Assessing the Effectiveness of Commercial Bank Loans as Sources of Funding/ Capital Formation for Small and Medium Enterprises (SMEs) in Southeast, Nigeria

The paper assesses the effectiveness of commercial bank loans as sources of funding Small and Medium Enterprises (SMEs) in Southeast, Nigeria. A cross-sectional survey method wherein structured questionnaire was used to collect data was adopted. A sample of 500 respondents was randomly selected from the five industrial hubs in the five states of Southeast, namely Nnewi, Aba, Enugu, Abakiliki, and Owerri. With the aid of pecking order theory (POT)/hypothesis of Lending, percentage formula, and SPSS version 20.0 tools, the data generated from the respondents were analysed. Among others, the results of the analysis reveal that SMEs and commercial banks are highly indifferent to the loans facilities; strict collateral requirements, high interest rates, and the nature of requirements for guarantors dissuade SMEs from accessing loans; and government interventions provided palliative measures but failed to address the problems associated with the loans. Therefore, this paper recommends policy reforms to reduce interest rate, collateral and guarantor requirements. Further research on how to modernise and harmonise other external sources of SME funding such as „daily contribution‟ and „Isusu‟ systems is required.


Introduction
The establishment, growth and survival of small and medium enterprises (SMEs) depend on funding and its management. It enables entrepreneurs to undertake productive investments, expand existing investments, and acquire necessary technologies and requirements to sustain the enterprise (Ijaiya and Abdulraheem, 2000;Ijaiya, 2003). Entrepreneur as used here refers to one who possesses the inclination for self-development, "ability to innovate, nurtures an enterprise and having means of and access to finance in both formal and informal financial sub-sectors to achieve a successful investment towards sustainable economic growth‖" (Somoye, 2011). Majority of them are found in the SMEs sector due to paucity of capital. Currently, SMEs represent about 90% of firms in the Nigerian industrial sector.
Thus, SMEs dominate the industrial sector with overwhelmingly contribution to individual and national economic growth. They exhibit huge potential for employment generation and wealth creation, ensures greater utilization of raw materials, encourage rural development and the mobilization of local savings, create linkages and lead to the emergence of bigger industries, contribution to national output and exports, provide avenue for selfemployment and provision of opportunity for training managers and semi-skilled workers, poverty alleviation, economic participation, strengthening the industrial base and local production structure (Imoughele and Ismaila, 2014;Kadiri, 2012;Oluwarotimi and Adamu, 2017).
In spite of these contributions, entrepreneurs have continued to face stiff hindrances in raising the required fund for establishing and investing in SMEs in Nigeria (Abereijo and Fayomi, 2005;Beck et al., 2006). They suffer from scarcity of funds, limited access to capital markets, and debt funding opportunities (Beck et al., 2006;Inang and Ukpong, 1992), This is because the Nigeria financial system contributes poorly to entrepreneurship and SMEs sector (CBN, 2009). The maturity of credits extended to SMEs by the system is often limited to a very short period of repayment with exorbitant interest. With bias in favour of lending to governments due to higher returns and low risks than SMEs (Levitsky, 1997), the system applies tougher screening measures and tend to charge SMEs commission for assuming risk.
To ameliorate this, the federal government of Nigeria embarked on the policy of providing loan guarantees and credit subsidy programmes such as Small Scale Industries Credit Scheme (SSICS), Nigerian Bank for Commerce and Industry (NBCI), and the National Economic Reconstruction Fund (NERFUND) among others. These interventions provide long term credit, interest ceilings, and/or specialized services to the SMEs (Eniola and Entebanga, 2015). The term credit as used here was aptly defined by the Central Bank of Nigeria (CBN) Prudential Guidelines of 1990 as the aggregate of all loans, advances, overdrafts, bills discounted banks guarantees, banks acceptances, commercial papers, leases and indemnities. Credits are advanced for purposes of making profit (Essang and Olajide, 1974).
Nevertheless, four factors are posing serious threat or challenge to the policy. First systemic sabotage and corruption tend to prevent the loans from reaching the target group and individuals. Second, some beneficiaries of such loans fail to repay them. Third, most beneficiaries of the loans failed to achieve financial self-sustainability. Fourth, banks lacked the incentive to develop their capacity for risk assessment and monitoring of loans. This failure recently led to the introduction of Small and Medium Industries Equity Investment Scheme (SMIEIS). Therefore, this paper examines the level of commercial banks funding of SMEs in the Southeast Nigeria under the SMIEIS regime.

