IMPACT OF MICROFINANCE LENDING ON SMALL BUSINESS GROWHT IN IFELODUN LOCAL GOVERNMENT AREA OF KWARA STATE.
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Date
2016
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DEPARTMENT OF BUSINESS ADMINISTRATION, KADUNA STATE UNIVERSITY, KADUNA, NIGERIA
Abstract
The World Bank has estimated that about 500 million families have benefited from small loan schemes, making new business possible. Despite the presence of different microfinance institutions in the Ifelodun local government area of Kwara State, with a population of 206,042 as of the 2006 census, there are still reports of low economic activity in the area. Perhaps the level of literacy and poor access to loans are major factors militating against the development of their economic activities. This study therefore examined the microfinance lending and small business growth in Ifelodun local government area of Kwara state. This study used primary data which was obtained through questionnaire administered to the selected respondents. Data obtained was subjected to multiple regression analysis using the statistical package for social science (SPSS 23). Findings showed that micro finance has a positive impact on small business growth in Ifelodun local government area of Kwara State. This study, therefore recommends that for growth sustenance : ( i ) microfinance banks should help entrepreneurs spread the repayment of loan over period of that will not affect the running of their business ; (ii) , there is also need for the Microfinance institutions to help deliver quality financial service to people in ifelodun local government area of Kwara state in their local dialect as this avail many business owner the opportunity to bank in the language they understand and grasp more understanding of different microcredit products to choose from. If the above recommendations are fully implemented, more people are likely to avail themselves of microfinance facilities, which will in-turn have positive effect on the growth of small businesses.
Description
This study demonstrates that microfinance positively impacts small business growth in the Ifelodun local government area of Kwara State and recommends extending loan repayment periods and providing financial services in local dialects to enhance accessibility and understanding of microcredit products.
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Ademokoya, A. A. (2016): Impact of microfinance lending on small business growth in Ifelodun local government area of Kwara State. Kaduna Business and Management Review. 3(2): 51-66, Published by the Department of Business Administration, Kaduna State University, Kaduna, Nigeria. Available online at https://www.academia.edu/120276376/IMPACT_OF_MICROFINANCE_LENDING_ON_SMALL_BUSINESS_GROWTH_IN_IFELODUN_LOCAL_GOVERNMENT_AREA_OF_KWARA_STATE