SUSTAINABLE FINANCE AND MICRO SMALL AND MEDIUM-SIZED ENTERPRISES (MSMES) PERFORMANCE IN NIGERIA: THE ROLE OF INNOVATION

Authors

  • M. S. GANI Department of Management Sciences, Nigerian Defence Academy, Kaduna.
  • A. INUSA International Centre of Excellence for Rural Finance & Entrepreneurship, Ahmadu Bello University, Zaria.
  • J. S. ABDULLAHI Department of Statistics, Nuhu Bamalli Polytechnic, Zaria.

Keywords:

Innovation, MSMEs performance, Structural Equation Model, Sustainable Finance.

Abstract

Given the significance of MSMEs (micro, small, and medium-sized enterprises) to economic
advancement and durability, research on these businesses has grown over time. However, there are
concerns about how sustainable finance and innovation impact on these MSMEs. Hence, the need to
measure the role of innovation regarding the correlation between sustainable finance and the
performance of MSMEs. Data from 259 MSMEs were examined utilizing Partial Least Squares
Structural Equation Modelling (PLS-SEM). The findings indicate that sustainable finance positively
influences the performance of MSMEs. However, the findings reveal that innovation does not
moderate the relationship between sustainable finance and MSMEs performance. The managerial
implications of this study are that sustainable finance promotes positive financial stability and by
implementing these measures with innovation will foster the growth, resilience, and contribution to
sustainable development of MSMEs.
 

Published

2025-06-20

Issue

Vol. 3 No. 1 (2025)

Section

Articles