Financial Behaviour of Small Business: A Survey of Selected Firms in Portharcourt Metropolis

Ogbonna Samuel; Ofoegbulam Thaddeus Ebiringa Prof; Uzoamaka Gloria; Chris-Ejiogu PhD

doi:10.56201/wjeds.v10.no8.2025.pg127.146

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Financial Behaviour of Small Business: A Survey of Selected Firms in Portharcourt Metropolis

Ogbonna Samuel, Ofoegbulam Thaddeus Ebiringa Prof, and Uzoamaka Gloria, Chris-Ejiogu PhD

Abstract

The study aims at identifying the credit requirements needed by suppliers of fund to enable them grant credit facilities to small business entrepreneurs. The data collected for the purpose of this study was analysed using both descriptive and inferential statistical tools. This involved the use of frequency and percentage distribution tables which enabled us to determine responses to the questionnaire and establish a pattern. The t-test was used in analyzing the data for this study. Accordingly, the t-test was used at an alpha level of 0.05 confidence level to test the hypothesized relationship. A total of 150 questionnaires were distributed to small business operators. Out of this number, 120 were retrieved. Whereas of the 20 questionnaires distributed to fund providers, 17 of them were returned. The result of the study identified Personal savings, Contributions, Loans from cooperative, Bank loan. Government backed loan and money lender as the principal sources of start-up capital. Whereas working capital comprises of Trade credit, Accounts receivable financing, and Retained Earning. The study also revealed that significance difference exists in the perception of fund providers and fund users as to how constraints affect decision to borrow. Also that significance difference does not exist in the perception of fund providers and fund users as to how past experience affect business owners decision to borrow. Furthermore, the level of education attained by the fund user influences his/her credit decisions to a great extent. Finally, it was noted that agreement exist in the opinion of fund providers and fund users as to the order of C’s of credit. This shows that the C’s of credit do not exact the same degrees of influence on credit. Suppliers’ major consideration is given to collateral, character (reputation, good credit history), and capacity (sufficiency of cash flow).

Keywords

Financial BehaviourSmall BusinessWorking capital Portharcourt Metropolis

References

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Financial Behaviour of Small Business: A Survey of Selected Firms in Portharcourt Metropolis

Abstract

Keywords

References

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