Small Business Financing in Nigeria: An Investigation of the Angel Option

Olayinka Moses, Joseph Femi Adebisi


Small businesses are often faced with funding challenges in developing economies which constraints their growth and long term survival.  This study examines the existence and role of business Angels as a source financial, human and social capital to overcome challenges of funding for small businesses in Nigeria. The research aims to strengthen the framework that seeks to provide detail understanding of the benefits that business angels can bring to small business in developing economies, considering the gap that exists in this regard. Data for the study were obtained using questionnaires and analyzed using Kolmogorov-Simirov (KS) test. The finding reveals, that Angel financing is a viable alternate source for financing small businesses in Nigeria. Recommendations proffered include the need for publicity on the activities of angels to support other government programmes on small business financing. There should also be an enabling environment for angel venture networks to participate in economic growth and development of small businesses in Nigeria.

Key words: Small business; Business angel; Funding challenges; Financing


Small business; Business angel; Funding challenges; Financing


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