Effect of Micro-Credit Institution on Small Enterprises Performance in Akure South Local Government, Ondo State, Nigeria

Anifowose Oladotun Larry, Olomola Margaret Abidemi, Oluwole Benjamin Babalola

Abstract


This study examined the effect of micro-credit institution on small enterprises in akure south local government, Ondo State. The research design adopted was the survey method. The population of this study were small scale enterprises at Akure South Local Government, Akure, Ondo State. In this study, 200 small scale enterprises were selected. Majority of the respondents agree that micro finance institution has a significant effect on the profitability of small scale enterprise. Also, many of the respondents agreed that micro finance institution product boost small scale performance thereby result to their growth. The result of the hypothesis showed that there was a positive correlation between bank lending and business growth (r = .0.85%, p<.05) which implies that micro finance institution product has a significant influence on profitability of small scale enterprises at Akure South Local Government, Akure, Ondo State. The study recommends that The interest on loans should be reviewed downward so that the end-users (small scale enterprises) will be able to service the loans and also have some margin on the net returns.

Keywords


Micro-Credit Institution; Small Enterprises; Performance; Akure South Local Government; Ondo State; Nigeria

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DOI: http://dx.doi.org/10.3968/13047

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