Proceedings of The International Conference on New Trends in Management, Business, and Economics
The Influence of Microfinance Institutions as Catalyst for Improved Performance of Small Scale Enterprises in Nigeria
Dr. Taofeek Aremu Kasaliand Dr. FASHANU, Felix Adeniyi
The concept of microfinance through the Microfinance Institutions (MFIs) is to assist the Small and Medium Scale enterprises (SMEs) to increase productivity, create jobs and help eradicate poverty. This study was established to examine the impact of microfinance loans on the performance of SMEs. To achieve this objective, both descriptive and quantitative research design methods were adopted for the study. The data gathered were analyzed to provide insight into the impact of credit management practices on organizational performance and profitability. The result shows that MFIs can serve as bedrock for the growth of SMEs, economic development and grass root transformation. It is recommended that government should properly overhaul microfinance programmes in order to achieve the objective of poverty reduction through the disbursement of credit to SMEs. Also, there is need for more strategies and proactive measures to make MFIs and SMEs the agents of economic development in Nigeria. In addition, more awareness should be created for microfinance programmes by the operators to attract SMEs and the poor and downtrodden.
Keywords: Microfinance, economic development, small and medium scale enterprises, poverty eradication, Nigeria.