Impact of Access to Finance on Growth of SMEs: Evidence from Ilorin Metropolis, Nigeria

Abstract

Small and Medium Scale Enterprises (SMEs) occupy a place of pride in any economy, given their contributory role to economic growth and development. However, lack access to needed financial resources has been a major hindrance to growth of this s sector. This study investigates the impact of access to finance on the growth of Small Medium Scale Enterprises (SMEs). Data were drawn from primary sources using questionnaire to elicit responses from sampled SME owners and managers. The Study used both descriptive and inferential statistics to analyse the data gathered through the questionnaire. The results revealed a significant positive relationship between access finance and growth of SMEs. Therefore, the study recommends that the government at levels, should improve on the funding of SMEs as well as encourage financial institution to provide credits to or partner with SMEs so as to enable them have sufficient access to finance in order to enhance their growth and contribution to economy.