NON-INTEREST BANKING AND THE GROWTH OF MICRO, SMALL AND MEDIUM ENTERPRISES IN NIGERIA
OLUNUGA, O. A.
Department of Finance, Faculty of Management Sciences
University of Lagos, Lagos, Nigeria
The current study investigates the influence of non-interest banking on the growth of micro and small enterprises (MSMEs) in Nigeria. Micro, small and medium business access to finance is critical to the promotion of sustainable economic growth and poverty reduction in many economies. The study adopted primary data. The research methods applied were questionnaire survey and observation to gather information from micro, small and medium entrepreneurs and non-interest bank managers. The methods were further supplemented with a semi-structured interview with MSME entrepreneurs and bank managers. The obtained data were analyzed by statistical methods. In association with the conducted researches it can be generally stated that the respondents agree with the statement that non-interest banking influence the growth of MSMEs in Nigeria. The study concluded that profit sharing should not only be seen as overriding motive in formulating credit strategy but based on enterprise development service with potential sustainable growth and survival.
Keywords: Nom-Interest Banking, Micro, Small and Medium Enterprises, Equity Participation, Profit Sharing and Growth