1. bookVolume 9 (2020): Issue 2 (December 2020)
Journal Details
License
Format
Journal
eISSN
2285-388X
First Published
05 Dec 2019
Publication timeframe
1 time per year
Languages
English
access type Open Access

Assessing MSMEs Growth Through Rosca Involvement Using Paired t-Test and One Sample Proportion Test

Published Online: 31 Dec 2020
Volume & Issue: Volume 9 (2020) - Issue 2 (December 2020)
Page range: 30 - 42
Journal Details
License
Format
Journal
eISSN
2285-388X
First Published
05 Dec 2019
Publication timeframe
1 time per year
Languages
English
Abstract

In this research work, rotating savings and credit association (ROSCA) effect on the growth of micro, small and medium enterprises (MSMEs) and identification of a factor supporting the continuity of ROSCAs is studied. A well-designed questionnaire with a reliability value of 0.957 was distributed to 400 entrepreneurs in Wukari through snowball sampling technique. After validity check, 368 valid questionnaires were used for the research. Firstly, a paired t-test was applied to know if entrepreneurs achieve significant positive growth in their business before and after 5 years of joining ROSCAs. At 5% level of significance, entrepreneurs achieved significant positive growth in their businesses 5 years and above of joining ROSCAs. Secondly, a one sample proportion Z-score test was used to identify the major factor responsible for ROSCAs continuity. At 5% significance level, flexibility was identified as the major factor responsible for ROSCAs. It was concluded based on the results obtained that ROSCAs has a significant positive effect on the growth of MSMEs and ROSCAs continuity towards MSMEs growth is due to its flexibility factor in terms of operations, disbursement, seeking loans and interest rate.

Keywords

JEL Classification

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