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To ensure price and economic stability, the central bank of Nigeria has adopted several unconventional monetary policy measure such as MSMEs credit intervention with the aim of boosting credit availability in specific sector of the economy. The intuition is that rise in productive activities/investment will indirectly promotes price stability the c...
Contexts in source publication
Context 1
... of such policy options is the introduction of several intervention programmes to increase SMEs' access to finance. Recall that the World Bank Enterprise Survey (2018) identified access to finance as the biggest challenge facing the SMEs, as presented in Figure 1. ...
Context 2
... in the review year amounted to N26.90 billion, comprising N10.43 billion from airline projects and N16.47 billion from power projects. Cumulative repayment from inception in stood at N172.43 billion, comprising N81.61 billion for airline and N90.82 billion for power projects (CBN; 2019). ...
Context 3
... of such policy options is the introduction of several intervention programmes to increase SMEs' access to finance. Recall that the World Bank Enterprise Survey (2018) identified access to finance as the biggest challenge facing the SMEs, as presented in Figure 1. ...
Context 4
... in the review year amounted to N26.90 billion, comprising N10.43 billion from airline projects and N16.47 billion from power projects. Cumulative repayment from inception in stood at N172.43 billion, comprising N81.61 billion for airline and N90.82 billion for power projects (CBN; 2019). ...
Citations
... SMMEs indirectly foster economic growth, particularly in poverty reduction, in addition to direct economic impacts (Saidi, Sodiq & Olushola, 2016). SMMEs in Nigeria, on the other hand, face challenges such as insufficient finances, limited entrepreneurial skills, insufficient marketing, underutilized technology, and governmental inadequacies (Joseph et al., 2021). It is in this regard that governments worldwide need to develop policies that unleash the innovation potential of SMMEs and business owners. ...
Purpose: Poverty is a significant concern in most countries, including Nigeria, which has been dubbed the world's poverty capital. Most developing countries regard small, micro, and medium-sized companies (SMMEs) as a sure strategy to reduce poverty by lowering a country's unemployment rate. Microfinance institutions (MFIs), especially banks, were commissioned by the Central Bank of Nigeria (CBN) to cater to self-employed people and businesses. There is compelling evidence that MFIs are not doing enough and are failing to fulfill their mandate. As a result, this paper sought to investigate the impact MFIs have on SMMEs in Nigeria. Design/methodology/approach: This descriptive study, made use of a convenience sample strategy to collect survey data from 384 SMMEs in two Nigerian states: Abuja and Nasarawa. Data was collected from 350 respondents. Findings: The findings showed that MFIs significantly influenced SMMEs regarding technology transfer and financial services and aided SMME (small, medium, and micro enterprises) growth. MFIs in Nigeria are ineffective in offering the services of aspects of facilitator of SMEs growth, tool for social change, provider of banking services to the people and transferor of technology. Practical implications: The CBN should make sure that MFIs, especially the banks focus more on servicing SMMEs. MFIs should do more in the areas of sensitiation and tailor their products to suit their customer base. Originality/value: There are limited studies on the Nigerian context for SMMEs and MFIs. Paper type: Research Paper
... There is a shared view among policymakers, regulators, and academics that Small and Medium Enterprises (SMEs) serve as the engine of economic growth and development (Zeneli and Zaho, 2014;Taiwo et al., 2016;Joseph et al., 2021). It is widely acknowledged that SMEs play a strategic role in fostering positive employment generation, entrepreneurial activity, and innovation. ...
Small and medium-sized enterprises (SMEs) play a crucial role in the economy despite their relatively modest scale and often weak governance structures. The challenges faced by SMEs, particularly in terms of financing, have hindered their development and resulted in instances of mis-investment and capital loss. Central to these challenges is the issue of information asymmetry, which creates hurdles for SMEs in securing funds from financial institutions. To address this gap, the application of game theory analysis becomes a necessity. The theories of information asymmetry and pecking order are employed to elucidate the dynamics of adverse selection and moral hazard within the bank-firm relationship. These dynamics contribute to credit rationing scenarios and overall market inefficiency. The study employed game theory to analyze the bank-firm relationship, considering both complete and incomplete information situations. Furthermore, the analysis extends to credit availability for SMEs, with a focus on mitigating defaults and losses through the identification of penalty mechanisms. From the findings, it becomes imperatives that strategies to alleviate SME financing difficulties encompass the mitigation of information asymmetry, establishment of appropriate incentives, collaborative efforts with government agencies and cooperative societies to bolster confidence, reinforcement of small and business enterprise databanks, and the promotion of information sharing among lenders and SMEs.
