Socioeconomic determinants of credit demand by small scale enterprises in Kano state, Nigeria

The small scale enterprises have contributed to the production of goods, generation of income as well as employment to the teaming population in the developing countries. In view of this, this study aims to examine the socioeconomic factors that determining their credit demand in Nigeria. To do this, a logit regression analysis was employed using data gathered from the survey of 404 respondents in the three senatorial zones of Kano state; Kano central, Kano north and Kano south. A random sampling of the enterprises was made and questionnaires were administered to find whether or not they apply for the credit. Factors such as age, collateral, education, gender & collateral were significant in the analysis while the sector enterprise, location where they operate and experience were statistical insignificant in the model. It is recommended that, a policy need to be designed and implemented to bring awareness for enhancing financial sector participation with the view to further improve credit accessibility by the small businesses in Nigeria, particularly Kano state.