Does entrepreneurship financing contribute to industrial development in Nigeria Evidence from small and medium scale enterprises

Underdevelopment of industrial sector has been one of the critical challenges confronting Nigeria in the last few decades. Against this backdrop, this study focuses on the relationship between entrepreneurship financing and industrial development in Nigeria between 1990 and 2018. Data were collected from the Central Bank of Nigeria Statistical Bulletin using Dynamic Ordinary Least Square and Granger causality as techniques of estimation. Consequently, manufacturing and food processing business financing and industrial output have an insignificant positive relationship. Aggregate commercial banks financing has a significant positive impact on industrial output. Meanwhile, manufacturing and food processing business financing Granger caused industrial output in the country. Therefore, the following recommendations are made for the policymakers in Nigeria. If the goal of the Nigerian policy makers is industrial development, manufacturing and food process SMEs business financing should be encouraged by all the financial institutions especially deposit money banks in disbursement of loans and advances.