Objectives of the Study
The main purpose of this study is to examine commercial banks funding of small and medium enterprises in Nigeria through credits/loans. However, the specific objectives are to: i. Examine if entrepreneurs of SMEs rely on commercial bank loans for investments and expansion.
ii. Assess the impact of government policy on small and medium enterprises procurement of loans from commercial banks in Southeast Nigeria. iii. Examine the factors hindering small and medium enterprises procurement of loans from commercial banks in Southeast Nigeria. iv. Proffer solutions to the identified problems hindering small and medium enterprises procurement of loans from commercial banks in Southeast Nigeria.

Research Questions
The following research questions were formulated to guide the research: 1. Has entrepreneurs of SMEs relied on commercial bank loans for investments and expansion? 2. Has government policy improved the rate of small and medium enterprises procurement of loans from commercial banks in Southeast Nigeria? 3. What are the major factors militating against small and medium enterprises procurement of loans from commercial banks in Southeast Nigeria? 4. What are the solutions to the problems hindering SMEs access to commercial banks loans?

Literature/Theoretical Underpinning
Small and Medium Scale Enterprises (SMEs) and its role in national economic development, management/dynamics, funding, and problems have been well documented (Eniola and Ektebang, 2014;Fadahunsi, 1997;Mukhtar, 2009;Terungwa, 2012). This review groups this documentation into two major parts, namely: conceptual and empirical reviews.

Conceptual Review 2.1.1. Small and Medium Scale Enterprises (SMEs)
Although the literature is littered with definitions of Small and Medium Enterprises (SMEs), these definitions significantly differ. This is due to the inclusion or exclusion and valuation of variables such as number of employee, number and value of fixed assets, production capacity, nature of technology used, management, economic development, and the environment, in the conceptualisation of SMEs (Ekpenyong, 1997;Harabi, 2005). Thus, there is no generally accepted or universal definition of SME. However, the Central Bank of Nigeria adopted asset base, turnover, and number of staff employed as primary factors that defines SMEs.
Nevertheless, a synthesis of available definitions reveals a popular acceptance of certain variables as characterisation of SMEs. These variables include asset values and the number of employees (Nwakoby, 2012;Obistayo, 2001;OECD, 2000;Oteh, 2010;Udechukwu, 2003). For instance, it is defined as informal businesses employing five or fewer workers including unpaid family labour; small enterprises as those operating in the formal sector with five to twenty employees; and medium enterprises as those employing 21 to 50 employees. According to the views of scholars, small businesses have fewer than 100 employees, while medium-sized business has fewer than 500 employees, while the total assets of any SME does not exceed N200million. Thus, the conceptualisation of SMEs by the National Council of Industries (2009) as business enterprises (with fewer than 100 employees and) whose total costs excluding land is not more than two hundred million naira (N200, 000, 000. 00) only is adopted for this paper.
In its review of over fifty definitions of SMEs obtainable in 75 countries including Nigeria, the United Nations Industrial Development Organization (UNIDO) identified the major variables that characterise SMEs as capacity utilization, output, employment, capital, and type of country or other criteria. In addition, ownership structure or base, which is characteristically one-man, family or partnership business; Labour-intensive production processes; concentration of management on the proprietor; limited access to long term funds; high interest rates and bank charges to credits; over-dependence on imported raw materials; poor intra and inter-sectorial linkages characterise SMEs particularly in Southeast Nigeria (Ngwu, 2005).
Generally, SMEs display a distinct set of identifying characteristics and these include: a. Capital and output, which do not exceed 50 million naira. b. Employment power that does not exceed 100 employees.
c. Serve small market area such as a street, community, and/or particular business operation. d. The character of its ownership is sole proprietorships, partnerships or limited liability companies. e. It can be found only in a limited area.

