EFFECT OF MICROFINANCE BANK ON SMALL AND MEDIUM SCALE ENTERPRISES IN NIGERIA

This project work seeks to examine the effect of Microfinance Bank in the Development of small and medium scale enterprise in Nigeria. Micro finance has evolved as an economic development approach intended to benefit low income women and men especially in business development and sustainability. The major objectives of this study is to investigate the impact of Microfinance bank in development of small and medium scale enterprises, to achieve this objective primary and secondary sources of data were collected, to develop the conceptual analysis and framework and to test the hypothesis formulated. A total population of eight (80) staff were envisage while a sample size of fifty (50) were study, to represent the entire population; the sample was derived using Taro Yamani Sampling technique while Chi square was used in data analysis. The finding revealed that Microfinance institutions have positive relationship with the small and medium scale enterprises in Nigeria with multiplier effect on economy development. It was therefore recommended that Seminar and lectures should be conducted in our rural areas on the functionality and the importance of the microfinance bank to the development of small and medium scale enterprises, building credit and savings cultures and encourages government enforcement of its SMEs boost program.