Trends in Financing Programmes for the Development of Micro, Small and Medium Enterprises (MSMEs) in Nigeria: A Qualitative Meta-synthesis

Abstract

Financing programmes for micro, small and medium enterprises (MSMEs) in Nigeria assume different forms with different conditions tied to disbursement. The purpose of this research is to discuss the trends in financing programmes for the development of MSMEs in Nigeria using qualitative meta-synthesis. This method provides a rich analytical tool for understanding any subject of inquiry without in-depth evidence-based findings. This analytical technique integrates findings from previous studies on trends in financing programmes for MSMEs in Nigeria. To forestall biases in the selection of articles, the authors conducted a search on Google Scholar and similar databases for academic publications on the financing programmes in Nigeria. From over 100 publications generated by the databases, a sample of 38 relevant publications was selected. Other publications that did not specifically focus on Nigeria were used in the literature review to gain more insights into the discourse. The sampled publications with heterogeneous findings were systematically reviewed and synthesised as integrated findings explaining the trends in financing programmes for MSMEs in Nigeria. The findings reveal that the financing instruments available for MSMEs in Nigeria with different degrees of challenges include personal savings, loans from commercial and microfinance banks, co-operatives and other development financial institutions, business angel financing, intervention funding of venture capitalists, several government-led microenterprise funds, pension fund assets, sovereign fund wealth and Islamic financing. While crowdfunding or crowd equity funding is popular in developed economies, it is an emerging financing option in Nigeria. The chapter concludes with research implications, empirical limitations and suggestion for further research.