SME and Sources of Financing
Sources of funding or financing business enterprises are classified as Internal and external sources (Pretorius and Shaw, 2004). Internal sources include entrepreneurial provision of the capital on their own, debt trading, retaining of business profits, and price depreciation. On the other part, external sources include financial banks, individual fund investors, venture capital, and crowd-funding. While internal source determines the stating of SMEs, external sources of funding are key to the expansion and rapid growth of SMEs. The external source normally provides credit facility (Eisenhardt and Martin, 2000;Shepherd, 1997).
In their quest to expand in the midst of fund raising difficulty, SMEs do resort to apply for and/or access shortterm and medium-term sources of financing at high costs through bank overdraft, trade credit, credit cards, leases and bank loans (Bates and Hally, 1982;Keasey and Watson, 1994). In Nigeria, funding SMEs through the external sources is difficult because government economic and financial policies are skewed against the informal sector (Claessens, 2006;Ekpenyong and Nyong, 1992). Due to these policies, commercial bank loans to SMEs have been decreasing over the years (CBN, 2014;Ogbuabor et al., 2013). For instance, it declined drastically from N41.1 billion in 2007 to N13.5 billion in 2008.
Commercial banks are reluctant to lend money to SMEs because such credits are considered non-commercially viable (Odife, 2002). They regard lending to SMEs as a high risk and unprofitable business (Adejoh, 2013), because weak management and information technology, and weak business plan drives their financial transactions, while their financial condition and performance are not available. In addition to these factors, SMEs in Nigeria suffer from lack of focus, inadequate market research, inexperience, lack of proper book keeping practices, irregular power supply, infrastructural inadequacies, lack of proper records or lack of any records at all, inability to separate business and family or personal finances, lack of business strategy, inability to distinguish between revenue and profit, inability to procure the right plant and machinery, and cut-throat competition (Basil, 2005). According to Rudjito (2003), this scenario leads to commercial banks reluctance to issue credits to SMEs, an act that is sustained by the availability of other investments with high rate of profit and turnover; higher overhead cost; and higher interest rate on the loans from the informal lending market. On their part, SMEs are unable to access available commercial bank credits successfully due to stringent conditions set by financial institutions especially banks (Solola, 2006), majority of their projects are not bankable projects; high interest rates; paucity of information required to accelerate the processing of their credit or loan request; none provision of the price of equipment and machinery required by SMEs (Akabueze, 2002).

Empirical Review
The literature is perverse with empirical investigations into commercial bank funding of SMEs. For instance, in an investigation of the challenges facing commercial banks in Africa in adequately funding SMEs, (Gibson and van der Vaart, 2008) observed that pure equity increases investors' risk and reduces their current income. Babafemi et al. (2015), investigated the funding arrangements that are available to SMEs and their contributions to finance and development needs of the SMEs in Nigeria. They observed that the Federal Government established many programmes to enhance SMEs access to finance while financial institutions, non-financial institution and NGOs have also made considerable efforts to solve the financial challenges confronting SMEs development with little or no positive result. The study recommended that commercial banks should provide more funds to SMEs. Imoughele and Ismaila (2014), explored the impact of commercial bank credit on Nigeria's Small and Medium Scale enterprises (SMEs) between 1986 and 2012. The study reveals that commercial bank credit to SMEs, total government expenditure and bank density has direct but insignificant impact on the country SMEs output. This was attributed to the stringent policy associated with SMEs accessing of credit facility and the crowd out effect of government expenditure in the economy. It reveals also that interest rate has adverse effect on SMEs output. Among others, It recommended a drastic reduction of the interest rate on credit facility granted to SMEs, granting of soft loan to SMEs, alteration of the stringent policy in supply of credit to SMEs.
Imoughele and Ismaila (2014), Ayeni-Agbaje and Osho (2015), investigated the role of commercial banks in financing small scale enterprises in Ado Ekiti, Ekiti State, and observed that there is a positive correlation between loans grants by banks and the growth and development of SMEs in Ekiti State. it therefore recommended a flexible commercial banks guidelines/schemes to finance SMEs. Similarly, Oke and Aluko (2015), examined the impact of commercial banks in financing small and medium scale enterprises (SMEs) in Nigeria between 2002 and 2012. The study observed that commercial bank credit has significant impact on SMEs" financing and has led to substantial proportion of changes. Thus, commercial banks are capable of making SMEs to grow through their financing.
However, the investigation carried out by Aliyu and Bello (2013), that examined the contribution of commercial banks to the growth of SMEs in Nigeria from 1980 to 2009 equally discovered that although commercial banks contribute to financing SMEs, their credit facilities to them have continued to decline after Central Bank of Nigeria abolished the policy of mandatory bank credit allocations to SMEs. Ekpenyong (1997), Reveals that commercial banks extend little financial supports or loans to SMEs. Further, Mamman and Aminu (2013) Nigeria using Lagos State as area of study reveals that SMEs do not have better access to finance through banks. Thus the reforms did not provide solutions to various challenges facing entrepreneurs in financing SMEs through credits or loans.
Many other scholars such as Benson (2017), Oluwarotimi and Adamu (2017), Richard (2016), Okey (2016), Imoisi (2015), Bello (2015), John and Olorunfemi (2014), Nwosa and Oseni (2013), and Imoughele and Ismaila (2014), among others examined the impact of commercial banks credit on the growth of small and medium scale enterprises, and national economy in different periods; and the intervening factors that hinder its positive relationship in Nigeria. These empirical investigations did not substantially cover the scope of this inquiry. Little or no attention was devoted to the rate or level of commercial banks credits to SMEs particularly in Southeast Nigeria. this necessitated this current inquiry.

