This chapter deals with the analysis and interpretation of data
collection in the study. Two hundred copies of questionnaire were administered
to the respondents and out of this, a total of one hundred and sixty (160)
copies of the questionnaire were returned and analyzed.
Chi-squares
statistics was used to test the hypothetical questions asked and the results
are shown in this chapter.
Tables used
The table below analyzed the responses from the respondents to the
questions.
RESEARCH
QUESTION ONE (1)
How did you raise your initial capital?
Sources
|
No of
respondents
|
%
|
Personal savings
|
70
|
43.75
|
Loan from friends & relatives
|
30
|
18.75
|
Loan from MFB
|
20
|
12.5
|
Loan from charity organization
|
40
|
25.0
|
Total
|
160
|
100
|
From
the table one above, one could observe (70) 43.75% respondents of the 160 SMEs
sampled agreed on personal savings as the way of raising initial capital,
thirty (30) (18.75%) respondents of the 160 SMEs sampled agreed on loan from
friends and relatives, and (20)12.5% agreed on loan form microfinance banks.
Finally (40)25% agreed on loan from charity organization.
Research
question two (2)
Have
you ever sought assistance from microfinance banks?
sources
|
No of
respondents
|
%
|
Yes
|
101
|
63.125
|
no
|
59
|
36.875
|
Total
|
160
|
100
|
It
was observed that 101 of respondents or 63.125% of the total SMEs sampled were
of the opinion that they have sought loan and other assistance from
microfinance banks. While 59 respondents or 36.875% of the SMEs sampled said no
to the question.
Research
question three (3)
If yes, what type of assistance?
Sources
|
No of
Respondents
|
%
|
Procurement
|
30
|
18.75
|
Employee training
|
60
|
37.5
|
Loan
|
40
|
25.0
|
Bookkeeping
|
30
|
18.75
|
Total
|
160
|
100
|
The
table three above shows that 30 respondents or 18.75 of the number of SMEs
sampled agreed that procurement of machines is one of the assistance gain from
microfinance banks, 60 or 37.5% agreed on employee training, also 40
respondents or 25% of the SMEs sampled said loan and finally 30 respondents or
18.75% of the sampled indicate bookkeeping as assistance derive from
microfinance bank in Nsukka.
Research
question four (4)
Do you have difficulty procuring loan from microfinance bank?
Sources
|
No of
Respondents
|
%
|
Yes
|
100
|
62.5
|
No
|
60
|
37.5
|
Total
|
160
|
100
|
It is
equally observed, that 100 respondents or 62.5% have difficulties in procuring
loan from microfinance banks while 60 respondents or 37.5% have no difficulties
in procuring loan from microfinance banks.
Research
question five (5)
If
yes, what kind of difficulty?
Source
|
No of
Respondents
|
%
|
Lack of collateral
|
85
|
53.125
|
Risk involved
|
30
|
18.75
|
High interest
|
45
|
28.125
|
Total
|
160
|
100
|
From
the table above, it was observed that 53.125% (85) respondents indicate lack of
collateral as difficulty experience, then 30 (18.75%) agreed on risks involved
in their businesses while 45 (28.125%) indicate that high interest on loan was
a difficulty.
Research
question six (6)
What
type of loan have you obtained?
Sources
|
No of respondents
|
%
|
Short term loan
|
30
|
18.75
|
Medium term loan
|
80
|
50
|
Inventory credit
|
50
|
31.25
|
Total
|
160
|
100
|
In
analysis of table six above, it shows that 30 (18.75%) respondents of the total
number of SMEs sampled agreed that they obtain short term loan, 80 (50%) obtain
medium term loan and finally 50(31.25%) obtain inventory credit.
Research
question seven (7)
Is
collateral security a prerequisite for granting loan to small and medium
enterprises?
Sources
|
No of
respondents
|
%
|
Yes
|
99
|
61.875
|
No
|
61
|
38.125
|
Total
|
160
|
100
|
In table seven above, shows that 99 (61.875%) respondents agreed that
collateral security is a prerequisite for granting loan to SMEs while 61
(38.125%) said that collateral security is not a prerequisite for granting of
loan to SMEs.
