EFFECT OF FINANCIAL TECHNOLOGY ON THE GROWTH OF SMALL AND MEDIUM SCALE ENTERPRISES IN DELTA STATE, NIGERIA

Small and medium enterprises are the backbone of Nigeria's economy, accounting for over 50% of total employment and over 80% of employment growth over the past few decades. The survey indicates that, despite their involvement, historical statistics show that out of five SMEs, three of them do not see their first year of activity while 80% of those that continue fail before the fifth year. The overall objective of the study is to determine the significant effect of financial technology on the growth of small and medium enterprises in Delta State. The general objectives that guided this study were to determine how mobile money and digital lending impacted the growth of small and medium enterprises in Delta State. The study used a descriptive research design method. Stratified random sampling was applied and a sample size of 105 SMEs was arrived at. The study used primary data obtained through a self-administered questionnaire. The data collected were analyzed using version 25 of the Social Science Statistical Package software. Regression result established a positive significance of the effect of financial technology on small and medium enterprises growth. The study attributed 16 percent of small and medium enterprises growth to mobile money and digital loans banking. The study recommends that financial institutions take advantage of the increased use of mobile and online services to form partnerships with mobile phone service providers and provide flexible financial services to operators.