Determinants of Capital Structure Decision of Micro, Small and Medium Scale Entreprises (MSMES) in Selected South Western States, Nigeria (Published)
This research investigated the firm characteristics and owner-manager characteristics that affect capital structure decisions of Micro Small and Medium Scale Enterprises (MSMEs) in Nigeria using a sample size of 120, drawn from MSMEs in Ondo and Osun states, combining the simple random sampling technique with the cluster sampling technique. This study employed primary data by administering questionnaires to MSME owners and managers. The descriptive statistics and logistic regression analysis was used to analyse data. The results showed that size of firms using capital investments had a significant positive impact on capital structure decisions, while size of firms using number of employees had a positive but insignificant effect on capital structure decisions. In the same vein, firm age showed an insignificant positive effect on capital structure choices of MSMEs in Nigeria. Owner-Manager gender, age and education revealed an insignificant negative effect on capital structure decisions of MSMEs in Nigeria. Consider. This study therefore recommends that MSMEs should from time to time expand the scope of their activities as they grow in order to easily access external finance when the need arises. In the same vein, external finance such as debt can be explored by both the male and female gender when there is a need for it, after carefully considering the risks and benefits.
Keywords: MSMEs., capital structure decisions, capital structure determinants, debt capital, firm characteristics, owner-manager characteristics
Does Microfinance Improve the Standard of the Poor (Published)
Access to microfinance is expected to improve the standard of living of the poor that are economic active and microfinance clients by enabling them to increase their household income. This study examined the contributions of Microfinance institutions to poverty reduction in Southwest Nigeria, using both primary and secondary data collected from Microfinance institutions (MFIs) and randomly selected customers (micro, small and medium enterprises) of the same Institutions. The study adopted a multistage sampling technique. The data from the survey was used to analyze the impact of loan received on earnings using a loan-impact probability model. The study found that Microfinance is an effective poverty alleviation strategy as it reaches the target customers more effectively and helps to a large extent in improving their standard of living and social status and also impacts greatly on Customers’ savings habit and income generation. The study therefore recommended that MFIs should embark on funds mobilisation drive to be able to reach out to more viable customers for provision of financial services. It also recommended that there should be provision of incentives by government to sustain MFIs in order to further extend their services to the rural areas and capacity building of MFIs in Nigeria should be made mandatory so as to develop appropriate policies that will enhance sustainability and stability.
Keywords: Incentives, MSMEs., Microfinance, Microfinance Institutions (MFIs), Poverty