Effect of Financing Option Sources on the Performance of Women–owned Micro and Small Scale Businesses in Nasarawa state, Nigeria

Abstract

Financing options of raising funds are important factor to the performance, growth and survival of micro and small businesses operation in the society. Looking at its importance, many women who owned micro and small scale businesses resulted into personal saving sources, friends and family sources, micro finance sources and co – operatives’ societies sources of financing options to enhance their performance in Nigeria. It was observed that women owned businesses in Nasarawa state are underperforming due to lack of utilizing financing option sources of personal saving, friends and family, micro finance banks and co-operative societies and so on to boost and enhance their growth and performance. This study is aimed at examine the effect of financing option sources on performance of women-owned micro and small scale businesses in Nasarawa state. The population sample of three hundred and twenty eight (328) was considered for this study, which was selected through purposive sampling procedure. And structured questionnaire was used as instrument for data collection and the data collected were presented and analyzed through mean and standard deviation and partial least square structural equations modeling and testing of research hypothesis respectively. The study revealed that utilization of financing option sources of funds have positive effect on the performance, growth and survival of women- owned micro and small scale businesses in Nasarawa state. Therefore study recommended that women who owned micro and small scale businesses should utilize financing option sources of raising funds to finances their businesses as to burst their performance and growth as well to survive the competitive market in operations in Nasarawa State and Nigeria at large.