MODERATING EFFECT OF ACCESSIBILITY IN MICROFINANCING AND PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES IN KANO METROPOLIS

Abstract

Small and medium-sized enterprises (SMEs) are widely recognized as engines of economic growth and employment, yet their survival is often constrained by limited access to finance. In many cases, the challenge is not merely the availability of financing options but their accessibility—the ease with which SMEs can qualify for, obtain, and effectively utilize these resources. This study examines the moderating effect of accessibility on the relationship between microfinancing and SME performance in Kano Metropolis, Nigeria. Anchored in the Resource-Based View with complementary insights from the Pecking Order, the study draws on survey data from 372 SMEs, analyzed through PLS-SEM. Findings reveal that microfinancing significantly and positively influences SME performance, underscoring its role in enhancing capital availability for business operations. Accessibility also demonstrates a direct positive effect on performance, while further strengthening the effect of microfinancing, amplifying its contribution to growth when barriers such as collateral requirements and bureaucratic procedures are minimized. The study contributes theoretically by positioning accessibility as both an antecedent and a moderator of SME outcomes, while practically emphasizing the need for financial institutions and policymakers to improve access conditions to unlock the full potential of financing interventions.