Pakistan Journal of Social Sciences

Year: 2010
Volume: 7
Issue: 4
Page No. 304 - 317

Effects of Membership Homogeneity on the Performance of Agricultural Micro-Credit Groups in Rural Credit Markets, Nigeria

Authors : M. Mkpado, M.A. Idu and C.J. Arene

Abstract: The study was conducted in nine Local Government Areas selected from Enugu State. About 6, five micro Credit Groups from each Area were randomly selected. This gave a total of 45 micro-credit groups. This was done using multi-stage sampling techniques. Sources of data were primary and secondary. Structured questioners were used to interview respondents to generate primary data while secondary data were sourced from relevant publications. Descriptive statistics and Ordinary Least Square Econometric techniques were used in data analysis. Majority of the group members, 31.4% belong to the age bracket of 40-49 years (middle age). Majority of the groups, 40% were composed of 10 individuals. Majority of the respondents, 64.4% travel about 200 m to attend meetings. Factors determining repayment were homogeneity in gender, occupation, distance and residency as well as social cohesion. Based on the findings, it was recommended that micro credit groups should be homogenous with respect to gender, members should be encouraged to attend group meetings which should be made be regular in order to build strong social cohesion and groups should be composed of individuals living close to each other in order to enjoy information advantage.

How to cite this article:

M. Mkpado, M.A. Idu and C.J. Arene, 2010. Effects of Membership Homogeneity on the Performance of Agricultural Micro-Credit Groups in Rural Credit Markets, Nigeria. Pakistan Journal of Social Sciences, 7: 304-317.

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