Research
question eight (8)
If
yes, has collateral security hinder the granting of loan to you as an SME?
Option
|
No of Respondents
|
%
|
Yes
|
106
|
66.25%
|
No
|
54
|
33.75%
|
Total
|
160
|
100
|
Looking
at table 8 above, 160 (66.25%) respondent shows that collateral securities
hinder the granting of loan to them as SME while 54 (33.75%) respondents agreed
that collateral security do not hinder the granting of loan to them as SME.
Research
question nine (9)
How is the relationship between you as an SME with microfinance banks?
Sources
|
No of
respondents
|
%
|
Cordial
|
99
|
61.875
|
Hostile
|
61
|
38.125
|
Total
|
160
|
100
|
In
table nine above, 99(61.87%) respondents shows that the relationship that
co-exist between the SMEs and microfinance banks is cordial while 61 (38.125%)
respondents shows that the relation between SMEs and microfinance banks is
hostile.
`Research
question ten (10)
Have you ever had difficulty paying back the loan?
Option
|
No of
respondents
|
%
|
Yes
|
58
|
36.25
|
No
|
102
|
63.75
|
Total
|
160
|
100
|
To
analyze the above table, 58 (36.25%) respondents accepted that they experience
difficulties paying back loan collected while 102 (63.75%) respondents agreed
they don’t have difficulties in paying back the loan.
Research
question eleven (11)
What polices should government adopt
to increase funds available for SMEs in Nigeria?
Sources
|
No of
respondents
|
%
|
Granting of loan
|
60
|
37.5
|
Creation of infrastructure
|
30
|
18.75
|
Regular training of staff
|
40
|
20.25
|
Supply material equipment
|
30
|
18.75
|
Total
|
160
|
100
|
It
was discovered in table eleven that 60 (37.5%) respondents agreed on granting
loan as policies that government should adopt in making funds available for
SMEs in Nigeria, 30 (18.75%) respondents believed on creation of
infrastructure, 40 (25%) respondents agreed on regular training of staff and
finally 30 (18.75%) respondents accepted the supply of material equipment to
SMEs
Research question twelve (12)
Do
you think that microfinance banks policies has effect on the development of
SMEs in Nsukka?
Options
|
No of respondents
|
%
|
Yes
|
110
|
68.75
|
No
|
50
|
31.25
|
Total
|
160
|
100
|
Considering
table twelve above,110 (68.75%) respondents agreed that microfinance banks
policies has effect on the development of SMEs in Nsukka, while 50 (31. 25%)
respondents said microfinance banks’ policies has no significant effect on the
development of SMEs in Nsukka.
Research
question thirteen (13)
Do
you think that microfinance banks are relevance to the development of SMEs in Nsukka?
Options
|
No of
Respondents
|
%
|
Yes
|
120
|
75
|
No
|
40
|
25
|
Total
|
160
|
100
|
From
the above, analysis, 120 (75%) respondents agreed that microfinance banks are
relevance to the development of SMEs in Nsukka while 40 (25%) respondents said
that, microfinance banks are not relevance to the development of SMEs in Nsukka.
Research
question fourteen (14)
Do
you think that the purpose of establishing microfinance banks has been
achieved?
Options
|
No of
Respondents
|
%
|
Yes
|
80
|
50
|
No
|
80
|
50
|
Total
|
160
|
100
|
The
table above shows an interesting result, 80(50%) respondents agreed that the
purpose of establishing microfinance has been achieved while another 80(50%)
respondents also said the purpose has not been achieved.
Research
question fifteen (15)
Do
you think or believe that, the existence of SMEs has contributed positively to
the Nigeria economy?
Options
|
No of
respondents
|
%
|
Yes
|
115
|
71.875
|
No
|
45
|
28.125
|
Total
|
160
|
100
|
In
the table above, it shows that 115 (71.875%) respondents accepted that the
existence of SMEs has contributed immensely to the Nigerian economy while 45
(28.125%) respondents said the existence of SMEs has not contributed positively
to the Nigerian economy
Hypothetical testing
Hypothesis
one
Ho: microfinance banks are relevance to the
development of SMEs in Nsukka.