Theoretical Framework
This paper adopts the pecking order theory (POT)/hypothesis of Lending as its framework of analysis. The foundation of this theory or framework of analysis is that only the firm manager is aware of the true value of the firm and that the market is unaware of the true distribution of the firm"s income. The theory therefore holds that these prevail, firms are likely to fund themselves primarily internal sources such as retained earnings, and secondarily from bank credits.
Further, the theory holds that firms can only succeed in this state through the mixture of debt and equity, which is the cumulative result of hierarchical financing decisions over time. Although SMEs do not issue equity they incur debt if their retained earnings are insufficient to fund them. This comes in a hierarchical fashion with internal funds first, external debt and external equity as a last resort (Myers, 1984). These credit options are directly or indirectly linked with commercial banking operations. Thus, commercial banks remain the known formal source of raising credits or loans for enterprises (Agumagu, 2006;World Bank, 2001).

Methodology
The study adopted a cross-sectional survey of 500 small and medium enterprises located in the industrial hub of each of the five states of Southeast, Nigeria. 100 firms each were randomly selected from Aba in Abia state, Nnewi in Anambra state, Enugu in Enugu state, Abakiliki in Enpbonyi state, and Owerri in Imo state. The choice of these cities was guided by the fact that large clusters of small and medium enterprises were located in these five cities within Southeast, Nigeria. Structured questionnaires were administered and used to generate responses from owners of different categories of SMEs and/ or their representatives. A total of 2 evaluators comprising of 2 lecturers from the Department of Marketing and Business Administration, University of Nigeria validated the questionnaire instrument. Any item in the questionnaire that did not receive 80% acceptance by the evaluators was discarded. Further, Test re-test method was used to test its reliability. 10 copies of the questionnaires were administered to similar respondents and setting at Awka and Obosi both in Anambra state. After an interval of two weeks, the questionnaires were re-administered to the same respondents and the two set of responses obtained correlated using the Pearson Product Moment Correlation (r) and a co-efficient of reliability of 0.95 was obtained. This shows that the instrument is reliable for data collection. The categories of SMEs studied are garment/fashion firms, ICTs and Communication firms, shoe and textile firms, transport firms, entertainment/events firms, and educational firms. Five research assistants were employed and in four weeks, all the 500 questionnaires distributed were returned. Each was checked for plausibility, honesty and completeness. In pursuit of central tendencies, mean, and deviations, the data generated was analysed percentage formula, and SPSS version 20 (SPSS Inc., Chicago, IL). Decisions were taken on the premise that mean difference is significant at >0.05. , and 48 and above (11.4%), while the levels of respondents certificate possession shows WAEC and ND (41.4%), First degrees (49.4%), higher degrees (9.2%). Therefore, majority of the respondents are both literate, and matured in mind to respond to the research questions objectively and reasonably too. With reference to the gender ratio of 48.8%:51.2%, the sample reflects the growing dominance of the female population in all profession. Thus, the sample is highly objective for the present study. Similarly, the age distribution in the table shows that majority of the sample belongs to the societal productive age that need credit or capital to invest and/or expand for growth and development purposes.

