Impact of micro credit and training on efficiency of small-scale entrepreneurs: Evidence from national directorate of employment (NDE) loan/training programmes in Nigeria
Journal of Food, Agriculture and Environment
Department of Agricultural and Resource Economics, Federal University of Technology, PMB 704, Akure, Nigeria; Department of Economics, Adekunle Ajasin University, Akungba Akoko, Ondo, Nigeria; Ekiti State College of Education, Ikere, Ekiti, Nigeria
This study analyses the impact of micro-credit and training on efficiency of small-scale entrepreneurs, using the National Directorate of Employment (NDE) programme as a case study. National Directorate of Employment (NDE) has been found to be functioning effectively in its training services. However, in the area of credit provision and utilization, there is no empirical evidence to support its efficiency. In order to evaluate the link between the loan/training programmes of the Directorate and the level of efficiency of micro-entrepreneurs in the state, we estimate technical efficiencies and identify significant policy variables influencing efficiency of selected micro enterprises, using the stochastic frontier production function. Results indicate that there are intra and inter group variations in the efficiency of bakers, furniture makers and burnt-brick makers, showing that there is possibility of improving the level efficiency of these entrepreneurs. The most significant determinants of technical efficiencies of bakers, furniture makers and burnt-brick makers are the level of education, business experience, age of operators, credit access, training experience and level of working capital and initial capital outlay. © 2014 World Food Ltd. and WFL Publishers. All rights reserved.
accounting; Article; commercial phenomena; education; enterpreneur; funding; furniture; human; loan; mathematical model; micro credit; named groups of persons; productivity; program efficacy; stochastic model; training; work experience