The Effect of Equity Financing on Entrepreneurship Business Development in Lagos State, Nigeria

IJMBs Vol. 1, Issue 2, June 2011

I S S N : 2 3 3 0 - 9 5 1 9 (O n l i n e ) | I S S N : 2 2 3 1-2463 ( P r in t)

The Effect of Equity Financing on Entrepreneurship Business Development in Lagos State, Nigeria
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Akanbi, Moses Ayokunle, 2 Akinbola Olufemi Amos, 3Ogbari Mercy Ejovwokeoghene
2,3

Dept. Of Economics And Development Studies Dept. Of Business Studies, Covenant University, Canaan Land, Ota, Ogun State, Nigeria
1

Abstract The paper investigates the effect of equity form of financing on entrepreneurship business development in Lagos State, Nigeria. A total sample size of 240 business enterprise of various categories was interviewed in three Local governments (Lagos Island, Ojo and Alimosho) in Lagos state through the administration of questionnaires. Frequency table and descriptive statistics were used to analyze the data collected. The result obtained from frequency indicated that65% of entrepreneurs indicated that government programmes such as: NERFUND, CBN, SSICS, NBCI funding of small-scale enterprise has been assisting entrepreneurship business development. Also, the greater proportion of entrepreneurs agreed that they took short term loans to finance their businesses. However, one of the findings from hypotheses testing clarified that there was positive effect of equity financing on entrepreneurship business development in Lagos state. The paper hereby recommends that Banks should cooperate more in assisting small-scale entrepreneurs to grow, and not just granting them short term loans so that the country’s (Nigeria’s) business unit can develop more. Keywords Entrepreneurship, Equity financing, Short term and Long term I. Background of the Study Business is literarily said to mean busyness or the state of being busy or any activity which keeps a man busy about. Economically, business means work, effort and acts of people, which are connected, with the production of wealth [6]. Functionally by business, we mean those human activities

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