Al-Hikmah University Journal

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 non- financial 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.