Research Question 1: Has Entrepreneurs of SMES Relied on Commercial Bank Loans for Investments and Expansion?
The SPSS Univeriate analysis of responses to questions" results in table 2 above reveals that majority of the respondents did not rely on their personal individual account in establishing their firms. Their responses grand mean of 1.86 representing "Disagreed" in our likert scale and whose sig. difference of .001 & .023 confidence interval were not subject of modification led to this conclusion. However, majority of the respondents agreed (a grand mean of 4.44) with no sig. difference (i.e. .006) that their initial business capital was raised by their parents, relations, friends and/or business master. The table also reveals that majority of the respondents (i.e. a grand mean of 4.21) agreed with no sig. difference (i.e. .000) that they have being increasing or expanding their capital base through trade credit/debt system. This finding is supported by earlier findings made by scholars such as Eisenhardt and Martin (2000), Keasey and Watson (1994), which holds that external sources of funding are key to SMEs" expansion. However, the finding made by this paper to the effect that majority of the respondents generated their initial investment capital from extended family and business mastersexternal sources -is at variance with earlier findings made by such scholars like Keasey and Watson (1994), and Shepherd (1997). This finding highlights the importance or role of social structure and socialist family system in the promotion and sustenance of SMEs in Southeast Nigeria.
The result of the analysis to question 4 in table 2 further reveals that majority of the respondents (i.e. a grand mean of 2.32 representing disagreed) noted that they have not been relying on bank loans/credits to increase or expand their capital base or investments. Thus, entrepreneurs of SMEs in Southeast Nigeria have not relied on commercial bank loans for investments and expansion. This finding is at variance with earlier findings made scholars like Claessens (2006), and Bates and Hally (1982), and is validated by prevailing position in the literature that commercial banks are indifferent to providing credits to SMEs due to high risks and unprofitability (Adejoh, 2013;Odife, 2002).

Has Government Policy Improved the Rate of Small and Medium Enterprises Procurement of Loans From Commercial Banks in Southeast Nigeria?
The results of SPSS analysis of responses to question 5 in table 2 further reveals that commercial banks are still demanding land property, building, and educational certificate as collateral and condition for issuing credits to SMEs. Majority of the respondents i.e. a grand mean of 4.64 representing "agreed" in our likert scale and whose sig. difference of .004 confidence interval were not subject of modification led to this conclusion. The result of analysis in question 6 further reveals that as a consequence of the high demand for collateral, guarantor, nature of business, and business registration, majority of the respondents (i.e. a grand mean of 4.18 representing "agreed" in our likert scale and whose sig. difference of .004 confidence interval were not subject of modification) are discouraged to applying for commercial bank credits. This finding was supported by earlier conclusion reached by Solola (2006), and others.
Thus, the result of analysis of responses to question 7, which seeks to find out if respondents applied for credit but was not granted because of lack of collateral, guarantor, and business registration certificate, reveals a grand mean of 2.02, which represents "disagreed" in our likert scale measure. The differences in their responses are < .05 at .002 & .000 and therefore insignificant with no adjustment to the mean. Thus, the rate or level of commercial loans to SMEs cannot be determined effectively because entrepreneurs were not applying for it. Therefore, government credit policy did not improve the rate of small and medium enterprises procurement of loans from commercial banks in Southeast Nigeria. this finding was supported by earlier findings made by Mamman and Aminu (2013).
This finding can be explained by the fact that government credit policy was not aimed at reducing and/or eliminating any of the requirements for obtaining commercial banks credits or loans. Rather, according to earlier research findings made scholars like Eniola and Entebanga (2015), and Essang and Olajide (1974), the policy pursued the provision of palliative measures to cushion the effects of the requirements.

What are the Major Factors Militating Against Small and Medium Enterprises Procurement of Loans From Commercial Banks in Southeast Nigeria?
According to the results of analysis of responses to question 8, majority of the respondents (i.e. 4.42 representing "agreed" in our likert scale measure whose level of differences in their response is < .05 at .000 and therefore insignificant) agreed that high interest rates for commercial banks" credit facilities and risk of nonrepayment due to bad economy are major factors militating against their application for loans. This finding is supported by earlier findings made by Ngwu (2005), and others.
However, the results of analysis of responses to question 9 reveals that majority of the respondents (i.e. 2.81 representing "disagreed" in our likert scale measure whose level of differences in their response is < .05 at .016 and therefore insignificant) observed that lack of information/knowledge about banking reforms and commercial banks loan activities is not a major factor limiting them from applying for their loans. However, the literature demonstrated that it is a major that discourage commercial banks from approving and/or advancing loans to SMEs.
Similarly, the results of analysis of responses to question 10 reveal that majority of the respondents (i.e. 2.09 representing "disagreed" in our likert scale measure whose level of differences in their response is < .05 at .016 and therefore insignificant) noted that the availability of government"s poverty and business or market intervention funds does not provide alternative source of funding their business. Therefore, government intervention schemes do not militate against SMEs" access to commercial bank loans.

