Proceedings of 3rd Asia-Pacific Business Research Conference
25 - 26 February 2013, Kuala Lumpur, Malaysia, ISBN: 978-1-922069-19-1
Access to Microfinance and Small Enterprise Growth in Sokoto
State, Nigeria
Dauda Omoyi Abdussalam and Mustapha Namakka Tukur
This study aimed at investigating the effect of microcredit on growth of
small enterprises in the area. The survey uses a stratified sampling
method and identifies a sample of one hundred and twenty firms for
the study. Two hypotheses were tested and linear regression results
shows that positive but insignificant relationships exist between
access to micro-credit and value of physical assets of the businesses.
Results from the test of the second hypothesis show positive, though
insignificant relationship between access to microcredit and
employment generation. The study concludes that businesses that
accessed microcredit have grown at insignificant rate therefore this
paper recommends that microfinance banks should consider the
upward review of the size of loan being offered to small businesses to
enable the enterprises have enough funds to finance their operations.
The study also suggests that in addition to microcredit, beneficiary
enterprises should be sensitized and be properly monitored to ensure
their adherence to good management practices for increased
performance.
Key Terms: Finance, Microfinance credit, small enterprises, business growth,
employment generation, physical assets
______________________________________________
Dr. Dauda Omoyi Abdussalam, Department of Business Administration, Usmanu Danfodiyo University, P. M.
B 2346, Sokoto, Nigeria, daomoyi@yahoo.co.uk or dasalam@gmail.com
Mustapha Namakka Tukur, Department of Business Administration, Usmanu Danfodiyo University, P. M. B
2346, Sokoto, Nigeria, mnamakka2000@yahoo.com