Miss
IMPACT ASSESSMENT OF THE ROLE OF MICRO FINANCE BANKS IN PROMOTING SMALL AND MEDIUM ENTERPRISES GROWTH IN NIGERIA Babagana, S. A.
School of Business Studies The Federal Polytechnic, Bauchi, Bauchi State, Nigeria E-mail: sbabagana@yahoo.co.uk, sbabagana@gmail.com
ABSTRACT
The history of industrial Revolution in developed and developing countries have shown that small and medium enterprises are the driving force of industrial and economic development. This paper examines impact of the role played by micro finance banks MFBs) in promoting the growth of SMEs in Nigeria. An empirical study was carried out using Garu Micro Finance bank in Bauchi, Bauchi State being one of the most successful Micro Finance Banks in North East sub region to determine impact of the role of MFBs in promoting small and medium enterprises growth. Out of the total number of employees in the bank, 15 members of staff whom constitute the middle and management staff were used as respondents. Questionnaire was developed and distributed to them which they all filled and returned. The study revealed that MFBs have contributed to the promotion of small and medium enterprises growth in Nigeria. It was recommended that government should further encourage the activities of Micro Finance Banks (MFBs) by creating enabling environment so that they can further support SMEs growth.
International Journal of Economic Development Research and Investment Vol. 1, No 1, April 2010
42
INTRODUCTION The role of Micro Finance Banks in Promoting Small and Medium Enterprises in Nigeria is more than to be over emphasised. A major characteristic of small and medium enterprises (SMEs) worldwide is that they are generally managed by their owners either as sole proprietorship or partnership (Adamu, 2005). SMEs are also largely local in their areas of operation. They depend on internal sources of capital and are relatively small in size within the industry. Small and Medium Enterprises (SMEs) are predominant in
School of Business Studies The Federal Polytechnic, Bauchi, Bauchi State, Nigeria E-mail: sbabagana@yahoo.co.uk, sbabagana@gmail.com
ABSTRACT
The history of industrial Revolution in developed and developing countries have shown that small and medium enterprises are the driving force of industrial and economic development. This paper examines impact of the role played by micro finance banks MFBs) in promoting the growth of SMEs in Nigeria. An empirical study was carried out using Garu Micro Finance bank in Bauchi, Bauchi State being one of the most successful Micro Finance Banks in North East sub region to determine impact of the role of MFBs in promoting small and medium enterprises growth. Out of the total number of employees in the bank, 15 members of staff whom constitute the middle and management staff were used as respondents. Questionnaire was developed and distributed to them which they all filled and returned. The study revealed that MFBs have contributed to the promotion of small and medium enterprises growth in Nigeria. It was recommended that government should further encourage the activities of Micro Finance Banks (MFBs) by creating enabling environment so that they can further support SMEs growth.
International Journal of Economic Development Research and Investment Vol. 1, No 1, April 2010
42
INTRODUCTION The role of Micro Finance Banks in Promoting Small and Medium Enterprises in Nigeria is more than to be over emphasised. A major characteristic of small and medium enterprises (SMEs) worldwide is that they are generally managed by their owners either as sole proprietorship or partnership (Adamu, 2005). SMEs are also largely local in their areas of operation. They depend on internal sources of capital and are relatively small in size within the industry. Small and Medium Enterprises (SMEs) are predominant in
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