EFFECTS OF MICROFINANCING ON MICRO AND SMALL ENTERPRISES (MSEs) IN SOUTHWEST NIGERIA
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style: APA
- Recommended for : Student Researchers
- NGN 3000
ABSTRACT
This research work investigated the effects of micro-financing on Micro and Small Enterprises (MSEs) in South-west Nigeria. The study examined how micro-finance and non-financial micro-financing activities and features such as group membership, pre-loan training, cross guaranteeship, loan size, technical and managerial training, among others, impact on the survival, growth, productivity and performance of Micro and Small Enterprises in Southwest Nigeria. The hypotheses formulated were developed around the theories of financial growth model, pecking order theory, and contract theory. Variables were used to evolve a detailed analysis of the survival and growth models. The theoretical models were used in developing four different hypotheses that were investigated through the survey of four hundred and forty three (443) micro enterprises and one hundred and eighty (180) small enterprises which were randomly selected using multi-stage random sampling technique. Copies of well-structured questionnaire were administered to entrepreneurs sampled. The validity and reliability of the instrument were measured using Cronbach’s alpha which gave a result of 0.72, while predictive form validity was 0.84. Four hypotheses were raised and tested at 0.05 significant levels. The findings revealed that micro finance and micro-financing enhance survival of Micro and Small Enterprises (MSEs) but not sufficient for growth and expansion of such Micro and Small Enterprises. The result also revealed that microfinance has positive effects on productivity and performance of local entrepreneurs. The findings from the interview sessions revealed that micro financing is not effective and substantially being practiced in Nigeria as many MFBs grant more individual loans than group based loans, thereby increasing their running cost and putting their portfolio at risk. We therefore recommend a collective and cooperative support as a critical microfinance strategy in the form of solidarity groups at the local level; and at the national and regional level, a networking of groups among operators of MFBs. We also recommend that enterprises supported by MFBs should be linked up with larger financing window like the SMEEIS fund or Strategic Partners for expansion and growth funding after survival.
Related Project Materials
FRAMEWORK FOR VALUE MANAGEMENT IMPLEMENTATION IN ABUJA CONSTRUCTION COMPANIES, NIGERIA.
ABSTRACT
Value Management (VM) has played a broad role in supporting effective decision making on construction projects, increased projec...
UNEMPLOYMENT PROBLEMS AND POOR ESTABLISHMENT OF INDUSTRIES
ABSTRACT
Not two long ago, Abia state was under siege as a result of the activities of robbers and kidnappers. Businessmen and other prom...
IMPACT OF MACRO ECONOMICS VARIABLES ON FIRMS’ PERFORMANCE IN NIGERIA
ABSTRACT
Nigeria has experienced vibrant activity relating to the acquisition of local firms by...
PROTECTION OF WOMEN AGAINST DISCRIMINATORY LAWS, POLICIES AND PRACTICES IN NIGERIA: AN APPRAISAL
ABSTRACT
Human rights are rights that have come to be guaranteed over time, to all men and women, irrespective of race or creed. These ri...
ATTITUDE AND PERCEPTION OF UNDERGRADUATES TOWARDS FILM ADVERTISEMENT
ABSTRACT
The basic thrust of this research was to examine the attitude and perception of Undergraduates...
THE INFLUENCE OF GOVERNMENT POLICIES ON BROADCASTING
Abstract
This study was undertaken to examine to influence of ownership in radio new coverage. Categories of...
ASSESSING DEMOCRACY AND NATIONAL DEVELOPMENT IN NIGERIA
ABSTRACT
This study was carried out to examine the concept of democracy and its relation to national de...
COMPARATIVE ANALYSIS OF THE SPATIAL AND TEMPORAL VARIATIONS IN HYDROLOGICAL PARAMETERS AT KAINJI AND SHIRORO DAMS, NIGER STATE, NIGERIA
ABSTRACT
Climate variability has been one of the major issues of the 21st century. The idea is to understand the differences in the clima...
ROLE OF MEDIA IN EMERGING DEMOCRACY
ABSTRACT
The media are an indispensable agent of development in any nation given their invaluable contr...
CONTRIBUTION OF SMALL-SCALE BUSINESS TO NATIONAL ECONOMIC GROWTH AND DEVELOPMENT
Abstract
This paper analysed the contribution of small-scale business to National Economic Growth and D...
