Global Journal of Commerce & Management Perspective
Open Access

Abstract

Entrepreneurship and Economic Growth in Nigeria: Evidence from Small and Medium Scale Enterprises (SMEs) Financing using Asymmetric Auto Regressive Distributed Lag

Saidi Adedeji Adelekan,Sodiq Tunde Arogundade & Olushola Omowunmi Dansu

Small & Medium Scale Enterprises (SMEs) with seamless structures can bring about a significant contribution to the increase in employment generation, the creation of wealth reduction of poverty, durable economic growth and development in many nation across the globe. . It is adjudged in some empirical enquiries that SMEs lack access to effective source of finance. This has been identified as one of the major quagmire hindering their contributions to economic growth. The pre-occupation of this study, therefore, is to assess specific financing options available to SMEs in Nigeria and their contribution to economic growth. The paper leans on secondary sources of data which was generated from Central Banks of Nigeria Statistical Bulletin and World Development Indicators (WDI, 2015). Asymmetric auto-regressive distributed lag (AARDL) was employed to determine the asymmetric effect of finance for SMEs on economic growth in Nigeria. The analysis of the results suggests an insignificant direct relationship between positive and negative component of finance for SMEs and Real Gross Domestic Products, this can be adduced to inefficient mobilization of funds to SMEs operators in Nigeria and more so inability of the SMEs operators to operate in economies of scale. The paper recommends that vigorous effort should be made by the government via the financial regulators to ease access to fund and also involve herself in the operation of the SMEs Operators such that funds channeled to them will be efficiently utilized.