Empirical Evaluation of Performance of Small and Medium Industries Equity Investment Scheme

SMEs could obtain significant financing from a full spectrum of providers, ranging from financial institutions to governments. Financing choices are similarly broad. The SMIEIS is particularly unique in all the variety of alternative financing instruments in Nigeria. Documentary evidence and SMIEIS Performance Evaluation Questionnaire (SPEQ) were instruments used. Mean and standard deviation were used for data analysis. A clear conclusion is that participating banks have not shown significant commitment to this scheme due to weak risk mitigation, lack of credit guarantee, uninformed operational guideline and lack of legal framework. Much more important is lack of viable business proposal from SME-clients and lack of awareness. Thus, the SMIEIS should be redesigned to include credit guarantee elements through an appropriate legislation and the unutilized SMIEIS reserves with banks should be channeled to SMEs through SME-support financing and entrepreneurial training institutions. Diversification of financial support for start ups, growing and successfully operating SMES will significantly contribute to the creation and development of SME financing policy