Journal VOL. 2 NO. 2, September. 2021, ISSN: 2811 - 2628
Cluster Financing and Micro, Small and Medium Enterprise Development in Nigeria
Onyeiwu Charles, Akingbade Akinkunmi, Olusanmi Olamide
ABSTRACT
This study explores how cluster financing can affect Micro, Small and Medium Enterprise (MSMEs) development in Nigeria as literature revealed that most available sources of finances are primarily not targeted towards clusters. A cluster sampling procedure was used for selecting the participants in this study. This technique was employed to ensure that members of a particular cluster are adequately represented in the variables for the study. A total of 120 and 31 participants were selected purposively from two clusters. Oke Aro Pig Cluster in Ogun State and Edo production clusters, in the Benin City in Edo State. Data were collected from primary sources using questionnaire and interview schedule, as data collection instruments. Data obtained was analysed using the Spearman Rank Correlation (Spearman's Rho) and multiple regression analysis. The study revealed that MSMEs cluster is correlated with the facilitation of cheaper access to finance (r = 0.518; p < 0.05) and there is a significant relationship between cluster financing and MSME development in the selected clusters. The result showed a correlation value which is fairly high and positive (r = 0.571; p<0.05). The study concludes that financial institutions and government have an easier reach and impact with the target MSME clusters; thereby would impact the businesses, growth and profitability.
Keywords: Cluster-financing, MSMEs, Development, Profitability, Growth
Download the full text uploaded