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Impact of access to credit, credit delivery, and variation in interest rate on business performance: an empirical study of SMEs in Kwara, Nigeria

Despite the importance and contribution of entrepreneurship to the national economy, challenges still remain with regard to its sustainability and growth, since small- and medium-scale enterprises (SMEs) need financial help to handle the challenging issues of survival and expansion. Therefore, the p...

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Main Authors:	Muhammad-Bashir, Owolabi Yusuf, Azeez, Tunbosun Lawal, Mahadi, Nur Farhah, Olawale, Samuel Akande, Ademilua, Victoria Ayoola, Adebayo, Shola Kabir, lsaac, Amos
Format:	Article
Language:	English English
Published:	Common Ground Research Networks 2024
Subjects:	BPH104 Islam and poverty BPH589.2 Riba - Interest BPH72 Economic development. Growth. Sustainable development. Sustainability BPH830.3 Social systems. Urban groups. Cities and towns. Sustainable urban development
Online Access:	http://irep.iium.edu.my/112750/1/112750_Impact%20of%20access%20to%20credit.pdf http://irep.iium.edu.my/112750/7/112750_Impact%20of%20access%20to%20credit_SCOPUS.pdf http://irep.iium.edu.my/112750/ https://cgscholar.com/bookstore/works/impact-of-access-to-credit-credit-delivery-and-variation-in-interest-rate-on-business-performance
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id	my.iium.irep.112750
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spelling	my.iium.irep.1127502024-07-25T03:14:49Z http://irep.iium.edu.my/112750/ Impact of access to credit, credit delivery, and variation in interest rate on business performance: an empirical study of SMEs in Kwara, Nigeria Muhammad-Bashir, Owolabi Yusuf Azeez, Tunbosun Lawal Mahadi, Nur Farhah Olawale, Samuel Akande Ademilua, Victoria Ayoola Adebayo, Shola Kabir lsaac, Amos BPH104 Islam and poverty BPH589.2 Riba - Interest BPH72 Economic development. Growth. Sustainable development. Sustainability BPH830.3 Social systems. Urban groups. Cities and towns. Sustainable urban development Despite the importance and contribution of entrepreneurship to the national economy, challenges still remain with regard to its sustainability and growth, since small- and medium-scale enterprises (SMEs) need financial help to handle the challenging issues of survival and expansion. Therefore, the purpose of this study is to examine the effects of credit delivery, credit availability, and interest rate fluctuations on the performance of SMEs in Nigeria. The data used for the analysis was gathered from a survey of SMEs in Kwara State, Nigeria. The data was analyzed using the Partial Least Square of Structural Equation Modeling (PLS-SEM). The results of the analysis provided support for the idea that the main challenge facing SMEs in Nigeria is a financial issue that has a negative impact on their ability to expand. Similar to this, for SMEs to operate successfully, strong financial backing is required. In fact, the entire microfinance bank concepts used in this study demonstrated that they contribute significantly to the success of SMEs in the local area of Kwara State, Nigeria. Therefore, it is recommended that microfinance institutions develop a mechanism for delivering loans that is accommodating to SMEs. The Central Bank of Nigeria should put into effect policies that boost cash flow and direct it to SMEs in industries with a higher tendency to spur economic growth. In order to support them and improve their company operations, microfinance institutions should also charge minimal or no interest on loans for small and medium-sized businesses. Common Ground Research Networks 2024-06-18 Article PeerReviewed application/pdf en http://irep.iium.edu.my/112750/1/112750_Impact%20of%20access%20to%20credit.pdf application/pdf en http://irep.iium.edu.my/112750/7/112750_Impact%20of%20access%20to%20credit_SCOPUS.pdf Muhammad-Bashir, Owolabi Yusuf and Azeez, Tunbosun Lawal and Mahadi, Nur Farhah and Olawale, Samuel Akande and Ademilua, Victoria Ayoola and Adebayo, Shola Kabir and lsaac, Amos (2024) Impact of access to credit, credit delivery, and variation in interest rate on business performance: an empirical study of SMEs in Kwara, Nigeria. International Journal of Interdisciplinary Organizational Studies, 19 (2). pp. 57-82. ISSN 2324-7649 E-ISSN 2324-7657 https://cgscholar.com/bookstore/works/impact-of-access-to-credit-credit-delivery-and-variation-in-interest-rate-on-business-performance 10.18848/2324-7649/CGP/v19i02/57-82
