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Financial Deepening on the Growth of Small and Medium Scale Enterprises in Nigeria

Dr. Ebi R. Odi and Dr. Greatness U. Oji

Abstract

This study intends to examine the effect of financial deepening on the growth of small and medium scale enterprises in Nigeria. The specific objectives are to investigate the extent to which increase in broad money supply, increase in banking sector credit and Gross National Savings affect the growth of small and medium scale enterprise from 2000-2013. Secondary data of the variables was sourced from the publications of central Bank of Nigeria statistical Bulleting the study moduled growth of small and medium scale enterprises as the function of broad money supply, banking sector credit and Gross National Savings. Multiple regressions with the aid of Statistical Package for Social Science (SPSS) were used as data analysis Techniques. Findings revealed that broad money supply and Banking sector credit have positive effect on the growth of small and medium scale enterprises while Gross National Savings have negative and insignificant effect on the growth of small and medium scale enterprises. It revealed Beta coefficient of 6.679M2, 074BKC and -5.841GNS while the multiple R of 91.3%, R2 of 83.3% and F-ratio of 16.645. The research concludes that financial despairing has significant effect on the growth of small and medium scale enterprises. It recommend that policies to further deepen the financial sector should be made to enhance the operational efficiency of the financial system for better performance of the small and medium scale enterprises.

Keywords

Financial DeepeningGrowthSmall and Medium Scale EnterprisesNigeria

References

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