Interest-Free cooperative societies as a survival mechanism for MSMEs

Abstract

That MSMEs are engines of economic growth and development across contexts has been acknowledged in literature. The incredible effort it will take for them to live longer than five years is also acknowledged. Thus, this paper examined membership of interest-free cooperatives as a means to circumvent administrative bottlenecks, access informal trade education and lessen transaction risks with a view to ensure business survival. In order to sample the twenty (20) registered interest-free cooperative societies for the study, a census-based survey of these societies was conducted. A total number of Five Hundred (500) copies of structured questionnaire were administered on members (Twenty-five from each selected society) who double as owner-manager of MSMEs. Descriptive statistical approaches were employed to evaluate the primary data in order to ascertain the degree of risk-sharing inclination and access to informal education and trade knowledge. Findings revealed that not only do owner-managers benefit from informal trade education, they also avail themselves of other benefits necessary to promote their business transactions. According to the study's conclusion, every aspect of an interest-free cooperative society is ideal for fostering the growth of MSMEs, and policymakers should support them by enacting laws that will increase their chances of surviving and help them reach their full potential while making numerous contributions to the advancement of economic growth and development.According to the study's conclusion, every aspect of an interest-free cooperative society is ideal for fostering the growth of MSMEs, and policymakers should support them by enacting laws that will increase their chances of surviving and help them reach their full potential while making numerous contributions to the advancement of economic growth and development.