PERCEPTION OF ELECTRONIC COOPERATIVE FINANCING BY SMES MEMBERS IN OYO STATE, NIGERIA

Abstract

There exist studies on cooperative financing but paucity on how cooperative societies are exploiting the vast benefits of ICT and internet revolution in Nigeria. The study provides empirical evidence on the influence of electronic cooperative financing on Small and Medium Enterprises (SMEs) performance in Oyo State, Nigeria. Stratified sampling technique was used to stratify Oyo State into 3 Senatorial Districts, while purposive sampling technique was used to choose respondent in each Senatorial Districts drawn from a cross section of SMEs who are member of cooperative unions ranging from manufacturing, wholesaling, retailing, distribution, and construction and service sectors of the economy of SMEs within 3 Senatorial districts in Oyo State. 330 copies (73.33%) out of 450 questionnaires distributed were analyzed for the purpose of the study. Data collected was analyzed using Frequency table, Percentages and Analysis of Variance (ANOVA) to test formulated hypotheses. Result from findings shows that there is significant effect of electronic cooperative financing on SMEs performance in Oyo State with Adjusted R² of 62% at significant level of 0.05. It is concluded that the electronic cooperative financing has positive significant impact on SMEs performance in Oyo State. The study recommended that investment in information technology should form an important component in the overall strategy of Cooperative operators to ensure effective performance of SMEs members which will eventually create employment opportunity, and thereby improve economic growth and development of the state.