THE CONTRIBUTION OF FINANCIAL INSTITUTION TOWARDS THE DEVELOPMENT OF SMALL BUSINESS

This study examines the relationship between financing factors and the growth of small businesses in Jos metropolis, Plateau State, Nigeria. A sample of 53 small and medium-sized enterprises (SMEs) representing various sectors was surveyed using a structured questionnaire. Data were analyzed using descriptive statistics, regression analysis, and correlation analysis. The findings reveal that the majority of respondents were male, aged 25-35, single, and held a Higher National Diploma. Regression analysis showed that neither barriers to accessing financing nor promoting access to financing significantly influenced the growth of small businesses. Correlation analysis indicated weak correlations between financing factors and business growth, with none being statistically significant. Consequently, both hypotheses suggesting no significant impact of financing factors on business growth were supported. It is concluded that while barriers to accessing financing and promoting access to financing may have some influence on business growth, their impact is not statistically significant in the context of Jos metropolis. Other factors such as market dynamics, government policies, and entrepreneurial skills may play more substantial roles in determining small business growth in the region. Recommendations include exploring alternative financing options, educating entrepreneurs on financial management, implementing supportive policies, and investing in entrepreneurial skills development programs. Suggestions for further research include qualitative studies, longitudinal analyses, comparative studies, and investigations into the effectiveness of support programs. However, it should be noted that the findings are limited to the scope of the study and may not be generalized beyond Jos metropolis. Further research is needed to validate the findings in other regions or countries.