What are The Solutions to the Problems Hindering SMES Access to Commercial Banks Loans?
The results of analysis of responses to statements seeking to find out if reducing the cost of procuring short term fund (i.e. interest rate) from the commercial banks will enable SMEs apply for loan reveal a grand mean of 4.03 representing "agreed" in our likert scale measure with differences that is < .05 at .000 and therefore insignificant with no adjustment to the mean. Therefore, the grand mean of 4.03 is upheld and implies that reducing the cost of procuring short term fund (i.e. interest rate) will motivate and enhance SMEs application for loans.
Similarly, the analysis of response to the statement that the relaxation or reduction of the listing requirements for SMEs and conditions given to guarantors will enable them apply for soft credits reveals a grand mean of 4.04 representing "agreed" in our likert scale measure with differences that is < .05 at .001 and therefore insignificant with no adjustment to the mean. Therefore, the grand mean of 4.04 is accepted and implies that the relaxation or reduction of the listing requirements for SMEs and conditions given to guarantors will also motivate and enhance SMEs application for loans.
These findings are supported by earlier findings or conclusions reached by some scholars such as Solola (2006), which holds that reducing the cost of procuring short term fund, and the reduction of the listing requirements for SMEs and conditions given to guarantors promotes SMEs access to commercial bank loans.

Implication to Research and Practice
The findings made by this paper have many implications for research and practice. As the primary goal of commercial banks, which is the fundamental source of fund generation for SMEs, is profit maximisation and SMEs are threatened by it researchers should investigate or examine further ways of using the socio-traditional structure and socialist approach to fund and sustain SMEs. This requires the exploration of other none commercial but external sources of funding SMEs. These have practical policy implication as government shall be required to develop social policies for collective rural empowerment.
Secondly, the inability of government"s banking policy reforms to positively drive SMEs" access to commercial bank credits/loans suggests high level weakness and ineffectiveness of such policy. The implication for researchers is that further assessment of the policy to determine its shortcomings is required, while policy makers should as a matter of urgency redirect their attention from establishing palliative programmes to the actual reduction of interest rate, requirements for accessing loans, and conditions given to loan guarantors. This has great implication for the capitalist economy and requires general economic review, workshops, and seminars with stakeholders.
Finally, the weakness that characterise SMEs, which generate confidence crisis on the part of commercial banks against granting them loans require scientific study, analysis, and recommendations on restructuring or modernising SMEs. This has practical implication for policy and economic review. New set of guidelines for registering and operating SMEs is required. This will cause systemic upgrade for all existing SMEs.

Conclusion
This study evaluated the effectiveness of commercial bank loans as sources of funding/capital formation for Small and Medium Enterprises (SMEs) in Southeast, Nigeria. The empirical results suggest that commercial banks loans are ineffective sources of funding SMEs n Southeast Nigeria. Both SMEs and commercial banks shy away from the credit due to different reasons or factors. On the part of SMEs, high interest rate, strict collateral, conditions for guarantor, and bad economic condition, which makes it difficult to attain reasonable business turnover discourages them from applying for the loans. For commercial banks, the character of SMEs in Southeast Nigeria with high risk of instability and low rate of profit turn-up, together with the availability of more profitable government clients, discourage them from granting loans to SMEs. Government intervened to sustain SMEs because of their principal contributions to general economic growth. However, their intervention was focused on establishing palliative institutions and programmes such as SSICS, NBCI, NERFUND, and SMIEIS, instead of addressing the core issues responsible for SMEs" very low access to commercial bank loans. To resolve the current scenario, government should embark on reforming its economic and banking policies to allow for actual reduction of loan interest rate, requirements for accessing loans, and conditions given to loan guarantors. Such reforms should equally establish a new set of guidelines for registering and operating SMEs in Southeast Nigeria.

Future Research
Further research is required in the area of funding SMEs through group or community self-help, which is now growing in the Southeast Nigeria. These include group thrift system popularly known as "isusu" and "daily contribution". The nature, effectiveness, and challenges of these popular systems of raining funds in Southeast Nigeria should be examined for purposes of standardisation, harmonisation, and formalisation.