FINANCIAL INCLUSION AND THE PERFORMANCE OF SMALL SCALE ENTERPRISES IN KOGI STATE

Abstract

The main objective of this study is examining the financial inclusion and performance of Small Scale Enterprises in Kogi state. The study investigated how Financial inclusion (regulations and policies on financial inclusion and affordability and use of financial services affected the performance of the selected SSEs in Kogi state. (cash flow management and risk mitigation) of the selected Small Scale Enterprises (SSEs) in Kogi state. The study adopted a survey research approach where primary data was collected from the respondents with the use of questionnaire administered to all the managers and owners of selected small enterprises in Kogi with a population of (667). Due to the large size of the population 667, Taro Yamane formula was used to determine the sample size (266). Out of 266 copies of questionnaires were administered, 250 (representing 94 % response rate) were retrieved and used for analysis. Multiple regression was used to test the two hypotheses in line with the objectives of the study and the results led to the rejection of the two null hypotheses showing that financial inclusion significantly effects the performance of Small Scale Enterprises in Abuja. The study concluded that there was a positive significant effect of financial inclusion (regulations and policies on financial inclusion and and affordability and use of financial services on performance of the selected SSEs in Kogi state.( cash flow management and risk mitigation) of the selected Small Scale Enterprises (SSEs) in Kogi state. The study recommends that the government should develop an acceptable, transparent workable and favourable fiscal policies such as provision of low lending rate and insured credits which ultimately will enhance the risk management of the selected Small Scale Enterprises (SSEs) in Kogi state.