Credit Facilities and Entrepreneurship Venturing in Bayelsa State, Nigeria

Abstract

This study examined the relationship between credit facilities and entrepreneurship venturing in Bayelsa State, Nigeria. The research was inspired by the continuity of the problems of unemployment, business collapse and lack of access to finance by the state entrepreneurs. The study was guided by three specific objectives, which comprised to explore the degree to which access to credit facilities affects entrepreneurship venturing, to evaluate the impact of credit facilities on the growth and sustainability of the entrepreneurial ventures, as well as to investigate challenges faced by entrepreneurs to access credit facilities. The study selected a descriptive survey research design. The sample was selected using a simple random sampling method, and the sample data included the owners of small and medium-scale enterprises that were based in Bayelsa State (the population). A structured questionnaire was used in the collection of primary data. The analysis of data has been done with the help of descriptive statistical methods, such as frequencies, percentages, mean scores, and standard deviation. The study results showed that entrepreneurship venturing within Bayelsa State is positively affected by the availability of credit facilities. The findings also indicated that credit facilities contribute immensely to the growth and sustainability of business since they allow business people to grow their businesses, purchase equipment, and enhance the performance of a business. Nonetheless, the research has found that there are significant difficulties in accessing credit facilities such as high interest rates, strong collateral requirements, complicated loan processes, and poor financial records. This research finds that although credit facilities play a very important role in the development of entrepreneurship in Bayelsa State, they do not perform well due to lack of accessibility and cost. The study hence suggests policy changes, better financial literacy and adaptable lending models to boost access of credit by entrepreneurs as well as sustainable development of entrepreneurship in the state.