Micro-Savings and Financial Performance of Microenterprises in Kaduna State: The Moderating Effects of Innovation

Abstract

Microenterprises financial performance may be improved through micro-savings when done innovatively. The study investigates the moderating effect of innovation on the link between micro-savings and financial performance of microenterprises in Kaduna State, to ascertain its indirect influence towards addressing the dismal financial performance of microenterprises in Kaduna State. Two hypotheses were formulated and Multiple Regression technique aided by SPSS used to analyze the relationship between financial performance and micro-savings with innovation as moderator. The descriptive research design and the stratified proportionate random sampling were used to collect data from 413 microenterprises via questionnaire. The regression result shows that micro-savings has positive and significant effect on financial performance of microenterprises. Again, the result indicates that innovation has significant moderate effect on the relationship between micro-savings and financial performance of microenterprises in Kaduna State. The study concludes that there is moderating effect of innovation on the relationship between micro-savings and financial performance of micro-enterprises in Kaduna State. The study recommends that microenterprises aside embracing micro-savings to build up assets for improved financial performance, should deploy substantially micro-savings finance on innovation, for positive effect on their financial performance in Kaduna State.