The Impact of Government Funding on the Promotion and Development of Small and Medium Scale Enterprises in Nigeria

ABSTRACT

The study examined the impact of government funding on the promotion and development of Small and Medium scale enterprises in Nigeria. The method of data analysis used in this research work was the percentage, which is a statistical tool that is usually used when unequal sizes are measured, so as to provide base for comparison between the group and groups. Also, the chi-square distribution was used to further analyze the questions central to the research. The findings shows that there is ample evidence that in spite of all programmes/schemes created by the government to encourage the establishment of SMEs in Nigeria, SMEs still face the problem of restriction to credit. Apart from the dire need of financial resources among specialized government credit institution such as NBCI and State owned Financial Cooperative and Investment Trust, the problem of poor access of SMEs to institutional credit has largely been due to the high risk nature of these enterprises. It was further recommended that government should further show more interest on how to enhance the growth and development of SMEs in Nigeria, as this will encourage the establishment of more SMEs in the country, government should try and make its policies and regulations favourable to SMEs in Nigeria, government should make proper implementation of its policies towards SMEs and the area of incentive and infrastructural development should not be neglected. Finally, the government monetary policies should be stable in order to encourage the growth and development of SMEs in Nigeria.