Taiwo, J.N. and Alege, P. O. and Olokoyo, F. O. (2016) MICROFINANCING AND MICRO-ENTERPRISE GROWTH IN NIGERIA. Lagos Journal of Banking, Finance & Economic, 3 (1). pp. 87-119. ISSN 2006-3776
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Abstract
Microfinance is an effective way for the economic active poor to increase their economic security and thus reduce poverty. This paper assesses the impact of micro financing on the growth of micro and small entrepreneurs in Southwest Nigeria. Data were sourced through questionnaires administered to 198 MFBs in Lagos and Ogun State Nigeria. To achieve the objective of the study a growth analysis was carried out using a loan demand model specified and estimated using the Ordinary Least Squares (OLS) econometric technique. Also, a linear Probability model was specified and estimated to measure the log of odds of obtaining loans from the microfinance banks by the customers. The study found out that the micro enterprises experienced positive percentage change as well as positive annual sales growth as a result of micro financing. Another interesting finding is that the enterprises owned by male microentrepreneurs generate more employment than those owned by their female counterparts while employment declined in the enterprises owned by those with no formal education. The study recommends that MFBs should seek long term capital from the Pensions and Insurance Companies in the country. This will enable them grant larger volume of loan and to greater number of people who will improve their outreach level.
| Item Type: | Article |
|---|---|
| Subjects: | H Social Sciences > HC Economic History and Conditions H Social Sciences > HF Commerce H Social Sciences > HF Commerce > HF5601 Accounting H Social Sciences > HG Finance H Social Sciences > HJ Public Finance |
| Divisions: | Faculty of Law, Arts and Social Sciences > School of Social Sciences |
| Depositing User: | Mrs Aderonke Olufunke Asaolu |
| Date Deposited: | 09 Aug 2016 09:46 |
| Last Modified: | 09 Aug 2016 09:46 |
| URI: | http://eprints.covenantuniversity.edu.ng/id/eprint/6775 |
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