IDEAS home Printed from https://ideas.repec.org/a/mth/bmsmti/v10y2019i1p181-201.html

A Study on the Relationship Between New Business Start Up and Micro Credit Institution and Business Growth of Small Scale Enterprises

Author

Listed:
  • Alabi F. A.

Abstract

This academic study evaluates the evaluate the relationship between new business start up and micro credit institution and business growth of small scale enterprises that operates in six states that made up the South-west geopolitical zone of Nigeria. The study, which is based on descriptive research methodology, involved the use of data from both primary and secondary sources. The stratified sampling technique was used for determining the sample population, while well structured questionnaires was used as the main tool for collection of primary data. The Microfinance Bank records of clients served as the main source of secondary data for this study. Both the descriptive and inferential analytical techniques of the SPSS packaged were used to analyze the data obtained from the respondents. The results indicated significant relationship between new business start-ups and business growth of Small Scale Enterprises (SSEs). The findings also revealed that increasing the start-up capital will increase the chances of business survival and growth. Consequently, we recommend that the federal, state and local government should create lending programs that will enable aspiring entrepreneurs to have more access to microcredit. We also suggest that Nigerian government should enact laws and implement policies that will make it easier for small scale entrepreneurs to obtain finance necessary for the expansion of their businesses.

Suggested Citation

  • Alabi F. A., 2019. "A Study on the Relationship Between New Business Start Up and Micro Credit Institution and Business Growth of Small Scale Enterprises," Business Management and Strategy, Macrothink Institute, vol. 10(1), pages 181-201, December.
    • Handle: RePEc:mth:bmsmti:v:10:y:2019:i:1:p:181-201
    as

