Enhancing Sustainable Development via Microfinancing: A Lesson from SMEs in Nigeria

Author(s): Babatunde Rahman Yusuf, Ade Oyedijo, Khadijah Adeola Idowu

Publication #: IJIRCT1201074

Date of Publication: 08.12.2015

Country: Nigeria

Pages: 360-367

Published In: Volume 1 Issue 4 December-2015

Abstract

Globalization today has made human survival so competitive thereby given rise to persistent societal problems. Small and medium scale enterprises (SMEs) which are known for the rapid development of a country need to adopt and adapt a sustainable goals and objectives through adequate funding. Study seeks to establish a relationship between Micro financing of SMEs and the elements of sustainable development. The study adopted a descriptive research design to carry out the work. 1500 questionnaires were administered to organized and unorganized SMEs (which were selected randomly) members in Lagos State, Nigeria. Only 927 copies of the research instrument were reasonably and adequately completed, resulting in a 61.8 % response rate. Three hypotheses were formulated and tested using regression analysis. The findings show that there is a relationship between microfinance SMEs and economic, environmental and social sustainability. The research recommends that government should sensitize efforts to ensure effective administration of microfinance policy for the growth of SMEs in achieving sustainable development.

Keywords: Sustainable; Development; Microfinancing; SMEs and Nigeria

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