MEDIUM SIZE ENTERPRISE

This study examined the impact of ethical finance on the growth of Small and Medium-sized Enterprises (SMEs) in Edo State, Nigeria focusing on key ethical finance dimensions such as transparency in loan terms, non-interest payment, fair interest rates, and non-discriminatory access to finance. The study adopted a descriptive survey design and collected primary data from 385 SME owners in Benin City, Edo State. Data were analyzed using descriptive statistics and multiple linear regression techniques. The findings revealed that transparency in loan terms, non-interest payment, fair interest rates, and non-discriminatory access to finance each have a significant positive effect on SME growth. The results further indicated that SMEs that engage with financial institutions operating under ethical principles experience
greater access to funding, improved business performance, and sustainable expansion. The study concludes that ethical finance serves as a vital catalyst for inclusive economic development by fostering trust, fairness, and social responsibility in financial practices. It recommends that financial institutions adopt transparent lending policies, ensure fair pricing of credit, and eliminate discriminatory barriers to enhance SME growth and national economic progress.