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Title: The role of financial intermediation in entrepreneurship financing in Nigeria
Author: Somoye, Russell Olukayode Christopher
ISNI:       0000 0004 2719 9558
Awarding Body: University of the West of Scotland
Current Institution: University of the West of Scotland
Date of Award: 2011
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This research focuses on the role of financial intermediation in entrepreneurship financing in Nigeria using six states in the South-West of Nigeria as a major case study. The relevant literature suggests that a deepening financial intermediation would help to improve entrepreneurship financing for sustainable economic growth. The research adopted descriptive statistics, econometric techniques at the micro and at the macro levels. Four hypotheses and four models were adopted. The research uses qualitative choice and OLS econometric techniques to estimate entrepreneurship financing, the entrepreneurship finance gap, and entrepreneurship growth as models 1, 2, and 3 respectively at the micro level and tested hypotheses 1, 2, and 3. The fourth model conducted cointegration techniques on the time series data from 1980-2009 to estimate the long run and Granger causal relationship between entrepreneurship financing and financial intermediation at the macro level and tested hypothesis 4. The results of the descriptive statistics are consistent with the literature that financial intermediation, age, firm size, previous loans, firm age, experience and employment, among others, are significant to entrepreneurship financing. The micro level results show a significant relationship between financial intermediation and entrepreneurship financing on the one hand, and the finance gap and entrepreneurship growth on the other. The results however show that the employment variable in the model appears not significant. The alternative hypotheses 1, 2, and 3 were upheld. The normalised long-run co-integrating equation supported by the short-run dynamics indicates that financial intermediation, interest rate, real gross domestic product, unemployment and industrial productivity are significant to entrepreneurship financing. The results upheld the alternative hypothesis 4 and also show a uni-directional Granger causal relationship. The overall results suggest that financial intermediation has a long-run relationship with entrepreneurship financing policy in Nigeria. The research recommends the formulation of effective policies to strengthen financial intermediation to provide entrepreneurship financing in Nigeria. The research also recommends that monetary authorities should intervene indirectly by reducing Monetary Policy Rates (MPR) which will directly reduce the transaction cost of funds to entrepreneurship and industrial sectors. In addition, the government should review the development plans on entrepreneurship and MSMEs financing in line with global trends.
Supervisor: Not available Sponsor: Not available
Qualification Name: Thesis (Ph.D.) Qualification Level: Doctoral
EThOS ID:  DOI: Not available