This research project aims to address the poverty issue plaguing the poor and emerging economies. It explores multiple data sources from Nigeria, the largest economy in Africa and projected to be a top 10 economy in the world by 2050, to examine the impact of the financial system and the distribution channels of financial resources on SMEs' access to funding.

Small businesses are considered to be a catalyst for economic growth. The research uses a triangulation methodology to analyze quantitative national data, a survey of SMEs, and qualitative data sources to arrive at probable factors.

The findings include that interest rate spread, number of bank branches, and credit to the private sector directly and significantly affect access to funding, while business collaterals, high lending rates, and verifiable financial information hinder access. Its recommendations provide policy guidance and steps to de-risking SMEs' businesses to improve access to financing success.

The richness of this study stems from its empirical originality as it establishes the relevance of the channel of distribution theory and practice and the effects of credit rationing on SMEs' access to financing. .