Unlocking fintech finance: The paradox of risk and reward in instant online loans for small businesses in port Harcourt

Chika Des-Wosu; D. S. Edori

doi:10.65453/ajbmr.v14i4.1378

Authors

Chika Des-Wosu
D. S. Edori

DOI:

https://doi.org/10.65453/ajbmr.v14i4.1378

Keywords:

Instant online loans, digital lending, small business owners, financial risks, business benefits, FinTech credit, Nigeria SMEs.

Abstract

Instant online loans are very popular today in Nigeria and many small business owners have accessed them. The study therefore examined how instant online loans relates with risk and benefits of small business owners in Port Harcourt metropolis, Rivers State, Nigeria. The research design under the methodology adopted was survey. Since the population is very large and cannot be wholly access, the purposive sampling method was adopted, hence fifty (50) small business owners within Port Harcourt metropolis were selected. The questionnaire, that is, the modified 4-likert scale, was adopted for data gathering. Data collected were then analysed using the linear regression analysis (an inferential analysis) on SPSS. The result showed an indication that instant online loans have positive and significant with risks and benefits of small business owners in Port Harcourt metropolis. The recommendations made were that small business owners should develop strategies to mitigate potential risks such as high interest, diversion of fund or debt traps; and also, small business owners should ensure that instant online loans collected are judiciously utilise for the purpose of improving and growing the business. The study concluded that there is a positive significant relationship between the study variables.

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