Determinants of Investment in Non-current Assets in Small and Medium Manufacturing Enterprises in Nigeria
Journal Title: Asian Journal of Economics, Business and Accounting - Year 2017, Vol 3, Issue 3
Abstract
The study examines the determinants of non-current assets acquisition in Small and Medium Scale Enterprises (SMEs) in Ondo state, Nigeria. Ondo state was selected for the study because it is one of the developing states in Nigeria. It is the highest cocoa producing state in Nigeria and also one of the Oil producing states. It has a sizeable number of SMEs in the manufacturing sector. A survey research method was employed for this study. A sample of 250 SMEs was purposively selected for the study, out of which 208 returned the completed questionnaire representing a response rate of 83%. Regression Analysis was used to determine the relationship of the identified determinants and non-current assets investment. The study revealed a negative relationship (r = -0.10, p < .0.05) between family size and non-current assets acquisition among entrepreneurs while the level of education shows a positive relationship (r = 0.111, p < 0.05). However loan size shows more significant relationship with non-current assets acquisition (r = 0.471, p < 0.05). The study concluded that provision of necessary non-current assets for business operations is imperative for the growth of SMEs. Loan with low interest rates should be made accessible to SMEs so as to enhance the contribution of this sector to the social and economic goals of the country.
Authors and Affiliations
Olowolaju, Philip Segun
Capital Market Indicators and Economic Growth in Nigeria; An Autoregrssive Distributed Lag (ARDL) Model
This study examined the impact of capital market indicators on economic growth in Nigeria from 1986 – 2016. The study adopted Auto Regressive Distributed Lag bound testing and VAR Granger causality econometric tools of e...
Money Demand and Supply under Market Disequilibrium: Evidence from Nigeria
This paper argues that for economies that have structural rigidities and irregularities, the received knowledge of equilibrium in the demand and supply of money should be interrogated. The paper proposes a third variable...
The Effects of Job Rotation, Role Stress and Job Satisfaction on Organizational Citizenship Behavior of Bank Employees
Aims: This study mainly investigates the effects of job satisfaction on organizational citizenship behavior, along with the antecedent effects of job rotation and role stress on job satisfaction in banks. Further it exam...
Small Firms’ Strategy Adoption and Business Outcomes in Business Games: An Empirical Investigation from Nigeria
The study aimed at determining the effect of adopted competitive strategy on the outcomes of SMEs in Nigeria. The sample size of the study comprised of 1231 owner-managers from selected Small and Medium scale Enterprises...
Career Planning Strategies and Skills of Ho Polytechnic Students, Ghana
This study seeks to examine how important career planning is to students, to determine sources of information use in making future career decisions, determine career planning activities being employed by students and to...