Impact of Micro Finance

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Proceedings of the 7th International Conference on Innovation & Management

Impact of Microfinance on Small and Medium-Sized Enterprises in Nigeria
Idowu Friday Christopher School of Management, Wuhan University of Technology, Wuhan, P.R.China, 430070 (E-mail: [e-mail]) Abstract The fundamental objective of this study is to assess the impact of Microfinance on Small and Medium Enterprises (SMEs) in Nigeria. Simple random sampling technique was employed in selecting the 100 SMEs that constituted the sample size of the research. Structured questionnaire was designed to facilitate the acquisition of relevant data which was used for analysis. Descriptive statistics which involves simple percentage graphical charts and illustrations was tactically applied in data presentations and analysis. The findings of the study reveal that significant number of the SMEs benefitted from the MFIs loans even though only few of them were capable enough to secure the required amount needed. Interestingly, majority of the SMEs acknowledge positive contributions of MFIs loans towards promoting their market share, product innovation achieving market excellence and the overall economic company competitive advantage. Other than tax incentives and financial supports, it is recommended that Government should try to provide sufficient infrastructural facilities such as electricity, good road network and training institutions to support SMEs in Nigeria. Key words Small and medium enterprises; Microfinance; Loans; Nigeria

1 Introduction
This paper intends to contribute to the array of literature written by different scholars on Microfinance and SMEs development. Like other countries of the world, SMEs in Nigeria have the tendency to serve as sources of livelihood to the poor, create employment opportunities, generate income and contribute to economic growth. Despite its increasing roles, access to credit by SMEs remains one major constraint. The major objective of this

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