Abstract:

The study shows that there are unpredictable factors influencing loan default in small-scale enterprises in Port Loko Municipality. A fishbone diagram which is a cause an effect tool was used to determine these factors. A brainstorming activity was used to get the views of participants with regard to the Research Question. The research question was to respond to a research objective which was “Are there unpredicted factors influencing loan default in small scale enterprises in Port Loko Municipality in Sierra Leone?”. Reviews of necessary literature were done to aid the study. In the review, matters relating to loan default and possible causes were addressed. It is unfolded that there are some loan defaults that are as a result of the borrowers’ lapses and others that are lender-oriented causes. The population size of one hundred and a random sample size of sixty people were used as participants to carry out the brainstorming activity. The population is comprised of small-scale enterprise owners and workers of credit or Microfinance institutions in the Municipality. Brainstorming participants proved that the death of clients or borrowers, internal insecurity, outbreak of diseases (Pandemic), Natural Disasters, and accident all significantly influence loan default of small-scale enterprises.

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