Small and medium scale enterprises are indispensable instrument that contributes to the accelerated industrialization in developing countries as well as many countries of the world. It also serve as sources .of inputs for large production concerns in big and developed economies.
Based on the significance role played by those enterprises industries, the government throughout the world favourably disposed towards the ideas that help to promote the growth.
The major problem to thus sector is funding. In this study, the effect of small and medium scale enterprises in Nigeria is discussed. It revealed the effort on the part of government and Small and Medium Enterprises equity Scheme at providing the needed finance for the growth and development of SMEs in Lagos State Nigeria, the systematic bottleneck frustrating those efforts that funding of SMEs business in Nigeria is effective.