An assessment of Micro Finance Banks Impact on Entrepreneurship development in Nigeria

Abstract

Micro- credit has been accepted as an essential tool for promoting Small and Medium Enterprises because Small and Medium businesses have become a crucial segment in developing countries such as Nigeria. In line to these, this research attempt to assess the role of micro finance banks on the development of small and medium scale enterprise in Nigeria from the viewpoint of Entrepreneurs. multi-stage probability sampling technique was used. The study was carried out in Lagos State with One hundred and Twenty (120) Questionnaires administered and distributed to registered SMEs in Lagos state. One hundred and Four (104) Questionnaires were found useful for the purpose of the study representing 86% of the total questionnaire distributed. Both Primary and Secondary data was used. Data collected from the questionnaire were analyzed, summarized, and interpreted accordingly with the aid of descriptive statistical technique using simple percentages. A non-parametric statistical test; Chi-square was used to test the formulated hypothesis. Based on the findings of this study, it is concluded that Effectiveness and efficiency on the part of the Micro finance banks has positive Influence on Entrepreneur Development because the bulk of the beneficiaries were people who engaged in trading and related businesses. Also the results of tested Hypothesis show that Micro finance banks have significant impact on SMEs development. To this end, It is recommended that Micro finance banks should sensitize the rest of Nigerians who engaged in small and medium scale business to embrace micro financing concept, The financial institution (MFBs) need to put more effort in financing SMEs and MFBs should encourage people at the grassroots by to cultivate the habit of saving in the bank so that, they can have direct access to loan

Keywords: SMEs; MFBs; Business Development; Entrepreneurs; Lagos-Nigeria.