    Download full text from publisher

    File URL: http://www.macrothink.org/journal/index.php/bms/article/download/14533/11840
    Download Restriction: no
    File URL: http://www.macrothink.org/journal/index.php/bms/article/view/14533
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Bhatt, Nitin & Tang, Shui-Yan, 1998. "The problem of transaction costs in group-based microlending: An institutional perspective," World Development, Elsevier, vol. 26(4), pages 623-637, April.
    2. repec:uii:journl:v:8:y:2016:i:2:p:171-186 is not listed on IDEAS
    3. Matthieu Chemin, 2008. "The Benefits and Costs of Microfinance: Evidence from Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 44(4), pages 463-484, April.
    4. R. H. Coase, 2013. "The Problem of Social Cost," Journal of Law and Economics, University of Chicago Press, vol. 56(4), pages 837-877.
    5. repec:wbk:wbpubs:28956 is not listed on IDEAS
    6. Buckley, Graeme, 1997. "Microfinance in Africa: Is it either the problem or the solution?," World Development, Elsevier, vol. 25(7), pages 1081-1093, July.
    7. Stiglitz, Joseph E, 1990. "Peer Monitoring and Credit Markets," The World Bank Economic Review, World Bank, vol. 4(3), pages 351-366, September.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. João Paulo Coelho Ribeiro & Fábio Duarte & Ana Paula Matias Gama, 2022. "Does microfinance foster the development of its clients? A bibliometric analysis and systematic literature review," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 8(1), pages 1-35, December.
    2. Mathilde Maîtrot & Miguel Niño-Zarazúa, 2017. "Poverty and wellbeing impacts of microfinance: What do we know?," WIDER Working Paper Series wp-2017-190, World Institute for Development Economic Research (UNU-WIDER).
    3. Mulanda, Stephen Mulanda & Punt, Cecilia, 2021. "Characteristics of Zambia's agricultural sector and the role for agricultural policy: Insights from CGE modelling," Structural Change and Economic Dynamics, Elsevier, vol. 58(C), pages 300-312.
    4. Namayengo., Faith & van Ophem, Johan A.C. & Antonides, Gerrit, 2016. "Women And Microcredit In Rural Agrarian Households Of Uganda: Match Or Mismatch Between Lender And Borrower?," APSTRACT: Applied Studies in Agribusiness and Commerce, AGRIMBA, vol. 10(2-3), pages 1-12, October.
    5. Mathilde Maîtrot & Miguel Niño-Zarazúa, 2017. "Poverty and wellbeing impacts of microfinance: What do we know?," WIDER Working Paper Series 190, World Institute for Development Economic Research (UNU-WIDER).
    6. Hisaki KONO & Kazushi TAKAHASHI, 2010. "Microfinance Revolution: Its Effects, Innovations, And Challenges," The Developing Economies, Institute of Developing Economies, vol. 48(1), pages 15-73, March.
    7. Duarte N. Leite & Sandra T. Silva & Oscar Afonso, 2014. "Institutions, Economics And The Development Quest," Journal of Economic Surveys, Wiley Blackwell, vol. 28(3), pages 491-515, July.
    8. Gutiérrez-Nieto, Begoña & Serrano-Cinca, Carlos, 2019. "20 years of research in microfinance: An information management approach," International Journal of Information Management, Elsevier, vol. 47(C), pages 183-197.
    9. Tutlani, Ankur, 2016. "Borrowers’ Participation in Group Borrowing," MPRA Paper 69506, University Library of Munich, Germany.
    10. Christopher J. Green & Colin H. Kirkpatrick & Victor Murinde, 2006. "Finance for small enterprise growth and poverty reduction in developing countries," Journal of International Development, John Wiley & Sons, Ltd., vol. 18(7), pages 1017-1030.
    11. Hollis, Aidan & Sweetman, Arthur, 2001. "The life-cycle of a microfinance institution: the Irish loan funds," Journal of Economic Behavior & Organization, Elsevier, vol. 46(3), pages 291-311, November.
    12. Chi-kan Richard Hung, 2006. "Rules and Actions: Determinants of Peer Group and Staff Actions in Group-Based Microcredit Programs in the United States," Economic Development Quarterly, , vol. 20(1), pages 75-96, February.
    13. Persson, Torsten & Tabellini, Guido, 2002. "Political economics and public finance," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 24, pages 1549-1659, Elsevier.
    14. Qiuyue Xia & Lu Li & Jie Dong & Bin Zhang, 2021. "Reduction Effect and Mechanism Analysis of Carbon Trading Policy on Carbon Emissions from Land Use," Sustainability, MDPI, vol. 13(17), pages 1-22, August.
    15. Jiao Wang & Lima Zhao & Arnd Huchzermeier, 2021. "Operations‐Finance Interface in Risk Management: Research Evolution and Opportunities," Production and Operations Management, Production and Operations Management Society, vol. 30(2), pages 355-389, February.
    16. Frans P. Vries & Nick Hanley, 2016. "Incentive-Based Policy Design for Pollution Control and Biodiversity Conservation: A Review," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 63(4), pages 687-702, April.
    17. Usher, Dan, 2001. "Personal goods, efficiency and the law," European Journal of Political Economy, Elsevier, vol. 17(4), pages 673-703, November.
    18. George Tridimas & Stanley L. Winer, 2018. "On the Definition and Nature of Fiscal Coercion," Carleton Economic Papers 18-09, Carleton University, Department of Economics.
    19. Stephanie Rosenkranz & Patrick W. Schmitz, 2007. "Can Coasean Bargaining Justify Pigouvian Taxation?," Economica, London School of Economics and Political Science, vol. 74(296), pages 573-585, November.
    20. Stefan Ambec & Yann Kervinio, 2016. "Cooperative decision-making for the provision of a locally undesirable facility," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 46(1), pages 119-155, January.

    More about this item

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:mth:bmsmti:v:10:y:2019:i:1:p:181-201. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Technical Support Office The email address of this maintainer does not seem to be valid anymore. Please ask Technical Support Office to update the entry or send us the correct address (email available below). General contact details of provider: http://www.macrothink.org/journal/index.php/bms .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.