Data Sources and Instruments for Data Collection

Questionnaires were used as instrument for data collection. The questionnaire contains a general section where demographic and background information of the selected respondents was probed while other sections of the questionnaire contain information relevant to the research questions and objectives. The questionnaire was designed to capture important information on enterprise level, employment indicators as well as BOA programme and community related information. (See Appendix)

Employment data has been found to be the most dependable and comparable data for MSE impact studies as owners may find it easier to remember the number of their employees over time, than any measure of improvement even if they lack reliable management information system (MIS). (Mead and Liedholm, 1998) In the context of young firms, noticeable increase in employment may also a key indication of demand for the firm’s products or services. Using the number of employees as the unit of measurement also reduces the need to apply deflators or currency adjustments to revenue and other monetary measures of progress (Mead and Liedholm, 1998) as already mentioned in Chapter 1.

Before a meaningful evaluation can be done, it is important to establish the baseline against which an indicator would be measured. BOA was not seen to collect baseline information on the number of employees in the clients’ enterprises as was observed in the loan application form. Since a baseline did not exist within the management information system (MIS) of the bank as at the time of research, ‘retrospective baseline’ data was gathered to reconstruct the baseline, in order to understand the situation when the researched clients were just starting to bank with BOA. In line with the suggestion by Mead and Liedholm (1998), the questionnaire used for this research therefore had retrospective questions relating to employment and turnover levels which were compared to the present levels of the same variables. Average growth rates and a success indicator can be calculated using this method and although

reliability compared to having access to a baseline prior to the field research, it is still better than not having any baseline. Data was therefore derived from recall by individual clients. Questions that assessed the perception of respondents to BOA services were also asked.

6.5.2 Sample Design and Sampling Technique

The sample study is designed to have states as the reporting domain. A two stage cluster sampling was employed to select representative zones and branches eligible for further sampling. Hence in each sampled zone, state branches were purposively selected by the researcher based on data provided by the Headquarters in Kaduna. (Figure 6.1)

Figure 6. 1: Map of Nigeria showing BOA Research Locations

In order to select the sample respondents for the study, the target population was considered. The target population of a research refers to the whole of the relevant group of individuals in whom the researchers are interested to generalise the conclusions. (Yin, 1989). Polit and Hungler (1999: 232) define “a population as the totality of all subjects that conform to a set of specifications, comprising the entire group of persons that is of interest to the researcher and to whom the research results can be generalised”. It is important that a study population includes people who have information that are relevant for a research. (Alreck and Settle, 1995) The population of this study therefore comprises all micro and small enterprises in Nigeria. Of this group the immediate treatment population of interest comprise of the 350,000 MSMEs that are being financially supported with microloan by BOA all over Nigeria.

Both the “purposive” and “random sampling” methods were employed in selecting client enterprises for investigation where the sampling frame for clients of BOA depended on the database provided by the bank at the respective zonal offices. As a first step, the offices of BOA in the states of Osun, Sokoto and Bayelsa were the contact points. The researcher decided to select sample clients of BOA based on the general classification of “agriculture and non-agricultural loans”. In this study therefore, information on total number of client MSMEs were collected and from this list, 80 enterprises were randomly selected from each selected BOA branch. Likewise, 120 enterprises similar to the treatment group were randomly selected in each branch location.

Table 6. 4: Selection of Respondents for Questionnaire Administration

Zones/States Selected Treatment

Group

Control Group

Total

South-South (Bayelsa State) 80 120 200 South West (Osun State) 80 120 200 North West (Sokoto State) 80 120 200

Total 240 360 600

Out of a total of 600 questionnaires, 456 were cleaned and returned implying a 76% response rate.

In “purposive sampling, groups participate according to pre-selected criteria relevant to a particular research question”. (Creswell, 2005: 204) From each of the three selected states, 40 clients of BOA (i.e. treatment group) from each of agriculture and non-agriculture sectors were selected while 60 enterprises similar to the enterprises that are clients of BOA but voluntarily or involuntarily do not have access to BOA services served as control group from agriculture and non-agriculture sectors respectively. Hence 80 BOA clients constitute the treatment group from each state branch and 120 other enterprise owners are the responding control group participants, i.e. 200 respondents per state and 600 respondents were interviewed overall. To ensure a proper analysis of impact, there is need for a counterfactual, to demonstrate the nature of outcomes that would emerge, had the intervention not existed. This is the reason for including control groups. The sample size for the study was determined in line with the rule of thumb of sampling approach as applied in the work of the

“Consultative Group to Assist the Poor” (CGAP). For an impact assessment study (Henry et al, 2003), a 2-to-3 ratio of clients to non-clients was maintained in all clusters. Van de Ruit May, and Roberts, (2001) argue that the ratio of 2 treated samples to 3 control samples allows for greater diversity in the control samples.

The enterprises selected are those that have been in operation for at least five years. This is because it is usual for demographers to use five years as a yardstick for survival of enterprises (Alexander, Davern and Stevenson, 2010) for the purpose of balancing of statistical power of test. The process identified a number of small enterprises, which provide products and services that are fundamental to the functioning of the local economy, including sectors such as agriculture, business services/artisans, retail trade and basic manufacturing (e.g. food processing). They are known to have the potential to create some new jobs in local economies.

Before starting the actual research, a pilot test of 30 respondents (10 per state) was undertaken to check the consistency and clarity of the instruments as well as to estimate the duration of questionnaire administration. The result of the pilot test indicated that the instrument was found to be reliable in relation to the information it intended to elicit. With minor editing, the designed instrument was used for the field work. On the whole the response rate was quite reasonable at 76% as 456 completed questionnaires were retrieved out of a total of 600. The high response rate was due to clients’ perceived need to express their impression on BOA activities consequent

upon an apparent lull in the agency’s activities prior to the research period. This factor was however well managed by the researcher such that it did not introduce any bias into the research results.