Rotating Savings Credit Associations and Performance of Small-scale Entreprises in Osun State, Nigeria
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Date
2022
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Department of Management and Accounting, Faculty of Administration, Obafemi Awolowo University.
Abstract
The study examined the effects of Rotating Savings Credit Associations (ROSCA) on the
performance of SSEs in Osun State. The specific objectives of the study were to examine the level of adoption of ROSCA among SSEs in Osun State; it evaluated the effects of ROSCA on the performance of SSEs in Osun state and lastly it assessed the challenges faced in the operation and adoption of ROSCA in Osun State.
The study adopted descriptive research design. Primary data were collected on the effect of ROSCA on the performance of SSEs in Southwestern part of Nigeria through the use of a structured questionnaire. The questionnaire were administered among those SSEs participating in ROSCA after a semi-structured interview was conducted to help elicit prior information for the design of the questionnaire and to give a background analysis of what is obtainable among the operators. The population for this study comprises SSEs that involve in ROSCA. Being majorly an informal setting. Consequently, purposive sampling technique was used to select a sample size of 384 SSEs. The samples were collected from three major towns in Osun State; namely. Ile-Ife, Ilesa and Osogbo. Data collected were analyzed using appropriate descriptive and inferential statistics.
The result showed that ROSCA was used among SSEs. The result on the level of adoption
showed 74.5% high level of adoption, 24.5% moderate level of adoption and 1.0% low level of adoption. Also result indicated a strong correlation between ROSCA adoption and performance of SSEs. ROSCA adoption had a significant relationship (t = 3.86, p< 0.005) on the performance of SSEs, prominent of which were its use for insurance of their businesses (t=4.387, β= 0.542, ρ =0.000) and restocking their wares (t = 2.924, β = 0.517, ρ = 0.004). Some challenges encountered by the associations ranked on a 5-point rating were low attendance at meetings (39.8%; 𝑥̅= 2.88), mismanagement of funds, and theft (38.8%, 𝑥̅= 2.71) among others. The study found out that ROSCA was a more preferred means of assessing funds compared to formal financial institutions
(Banks). The study concluded that rotating savings credit associations have a positive effect on the performance of small-scale enterprise in Osun State.
Description
xii, 114p,
Keywords
Credit associations, Nigeria, small scale entreprises, Osun State
Citation
Soremekun, M.O. (2022).Rotating Savings Credit Associations and Performance of small-scale Entreprises in Osun State, Nigeria,Department of Management and Accounting, Faculty of Administration, Obafemi Awolowo University.