Entrepreneurship Financing and Market Share of Agro-Allied SMEs in South-West Nigeria

Abstract

Small and Medium Enterprises (SMEs) are globally recognized for their substantial contributions to economic growth and development. Agro-allied SMEs, in particular, play a pivotal role in enhancing gross domestic product, generating income, creating employment, and fostering economic and entrepreneurial development. This study examines the impact of entrepreneurship financing on the market share of agro-allied SMEs in South-West Nigeria.
The population of the study comprises of 2557 registered agro-allied SMEs across southwest, Nigeria, and a sample size of 632 was derived using Cochran's formula, ensuring representativeness through proportional sampling. Data were collected with aid of questionnaires and analyzed using multiple regressions. Results indicated a positive and significant relationship between entrepreneurship financing components (capital structure, financial management, financial support) and market share, with capital structure (β = 0.193, t = 4.280, p < 0.05), financial management (β = 0.151, t = 3.684, p < 0.05), and financial support (β = 0.190, t = 5.178, p < 0.05) emerging as significant predictors. The study concludes that entrepreneurship financing components (finance accessibility, capital structure, financial management and financial support) have significant effects on market share of selected agro-allied SMEs in South-west, Nigeria. The study also recommends that SMEs should key on to the enormous benefits of adopting entrepreneurship financing components as it is suggested that full employment of entrepreneurship financing components in marketing world processes creates improved overall performance.