ABSTRACT
This study takes a critical look at the role of microfinance bank in financing of small scale enterprise in Nigeria based on a population of using all microfinance banks in Nigeria. Therefore, this research adopted the descriptive research survey. This study used secondary data and the data analyzed in this study relate to aggregate industry data obtained from central Bank of Nigeria (CBN) statistical bulletin and other publications. The objective of this study is to examine the impact of microfinance bank loans and advances and its contribution to industrial GDP, to evaluate the impact of microfinance bank total assets on industrial sector Gross domestic product (GDP) and to ascertain the impact of microfinance bank deposits on industrial sector Gross domestic product (GDP). Findings from our field study indicated that microfinance banks total asset (MFBTA) have a positive and statistically significant impact on industrial production (IGDP) which implies that microfinance banks have adequate assets that have positive and significant impact on industrial production, microfinance banks’ loans to SMEs and microfinance banks total assets have negative impact on the industrial sector production. The study recommend among others that microfinance banks are; microfinance Bank directors and regulators are advised to initiate and sustain policy measures to provide substantial financing to small and medium scale enterprises. In particular, efforts should be directed at providing necessary regulatory support to microfinance banks to strengthen them to serve as engines of growth to SMES and that microfinance banks should be reformed to enable them have the financial strength to provide needed funds to SME’s. Thus suggesting that microfinance banks have not played positive and significant role in financing SMEs in Nigeria.
Cover Page i
Fly Page ii
Title Page iii
Certification iv
Declaration v
Dedication vi
Acknowledgement vii
Table of Content viii
Abstracts xii
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study 1
1.2 Statement of the problem 2
1.3 Objectives of the study 3
1.4 Objective of the study 4
1.5 Statement of the hypothesis 4
1.6 Significance of the Study 4
1.7 Scope of the study 5
1.8 The limitation of the Study 6
1.9 Definition of Terms 6
CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction 8
2.1 Conceptual Framework 8
2.2 Theoretical Framework 11
2.3 Literature on the subject matter 14
2.3.1 An overview of Small Scale Enterprise 14
2.3.2 Small and Medium Scale Enterprises in Nigeria 14
2.3.3 Types of Small Scale Enterprises 15
2.3.4 Importance of Small Scale enterprises 16
2.3.5 The Challenges and Problems facing Small Scale enterprises 17
2.3.6 The roles played by the government towards the promotion and development of Small scale enterprises 18
2.3.7 Empirical Literature on Microfinance Bank 19
2.3.8 Objectives and Functions of Microfinance Bank 20
2.3.9 Micro Credit 21
2.3.10 Microfinance bank loans/advances and the contribution of SMEs to Industrial growth 21
2.3.11 Microfinance Bank deposits and Industrial sector GDP 22
2.3.12 The roles of Microfinance Bank in Nigeria 23
2.3.13 Roles of Microfinance Policy 25
2.3.14 The role of Microfinance Bank in Financing Small Scale enterprises 26
2.3.15 The Problems or Challenges facing microfinance Banks in Nigeria 27
2.3.16 The Present state of Microfinance in Nigeria 31
2.3.17 Characteristics of Small Scale enterprises 31
CHAPTER THREE: RESEARCH METHODOLOGY
3.0 Introduction 33
3.1 Area of study 33
3.2 Research design 33
3.3 Sources of data 34
3.4 Population and sample of the study 34
3.5 Instrumentation 34
3.6 Procedure for data collection and data analysis 35
3.7 The limitation of the study 35
CHAPTER FOUR:
Data Presentation, Analysis and discussion of findings
4.0 Introduction 37
4.1 Data presentation and Analysis 37
4.2 Findings of the study 38
4.3 Results and discussion of findings 44
CHAPTER FIVE:
Summary, Conclusions and Recommendation
5.0 Summary of findings 45
5.1 Conclusion 45
5.2 Implication of policy and recommendation 47
5.3 Proposals for further studies 47
References 48
Appendix 51
