The effect of continuing education on increasing access to credit facilities for small business owners in Makurdi Local Government Area, Benue State
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Background of the Study
Continuing education has emerged as a pivotal tool for enhancing financial literacy and entrepreneurial skills among small business owners. In Makurdi Local Government Area, Benue State, the proliferation of informal enterprises underscores the critical need for improved access to credit facilities. Studies conducted between 2023 and 2025 indicate that educational interventions not only enhance the technical know‐how of business owners but also build confidence in navigating formal financial institutions (Okoro, 2023; Ibrahim, 2024). The integration of modern financial practices through continuing education provides a platform for small business owners to better understand credit mechanisms, risk management, and investment opportunities. This study explores how targeted educational programs can bridge the gap between traditional business practices and modern credit systems. With a focus on skill acquisition and capacity building, continuing education is posited to improve business records, prepare comprehensive business plans, and ultimately qualify small businesses for formal credit assessment (Adeyemi, 2023). The continuous professional development offered through these programs is critical in fostering a culture of transparency and accountability, which are essential prerequisites for successful credit applications. Moreover, empirical evidence suggests that small business owners who engage in continuing education are more likely to secure credit due to enhanced trust from financial institutions (Uche, 2024). The local economy, characterized by a high prevalence of microenterprises, stands to benefit significantly from such educational interventions. A holistic approach that incorporates financial literacy, entrepreneurial training, and market analysis is essential for sustaining business growth and stability. Continuing education can help mitigate the risk of default by equipping business owners with better financial management skills, thus enabling a more accurate risk assessment by lenders. In addition, the social impact of such programs is noteworthy, as increased access to credit can lead to job creation, community development, and a more resilient local economy (Chukwu, 2025). The study situates itself at the intersection of education, finance, and economic development, aiming to provide evidence-based insights that can inform policy and practical initiatives tailored for the region.
Statement of the Problem
Despite the evident benefits of continuing education, small business owners in Makurdi face persistent challenges in accessing formal credit facilities. Many entrepreneurs lack the necessary financial documentation and business acumen required by banks, a situation compounded by limited exposure to modern financial practices (Eze, 2023). The disconnect between the skills acquired through informal channels and the expectations of formal lenders creates a significant barrier to credit access. Inadequate financial literacy, coupled with the absence of structured continuing education programs, has left many small business owners vulnerable to high-interest informal loans. The problem is further exacerbated by systemic issues in the local banking sector, which often does not recognize the potential of educated yet uncredentialed entrepreneurs. This disconnect not only stifles business growth but also undermines the broader economic development potential of the region. Additionally, there is a lack of comprehensive data to support the effectiveness of continuing education in improving credit accessibility. Anecdotal evidence suggests a positive correlation between educational interventions and credit uptake; however, rigorous empirical studies are sparse (Okoro, 2023). The persistent gap between educational attainment and financial inclusion remains a critical area of concern, hindering the overall progress of small-scale enterprises. The inability to secure affordable credit results in a cycle of underinvestment, limiting the capacity of businesses to expand operations, upgrade technology, or improve market competitiveness. Moreover, the misalignment between educational curricula and practical credit requirements further complicates the issue, leaving business owners ill-equipped to meet lender criteria. Thus, this study seeks to critically examine the extent to which continuing education can bridge this gap, reduce informational asymmetries, and ultimately foster a more inclusive financial environment for small business owners in Makurdi (Ibrahim, 2024; Adeyemi, 2023).
Objectives of the Study
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To assess the impact of continuing education on financial literacy among small business owners.
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To evaluate the relationship between continuing education and improved access to credit facilities.
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To identify barriers that hinder the effective translation of educational gains into credit acquisition.
Research Questions
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How does continuing education influence the financial literacy of small business owners in Makurdi?
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What is the relationship between continuing education and the success rate of credit applications?
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What barriers exist that prevent educated business owners from accessing formal credit?
Research Hypotheses
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H₁: Continuing education significantly improves the financial literacy of small business owners.
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H₂: There is a positive relationship between continuing education and successful credit acquisition.
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H₃: Systemic barriers negatively moderate the impact of continuing education on credit access.
Significance of the Study
This study is significant as it provides empirical evidence on the role of continuing education in enhancing credit access among small business owners. It informs policymakers and financial institutions on designing tailored educational programs that bridge the gap between informal practices and formal credit requirements. The findings can lead to strategic interventions that boost economic growth and improve financial inclusion in the region (Chukwu, 2025).
Scope and Limitations of the Study
This study is limited to assessing the impact of continuing education on credit access for small business owners in Makurdi Local Government Area, Benue State. It does not extend to other regions or consider other forms of education beyond the scope of continuing education programs.
Definitions of Terms
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Continuing Education: Structured learning programs aimed at adult learners to enhance their professional skills.
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Credit Facilities: Financial services provided by banks and financial institutions, including loans and lines of credit.
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Financial Literacy: The ability to understand and effectively use various financial skills, including personal financial management and budgeting.
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Chapter One: Introduction
