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IMPACT OF COVID-19 ON WORKING CAPITAL MANAGEMENT: A THEORETICAL APPROACH Olowookere, Johnson Kolawole; Odetayo, Tajudeen A.; Adeyemi, Adewumi Zaid; Oyedele, Oloruntoba
Journal of Business And Entrepreneurship Vol. 10 No. 1 (2022): JOURNAL OF BUSINESS AND ENTREPRENEURSHIP (May 2022 Edition)
Publisher : APPS Publications

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.46273/jobe.v10i1.224

Abstract

This study uses an archival technique to examine the impact of COVID-19 on working capital management. The study reviews previous research published in high-impact journals between 2000 and 2021. In addition, the study uses the risk trade-off theory, market timing theory, and cash conversion cycle theory as lenses to understand the relationship between COVID-19 and working capital management. Both theoretical and empirical reviews indicate that the impact of the COVID19 plague has weakened the finances of business organizations on a global scale. Thus, reviewed theories suggest that for the business organizations to come into the limelight of financial muscle amidst COVID-19, managers should review variable costs and work with their main partners, and access to funds that have been made available to corporate organizations as a result of the mitigation of the COVID-19 plague.
Financial Inclusion and SMEs Performance in Southwest Nigeria: The Mediating Role of Microfinance Bank Financing Okore, Okore Amah; Oyedele, Oloruntoba; Sajuyigbe, Ademola Samuel
Journal of Entrepreneurship & Business Vol. 7 No. 2 (2026): Journal of Entrepreneurship and Business (March-June)
Publisher : Program MM Universitas Surabaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.24123/jeb.v7i2.8061

Abstract

Purpose: This study examines how financial inclusion mediates the relationship between microfinance bank (MFB) financing and the performance of small and medium-sized enterprises (SMEs) in Southwest Nigeria. It draws on Transaction Cost Theory, the Theory of Economic Development, and Financial Intermediation Theory. The study integrates these perspectives to explain how diverse financial services drive SME growth. Method: Purposive and random sampling selected 380 SMEs from seven sectors. Structured questionnaires gathered data. The analysis used descriptive statistics and Path Analysis Structural Equation Modelling (PA-SEM) in STATA version 15. Result: Descriptive analysis shows widespread access to MFB products, with mean availability scores ranging from 4.38 to 4.58. Path Analysis results reveal that not all MFB financial products contribute equally to SMEs’ performance. Transactional and credit-related services—particularly current accounts, joint association accounts, and working capital loans—have a stronger effect on SME performance than basic savings accounts. The results also indicate that financial inclusion partially mediates the relationship between MFBs’ funding activities and SMEs’ performance. Specifically, current accounts, term deposit accounts, and joint association accounts significantly enhance SME performance through improved financial inclusion. Savings accounts and working capital loans do not exhibit significant mediated effects. The study underscores the vital role of financial inclusion as a bridge between microfinance services and SME success. It offers guidance to policymakers, regulators, microfinance institutions, and entrepreneurs in emerging economies.