THE EFFECT OF FINANCING ON SOCIAL ENTERPRISES PERFORMANCE IN LAGOS STATE, NIGERIA

Abstract

This study investigates the effect of financing on the performance of social enterprises in Lagos State, Nigeria. The research explores various financial factors, including financial resources, crowdfunding, financial literacy, and social incubators, to determine their influence on the success and sustainability of social enterprises. Using a quantitative research design, data were collected from 402 respondents through structured questionnaires. Hypotheses were tested using regression analysis and correlation matrices to examine the relationships between financial challenges, access to finance, and enterprise performance. The findings reveal that while certain financial elements, such as crowdfunding and financial literacy, have minimal direct impact on performance, broader access to financial resources significantly affects enterprise growth and resilience. Additionally, the study identifies limitations in existing support structures, such as social incubators, which are found to be less effective due to contextual misalignment and a lack of inclusivity. The results suggest the need for tailored financial interventions, improved policy frameworks, and enhanced collaboration between stakeholders to foster a more enabling environment for social enterprises. This research contributes to both academic discourse and practical strategies aimed at strengthening the financial ecosystems supporting social entrepreneurship in Lagos State.