Microfinance Credit and Financial Performance of Small and Medium Scale Enterprise in Oyo State, Nigeria
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2022-12
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Lead City University
Abstract
The impact of microfinance credit on the financial performance of small and medium scale Enterprises in Oyo state Nigeria was the focus of this study. It examines the impact of microfinance credit and financial performance of small and medium scale enterprise, ascertain the extent to which customers has benefited in the microfinance activities and the relationship between small and medium scale enterprise in the study area. This was done with the view of providing information on the effectiveness of microfinance credit and performance of small and medium scale enterprise. This study was a survey research design of correlational type. Two hundred and fifteen Small and Medium Scale enterprise owner who are clients of microfinance were selected using convenient sampling techniques as respondents. Primary data were collected using questionnaires over a space of two months from the participants thus giving a rich pooled primary data analysis. The reliability of the scale and its components were established by test-retest and Cronbach reliability score of 0.78. Data collected were analysed using descriptive (frequency count and percentage) and inferential (Multivariate Tests, estimated means and multivariate analysis) statistics. The result show that 81 (37.7%) of the population are B.Ed/B.Sc/HND holders, while 55 (25/6%) are SSCE holders, 37 (17.2%) possess NCE/ND certificate, 29(13.5%) have postgraduate degrees and 13 (6.0%) of the population have Trade certificates. The inferential analysis revealed that impact of gender F(1,214)= 3.227, age F (5.214)= 4.04, marital status F (3.214)= 3.41, educational background F (4,214) =20.64 and business type F (4,214)= 3,65 on accessibility and Constrain to microfinance credit were significant where p < 05. Based on the finding conclusion was reached and some recommendations made. Recommendation includes credit facilities to small and medium enterprises should be provided using minimal interest rate and collateral. In addition, microfinance banks should be less aggressive in pursue.
Keywords: Microfinance, credit, financial Performance, small and medium scale, enterprise
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Kate Turabian