MICRO-CREDIT AND WELFARE OF MICRO ENTREPRENEURS IN NIGERIA: A CASE STUDY OF ALIMOSHO LOCAL GOVERNMENT AREA OF LAGOS STATE

MICRO-CREDIT AND WELFARE OF MICRO ENTREPRENEURS IN NIGERIA: A CASE STUDY OF ALIMOSHO LOCAL GOVERNMENT AREA OF LAGOS STATE

Jameelah Omolara Yaqub

Department of Economics

 Lagos State University, Ojo, Lagos, Nigeria

E-mail: jyaqub2010@yahoo.com

ABSTRACT

This paper examined the impact of micro-credit on the welfare of small scale entrepreneurs in Alimosho Local Government Area of Lagos State, Nigeria, A total of ninety-five micro entrepreneurs were used as study sample. These comprises of twenty-four tailors/fashion designers, twenty-four tricycle drivers, twenty-two pepper grinders and twenty-five pepper sellers. Data were collected through the use of questionnaire and the hypothesis was tested with the Chi-square technique. The result obtained showed that there is a significant relationship between micro-credit and the welfare of the small scale entrepreneurs in Alimosho Local Government Area of Lagos State. It is therefore suggested that the interest rate charged by microfinance banks should be made more reasonable and some grace period should be given before repayment of loan starts so that the beneficiaries could invest the loan for a longer time.