Impact of Monetary Policy on the Performance of Small and Medium Scale Enterprises in Kogi State, Nigeria

Abstract

The study examined the impact of monetary policy on the performance of Small and Medium Scale Enterprise in Kogi state. The study adopted descriptive research design and primary data was the major instrument for data collection. The research population was infinite and a sample size of 384 was determined using the Godden sample size statistical formula. The sample size was 384 and the respondents were reached using 18 items structured questionnaire designed in a five points Likert scale. However, out of the total number of questionnaires distributed only 298 were duly completed and returned giving a retrieval rate of 78%. The data were analysed using descriptive statistical techniques specifically, mean and standard deviation while three hypotheses were tested using simple linear regression. Findings revealed that, there is a significant relationship between exchange rate and the customers satisfaction of small and medium enterprise in Kogi state. The findings further reveals that there was a significant effect between exchange rate and the sales of small and medium enterprise in Kogi state. The finding also shows that there was a significant effect between inflation and the SMEs growth in Kogi State. Premised on the findings, it was recommended that monetary authorities should formulate more viable policy options on interest rates on loans provided to owner/Managers of SMEs, this will encourage serve as an inducement for SMEs operators to undertake profitable ventures for business expansion.