• David Chucks Akan Department of Accounting, Dennis Osadebay University, Asaba.
  • M. T. Sinebe Department of Accounting, Delta State University, Abraka
  • Dudutari Bereprebofa Department of Marketing, Dennis Osadebay University, Asaba.
Keywords: SMEs, Cost of Capital, firm profitability, start-up businesses, SMEs’ financing


This study conceptually examines Small and Medium Enterprises (SMEs) funding issues, particularly in emerging nations using Nigeria as a case study. It analyses institutional barriers to funding small startup businesses, such as the high cost of capital, inadequate collateral and weak legal structures. It emphasizes the deficiencies they face regarding high maintenance costs, poor managerial experience, high competition from foreign firms, Government’s inability in financing small and medium firms for them to attain their full capacity, weak Policies, changes in unstable tax tariff, and finally suggesting ways that can improve finance access for small and medium firms. The study recommends that individuals should acquire the necessary knowledge and skills pertaining to their chosen business endeavor through participation in entrepreneurial training programs, that government should promote the enhancement of SMEs capabilities through the localization of supply chains, encourage effective leadership at the highest organizational level and should be encouraged by the localization of value creation by actively engaging with SMEs. It also recommended that the government should increase the campaigns of elucidating the significance of taxation in fostering the growth of nations, while concurrently providing assistance to small and medium firms in comprehending the tax legislation in Nigeria.


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How to Cite
Akan, D. C., Sinebe, M. T., & Bereprebofa, D. (2023). CAPITAL COST AND SUSTAINABILITY OF SMALL AND MEDIUM-SCALE ENTERPRISES (SMEs) IN NIGERIA. GPH-International Journal of Social Science and Humanities Research, 6(11), 13-24.