You have no items in your shopping cart.
ABSTRACT
This study investigates the impact of finance on small scale enterprise in Ekosodin community. Four (4) research questions were raised to guide the study. Sixty small scale business owners in Ekosodin community constitute the required sample used for the study and selected for the study through Purposive sampling techniques. Questionnaire was the instrument used for data collection. The questionnaire was designed and validated by experts in the Department of Business Administration, Faculty of Management science, University of Benin. Data were analyzed using descriptive statistical techniques such as tables, frequencies counts, and simple percentages. Findings of the study revealed that finance assist small scale enterprises stimulate private ownership and entrepreneurship skill development, assist small scale enterprises to create employment opportunities, help to and make significant contribution to expert and trade and helps in the establish more . It was further revealed that incidence of informal investment was higher among firms in the manufacturing, wholesale or retail and knowledge-based sectors and that that finance helps to sustain small scale business enterprise, helps to ensure the procurement of goods and facilities for small scale business, helps to ensure the employment of workers for small scale enterprise and that finance helps in the expansion of small scale business. It was also recommended that SMEs need to put more emphasis on informal form of finance (self-help group finance, family and friends finance and trade credit finance) since the informal finance relies on relationships and reputation implying that information asymmetries between informal lenders and their borrowers are less acute, the loan application procedure lighter, and the collateral requirement easier to fulfill. It was further recommended that Government should consider coming up with Usury laws that set interest rate ceilings to protect the borrower from exploitation by shylocks. Shylock finance sources need to be avoided by SMEs if possible since they charge unscrupulous interest rates.
