Financing Micro, Small and Medium Enterprises (MSMEs) and the Challenges of National Development in Nigeria: Lessons from India

Author: Ngboawaji Daniel Ntea, Otu Ekpenyongb aAfrica Regional Representative, American Heritage University of Southern California, 255 North D Street San Bernardino, CA 92401 E-mail: ngbodante@gmail.com & ngbodante@yahoo.com Tel: +238064304406, +2348075310

Abstract:
It is an immutable fact that micro, small and medium enterprises (MSMEs) have remained the bed rock of economic growth and development not just in the developing economies but in advanced economies as well. In Nigeria, this sector has remained pivotal and must be sustained for economic growth and survival. While the above facts cannot be over emphasized, it must be stated that financing MSMEs has remained a nagging challenge that must be tackled to give this sector the needed lifeline for a sustained economic development. Consequently, this work tries to review the Indian model of MSMEs financing as a useful one for Nigeria to copy and modify to suit local conditions and reinvent this ailing sector. While the Indian MSMEs cannot said be perfectly financed, they represent useful models of institutionalized financing of an all-important sector that Nigeria can learn from. The study is comparative and relies on secondary data that are well organized in a coherent manner to give the work the desired social science research foundation.

Keywords:Financing MSMEs, External Credit, Demand, Supply Credit Policy

DOI:

International Journal of Trade & Commerce (Vol: 3 Issue:1)