Title:
CAPITAL STRUCTURE, A PEANACEA FOR SME’S GROWTH. (A STUDY OF SELECTED SME’S WITHIN ABEOKUTA METROPOLIS)

Authors:
OKE Michael Ojo and ADEBAYO Adeyinka Taoheed

Abstract:
This paper critically examined the impact of capital structure on SMES Growth, with specific focus on Kotco Energy Nig LTD and First Vending Nig Ltd, Abeokuta. This study employed a descriptive survey design. A sample size of 85 respondents was selected using simple random sampling technique of which 85 respondents filled and returned the questionnaire. Data from the questionnaire was analyzed using special software for statistics which is called statistical package for social science (SPSS) version 20. The study found out that there exists a strong relationship between capital structure and SME’s growth, that there is a relationship between Government Scheme and SMES Growth and therefore recommends that Government should provide adequate stimulus and relieve package to SMES so as to enable their businesses thrive. This could be achieved through several scheme and reforms for the benefits of small scale businesses also the study recommends that To have an effective capital structure or financing for SMES, compulsory levies such as tax, space levy should be reduced to a minimal point so as to assist small scale businesses have adequate capital for investment.

Keywords:
Capital structure, Government Scheme, Assets, Equity Ratio, Debt Ratio and SMES Growth.