Ho: microfinance banks are not relevance to the
development of SMEs in Nsukka.
To test this hypothesis, we consider question (13) do
you think that microfinance banks are relevance to the development of SMEs in Nsukka?
Table
thirteen
Options
|
No of respondents
|
%
|
Yes
|
120
|
75
|
No
|
40
|
25
|
Total
|
160
|
100
|
Formula for chi-square test
X2df = (oi-ei)2
ei
where
oi = observed
frequency
ei = expected
frequency
df = degree
of freedom/level of significance
x2 = calculated
chi-square value
options
|
Oi
|
ei
|
oi-ei
|
(oi-ei)2
|
oi-ei)2
ei
|
yes
|
120
|
80
|
40
|
1600
|
20
|
no
|
40
|
80
|
40
|
1600
|
20
|
total
|
160
|
160
|
0
|
-
|
40
|
At a significance level of 5% or 0.05 degree of
freedom =N =1
x2 tabulated = 3.84
STATEMENT OF DECISION RULE:
Accept Ho if x2 calculated is <x2 tabulated.
Reject Ho if x2 calculated is >x2 tabulated.
conclusion
since
40 > 3.84, we reject ho and conclude that microfinance banks are not relevance to the development of SMEs in Nsukka.
Hypothesis two
Ho: existence of SMEs has contributed positively to
Nigerian economy
Ho: existence of SMEs has not contributed positively
to Nigerian economy.
To test this hypothesis, question (15) was considered
Table (15) do you think or believe that the existence
of SMEs has contributed positively to Nigerian economy?
options
|
no of respondents
|
%
|
yes
|
115
|
71.875
|
no
|
45
|
28.125
|
total
|
160
|
100
|
Do
you think or believe that, the existence of SMEs has contributed positively to
Nigerian economy.
Formula for chi-square test
x2df (oi- ei)2
ei
where
oi = observed
frequency
ei = expected
frequency
df = degree
of freedom/level of significance
x2 = calculated
chi- square value
options
|
Oi
|
ei
|
oi – ei
|
(oi-ei)
|
(oi-ei)2
|
Yes
|
115
|
80
|
35
|
1225
|
15.3131
|
No
|
45
|
80
|
-35
|
1225
|
15.313
|
Total
|
160
|
160
|
0
|
-
|
30.626
|
at a significance level of 5% or 0.05 degree of
freedom = n = 1
x2 tabulated = 3.84
STATEMENT OF DECISION RULE:
Accept ho if x2 calculated < x2 tabulated.
Reject ho if x2 calculated is > x2 tabulated
Conclusion
Since
30.63 > 3.84, we reject ho and conclude that the existence of SME, has not
contributed positively to the Nigerian economy.
Hypothesis
Three
ho: collateral security is a prerequisite for granting
loan to SMEs
ho: collateral security is not a prerequisite for
granting loan to SMEs.
To test this hypothesis, research question (7) was
considered is collateral security a prerequisite for granting loan to SMEs?
Table (17)
options
|
no of
respondents
|
%
|
yes
|
99
|
61.875
|
no
|
61
|
38.125
|
Total
|
160
|
100
|
formula for chi-square test
x2df = (oi-ei)2
ei
Where
oi = observed
frequency
ei = expected
frequency
df = degree
of freedom/level of significance
x2 = calculated
chi-square value
options
|
Oi
|
ei
|
oi-ei
|
(oi-ei)2
|
(oi-ei)2
|
yes
|
99
|
80
|
19
|
361
|
4.513
|
no
|
61
|
80
|
-19
|
361
|
4.513
|
total
|
160
|
160
|
0
|
-
|
9.026
|
at a significance level of 5% or 0.05 degree of
freedom = n = 1
x2 tabulated = 3.84
STATEMENT OF
DECISION RULE:
accept ho if x2 calculated is < x2 tabulated.
reject ho if x2 calculated is > x2 tabulated.
CONCLUSION
Since
9.03 > 3.84, we reject ho and conclude that collateral security is not a
prerequisite for granting loan to SMEs.