EFFECT OF ACCESS TO FINANCE ON AGRICULTURAL SMES PERFORMANCE IN KADUNA STATE: MODERATING ROLE OF BUSINESS ADVISORY SERVICES

Authors

  • M. T. Ramalan Department of Business Administration, ABU Business School, Ahmadu Bello University, Zaria
  • S. Umar Department of Business Administration, ABU Business School, Ahmadu Bello University, Zaria
  • N. Abdullahi Department of Business Administration, ABU Business School, Ahmadu Bello University, Zaria

Keywords:

Access to finance, Business Advisory services, Agricultural SMEs Performance

Abstract

This study examines the impact of access to finance and business advisory services on the
performance of agricultural SMEs in Kaduna State, with a focus on the interaction between
these variables. Using a quantitative research design, data were collected from agricultural
SMEs and analyzed using Structural Equation Modeling (SEM). The results revealed that
access to finance positively influences performance, with a performance level of 80% and an
importance value of 0.12, while business advisory services have a stronger effect, achieving a
performance level of 90% and an importance value of 1.5. However, the interaction between
access to finance and advisory services was found to be statistically insignificant, indicating
that these factors independently drive SME performance. The study highlights the critical
role of business advisory services in equipping SMEs with strategic guidance and technical
support to enhance productivity and growth. Recommendations include improving financial
accessibility through tailored credit facilities and expanding capacity-building programs to
provide business advisory support. These findings emphasize the need for an integrated
approach to support agricultural SMEs, contributing to rural development, economic growth,
and food security in Kaduna State.

Published

2024-12-20

Issue

Vol. 2 No. 2 (2024)

Section

Articles