Smes Financing and Nigeria Economic Development

ABSTRACT This study examined the financing structure of Small and Medium Scale Enterprises with a view to know problems encountered when sourcing for finances and to know how it affect the growth of economy in Nigeria. The primary data was obtained through the use of structured questionnaire distributed to Six selected small-scale industries and the National Association of Small-Scale Industrialist and Government Small Scale Industries Unit in the Ministry of Commerce, Industry and Tourism, in Osun state capitals, Osogbo. The collected data were analyzed through the use of simple percentage method while the stated hypotheses were analyzed with Chi-Square. Personal interview was made of some Medium scale because of their size which made area of distinction very difficult. The study revealed that even with the assistance from the government and banks the performance of small scale business does not improve as expected. It was also discovered that the government loan scheme and commercial Banks credits do not meet up the financial requirements of small and medium scale industries as expected. The study therefore conclude that the SMEs financial constraints imparted negatively on economic development of Nigeria and as such, the study recommends that the government and the inancial institution should partner to easy-out the financing of SMEs to allow for economic growth. In Nigeria.