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.: Home > International Journal of Accounting Research > 2013 > Volume 1 Number 1 > Oluseyi O. Oduyoye, PhD Solomon A. Adebola, PhD Adekunle O. Binuyo, PhD

FINANCING SMALL BUSINESS IN OGUN STATE, NIGERIA: THE CRITICAL ROLE OF THE SMALL AND MEDIUM ENTERPRISES DEVELOPMENT AGENCY OF NIGERIA (SMEDAN)

Oluseyi O. Oduyoye, PhD Solomon A. Adebola, PhD Adekunle O. Binuyo, PhD
Department of Business Administration and Marketing, Babcock Business School, Babcock University, Ilishan Remo , Ogun State, Nigeria
Abstract :

T
he
typical
Nigerian
budding  entrepreneur
has
always  been
guided  by  such  institutional  credit  markets
as  the  Bank  of  Industry,  Microfinance  banks  and  cooperative  societies  as  avenues  for  improving  the
wealth
-
creating
potentials  of  such  entrepreneur
.  Against  a  background  of  serious  unemployment  and
dwindling fort
unes of small and medium scale businesses all over Nigeria, the study had a main objective
of  evaluating  the  Small  and  Medium  Enterprises  Development  Agency  of  Nigeria  (SMEDAN)  in  her
support role
as a link between affordable sources of finance and
coopera
tive
-
financed small and medium
scale enterprises in Ogun State, Nigeria between 2005 and 2010.
The  study,  designed  as a  survey,  utilized  a  two
-
pronged  approach  in  sourcing primary  data  through  the
use of questionnaires. Out of the 140 questionnaires admin
istered, 135 were returned representing 96.4%
response  rate.  27  respondents  were  officials  of  OGSCOFED,  the
coordinating  body  of  cooperative
societies  in  Ogun  State,
Nigeria,
while  the  remaining  108  were  nonexecutive  cooperative  members  who
are  owners  of  s
mall businesses in the State. With a Cronbach α coefficient of 0.902, the internal
consistency  and  reliability  of  the  questionnaire  was  confirmed  while  the  data  were  analyzed  using
inferential  and  descriptive  statistics  such  as  simple  percentages,  rating  i
ndices,
and
the  Students  t
distribution
.
Among  the  study’s  major  findings  were  that
t
-
calculated  values  ranged  from  0.001  to  1.000  for  26  and
107 degrees of freedom and 5% level of significance compared with t
-
tabulated values which ranged from
-
2.056 to
2.064 in the paired samples tests for the study’s
sole
hypothes
i
s. Because the t
-
calculated
values
all  fell  within  the  acceptance  region,  the  study’s  null  hypothes
i
s
was
accepted.    The  specific  areas  in
which  the  agency  faltered  included
non
-
consultations  with  international  donor  agencies  as  well  as  not
serving  as  an  effective  link  between  small  businesses  and
cheaper  sources  of  finance  during  the  study
period.
In conclusion, SMEDAN did not quite measure up to public expectation on
a
major
performance
ind
ex of
linking  small  and  medium  enterprises  (including  cooperative  societies)  with  cheaper  sources  of  finan
ce.
The  study recommended  that
the  Nigerian
government
institutions  as  well  as  the Nigerian  public
should
patronize  SMEs  as  a  delibera
te  state  policy.  Additionally,  the  government  should  link  small  businesses
with  cheaper  sources  of  finance.
T
he  small  and  medium  enterprise  sector,  as  the  nerve  centre  of  most
nations
’ industrial development, needs
to be encouraged in order to engage the a
rmy of the nations’ fresh
graduates  and  subsequently  reduce  unemployment  via  youth  and  women  empowerment,  cooperative
development and foreign direct investment.

Keywords :
Sources of finance , small business, cooper ative society, foreign direct investment .

Date Deposited : 31 Mar 2016 14:45

Last Modified : 31 Mar 2016 14:45

Official URL: http://www.omicsonline.com/open-access/ArchiveIJAR/ijar-archive.php?month=January&&year=2013

Volume 1, Number 1, January 2013

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