EFFECTS OF GOVERNMENT SUPPORT FINANCIAL PROGRAMMES ON THE FINANCIAL PERFORMANCE OF SMES IN PHARMACEUTICAL BUSINESS IN KWARA STATE, NIGERIA

Abstract

Abstract

The pharmaceutical industry is essential to the provision of healthcare, yet small and medium-sized enterprises (SMEs) in this industry frequently struggle with funding, which hinders their expansion and viability. Accordingly, this study examined the financial performance of pharmaceutical small and medium-sized businesses in Kwara State, Nigeria, in relation to government support programs and other funding sources. The study used a survey research design. The study selected 109 registered pharmaceutical SMEs in Kwara State from a population of 149 using Yamane's (1967) algorithm, and used structured questionnaires to collect primary data. Using Stata 17, descriptive statistics and Ordered Logistic Regression were used to examine the data. The results showed that the financial performance of pharmaceutical SMEs was positively but statistically insignificantly impacted by government support financial programs (β = 0.038, p =.707). Access to loanable funds, for example, had a favorable and substantial impact (β = 0.597, p =.003). The government support program indicators are jointly significant, according to the Wald Chi-square value of 22.99, p =.0017. Additionally, the study discovered that while macroeconomic variables like inflation and insecurity had detrimental effects, commercial bank lending made a substantial contribution to financial performance. The study concluded that although there are government support programs, their influence on pharmaceutical SMEs in Kwara State is still restricted because of problems with implementation and accessibility. According to the report, government organizations should restructure assistance programs to guarantee simple access, prompt payment, and more awareness. To foster a climate that is favorable for pharmaceutical SMEs, the government should address inflation and insecurity while commercial banks offer flexible credit packages.

Keywords: Government Support Programmes, Access to Finance, Financial Performance, Pharmaceutical SMEs.