Keyword : SME .Profit .GDP .Credit facilities .Business
Author(s) : Oluwakayode David Oke & Margaret Adebimpe Oke
Abstract :
The research work empirically investigated the determinant of profitability of small and medium enterprises in Nigeria. The study aimed to identify the determinant of SMEs in Nigeria. The study relied on primary source of data collection for its analysis. All the data had been derived from the primary source/field survey using a well-constructed questionnaire which was distributed to different small scale enterprises in Ogun State. Data generated from returned questionnaire were presented using tables, analysed using percentages and interpreted below each table. The hypothesis formulated was tested using chi-square. SPSS was used to analyze information gotten from the questionnaire. The results demonstrated that there was interdependence between the SMEs profitability and bank loans, and a significant relationship between profitability and the size of business. For high profitability, increased loans and growth in size of business remain important. The study however recommended that the government should formulate policies that will compel commercial banks to relax their restrictive regulations and operations which discourage borrowing, and offer more credit facilities for SMEs. Finally, the government should empower the SMEs to access and get credits from the commercial banks through formal and informal entrepreneurship education.
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