Financial Structure and Business Development in Southwest Nigeria

Abstract

The challenge of poverty has become widely known in Nigeria. Despite numerous economic development policies and strategic plans intended to eradicate it through the development of highly skilled labor and capital, the country's economy is still rife with social vices that have increased unemployment and led to starvation among the populace. This study examines and analyses the financial structure and business development in southwest Nigeria, driven by two primary research goals: to understand the significance of financing decisions determining entrepreneurial success or failure and to explore the critical factors essential for business survival and those that impact how businesses expand across Southwest Nigeria. The data collected were analyzed with the use of Descriptive Statistics and Partial least squares (PLS). Investigating the impact of financial structure on business development in Southwest Nigeria used a survey that engaged 8,395 established SMEs, representing 36% of all SMEs in the Southwest states of Nigeria. The primary data were collected using a structured questionnaire. The findings revealed the importance of reducing this stubborn economic destructor with the help of vital entrepreneurial business finance. This proves that business funding, particularly in southwest Nigeria, may act as an economic stimulant. Thus, the study findings are new and essential as they focus on a region of Nigeria that has not attracted much attention in the world of academia and research. This study closes the critical knowledge gap, providing insights into how regional businesses can develop through effective financial structures. It extends the existing body of knowledge, showing how affordable business financing acts as an economic stimulant to entrepreneurial development and expansion. Thus, this research recommended that business development be well established through well-structured policies, financed, and supported to help address the various social vices.