IMPACT OF MICROFINANCE BANK ON ENTREPRENEURIAL DVEVELOPMENT IN KOGI STATES (A STUDY OF FEW SELECTED COMPANIES IN THE STATE)

Abstract Microfinance banks have been identified globally as key financial institutions that support small businesses and entrepreneurs, especially in developing economies. In Nigeria, microfinance banks are expected to bridge the gap between informal savings groups and commercial banks by providing affordable credit and financial services to small-scale entrepreneurs. This study examines the impact of microfinance banks on entrepreneurial development in Kogi State, focusing on selected companies that have accessed microfinance services. Using primary data collected through questionnaires and interviews from entrepreneurs and managers, the study investigates how access to microfinance affects business growth, capital structure, employment generation, and sustainability. The results reveal that microfinance banks significantly contribute to entrepreneurial expansion, though challenges such as high-interest rates, stringent repayment terms, and limited financial literacy hinder maximum impact. The study recommends strategic policy reforms, enhanced capacity-building programs, and favorable lending frameworks to strengthen entrepreneurial growth through microfinance. Keywords: Microfinance banks, entrepreneurship development, small business, credit access, Kogi State.