ENTREPRENEURSHIP FINANCING AND PERFORMANCE OF MICRO, SMALL AND MEDIUM SCALE ENTERPRISES IN AKURE SOUTH LOCAL GOVERNMENT AREA OF ONDO STATE

This study examines entrepreneurship financing and performance of small firms in Akure, Ondo State, Nigeria. A well-structured questionnaire was employed as the source of data collected. The study adopted descriptive survey design with a population of 2,160 registered enterprises in Akure and sampled 300 enterprises using Smith (1984) sampling formula. Descriptive statistics was first employed through the use of simple percentages and frequency count. Hypotheses were tested using multiple regression in order to establish the effects of interest rate charged, Deposit Money banks’ credit, microfinance banks’ credit, crowdfunding and trade credit on the performance of small firms. The result shows significant influence of loans on firm performance it was revealed that high interest rate loans significantly predicts firm performance (β= -.12, t=-2.04, p < .05), this is such that inordinate interest rate on loans reduced firm performance, and vice versa. The loans with reasonable settlement periods also significantly predicts firm performance (β= .16, t=2.64, p < .01), this shows that a loan with longer time duration for repayment tends to improve firms performance. Also loans from informal financial institutions also significantly predicts firm performance (β= .24, t=4.06, p < .01), this implies that funds borrowed from informal financial institutions tends to contribute to firm performance. It was concluded that the performance of small firms is germane for economic development and growth and adequate financing is required to achieve high Micro, Small and Medium Enterprises performance. The study recommended that Crowdfunding through cooperative societies should be encouraged and strengthened by the government. The Central Bank of Nigeria is also admonished to encourage commercial banks and microfinance institutions to lend at low rate to small firms.