Effects of cooperative loans on the performance of small-scale variety businesses in Yewa Division of Ogun State, Nigeria
This study assessed the effects of cooperative loans on small scale variety businesses in Yewa division of Ogun State, Nigeria. The study drew a sample of 120 small scale variety business owners through a multi-stage sampling technique and the data obtained were analyzed using the descriptive statistics, budgetary and regression analyses. Result revealed the mean age of the small-scale business owners to be 38.06 years. It was also discovered that most perceived benefit derived from cooperative was the provision of credit. The estimated gross margin of small-scale variety business was ₦70,411.00 while the net income was calculated to be ₦20,983.09. Small scale variety business was profitable at return on investment ROI of 0.385 and profitability index of 0.278. The loan obtained from cooperative significantly affects the income generated from the business. Therefore, Implications were drawn that owners of small-scale variety businesses should involve in cooperatives while the societies should encourage the small-scale variety business owners to participate more in cooperatives through saving to obtain large loan volume that can better their businesses and improve their returns.
Keywords: Budgetary analysis, Cooperative, Loan, Profitability, Small-Scale Business, Variety
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