In spite of economic importance of SMEs and their contributions to Nigeria economic development over the years, SMEs have been experiencing poor performance and do not survive five years anniversary. SMEs in Nigeria encounter challenges in developing creative ways of acquiring resources in non-traditional ways through owner’s financing, subsidy financing, delayed payment, joint utilisation, and social capital result into persistent increase in employee turnover. This study investigated the effect of Bootstrapping on employee turnover among Small and Medium Enterprises in South-West, Nigeria. The study adopted survey research design. The population of the study comprised 14,527 owner/managers of SMEs enterprises in Lagos and Oyo States. The study utilized stratified random sampling technique. A sample size of 750 owner/managers of SMEs were enumerated using Cochran’s formula. Adapted questionnaire was used and 86.4% response rate was achieved. The Cronbach’s Alpha reliability coefficients for various constructs ranged from 0.736 to 0.949. Data were analyzed using both descriptive and inferential (regression) analyses. The findings revealed that bootstrapping dimensions had significant effect on employee turnover (Adj. R2= 0.143; F (5, 642)= 22.631, p< 0.05). The study concluded that bootstrapping affected employee turnover among SMEs in South-West, Nigeria. It was recommended that management of selected small and medium scale enterprises in South West, Nigeria need draw up on delayed payment and social capital in order to reduce employee turnover. Moreover, management of SMEs in South-West, Nigeria should pay more attention to subsidy financing, delayed payment, social capital with less attention on joint utilization in order to improve their performance.