Small and Medium Enterprise Financing and Economic Growth in Rivers State, Nigeria

Abstract

The study examines the effects of Small and Medium Enterprise Financing and Economic Growth in Rivers state, Nigeria. Accordingly, data were gathered and collected from questionnaires. Secondary data where utilized from the CBN statistical bulletins and Rivers state Ministry of Finance annual report of various years. Data obtained from the bulletin include: Loans to SMES by Deposit money banks (LSME), Gross Domestic Product (GDP) and Money supply (M2). The hypotheses were subjected to the use of regression analysis with the use of (SPSS).) Results from the statistics probability of the significant value of LSME and GDP are given as 0.012 indicating a significant relationship between the variables. The T-test score is 3.560 representing a positive significant relationship. The Durbin-Watson value stood at 3.102, an indication of positive correlation between the variables (LSME and GDP). Also, the probability statistics of the Money Supply significant value is 0.003 and if compared to 0.05, it represents the positive relationship. The value of the T-test is indicating a negative significant relationship between the variables while the Durbin-Watson is 3.102 representing positive significance relationships between the variables. The study recommends that funds released to SMEs must be administered according to its purpose.