Impact of Access to Finance on Small Scale Businesses’ Growth in Jigawa State, Nigeria

The study examined the impact of access to finance on the growth of small scale businesses (SSBs) in Jigawa State. The study employed a survey method as its research design and the population of the study comprises of all small scale businesses in Jigawa State. A multistage sampling technique was employed to determine the sample size out of which the respondents were selected. Data was collected through the administration of questionnaire to the sampled respondents. The findings from the study identified the financial options available for SSBs across the state which include cooperative societies, loans and micro financing organizations, personal savings and funds from friends and families. The findings further revealed how culture and traditions, lack of support services in business development, high collateral requirements for credit and difficult access to technology and market have constituted obstacles in starting and growth of an enterprise for small scale business owners. The study concludes that to ensure effective growth of small businesses in the state, some of the socio-economic, infrastructural and management challenges to be addressed. It thus, recommends the need to strengthen access to finance for SSBs through creating awareness on available financing options, enabling environment for small scale business owners, facilitating access to public support services and expanding sources of funding to improve businesses with little collateral.