ABSTRACT

This study was designed to examine micro-credit and performance of cooperative business enterprises in Abia State, Nigeria It specifically looked at the principles/socio-economic characteristics of cooperatives, features of cooperative bbusiness enterprises, identification of the types of cooperative enterprises and sources of funds available to cooperative enterprises, examining die performance of cooperative business enterprises, ascertaining the rpayment rate and the major problems of cooperative business enterprises in the study area One hundred and twenty cooperators from 5 different cooperative business enterprises wre randomly selected. Primary data were used for the study. Data analysis was carried out using simple ddescriptive statistica tools such as means percentages, and frequency distribution as well as regression analysis. The result of data analysis show that majority ofthe coopertive business enterprise had a mean staffstrength and length of operation of 7 staffand 8 years of business operation respectively indicating that they are small scale cooperative business enterprises. The study further shows that about 97% ofthe enterprises indicated that equality ofmembers in decision making was the highest principle of cooperative that is being adhered to; ab out 88% indicated that they belong to producer based cooperative enterprises. This could be due to the fact that most ofthe respondents were farmers. In addition, 98 percent of the respondents indicated the the sale of cooperative business output was the source offund availbale to cooperatives businesses. It was discovered that the performance ratio were 1.88, 2.08, 1.14 for returns on sales, returns on investment and gross profit to sales respectively. These show tha the cooperative business enterprises wre operating at a profitable level and had good performance. The repayment ratio was 64.03% indicating a slightly ab ove average level. Age of cooperative, business size, infrastructure and interest rate were significant variables influencing micro-credit (amount of credit used). Income, transaction cost, interest rate and education were significant factors influencing repayment. Inadequate finance (98%) and delay in loan disbursement wre major problems confronting cooperative business enterprises in the study area. To ensure continuity of cooperative business enterprises, there should be strict adherence to the principles of coperative. Pricce reduction of all inputs used in by cooperatives should be implemented to ensure profit maximization and cost minimization. Efforts such as agribujsiness in marketing and its strategies should be seriously looked at/workout/put in place so that the performance and profitability of cooperative business can be maintained.