Influence of Cooperative Activities on Micro-Business Financing in Ogoja Local Government Area of Cross River State.

Abstract

This study focused on investigating the influence of cooperative activities on micro-business financing in Ogoja Local Government Area(LGA) of Cross River State. Micro-enterprise is generally referred to as a small business employing nine people or fewer, and having a balance sheet or turnover of not more than N5million while micro-business financing encompasses all means of raising of funds required to run these kind of business. Cooperative societies are an autonomous association of persons, united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled enterprise. Cooperatives as business enterprise facilitates micro-business financing via; access to convenient, cheap, affordable, flexible and fitting loan with minimal administrative inconveniences.  The specific objective of the study is to assess various cooperative activities as affecting micro-business financing in Ogoja LGA. The descriptive survey design was adopted for the study. The sample size of 150 was determined through Taro Yamani formula. Data obtained were analyzed using descriptive and inferential statistical tools. Findings show that Cooperatives have contributed significantly to micro business financing in the area studied (t= 6.319; p=0.03). It is therefore, recommended that individuals who intend to start micro businesses are encouraged to join cooperatives because membership of cooperative will assist them to overcome entry barriers as well as give them access to funding, business support services and formalization.