International records / OpenAlex research

Empirical Investigation of Access to Micro-Credit in an Emerging Economy

This study examines factors, internal and external to micro-enterprises, which affect their participation in the credit market in Nigeria. Data were collected from credit institutions (excluding the commercial banks) and enterprises for analysis. Both descriptive, probit as well as regression analyses were carried out. The results show that 61.3% of the firms obtain loans from informal sources while 30% did not apply for loans because of inadequate collateral security, difficult loan-processing procedures (25%) and high interest rates (20%). Income levels of firm owners and the values of initi…