Risk Perception of Finance Inclusion by Small and Medium Enterprises

Abstract

The study ranks different risk perceptions on financial inclusion by Small and Medium-sized Enterprises (SMEs) within Nigeria. Data were collected through a randomly distributed questionnaire from a sample of 800 SMEs in Adamawa, Bauchi, Borno, Gombe, Taraba, and the Yobe States. Thus, model robustness was achieved by the Chi-square test in SPSS. The study compared how important different types of risk perception relate to the quest of getting SMEs financially included in Nigeria, in line with the global trend of achieving 80% objectives by 2020. The study concludes that the perception of financial risk was a rank higher by 38%. For this reason, SMEs in Nigerian must therefore prioritize and mitigating financial risk through diligent planning, limit loans, taking insurance cover among others, if they want to be financially included.