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Egwu, Arinze Noel (2024) Financial Barriers to Innovation in SMEs: A Quantitative Analysis of Perspectives from Southeast Nigeria. Masters thesis, Dublin, National College of Ireland.
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Abstract
The financial barriers that hinder innovation in small and medium-sized enterprises in southeastern Nigeria have been investigated in this dissertation. This research has been focused on small and medium-sized entrepreneurs across Abia State, Enugu State, Imo State, Anambra State, and Imo State, as well as the financial institutions that provide loans for these enterprises across the mentioned states. A quantitative research methodology was used for this research, as structured questionnaires distributed to 148 small and medium-sized enterprises and 45 representatives of different financial institutions in the region were used to collect data. The aim of this study is to identify what the specific financial barriers are, which might include high interest rate, strict collateral requirements, and difficult loan application processes, which hinder the ability and capacity of these small and medium-sized enterprises to innovate effectively.
Descriptive statistics was used to summarize the demographic characteristics of these small and medium-sized enterprises such as sector distribution, size and age of the business. Inferential statistical methods such as the Chi-Square test and ANOVA, were also used to examine relationships and differentiate between variables, which provided a better understanding of factors affecting the accessibility of capital and loans as well as the capacity of these businesses to innovate. The analysis conducted showed that high interest rates and strict collateral requirements are primary barriers, especially for younger and smaller enterprises. The complex loan application process was also identified as one of the major challenges that discourage small and medium-sized enterprises from seeking necessary financial resources for their businesses.
This study has shown that there is a need to improve financial literacy among these small and medium-sized enterprise owners, which will simplify the loan processes. Also implementing supportive policies like government giving out loans will also improve the accessibility of loan for these small and medium-sized enterprises. There are other existing bodies of knowledge on small and medium-sized enterprise financing that offer practical recommendations for financial institutions as well as the government to develop financial products and policies that support small and medium-sized enterprises to achieve growth and innovation, the findings in this study has effectively contributed to it.
The implications of this research are twofold: academically, it provides empirical data that enriches the understanding of financial barriers to innovation in a regional context; practically, it offers actionable insights that will enhance the financial environment for small and medium-sized enterprises, and enable a more innovative and competitive business environment in Southeast Nigeria.
| Item Type: | Thesis (Masters) |
|---|---|
| Supervisors: | Name Email Heywood, Richard UNSPECIFIED |
| Uncontrolled Keywords: | SMEs; financial barriers; innovation; Southeast Nigeria; quantitative analysis; financial institutions; loan accessibility; financial literacy |
| Subjects: | H Social Sciences > HG Finance H Social Sciences > HG Finance > Credit. Debt. Loans. H Social Sciences > HB Economic Theory > Entrepreneurship H Social Sciences > HD Industries. Land use. Labor > Small Business Sector |
| Divisions: | School of Business > Master of Science in Entrepreneurship |
| Depositing User: | Ciara O'Brien |
| Date Deposited: | 01 Aug 2025 08:38 |
| Last Modified: | 01 Aug 2025 08:38 |
| URI: | https://norma.ncirl.ie/id/eprint/8393 |
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