Challenges of Government Intervention Fund and SME Survival in Lagos State

Abstract

This study examined the challenges of government intervention funds and their relationship with small and medium enterprise (SME) survival in Lagos State, Nigeria. Guided by Dynamic Capability Theory, Stakeholders Theory, and Survival Base Theory, the study adopted a descriptive survey design. The target population comprised 11,643 registered SMEs in Lagos State (SMEDAN & NBS, 2019), from which 387 respondents were selected using the Taro Yamane formula via purposive and incidental sampling. A structured questionnaire was employed for data collection; pilot testing with 50 respondents returned a Cronbach’s alpha of .816. Ordinary least squares regression and descriptive statistics were used for analysis. Results indicated that fund appropriateness significantly predicted SME survival, F(1, 385) = 56.943, p < .001 (M = 2.24); fund accessibility was the strongest predictor, F(2, 384) = 217.501, p < .001 (M = 2.38); awareness of intervention programmes did not significantly predict survival, F(1, 385) = 0.156, p = .693 (M = 2.73); and monitoring adequacy significantly and negatively influenced survival, F(1, 385) = 42.942, p < .001 (M = 2.07). Policymakers are advised to revise fund terms, broaden eligibility, and strengthen post-disbursement monitoring to improve programme impact on SME resilience.