THE IMPACT OF MICRO FINANCE BANK ON THE PERFORMANCE OF SMALL AND MEDIUM SCALE ENTERPRISES IN KANO METROPOLITAN

Abstract

The main objective of the study was to determine the effect of microfinance services on the performance of Small and medium enterprises in Kano metropolis, Nigeria. The populations of the study consist of the 79328 SMEs in Kano metropolis according to Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) and the national database of all registered SMEs in Kano state as released in the 2021 report with a sample size of 379 respondents. Valid responses were analyzed using SPSS version 20 applications. The study concluded that of saving service, loan service and training service have a positive and significant effect on the performance of SMEs in Kano metropolis. The study recommended that Microfinance Institutions should sensitize SMEs owners on the benefits of saving, they should revise the loan terms given to their borrowers and ensure that they are favorable for accessing loans and also train SMEs in accessing, borrowing and utilization of loans received from MFIs.