Capital Rationing and SMEs Profitability in Nigeria

Authors

  • Adu Cecilia Adurayemi Crawford University, Nigeria
  • Ajigbotoso Moses Ade Crawford University, Nigeria

DOI:

https://doi.org/10.59890/ijsr.v2i3.1817

Keywords:

Capital Rationing, SMEs, Investment, Profitability

Abstract

This research paper examined the effect of capital rationing on SMEs profitability in Nigeria. The study discussed the existing literature, empirical review, nature of capital rationing and its implications on investment, and financial performance of SMEs. The paradoxical nature of capital rationing, its challenges and potential use of capital were discussed. The study adopted descriptive research method while findings and recommendations were highlighted.

References

Adu, C.A, (2023). COVID-19 Pandemic and Ecobank’s financial performance in Lusada Ogun State Nigeria. African Scholars Multidisciplinary Journal 5, (1): 208-216.

Adu, C.A (2023). Corporate governance and SMEs financial performance in Nigeria International Journal of Arts, Languages and Business Studies ,13(1): 94-100.

Adu, C.A and Williams, A.C (2024). Small scale enterprises and unemployment

challenges in Ogun State Nigeria. African Scholars Multidisciplinary Journal 7(1): 7 – 13.

Adu, C.A and Uchehara, C.C (2024). Microfinance bank’s loans and micro, small and medium enterprises financial performance in Ota town Ogun State. International Journal of Management and Business Intelligence,1(4):337-354

Ahmed, H. J. A., and Malik, Q. A. (2015). Credit rationing and SME development in Nigeria. Journal of Multinational Financial Management, 30, 106-123.

Emmanuel, O., Babajide, M., and Adepeju, O. (2020). Effect of capital rationing on the profitability of small and medium scale enterprises in Nigeria. Journal of Economics and Business Research, 26(1), 83-104.

Odit, M. P., and Chittoo, H. B. (2008). Does financial sector development cause economic growth? The case of Mauritius. International Research Journal of Finance and Economics, 14(14), 146-160.

Sanusi, J. O. (2003). Overview of government’s efforts in the development of SMEs and the emergence of small and medium industries equity investment scheme (SMIEIS). Central Bank of Nigeria (CBN) Publication, 2(16), 10-13.

Udeh, F. N., Nwanneka, M., and Onwuka, J. O. (2019). Effect of capital rationing on the profitability of small and medium scale enterprises in Nigeria. European Journal of Accounting, Auditing and Finance Research, 7(4), 84-96.

World Bank. (2013). Access to finance for small and medium enterprises in Nigeria. The World Bank Group.

Downloads

Published

2024-05-19

How to Cite

Adurayemi, A. C., & Ade, A. M. (2024). Capital Rationing and SMEs Profitability in Nigeria. International Journal of Sustainability in Research, 2(3), 261–266. https://doi.org/10.59890/ijsr.v2i3.1817

Issue

Section

Articles