Effect of bootstrapping dimensions on performance of selected Small and Medium Scale Enterprises (SMEs) in South-West, Nigeria
1Ologunagba Oluwakemi, 2Adekunle Olusegun A, 3Oseni Ezekiel
1Research Fellow, Department of Business Administration, Babcock University Ilishan Remo
2Department of Business Administration, Gateway Polytechnic Saapade Ogun State
3Adjunct Lecturer, Department of Finance, University of Lagos Nigeria
https://doi.org/10.47191/jefms/v7-i1-67
ABSTRACT:
The overall problems faced by the SMEs are similar in different jurisdictions, there are significant differences in their priorities and needs in different countries. One of the most challenging factors that have hindered the growth of SMEs globally has been the inability to pool financial resources together. As such, performance of SMEs has been dwindling across continents over the years, leading to the high mortality rate of businesses in the sector. However, one major obstacle that hamper SME growth is access to finance. Thus, this study investigated the effect of Bootstrapping on the performance of Small and Medium Enterprises in South-West, Nigeria. The study adopted survey research design and population of the study comprised 14, 527 owner/managers of small and medium scale enterprises (SMEs) enterprises in Lagos and Oyo States. The study utilized stratified simple random sampling technique while sample size of 750 owner/managers of SMEs were enumerated using Cochran’s (1977) formula and 86.4% response rate was achieved while data was analyzed using regression method. The findings revealed that bootstrapping dimensions had significant effect on performance of SMEs in South-West, Nigeria (Adj. R2 = 0.219; F (5, 642) = 37.234, p < 0.05). The study concluded that bootstrapping improved performance of SMEs in South-West, Nigeria. It was recommended that management of small and medium scale enterprises in South-West, Nigeria should pay more attention on subsidy financing, delayed payment, social capital with less attention on joint utilization in order to improve their performance.
KEYWORDS:
Delayed Payment, Joint Utilisation, Owner Financing SME performance Social Capital Subsidy Financing
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