Microfinance Banks Credit and Entrepreneurial Performance in Ado-Odo Ota Local Government Area, Ogun State

Williams Adekunle Christopher; Adu Cecilia Adurayemi; Onabajo Abisola Morenike

doi:10.59890/ijma.v3i3.139

Authors

Williams Adekunle Christopher Department of Economics, Lagos State University of Education, Ijanikin, Oto, Lagos State, Nigeria
Adu Cecilia Adurayemi Department of Accounting and Finance, Crawford University, Igbesa, Ogun State, Nigeria
Onabajo Abisola Morenike Department of Economics, Lagos State University of Education, Ijanikin, Oto, Lagos State, Nigeria

DOI:

https://doi.org/10.59890/ijma.v3i3.139

Keywords:

MFBs, Lending Rate, Entrepreneurial Performance, Business Profits

Abstract

This study examined the effect of microfinance bank credit on entrepreneurial performance in Ado-Odo Ota Local Government Area, Ogun State. A structured questionnaire was administered to 100 entrepreneurs who had accessed credit from microfinance banks in the region, and the valid responses were analyzed. SPSS was used to analyze the data, and chi-square tests were employed, in which the findings revealed a statistically significant relationship between lending rate and business profitability (χ² = 12.4, p = 0.015). The study recommended that microfinance banks should adopt more flexible lending terms, increase financial literacy programs, and align loan structures with the realities of small business operations.

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