Financing innovation and technology-based enterprises in Nigeria

Abstract

Innovation and technology-based enterprises (ITBEs) are important for economic growth, competitiveness, and sustainable development. In Nigeria, these businesses can help reduce unemployment, improve productivity, and solve some economic challenges. However, their growth is limited because they do not have enough access to finance. This study examines the funding environment for ITBEs in Nigeria, identifies the major barriers to getting finance, and looks at how financial institutions, government policies, and venture capital influence the growth and sustainability of these enterprises. A mixed-method approach was used in this study. The researcher combined survey data from 150 ITBEs in Lagos, Abuja, and Port Harcourt with interviews from people in the innovation and financial sectors. Descriptive statistics, regression analysis, and thematic analysis were used to analyze the data. The findings showed that most ITBEs depend on informal sources of funding such as personal savings and family support, while access to bank loans and venture w is still limited. Major challenges include collateral requirements, high interest rates, and limited understanding of technology business models by financial institutions. The regression results showed a significant positive relationship between access to finance and firm growth (β = 0.62, p < 0.01). Government policy support and venture capital investment also have a strong influence on financing availability and enterprise sustainability. The study concluded that financing gaps are still a major barrier to the development of ITBEs in Nigeria. It therefore recommended specialized financial products, increased innovation funding, and stronger alternative financing options.