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Funding of Micro Scale Enterprises: Is Cooperative Financing Helpful?

Author

Listed:
  • Michael Segun Ogunmuyiwa

    (Department of Business Administraton, Olabisi Onabanjo Univerity, Ago-Iwoye, Nigeria)

  • Oluwakemi Rachel Aladegoroye

    (Departement of Cooperative and Rural Development, Olabisi Onabanjo Univerity, Ago-Iwoye, Nigeria)

  • Adebiyi Julius Abosede

    (Department of Business Administraton, Olabisi Onabanjo Univerity, Ago-Iwoye, Nigeria)

Abstract

The study investigates the influence of cooperative financing on the performance and survival of micro scale businesses, in Ogun State, Nigeria. A survey research design was adopted to generate cross-sectional data, using a structured questionnaire as the research instrument. From a population of 1,165,848 a sample size of 384 was obtained using the Raosoft sapling size formulae. Regression analysis was used to analyze the data. The findings revealed that cooperatively sourced finance has a positive and significant effect on operational performance of micro scale enterprises but no significant effect on business survival. This implies that survival of micro scale enterprises is beyond financing. The study recommends that cooperative societies, beyond financing should assist members in the area of general management of activities such as records keeping to improve the operational performance as well as the survival rate of businesses in Ogun State, Nigeria.

Suggested Citation

  • Michael Segun Ogunmuyiwa & Oluwakemi Rachel Aladegoroye & Adebiyi Julius Abosede, 2020. "Funding of Micro Scale Enterprises: Is Cooperative Financing Helpful?," Business & Management Compass, University of Economics Varna, issue 4, pages 430-443.
    • Handle: RePEc:vrn:journl:y:2020:i:4:p:430-443
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    References listed on IDEAS

    as
    1. Peter Österberg & Jerker Nilsson, 2009. "Members' perception of their participation in the governance of cooperatives: the key to trust and commitment in agricultural cooperatives," Agribusiness, John Wiley & Sons, Ltd., vol. 25(2), pages 181-197.
    2. Ikpefan OCHEI AILEMEN & Stephen OJEKA & Edwin M. AGWU & ACHUGAMONU B.U., 2015. "A Review of the Causes and Effects of Disparities in Global Financial Performances of Cooperative Societies," The Journal of Accounting and Management, Danubius University of Galati, issue 3, pages 15-26, December.
    3. Ifekwem Nkiruka & Adedamola Ogundeinde, 2016. "Survival Strategies and Sustainability of Small and Medium Enterprises in the Oshodi-Isolo Local Government Area of Lagos State," Acta Universitatis Sapientiae, Economics and Business, Sciendo, vol. 4(1), pages 103-118, December.
    4. Myers, Stewart C. & Majluf, Nicholas S., 1984. "Corporate financing and investment decisions when firms have information that investors do not have," Journal of Financial Economics, Elsevier, vol. 13(2), pages 187-221, June.
    5. Birger Wernerfelt, 1984. "A resource‐based view of the firm," Strategic Management Journal, Wiley Blackwell, vol. 5(2), pages 171-180, April.
    6. Stewart C. Myers & Nicholas S. Majluf, 1984. "Corporate Financing and Investment Decisions When Firms Have InformationThat Investors Do Not Have," NBER Working Papers 1396, National Bureau of Economic Research, Inc.
    7. Franken, Jason R.V. & Cook, Michael L., 2013. "Impact of Board Structure and Process on Cooperative Performance," 2013 Annual Meeting, August 4-6, 2013, Washington, D.C. 149420, Agricultural and Applied Economics Association.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

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    More about this item

    Keywords

    Cooperative Societies; operational performance; business survival; micro scale business;
    All these keywords.

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • P13 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Cooperative Enterprises

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