FINANCIAL INNOVATION AND ENTREPRENEURSHIP DEVELOPMENT IN LAGOS STATE OF NIGERIA: CHALLENGES AND PROSPECTS FOR SMALL AND MEDIUM SCALE ENTERPRISES

Purpose: The study is to analyzed the various sources of funding for small and medium scale enterprises (SMEs) in Lagos State of Nigeria, examine the challenges they face an accessing funding from theses source and to highlight available innovative means of financing enterprises via innovative means like crowdfunding. Design/methodology/approach: Empirical analysis was conducted using descriptive design. A total of 600 (six hundred) structured questionnaires were distributed to SME operators, of which a total of 500 (five hundred) were filled and returned. Findings: Conventional funding sources such as bank loans and retained profits were both difficult to access, and their usage is beset with numerous challenges. Furthermore, low level of knowledge of crowdfunding, scepticism and lack of appropriate regulatory framework are factors hindering successful operation of crowdfunding in Lagos State of Nigeria. Research/practical implications: This research work has implications for SMEs and also for regulators. For SMEs, it exposes a veritable alternative in accessing funds, while for regulators, it highlights a new frontier for monitoring and evaluation of internet utilization in fund raising. It also educates the member of the public who are internet savvy of the good use of the internet in supporting SMEs. Originality/value: This study has an originality value of using primary data collected by SME operators in Lagos Nigeria.