Examining Financing Strategies and Performance of MSMEs in Ilorin, Kwara State, Nigeria
Purpose: Micro, Small, and Medium-Sized Enterprises (MSMEs) are widely recognized as essential contributors to economic development; however, their expansion in Nigeria has faced obstacles due to a range of challenges. One of the significant hurdles facing MSMEs in Nigeria, particularly in Ilorin Kwara State, is the issue of securing adequate financing. This study aims to explore the impact of different financing strategies on the performance of MSMEs in Ilorin Kwara State, Nigeria. The specific objectives of the study include assessing how crowdfunding affects MSMEs' performance, examining the influence of cooperative financing on MSMEs' performance, and investigating the consequences of lease financing on the operational outcome of Micro, Small, and Medium-Sized Enterprises (MSMEs) in Ilorin Kwara State. Therefore, MSMEs that prioritize their performance should consider employing various financing techniques to raise funds. Design/Methodology/Approach: This study utilized a quantitative approach to collect survey data from a sample of 357 MSMEs in Ilorin, Kwara State chosen through a combination of random and purposive selection methods. The collected quantitative data were then subjected to analysis through multiple regression techniques. Findings: The study's results indicated a noteworthy and positive correlation between crowdfunding (β=0.024, p<0.003), cooperative financing (β=0.014, p<0.001), and lease financing (β=0.025, p<0.002) with MSMEs' performance. Practical Implications: It can be concluded that financing strategies have a meaningful and positive influence on the efficiency and effectiveness of Micro, Small, and Medium-Sized Enterprises (MSMEs) in Ilorin Kwara State, Nigeria. Originality/Value: The innovative approach of this study adds to the current corpus of scholarly literature by highlighting the impact of crowdfunding, cooperative finance, and lease finance as alternative sources of funding for MSME owners.