Vol. 9 No. No. 2 (2025): EVALUATING THE INFLUENCE OF TAX INCENTIVES ON MICRO- CREDIT INSTITUTIONS AND THEIR IMPACT ON SME FINANCING IN ILORIN, KWARA STATE

Small and medium enterprises (SMEs) are the backbone of the world economy,
accounting for most businesses across nearly every region. They are recognised
globally as essential contributors to economic growth, employment generation, and
poverty reduction is crucial (Obokoh, 2018). Consequently, ensuring their continuity through adequate financing is essential. However, according to a report by
International Finance Corporation (2022), this sector faces significantly more
constraints than larger firms in accessing finance globally, particularly in emerging
markets. IFC estimates that about 43 percent of formal SMEs in developing countries
have an unmet financing need of nearly $4.1 trillion. Without access
to finance, SMEs cannot grow and create jobs.