FINANCIAL OPERATION OF LIFT ABOVE POVERTY ORGANIZATION AND ECONOMIC DEVELOPMENT OF SMALL BUSINESS OWNERS

Maryam Olubusola Nuberu, Shadrack Seun Awe, Azeezah Adebola Adebanjo, Timothy Ayanbamiji Ajala

Abstract


This study examined the influence of financial operation of Lift Above Poverty Organization (LAPO) on economic development of small business owners in Ijebu township of Ogun State, Nigeria. Five research questions and five hypotheses guided this study. Descriptive survey design was used. Using simple random sampling technique, a total of 500 staff and customers/clients of LAPO microfinance banks in Ijebu-Ode and Ijebu-North Local Governments of Ogun state were chosen as sample size. This represents 10.46% of the population. Researcher-developed instrument; tagged: Lift Above Poverty Organization and Economic Development Questionnaire (LAPOEDQ) with 0.79 as reliability coefficient was used for data collection. The instrument was validated by experts in business education. Descriptive statistics of mean and standard deviation were used for answering research questions 1, 2, 4 and 5. Research question 3 was answered using regression analysis. All the hypotheses were tested using Chi-Square. The findings revealed that source of repayment must be guaranteed with mean range between 3.59 and 3.26. LAPO was found to be significant and strongly determine economic well-being of small business owners in Ijebu township in Ogun State (B = .908;  p < .05). Short term loan, insufficient financial management training, absent of micro-insurance services, collateral collection/individual, inadequate use of group lending, far location of loan offices, poor entrepreneurs training, high interest rate charges and absence of new business startup loan were among the challenges facing small business owners in obtaining loan from LAPO. The government should among others assist LAPO microfinance bank financially so as to have enough funds to encourage disbursement to business owners in the society.


Keywords


Financial Operation, Lift above Poverty Organization, Economic Development, Small Business Owners, Ijebu Township

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