... SMMEs indirectly foster economic growth, particularly in poverty reduction, in addition to direct economic impacts (Saidi, Sodiq & Olushola, 2016). SMMEs in Nigeria, on the other hand, face challenges such as insufficient finances, limited entrepreneurial skills, insufficient marketing, underutilized technology, and governmental inadequacies (Joseph et al., 2021). It is in this regard that governments worldwide need to develop policies that unleash the innovation potential of SMMEs and business owners. ...
Purpose: Poverty is a significant concern in most countries, including Nigeria, which has been dubbed the world's poverty capital. Most developing countries regard small, micro, and medium-sized companies (SMMEs) as a sure strategy to reduce poverty by lowering a country's unemployment rate. Microfinance institutions (MFIs), especially banks, were commissioned by the Central Bank of Nigeria (CBN) to cater to self-employed people and businesses. There is compelling evidence that MFIs are not doing enough and are failing to fulfill their mandate. As a result, this paper sought to investigate the impact MFIs have on SMMEs in Nigeria. Design/methodology/approach: This descriptive study, made use of a convenience sample strategy to collect survey data from 384 SMMEs in two Nigerian states: Abuja and Nasarawa. Data was collected from 350 respondents. Findings: The findings showed that MFIs significantly influenced SMMEs regarding technology transfer and financial services and aided SMME (small, medium, and micro enterprises) growth. MFIs in Nigeria are ineffective in offering the services of aspects of facilitator of SMEs growth, tool for social change, provider of banking services to the people and transferor of technology. Practical implications: The CBN should make sure that MFIs, especially the banks focus more on servicing SMMEs. MFIs should do more in the areas of sensitiation and tailor their products to suit their customer base. Originality/value: There are limited studies on the Nigerian context for SMMEs and MFIs.
... The moral hazard presented by the unbankables is not eliminated merely by government participation in the credit market but are rather intensified. The study therefore argues that without incentives, strategic default (borrowers run) will not be eliminated in the credit market, and if such persist, business, investment, and employment will be negatively impacted (Joseph et al, 2021). High incidence of borrowers' runs can precipitate bank runs and financial crises. ...
This study examines the incidence of strategic default by borrowers in Central Bank of Nigeria (CBN) microfinance loan facilities and the role of incentives to prevent such opportunistic behaviour. A collective strategic default is a situation where sound borrower feigns inability to repay with an expectation that a large number of other borrowers will not repay their loans, thus reducing the bank’s enforcement capacity, and then the effectiveness of the policy. Such opportunistic behaviour of borrowers happens in a framework in which there is no incentives to compel and encourage borrowers to pay back the borrowed funds. Using an extensive form game in a global game theory framework, the study found that without incentives, there is a room for opportunistic behaviour in central government financial intervention programmes. While such programmes are expected to benefit the economy, but incentives, either positive or negative will reduce incidence of strategic default.
... According to Abosede, Obasan and Alese (2016), the conventional definitions of SMEs in Nigeria includes the use of the term in characterizing firms with total assets excluding land and building of between 5 Million Naira but not exceeding 50 Million Naira with total workforce of above 10 but not exceeding 49 employees as small. While for the medium enterprises, total assets must be above 50 million naira but not excluding 500 million naira and employee count be between 50 and 199 (Joseph, Obikaonu, Ariolu, Nwolisa, and Aderohunmu (2021). Because it was difficult obtaining the list of all registered firms in Lagos, the study randomly samples 150 SMEs in 30 enumeration areas in Lagos state. ...
The study investigated the relationship between strategic management practices and the performances of SMEs in Nigeria using a quantitative research approach. Specifically, the study adopted a descriptive survey research method where questionnaire was used to collect data from 150 SMEs in 30 randomly selected enumeration areas in Lagos state Nigeria. The study specifically revealed that strategic management practices like scanning the environment from opportunities, strategy formulation, strategy implementation, and strategy evaluation have a significant impact on organization performance within the sampled period. The study further revealed that most of the SMEs in Nigeria have embraced strategic management practices but are wrongly implemented and evaluated explaining why strategic management practices have not reflected in improved competitive advantages of the SMEs in Nigeria in the global scene. As such, the study concludes that for the benefits of strategic management practices to be reflected in the SMEs performances in Nigeria, firms must be able to implement and evaluate strategy formulated.
... The data were analyzed using descriptive statistics and inferential statistics. The study instrument was also subjected to reliability and validity test to ensure the instrument measure what it tends to measure and consistent (Joseph et al, 2021). ...
