ACCESS TO FINANCE AND FINANCIAL PERFORMANCE OF SMEs IN PHARMACEUTICAL BUSINESS IN KWARA STATE, NIGERIA

Globally, small and medium-sized Enterprises (SMEs) are essential catalysts for economic expansion, fostering innovation, generating employment, and promoting community development. SMEs are critical to the pharmaceutical industry because they guarantee access to necessary medications, support healthcare systems, and boost the economy. This study, therefore, investigates the effect of access to finance on the financial performance of SMEs in pharmaceutical business in Kwara State, Nigeria. Using a survey research approach, data were collected from 140 registered SMEs in pharmaceutical business through structured questionnaires. Descriptive statistics and ordered logistic regression were employed to analyze the data. The findings revealed that microfinance lending (P=0.000) and informal microcredit (P=0.021) significantly enhanced financial performance indicators such as revenue growth and return on investment. In contrast, government support programs through the Central Bank of Nigeria (CBN) (P=0.294) showed no significant impact. The research findings indicate that the financial performance of small and medium-sized pharmaceutical businesses in Kwara State, Nigeria, is considerably enhanced by timely and reasonably priced financing from microfinance institutions, and unofficial microcredit sources. However, persistent macroeconomic and institutional issues continue to be significant barriers. The study recommends that pharmaceutical SMEs should implement cost-saving measures, explore local sourcing options, and adopt pricing strategies to maintain competitiveness in the market. It also advocates for enhanced financial literacy, the adoption of digital lending platforms, and strengthened security measures to address systemic barriers and improve financial performance across the State and Nigeria at large.