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n Journal of Emerging Trends in Economics and Management Sciences - Performance analysis of the strategic effect of age, size and sources of funds on micro enterprises in Nigeria

Volume 2, Issue 6
  • ISSN : 2141-7024
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Abstract

The study focused on the analysis of the effect of age and size of enterprise and the sources of funds available to 480 micro-entrepreneurs randomly selected from the South Western States of Nigeria. The purpose of the research was to highlight the strategic importance of age and size of enterprise as well as the sources of funds available to them to their performances. Data were analysed using simple descriptive statistics that include pie and bar charts and multiple regression analysis. The equation specified performance as dependent variables and age, size and sources of funds as independent variables. It was found that the size and age of micro-enterprises have effect on their performance as the relationship were both positive and significant at (P < 0.05). This revealed that the older the enterprise, the better its performance and also as the size (number of employees) increases, the higher would be its performance. Furthermore, the sources of finance available to the microentrepreneurs impacted significantly on their performance. The micro-entrepreneurs surveyed were revealed to be performing very poorly because majority of the entrepreneurs had no access to external funds. The sources of their initial capital and business capital were their personal savings and contributions. The study therefore recommended that commercial banks should set up micro-credit desk through which they could extend credits to informal societies and groups for example; credits could be given to cooperative society for onward lending to micro-entrepreneurs. Also, for enhanced performance, the government should provide an enabling environment, as well as monitoring the MFBs that were primarily established for credit delivery to small enterprises for their development in Nigeria.

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/content/sl_jetems/2/6/EJC134205
2011-12-01
2019-12-14

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