This study investigated the impact of social media marketing on the brand awareness of the Small and Medium Scale Enterprises (SMEs) in Nigeria. The study employed descriptive survey to collect qualitative data from 458 online shoppers/customers. The study relied heavily on descriptive statistics and inferential statistics of regression to analyze the data. It was revealed that social media marketing improves the organization brand awareness and organization performance. It was revealed that factors such as community engagement, regular posting of relatable contents online, research, and online promotion improves an organization brand awareness. On the benefit of social media marketing, it was discovered that reduced cost, quick reach to potential customers, community engagement, collecting suggestion and solution to business are made available through strong social media presence.
... The missing link here is the fact that a mere rise in school enrollment does not guarantee quality education, improved economic opportunities, and a quality workforce. It borders on the question of whether the workforce (for example university graduates) is competent and employable, given that available evidence shows that cognitive skills and institutional quality (level of economic opportunities, democratic system, and quality education) are major determinants of how effective human capital is in driving economic growth (Ali et al.;Hanushek;Joseph et al.;. ...
The role of human capital on economic growth across countries has over time garnered lots of discussion in economic literature. This is fundamental, given that the actual determinant of the difference in income per capita across countries or why some countries are growing faster than other countries has remained an unresolved issue. This study provides a different insight into the nexus between human capital and economic growth by accounting for the role of social capabilities in a panel framework. Specifically, the study covers 40 African countries between 1998-2019, where the General Method of Moment (GMM) was employed to estimate the model. Specifically, it was discovered that without improved legal institutions and better economic opportunities, human capital impact on the growth of income per capita across countries is insignificant though positive. The study concludes that the effectiveness of knowledge accumulation and adoption of technology in a country is hinged on the availability of an enhanced legal, social, and economic environment.
... The missing link here is the fact that a mere rise in school enrollment does not guarantee quality education, improved economic opportunities, and a quality workforce. It borders on the question of whether the workforce (for example university graduates) is competent and employable, given that available evidence shows that cognitive skills and institutional quality (level of economic opportunities, democratic system, and quality education) are major determinants of how effective human capital is in driving economic growth (Ali et al.;Hanushek;Joseph et al.;. ...
The role of human capital on economic growth across countries has over time garnered lots of discussion in economic literature. This is fundamental, given that the actual determinant of the difference in income per capita across countries or why some countries are growing faster than other countries has remained an unresolved issue. This study provides a different insight into the nexus between human capital and economic growth by accounting for the role of social capabilities in a panel framework. Specifically, the study covers 40 African countries between 1998-2019, where the General Method of Moment (GMM) was employed to estimate the model. Specifically, it was discovered that without improved legal institutions and better economic opportunities, human capital impact on the growth of income per capita across countries is insignificant though positive. The study concludes that the effectiveness of knowledge accumulation and adoption of technology in a country is hinged on the availability of an enhanced legal, social, and economic environment.
Fashion designing is an important part of small and medium enterprises which contribute to the gross domestic product of Nigeria. Nonetheless, the sector is been challenged by some factors which have hampered their productivity and profitability. The study examined the influence of Access to fund on productivity of fashion design enterprises in kwara State, Nigeria. The study adopted survey research method. The population of the study was 623 fashion designers operating within the area of the, from which 244 Fashion designers were drawn as the sample size for the study. The study selected a sample size which was determined using the Taro Yamane formula. The data was analyzed using frequency distribution table and multiple regression analysis test the hypothesis. This is indicated in the r square svalue of = 0.340 for productivity. The study found that Access to fund can be used as a reliable and valid instrument for enhancing fashion design in Nigeria. The study concludes that the fashion business owners in the sampled area were aware that access to fund has significant effect on their productivity. However, despite the high level of awareness the advantages could not be utilized by the business owners owing to the problems of bureaucratic bottle neck and cost associated with accessing the fund. The study recommended that Government should endevour to enhance the financial inclusion across all the sector of the country economy to enable access to funding to enhance their productivity and by extension the GDP of the country. The study also recommended the creation of conscious cluster of fashion designing businesses and provide them with basic financing tools to enable them attain high productivity.
The study investigated the relationship between change readiness and organizational performance in Nigeria. A descriptive survey using a multi-stage sampling techniques was used to collect a sample of 150 respondents that represent the sample. To achieve the objectives of the study, change readiness was captured by five measures namely managerial style, work environment, employee welfare, technological innovation, and employee involvement in change process. On the other hand, organizational performance was captured by five measures namely profit maximization, wealth maximization, customer expansion, solvency, and corporate social responsibility. The finding revealed a significant relationship between organizational effectiveness (managerial style; work environment; employee motivation; technological innovation and employee involvement in change process. The study submitted that readiness of change is instrumental to promoting the effectiveness of organizational performance.
