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Nwakoby, Clement I.N. and Okoye, Lawrence U. (2014) THE PROBLEMS ASSOCIATED WITH FINANCING SMALL AND MEDIUM ENTERPRISES FROM THE CAPITAL MARKET. ACCOUNTING FRONTIER: The Official Journal of Nigerian Accounting Association, 5 (3). pp. 70-82.

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This paper on “the problems associated with Small and Medium Enterprises (SMEs) financing from the capital market”, is intended to examine why small and medium enterprises do not procure long term funds from the capital market as well as ascertaining the conditions under which small and medium enterprises will be enabled to source funds from the capital market. It gives an insight that may help owners of SMEs in Nigeria to know other options of accessing long term funds from the capital market; the unending benefits associated with listing on the capital market as well as the terms and conditions for enlisting on the exchange. The study adopted a descriptive survey. 80 small and medium enterprises in Anambra state were sampled, 40 each from Onitsha and Nnewi. The choice of the two areas was guided by the fact that they have large clusters of small and medium enterprises in the state. Questionnaires were administered on the owners of these SMEs and/ or representatives (in cases where the owner was not available as at the time of administering the questionnaire). The data generated from the survey of the study were tested using the Chi- Square (X2). Simple tabulation was used to present the survey findings, percentage distribution of the respondents was equally presented. The study reveals that information about the activities of the capital market among SMEs specifically, in respect of its relevance to access long term finance is still very low. The few SMEs that are aware fear losing control of their companies to wealthy shareholders. The study also finds that the listing requirements constitute major constraints to procuring long term finance by SMEs. In the light of this, the Nigerian Stock Exchange should carefully consider the constraints highlighted by the respondents with a view to reviewing them for the benefit of SMEs in line with global best practices. The regulatory authorities should formulate policies that would engender a more investment friendly climate particularly in the areas of infrastructure, interest rate, inflation, etc. to make procurement of long term finance more attractive to investors

Item Type: Article
Subjects: H Social Sciences > HF Commerce
H Social Sciences > HF Commerce > HF5601 Accounting
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Mrs Patricia Nwokealisi
Date Deposited: 22 Jun 2017 09:41
Last Modified: 29 Jun 2017 15:25

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