TEST OF ACCEPTABILITY OF PROFIT AND LOSS SHARING FINANCING ARRANGEMENTS BY SMALL SCALE BUSINESSES IN AND AROUND KANO CITY IN NORTHERN NIGERIA

  • Suleiman Muhammad Hussaini Department of Business Administration, Ahmadu Bello University, Zaria-Nigeria
  • Hussaini Usman Malami Department of Economics, Faculty of Social Sciences, Usmanu Danfodiyo University Sokoto-Nigeria

Abstract

The persistent lack of or inadequate financing that has bedeviled small scale businesses hampered growth of the sector, hence adversely affects the Nigerian economy. The period of existence and expertise in financial intermediation of conventional interest based banks notwithstanding. They are reluctant in advancing loans to SSBs because of inherent risk in doing so. The objective of this paper is to test whether SSBs in Kano and its environs in Northern part of Nigeria would be prepared to access funds through an alternative profit and loss sharing financing arrangements. Both primary and secondary sources of data were used. Questionnaires’ were administered, responses were analysed, and logit regression analysis was utilized to test the acceptability of the PLS financing method. The findings of the study revealed a desire for an alternative PLS financing method.

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Published
2014-12-02
How to Cite
Hussaini, S. M., & Malami, H. U. (2014). TEST OF ACCEPTABILITY OF PROFIT AND LOSS SHARING FINANCING ARRANGEMENTS BY SMALL SCALE BUSINESSES IN AND AROUND KANO CITY IN NORTHERN NIGERIA. European Scientific Journal, ESJ, 8(1). https://doi.org/10.19044/esj.2012.v8n1p%p