GREEN FINANCE AND SMEs PERFORMANCE: AN EMPIRICAL INVESTIGATION OF SMALL AND MEDIUM ENTERPRISES IN GOMBE STATE, NIGERIA

Abstract

This study investigates the impact of green finance on the performance of Small and Medium Enterprises (SMEs) in Gombe State, Nigeria. A quantitative survey research design was adopted, with data collected through structured questionnaires administered to SME owners and managers. From a population of 779 registered SMEs, a sample size of 260 was selected, resulting in 255 valid responses for analysis. The collected data were analysed using SPSS version 27.0, applying descriptive statistics and multiple regression analysis. The findings reveal that green loans and capacity-building initiatives have a positive and statistically significant effect on SME performance, while renewable energy financing shows a significant negative effect. The study concludes that green finance plays an important role in supporting SME development; however, the benefits of its various components depend largely on factors such as accessibility, affordability, and effective implementation. Based on these findings, the study recommends expanding access to affordable green loan facilities, strengthening capacity-building programmes, and introducing supportive policies to address the challenges associated with renewable energy financing. The study contributes to the existing literature by providing context-specific evidence on how different dimensions of green finance influence SME performance within a developing economy.