Financial Bootstrapping and Organizational Performance: A Study of Some Selected SMEs In Oyo State.

• Author(s): Dr. Salau Adeyemi Nurudeen
• Paper ID: 1703216
• Page: 192-202
• Published Date: 23-02-2022
• Published In: Iconic Research And Engineering Journals
• Publisher: IRE Journals
• e-ISSN: 2456-8880
• Volume/Issue: Volume 5 Issue 8 February-2022

Abstract

Financial bootstrapping is an inexpensive method of ensuring positive cash flow of a business. Inability of SMEs to gain financial trust from banks and financial institutions resulted to their external funding constraints thereby not able to transform their ideas and plans into reality due to this financing constraints except they look at another direction. The study examined the effect of financial bootstrapping on some selected SMEs in Oyo State. Out of one hundred and eighty questionnaires that were distributed to SME owners/managers only One hundred and fifty-eight were completed and returned. PPMCC was used to analyzed the hypothesis tested. The study revealed that financial bootstrapping is determined by ownership financing, joint utilization, delay payment and maximization of account receivables and have significant relationship with SME performance. It was recommended that SMES owners come up with strategies that will promote the use of financial bootstrapping with a minimal effect on other stakeholders.

Keywords

Financial Bootstrapping, Owner financing, Joint Utilization, Delay Payment, Maximization of Account Receivables, Financing and SME Performance

Citations

IRE Journals:
Dr. Salau Adeyemi Nurudeen "Financial Bootstrapping and Organizational Performance: A Study of Some Selected SMEs In Oyo State." Iconic Research And Engineering Journals Volume 5 Issue 8 2022 Page 192-202

IEEE:
Dr. Salau Adeyemi Nurudeen "Financial Bootstrapping and Organizational Performance: A Study of Some Selected SMEs In Oyo State." Iconic Research And Engineering Journals, 5(8)