. The study specifically aimed at ascertaining the contributions of insurance to SMEs growth, relevant of insurance companies (scheme) in promoting the growth of SMEs, awareness amongst SMEs about the role and importance of insurance companies in the growth of their businesses and effectiveness of insurance company. In pursuance of the objectives of this study, questionnaire was used to collect the needed information from one hundred SMEs owners in Benin City, Edo State. The information elicited were scored accordingly and analyzed by descriptive and inferential statistics in line with the objectives of the study. The findings of the study revealed that insurance companies have not significantly contributed to SMEs growth in Nigeria. In addition, the study revealed that insurance companies are not relevant and effective in promoting the growth of SMEs in Nigeria. The study however revealed that SMEs owners are aware of the role and importance of insurance companies to the growth of their businesses in Nigeria. On the basis of these findings, the study therefore recommend that policy makers and management of insurance companies in Nigeria should as matter of urgency restructure insurance companies to be more viable in enhancing SMEs growth in Nigeria by designing SMEs scheme  that is flexible  and adequate to address or manage SMEs risk for growth and development.