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MICROCREDIT AND BUSINESS PERFORMANCE IN NIGERIA: THE CASE OF MFI FINANCE ENTERPRISES

Babajide, A. A and Taiwo, J.N. (2011) MICROCREDIT AND BUSINESS PERFORMANCE IN NIGERIA: THE CASE OF MFI FINANCE ENTERPRISES. INTERNATIONAL JOURNAL OF RESEARCH IN COMMERCE & MANAGEMENT, 2 (11). pp. 43-49. ISSN 0976-2183

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Abstract

This paper investigates the impact of microcredit loan on business performance of Microfinance Institutions (MFI) finance microenterprises in Nigeria. A microenterprise refers to an individual business that consists of less than five employees and is generally organized as a sole proprietorship or family business. The objective of the study was to examine the effects of micro credit on several business performance criteria of MFI clients. Data for the study was derived from both primary and secondary sources. First, a survey of MFI and entrepreneur – clients were undertaken using simple random sampling technique to select our respondent, this was linked to data extracted from the records of MFI to form a panel data. The data obtained was analyzed using multiple regression analysis. The finding reveals a positive relation between microcredit and profit of the microenterprise. The study recommends a wider coverage of microfinance through effective implementation of micro-fund scheme and mandatory business related training for all micro entrepreneurs.

Item Type: Article
Uncontrolled Keywords: Microfinance, microenterprise, microcredit, profit, regression analysis
Subjects: H Social Sciences > H Social Sciences (General)
H Social Sciences > HG Finance
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Mrs Hannah Akinwumi
Date Deposited: 03 Feb 2017 10:15
Last Modified: 03 Feb 2017 10:15
URI: http://eprints.covenantuniversity.edu.ng/id/eprint/7728

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