In the year 2019, a dedicated undergraduate researcher embarked on a mission to unravel the dynamics of microcredit accessibility and repayment among small-scale agro-entrepreneurs. This Ekiti State University research focused on factors impacting microcredit access and repayment, primarily within the Bank of Agriculture.
Understanding the Agro-Entrepreneurs:
The study’s findings offer a glimpse into the lives of these agro-entrepreneurs. Most respondents were males aged 41-50, highlighting their experienced and resilient presence in the study. Most of them were married and possessed varying levels of education, emphasizing the diversity within this community.
Access to Resources for Agro-Entrepreneurs:
Access to modern agricultural inputs is crucial for these farmers, and the research showed that a significant proportion had access to fertilisers, improved seedlings, and insecticides. However, the majority relied solely on farming as their source of income, emphasizing the importance of agriculture in their lives.
Microcredit Sources and Sizes
Interestingly, respondents received microcredits from diverse sources: traditional systems like Ajo (savings or group contributions), friends, relatives, cooperatives, and microfinance banks. However, access to microcredit from commercial banks was relatively low. The microcredit sizes varied, with a majority receiving less than or equal to 250,000 Naira ($316).
Repayment Challenges and Determinants:
Repayment is a critical aspect of the microcredit cycle, and the study highlighted the challenges faced by agro-entrepreneurs. Constraints to repayment included high interest rates, weather-related issues, family needs, and inappropriate disbursement. Regression identified interest rates and household size for microcredit access, while interest rates, farm and household size, and savings influenced repayment.
Recommendations for a Brighter Future
Based on the findings, microfinance banks should prioritize timely loan disbursement to young, educated farmers who efficiently utilize resources and repay promptly. This approach can enhance the impact of microcredit programs and further empower small-scale agro-entrepreneurs in Ekiti State. To delve deeper into the details of this insightful research, we invite you to read the full thesis on Academia.edu by following this link: Analysis of Microcredit Accessibility and Repayment by Small-Scale Agro-Entrepreneurs. This research project serves as a beacon of knowledge, shedding light on the challenges and opportunities faced by small-scale agro-entrepreneurs in Ekiti State. By understanding these dynamics, we can work together to create a brighter and more prosperous future for this vital sector of our economy. Credit : Academia.edu
