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International Journal of Research and Innovation in Social Science (IJRISS) |Volume VI, Issue XI, November 2022|ISSN 2454-6186

Impact of Government Grant on Growth of Small and Medium Scale Enterprises in Nigeria (A Study of Some Selected SMEs Owners in Abeokuta, Ogun State)

 Abayomi Olusegun OGUNSANWO, Gbenga Akanmu KAZEEM
Department of Business Administration and Management, Federal Polytechnic, Ilaro, Nigeria.

IJRISS Call for paper

Abstract: In this study, the effect of government incentives on the expansion of small and medium-sized businesses was evaluated. The study’s goals were to ascertain the effect of government grant availability, the effect of grant accessibility, and the sufficiency of grant on the expansion of small and medium-sized enterprises. The research design used in the study was a descriptive survey. The research instrument was a structured questionnaire. Three hundred and sixteen (316) SME owners made up the study’s population, and a sample size of one hundred and seventy seven (177) was chosen. Statistical Package for Social Sciences’ (SPSS) multiple regression analysis was used to assess the hypotheses developed for this study). The study’s conclusions showed a favorable association between government grant availability, accessibility, and sufficiency and the expansion of SMEs in Nigeria. This is clear from the fact that the p-value of the t statistic for the three independent variables is less than 5% (P=00.0000.05). The government should boost the different grants and resources made available for the operation and establishment of small and medium scale businesses in Nigeria, according to the results and recommendations. This will encourage more Nigerian small- and medium-scale business owners and operators.

Keywords: Availability of grant, Accessibility of grant and adequacy of grant, SMEs

I. INTRODUCTION

Small and medium-sized businesses (SMEs) are widely acknowledged as the foundation of contemporary economies because of the significant contributions they make to economic growth, poverty eradication, wealth creation, and food security. The increased focus and education on the strategy to establish and sustain a successful SMEs sector is a result of the realization of the significant responsibilities played by SMEs. Without proper government assistance for the growth of small and medium-sized businesses, Bubou, Siyanbola, Ekperiware, and Gumus (2014) underlined that any effort oriented toward improving any economy is unlikely to deliver positive results over the long run. This is due to the fact that government support programs help to establish crucial contextual factors that make it easier for SMEs to contribute to development by producing goods and services and creating jobs.Eniola and Entebang (2015) believed that SMEs in developing economy such as Nigeria are plaques with high rate of failure and underperformance due to inadequate financial