Effects of Grant Financing on SME’s Working Capital and Product Development in Gombe State

Abstract

This study examined the effects of grant financing on SMEs working capital and product development in Gombe State. The study used the after-only experimental design to reach to 162 beneficiaries of the federal government’s YouWin program from Gombe state. The retrieved questionnaires were analyzed using Statistical Package for Social Sciences (SPSS) version 19.0. The hypotheses of the study were tested using simple linear regression. The research revealed that grant financing has no significant effect on working capitalof SMEs in Gombe State. The studies also revealed that grant finance has significant effect on product development of SMEs in Gombe State. Therefore, it was recommended that entrepreneurs should ensure that future grants are utilized to boost working capitals of their businesses, and also in the development of their products and services.