Title: Does entrepreneurship financing contribute to industrial development in Nigeria? Evidence from small and medium scale enterprises
Authors: Timothy Ayomitunde Aderemi; Ishola James Aransiola; Lucas B. Ojo; James Olanipekun Ojo; Johnson Ifeanyi Okoh
Addresses: Department of Economics, Accounting and Finance, Bells University of Technology, Ota, Nigeria ' Department of Business Administration, Thomas Adewumi University, Oko, Kwara State, Nigeria ' School of Technical Education, Yaba College of Technology, Lagos, Nigeria ' Mountain Top University, Prayer City, Ogun State, Nigeria ' Department of Financial Studies, National Open University of Nigeria, Abuja, Nigeria
Abstract: Underdevelopment of industrial sector has been one of the critical challenges confronting Nigeria in the last few decades. Against this backdrop, this study focuses on the relationship between entrepreneurship financing and industrial development in Nigeria between 1990 and 2018. Data were collected from the Central Bank of Nigeria Statistical Bulletin using Dynamic Ordinary Least Square and Granger causality as techniques of estimation. Consequently, manufacturing and food processing business financing and industrial output have an insignificant positive relationship. Aggregate commercial banks financing has a significant positive impact on industrial output. Meanwhile, manufacturing and food processing business financing Granger caused industrial output in the country. Therefore, the following recommendations are made for the policymakers in Nigeria. If the goal of the Nigerian policy makers is industrial development, manufacturing and food process SMEs business financing should be encouraged by all the financial institutions especially deposit money banks in disbursement of loans and advances.
Keywords: entrepreneurship; finance; industrial development; SMEs; Nigeria; dynamic ordinary least square; Granger causality.
World Review of Entrepreneurship, Management and Sustainable Development, 2022 Vol.18 No.5/6, pp.592 - 601
Received: 22 Jun 2020
Accepted: 10 Jan 2021
Published online: 18 Sep 2022 *