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

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  • 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
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    References listed on IDEAS

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    More about this item

    JEL classification:

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

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