IMPACTS OF VSLAS ON THE SOCIAL WELLBEING OF SMALLBUSINESSES OPERATORS IN KWARA STATE, NIGERIA

Abstract

It has become a notable issue that availability of credit facilities to small businesses increases their level of
productive activities and, thus, increases their wellbeing. This paper was, therefore, conducted to verify the true
influence of VSLAs on education enrolment ratio of small businesses owners’ children and health status of
operators. This study employed a survey data, which were analysed with both the descriptive and inferential
approaches. A sample of 493 small businesses were used. Ordinary least squares and logit methods were employed
as the estimation technique. The findings of this study revealed that financial services of VSLA, as well as the nonfinancial service, have counter-effects on the social wellbeing of small businesses operators in Kwara State. The
study concluded that VSLAs’ financial and non-financial services greatly influence the performance of small
businesses despite the fact that these services have contributed little or nothing to the social wellbeing of small
business operators and their household members.The paper therefore, recommends that policy makers should take
painstaking effort to enlighten small business operators to exercise caution in meeting the over ambitious saving
target of VSLAs activities.