Cooperative Societies Loan Facilities and Employment Generation of the 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 Primary data were sourced using questionnaires while secondary data were obtained from unpublished book of accounts and old receipts of selected small-scale business entrepreneurs from selected town on Ondo State.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 analysed using descriptive and inferential statistical techniques. The result revealed that a percent increase in loan facilities from cooperative societies will result in 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 recommends that cooperative societies should seek long term capital from the pensions and insurance companies in the country to enable them grant more loans to many small businesses thereby generating more employment opportunities.