FINANCIAL RESILIENCE AND INCLUSIVE GROWTH AMONG SMALL AND MEDIUM ENTERPRISES IN NIGERIA

Abstract

This study examined financial resilience and inclusive growth among small and medium enterprises (SMEs) in Nigeria. Financial resilience was operationalised in terms of access to finance and financial literacy, while inclusive growth was measured using employment creation and enterprise performance. The study was anchored on the Resource-Based View (RBV) theory. A quantitative survey research design was adopted, and a census sampling technique was used to include the entire population of 100 SME owners/managers. Primary data were collected using a five-point Likert-scale questionnaire and analysed using descriptive statistics and multiple regression analysis in EViews. Two regression models were estimated to determine the effects of access to finance and financial literacy on employment creation and enterprise performance. The findings revealed that access to finance had a positive and statistically significant effect on employment creation and enterprise performance. Similarly, financial literacy had a positive and statistically significant effect on employment creation and enterprise performance. The models explained 64.28% of the variation in employment creation and 68.15% of the variation in enterprise performance. The study concludes that stronger financial resilience enhances the capacity of SMEs to create employment and improve enterprise performance. It recommends improved access to affordable finance, strengthened financial literacy programmes, SME-friendly financial products, and integrated financial support for SME owners and managers.