EFFECT OF FINANCIAL TECHNOLOGY ON THE SURVIVAL OF MICRO-ENTERPRISES

Abstract

This study investigates the extent to which Fintech lending affects micro-enterprises survival and sales revenue in Nigeria. The study employed a survey design by administering a structured questionnaire on owners/managers of micro-enterprises in Lagos, Nigeria. Two hypotheses were developed and evaluated based on the study's aims. The research instrument (questionnaire) was administered to the targeted respondents in February 2023. Three hundred and twelve (312) questionnaires were returned, out of which nine (9) were not correctly filled by respondents. A total of three hundred and three (303) questionnaires were finally considered fit for analysis, representing a return rate of 76%. The study used charts to analyze the demographic data, and regression analysis was used to test the hypothesis using SPSS. The findings reveal that Fintech lending significantly affects micro-enterprises survival and sales revenue. The R-Square indicates that Fintech lending accounts for a 24.9% change in micro-enterprises' survival. Furthermore, the findings from the test of the second hypothesis indicate that Fintech lending accounts for a 30.8% change in micro-enterprises' sales revenue. It can be concluded that Fintech lending is an important determinant of micro-enterprises survival and sales revenue. Therefore, it is recommended that micro-enterprises should utilize Fintech lending packages to enhance their survival and sales revenue. This study has set the framework for future research into the extent to which Fintech lending affects micro-enterprises survival and sales revenue. This is a groundbreaking study from the perspective of Nigeria, as it reveals the effect of Fintech lending and asset finance on the survival as well as sales revenue of micro-enterprises in Nigeria. The study also contributes significantly to the Technology Acceptance theory, the Theory of Planned Behavior, and the Theory of Reasoned Action, which are all relevant to Fintech.