institution	Universiti Islam Antarabangsa Malaysia
building	IIUM Library
collection	Institutional Repository
continent	Asia
country	Malaysia
content_provider	International Islamic University Malaysia
content_source	IIUM Repository (IREP)
url_provider	http://irep.iium.edu.my/
language	English English
topic	BPH104 Islam and poverty BPH589.2 Riba - Interest BPH72 Economic development. Growth. Sustainable development. Sustainability BPH830.3 Social systems. Urban groups. Cities and towns. Sustainable urban development
spellingShingle	BPH104 Islam and poverty BPH589.2 Riba - Interest BPH72 Economic development. Growth. Sustainable development. Sustainability BPH830.3 Social systems. Urban groups. Cities and towns. Sustainable urban development Muhammad-Bashir, Owolabi Yusuf Azeez, Tunbosun Lawal Mahadi, Nur Farhah Olawale, Samuel Akande Ademilua, Victoria Ayoola Adebayo, Shola Kabir lsaac, Amos Impact of access to credit, credit delivery, and variation in interest rate on business performance: an empirical study of SMEs in Kwara, Nigeria
description	Despite the importance and contribution of entrepreneurship to the national economy, challenges still remain with regard to its sustainability and growth, since small- and medium-scale enterprises (SMEs) need financial help to handle the challenging issues of survival and expansion. Therefore, the purpose of this study is to examine the effects of credit delivery, credit availability, and interest rate fluctuations on the performance of SMEs in Nigeria. The data used for the analysis was gathered from a survey of SMEs in Kwara State, Nigeria. The data was analyzed using the Partial Least Square of Structural Equation Modeling (PLS-SEM). The results of the analysis provided support for the idea that the main challenge facing SMEs in Nigeria is a financial issue that has a negative impact on their ability to expand. Similar to this, for SMEs to operate successfully, strong financial backing is required. In fact, the entire microfinance bank concepts used in this study demonstrated that they contribute significantly to the success of SMEs in the local area of Kwara State, Nigeria. Therefore, it is recommended that microfinance institutions develop a mechanism for delivering loans that is accommodating to SMEs. The Central Bank of Nigeria should put into effect policies that boost cash flow and direct it to SMEs in industries with a higher tendency to spur economic growth. In order to support them and improve their company operations, microfinance institutions should also charge minimal or no interest on loans for small and medium-sized businesses.
format	Article
author	Muhammad-Bashir, Owolabi Yusuf Azeez, Tunbosun Lawal Mahadi, Nur Farhah Olawale, Samuel Akande Ademilua, Victoria Ayoola Adebayo, Shola Kabir lsaac, Amos
author_facet	Muhammad-Bashir, Owolabi Yusuf Azeez, Tunbosun Lawal Mahadi, Nur Farhah Olawale, Samuel Akande Ademilua, Victoria Ayoola Adebayo, Shola Kabir lsaac, Amos
author_sort	Muhammad-Bashir, Owolabi Yusuf
title	Impact of access to credit, credit delivery, and variation in interest rate on business performance: an empirical study of SMEs in Kwara, Nigeria
title_short	Impact of access to credit, credit delivery, and variation in interest rate on business performance: an empirical study of SMEs in Kwara, Nigeria
title_full	Impact of access to credit, credit delivery, and variation in interest rate on business performance: an empirical study of SMEs in Kwara, Nigeria
title_fullStr	Impact of access to credit, credit delivery, and variation in interest rate on business performance: an empirical study of SMEs in Kwara, Nigeria
title_full_unstemmed	Impact of access to credit, credit delivery, and variation in interest rate on business performance: an empirical study of SMEs in Kwara, Nigeria
title_sort	impact of access to credit, credit delivery, and variation in interest rate on business performance: an empirical study of smes in kwara, nigeria
publisher	Common Ground Research Networks
publishDate	2024
url	http://irep.iium.edu.my/112750/1/112750_Impact%20of%20access%20to%20credit.pdf http://irep.iium.edu.my/112750/7/112750_Impact%20of%20access%20to%20credit_SCOPUS.pdf http://irep.iium.edu.my/112750/ https://cgscholar.com/bookstore/works/impact-of-access-to-credit-credit-delivery-and-variation-in-interest-rate-on-business-performance
_version_	1805880572881403904
score	13.211869

Impact of access to credit, credit delivery, and variation in interest rate on business performance: an empirical study of SMEs in Kwara, Nigeria

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