Determinants of Access to Finance among Manufacturing Micro, Small and Medium Enterprises in Nigeria

Abstract

This study investigates the determinants of access to finance among manufacturing micro, small and medium enterprises in Nigeria (MSMEs). This study uses the Nigeria enterprise survey dataset conducted by the World Bank between April, 2014 and February, 2015. A robust logistic regression model has been applied for a sample of 507 manufacturing MSMEs in Nigeria to achieve this study's objective. The results indicate that access to finance is largely influenced by owner/managers' experience and owner/managers’ skills. By implication, owners’/managers’ experience and skills are the driving force for manufacturing MSMEs' probability of having access to finance in Nigeria. Therefore, this study recommends that owners/managers of MSMEs in Nigeria should leverage their stock of experience and innate skills to enhance their firms’ access to finance.