DEBT FINANCING AND PERFORMANCE OF SELECTED SMALL AND MEDIUM ENTERPRISES IN MAKURDI METROPOLIS, BENUE STATE, NIGERIA
Authors
Wombo Dinnah Ngovenda
Benue State University, Makurdi, Nigeria
Author
Asenge Emmanuel Lubem
Benue State University, Makurdi, Nigeria
Author
Agwa Richard Terwase
J. S. Tarka University, Makurdi, Nigeria
Author
Keywords:
Debt Financing,
Long-term Debt,
Short-term Debt,
Firm Performance,
Small and Medium Enterprises
Abstract
Small and Medium Enterprises are indispensable in the growth of economies of nations globally and they need capital to boost their performance, hence the need to finance their operations principally through debt. The purpose of this study is to examine the effect of debt financing on the performance of selected small and medium enterprises in Makurdi Metropolis, Benue State, Nigeria. The study specifically examined the effect of long-term debt and short-term debt on performance of SMEs. A survey research design was adopted. Primary data were collected from 110 SMEs within Makurdi Metropolis. Data were analysed using descriptive statistics and multiple regression with SPSS. The study found that long-term debt and short-term debt have significant effects on the performance of selected SMEs.
