The impact of microfinance institutions on the development of small scale enterprises in Nigeria

Abstract

O.J Suberu, O.S Aremu, E.G Popoola

The fundamental objective of this study is to access the impact of microfinance institutions on small scale enterprises in Nigeria. Simple random technique was employed in selecting the small scale enterprises used in the research. The findings reveal that significant number of the small scale enterprises benefited from the microfinance institution loan even though only few of them were suitable to secure he required amount needed. Interestingly, it was also found that the microfinance institution have grown phenomenally in the last ten years. Majority of the small scale enterprises acknowledged positive contributions of microfinance institutions loan towards promoting their market excellence and overall economic company competitive advantage. Rather than tax incentives and financial supports, the study recommend that the government should provide adequate infrastructural facilities such as electricity, good road network, and training institutions to support small scale enterprises in Nigeria. This paper is organized into five sections, with review of literature following the introduction. The methodology of the study is presented in section three, while section four provides data analysis, and discussion of findings. Section five is for conclusion and recommendations.

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