Bootstrapping Finance and SMEs Performance during COVID-19 Pandemic in Nigeria

The Covid-19 pandemic distorted the formal funding system for small and medium enterprises here referred to as SMEs by the banking sector in Nigeria. This can be seen from the inability of the banks to provide loans to SMEs due to the effect of the pandemic on their operations necessitating SMEs to look backward means of funding their operations. The objective of the study is to assess the relationship between bootstrapping finance and SMEs' performance during Covid-19 pandemic in Nigeria. In achieving the said objective, the study applied the questionnaire method on 4 Likert's rating scales to 342 SMEs as the sample size out of a total population of 2441 registered SMEs (NBS, 2017) in Kano State using a simple random probability sampling technique. The study employed multiple regression analysis as a statistical technique and finding indicates both the minimisation of account receivable, joint utilisation of assets, and delaying payment to suppliers positively, and significantly influence SMEs' performance in the study area. The study recommends that the minimisation of account receivable, joint utilisation of equipment and delay payment to suppliers should be used by SMEs as strategies to enhance their performances whenever external funding is not accessible due to the pandemic.