IMPACT OF MICROFINANCE BANK ON THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN MAIDUGURI METROPOLIS, NIGERIA

Authors

  • ALHAJI UMAR MODU Department of Business Administration, Federal Polytechnic Monguno, Borno State.
  • ALHAJI MODU MAINA Department of Business Administration, Federal Polytechnic Monguno, Borno State.

Abstract

This study assess the impact of microfinance bank on the performance of small and medium enterprises in Maiduguri metropolis Borno State, Nigeria. The study examines the effect of employment generation on profitability, assess the effect of loan utilisation on sales growth and examine the effect of wealth creation on market share. The population of the study was three thousand five hundred and thirty-six (3536) customers of the three (3) selected microfinance banks in Maiduguri metropolis Borno State, Nigeria. While sample size of the study was three hundred and fifty-nine (359) respondents from the study population using Yamane (1967) formula. Data was collected by used od structured questionnaire which were administered to the respondents. The study used descriptive and inferential statistical tool for data analysis. The data collected was analysed through multiple regression with the aid of statistical package for social sciences (SPSS) version 20.7. The finding of the study revealed that there is a significant effect between employment generation and profitability, there is a significant effect between loan utilisation and sales volume and there is a significant effect between wealth creation and market share. The study concludes that microfinance bank has been a source of finance for people in the local government area has performed below expectation in terms of making financial services accessible to large segment of the productive which would have little or no access to financial inclusion. The study recommends that government should regulate and monitor the activities of banks to redress the problems that affecting them in the area of financial intermediation for employment, government should also give out soft loan to the financial institutions so as to reduce cost of obtaining funds that will used for loan by the bank client through the ability of beneficiaries which lead to wealth creation in the grass root.

Keywords:

Microfinance, Small and Medium Enterprises, Performance, Employment Generation, Loan

Published

30-04-2024

How to Cite

ALHAJI UMAR MODU, & ALHAJI MODU MAINA. (2024). IMPACT OF MICROFINANCE BANK ON THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN MAIDUGURI METROPOLIS, NIGERIA. International Journal of Financial Research and Business Development, 4(7). Retrieved from https://mediterraneanpublications.com/mejfrbd/article/view/395