Description
Impact of microfinance institutions on small scale enterprises development in Nigeria.
Abstract
This study examines the impact of Microfinance Institutions in financing small-scale enterprises for economic growth in Nigeria. Time series data from the Central bank of Nigeria (CBN) report on the activities of Microfinance Institutions (MFIs) from 1992 to 2014 were used. Ordinary Least Square (OLS) regression analysis was used for the investigation. The findings revealed that there is a significant impact as, a result of microfinance institutions on the SMEs growth in Nigeria. There is also a significant effect of microfinance institutions in alleviating poverty by increasing income and changing the economic status of those who patronize them. The study concludes that microfinance institution is indeed a potent strategy of the government to reduce poverty and a viable tool for financial inclusion. The recommendations include that microfinance can only be an appropriate tool for poverty alleviation and increasing economic activities. Government should introduce more viable programmes outreach than the present by encouraging survival and continuity of MFIs so that rural dwellers can build confidence in them.…
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