Title:
THE MAJOR FACTORS THAT MILITATE AGAINST THE ABILITY OF NEW STARTUPS TO ACCESS MICRO CREDITS IN LAGOS NIGERIA

Authors:
Alabi Femi Adeoye (M.SC,MBA), Nigeria

Abstract:

The main objective of this academic study is to identify the major factors that militate against the ability of new startups to access micro credits.  Both inferential and descriptive methodologies were employed in this study. The research also involved the use of primary and secondary data with stratified and simple sampling techniques used to determine the specific number of startups to be involved in the study. Correlation and multiple regression analysis were used for the statistical analysis.  The SPSS analysis of the data revealed that collateral requirements, availability of support services, awareness of existing credit opportunities and the nature of the country’s financial sector all influence the ability of new startups to access micro credits. Thus, it is recommendable for Nigerian government to formulate and implement financial policies that would enable startups to have access to microfinance. It is also important for microfinance banks should endeavor to cut down collateral requirements as well as interest rates, so as to encourage more and more startups to access funds. These simple strategies will help new startups to access loans and credits.