ENTREPRENEURIAL FINANCING AND NIGERIAN ECONOMIC GROWTH: AN EMPIRICAL ANALYSIS

1Adebisi, A.O. Ph. D., ACIB., 2 Olaiya, A.C., & 3Okonkwo, C.U.

Abstract

The crucial problem identified with entrepreneurship financing in Nigeria is the low level of financing
of the entrepreneurial ventures in the nation which has hampered the level at which the entrepreneurs
have contributed towards the nation's employment and GDP rate, which is relatively low. The main
objective of the study is to examine the impact of entrepreneurial financing on GDP in Nigeria for a
period of 1998-2018. and the specific objectives is to examine the impact of Micro finance bank credit,
Deposit money banks loan and advances to SMEs on GDP in Nigeria and also to examine the impact
of Small and medium scale enterprise access to credit facilities on GDP in Nigeria. Secondary data
originated from the Central Bank of Nigeria statistical bulletin 2018 while the linear regression
equation model was used to analyze the data. The outcome of the results shows that there is 0.514
(51.4%) positive relationship between the dependent variable (Gross domestic product) and
independent variable (Entrepreneurial financing) as seen in the “R” column while the adjusted “Rsquare”
column indicates that 0.264 (26.4%) of the independent variables explains better the
dependent variable while 73.6% remaining represent the independent variables that are not discussed
explains the dependent variable. The study therefore recommended that, government and relevant
monetary institutions should create policies and also foster the activities of the Micro finance banks
and enlarge the purse of deposit money banks towards the funding of entrepreneurial activities.