An Investigation into Small Medium Scale Enterprises funding and Nigerian Stock Market: A study of Ilorin Metropolis
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Date
2009-03
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Faculty of Management Sciences, IBB University Lapai, Niger State, Nigeria
Abstract
The efforts of small and medium scale enterprises to grow, modernise and expand are being constrained by inability to mobilise funds for expansion.in recognition of this need, the second-tier securities market was established to provide easy access to investible funds. The general objectives of the study is the identification of the constraints faced by SMEs using the Nigerian Stock Exchange Market and to find out why small and medium scale enterprises do not use the second-tier security market. The study uses guided questions to elicit information from 50 randomly selected small and medium scale enterprises in Ilorin. Simple tabulation, percentages and cost benefit analysis are used to the data. The findings in the study show that major constraint in sourcing for funds from NSE by small and medium scale enterprises is the listing constraints. Some unlisted SMEs entertain fears about dividend payments and other expense such as hiring of skilled manpower. It is suggested that government should encourage listed SMEs by way of providing necessary incentives such as reduction of quotation fee, reduction of listing fee, reduction of years of required trading record etc
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Keywords
Stock exchange, Management, Funding, Enterprises, Economy