Access to Credit by SMEs and Implications for Economic Growth in Nigeria

Akomolafe, John and Ekpenyong, Keziah Yemisi and Keziah, Yemisi and Awoyemi, Olanike Bosede (2016) Access to Credit by SMEs and Implications for Economic Growth in Nigeria. Chinese Business Review, 15 (12). pp. 591-600. ISSN 591-600

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Abstract

The purpose of this study is to examine the impact of credit availability to SMEs on the economic growth in Nigeria. The study period was from 1981 to 2012. Vector autoregressive model was employed to avoid the problem of endogenity. The results show that though inflation has a negative effect on SMEs financing, it still significantly influences economic growth. This paper therefore concludes that there is a need for government to intensify efforts to increase SMEs financing in the country through the introduction of a special intervention fund for SMEs. Keywords: small and medium scale enterprises, SMEs financing, economic growth, Nigeria, commercial banks

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