Cooperative societies loan facilities and employment generation of small-scale businesses in Ondo State, Nigeria

Abstract

The study examined the effect of funding given to small-scale business by cooperative societies on employment generation in Ondo State. Primary data were employed using questionnaires while secondary data were obtained from unpublished book of accounts and old receipts of selected small-scale business entrepreneurs from selected town in Ondo State. A total of 142 small-scale businesses registered with the National Association of Small-Scale Industrialists (NASSI), Ondo State chapter were selected. Data collected were analyzed using inferential statistical techniques. The results revealed that there was an increase in loan facilities percentage from cooperative societies resulted to about 30% increase in employment generation within the sector. The adjusted R2 of 0.52 shows that 52% of the variations in employment within the sector was explained by the loan facilities from the cooperative societies. The study therefore recommend that cooperative societies should seek long term capital from the pensions and insurance companies in the country to enable them grant more loans to small-scale business owners thereby generating more employment opportunities.