ENTREPRENEURIAL FINANCE, RAISING CAPITAL AND MANAGING CASH FLOWS

Abstract

This study investigates the relationship between entrepreneurial finance, raising capital, and cash flow management among selected small and medium-sized enterprises (SMEs) in Imo State, Nigeria. The research specifically examined the impact of deposit money bank loans/advances, microfinance bank credit, and angel investors on SMEs’ performance in terms of sales volume and business expansion. A survey research design was adopted, and a sample of 90 respondents was determined using Taro Yamane’s formula from a population of 116 employees drawn from SMEs across the three geo-political zones of Imo State (Owerri, Orlu, and Okigwe). Structured questionnaires were used for data collection, while correlation analysis was employed to test the hypotheses. Findings revealed that deposit money bank loans/advances and microfinance bank credit have significant positive relationships with SMEs’ sales volume. However, angel investors were found to have no significant influence on SMEs’ business expansion. The study concludes that formal financial institutions play a more critical role in supporting SME growth in Imo State than informal funding sources such as angel investors. It recommends that government policies should promote accessible and affordable credit facilities for SMEs, reduce interest rates on bank loans, and encourage private sector investment in SMEs to enhance their contribution to employment generation and economic growth.