SMEs PERFORMANCE IN NIGERIA: A CASE OF MICRO FINANCE

The pivotal role played by small and medium enterprises (SMEs) in providing the essential stimulus required in attaining a sustainable growth and development in every economy cannot be over-emphasized. However, harnessing and optimal utilization of this tool has been hindered by multitude of forces especially finance in the developing and less developed countries. Using the Pearson Moment Correlation Co-efficient and Regression to analyze a secondary data obtained from the Central Bank of Nigeria (CBN) Statistical Bulletin, This study examines the nature of the relationship between micro finance availability and Small and Medium Enterprises (SMEs) business performance in Nigeria using the ratio of credit to SME to total credit against SME output to GDP in Nigeria. The findings revealed the existence of a weak negative relationship between the loan ratio and the contribution to the GDP ratio (-0.269) which implies that finance is not the only or main problem facing the emergence, survival, sustenance and development of Small and Medium Enterprises (SMEs) business in Nigeria. Hence, there is an urgent need to put in place all essential conditions such as enabling environment, effective infrastructures required to ensure the efficient exploitation of Small and Medium Enterprises (SMEs) opportunities.