MICROFINANCE CREDIT AND GROWTH OF SMES PRODUCTIVITY IN OGUN STATE.
Abstract
The study examined the effect of microfinance credit on growth of SMEs productivity in Ogun State. The population of this study comprises of ten (10) selected microfinance bank in Ogun State. The study adopted survey research design and purposive sampling technique in selecting ten (10) microfinance bank in Abeokuta. Data were analysed using the descriptive and inferential statistics. Ten copies of questionnaire were distributed to the senior official of each of the microfinance banks. Regression analysis was used to test the hypotheses. The result of hypothesis one shows a significant value of 0.000 which is less than 0.05, the null hypothesis was rejected by researcher hereby concluded that lending rate has a significant effect on expansion of SMEs in Ogun State. The result in hypothesis two (2) shows a significant value of 0.000 which is lesser than 0.05, the null hypotheses was also rejected. The study hereby concluded that loan size given to SMEs has a significant effect on SMEs and their expansion in Ogun State. It was recommended that companies should invest in comprehensive lending rate framework to ensure they remain affordable for SMEs controlled rate will foster profitability and encourage more entrepreneurs to seek credit boosting economic growth and SMEs sustainability.
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