Determinants of Insurance Uptake among Selected Small and Medium Scale Enterprises in Lagos State, Nigeria
The study investigates the factors that affect the usage of insurance by SMEs in Lagos State, Nigeria. This research adopted descriptive research design to collect qualitative data. A sample of 191 SMEs who are members of National Association of Small and Medium Enterprises (NASME) in Lagos State were engaged in this study. Data were analysed with both descriptive and inferential statistics and the hypotheses were tested using factor analysis and linear regression. Based on the findings of this study, interest rate, owners’ lifestyle and owners’ level of education were respectively identified as specific economic, socio-cultural and demographic factors that significantly influence the uptake of insurance among SMEs in Lagos State. Based on the findings of the study, it was recommended that provision should be made by government for special fund aimed at easing SMEs’ access to finance and eliminates barrier creates by high interest rate. Also, SMEs’ owners should be equipped with requisite entrepreneurial competencies for them to grow with the mindset of entrepreneurs and not just business owners. In addition, financial and specifically, insurance education should be encouraged among SMEs owners to help them understand the need for insurance in their business. Keywords: Entrepreneurship, Interest Rate, Level of Education, Owners’ Lifestyle, SMEs JEL Classification Codes: G22, L26