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Microcredit and Business Performance in Nigeria: The Case of MFI Finance Enterprise

Babajide, A. A and Joseph, Taiwo (2011) Microcredit and Business Performance in Nigeria: The Case of MFI Finance Enterprise. International Journal of Current Research, 3 (11). 068-075. ISSN 0975-833X

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Abstract

This paper investigates the impact of microcredit loan on business performance of Microfinance Institutions (MFI) finance microenterprises in Nigeria. A Microenterprise refers to an individual business that consists of less than five employees and is generally organized as a sole proprietorship or family business. The objective of the study is to examine the effects of micro credit on several business performance criteria of MFI clients. Data for the study are derived from both primary and secondary sources. A survey of MFI and entrepreneur – clients was undertaken using simple random sampling technique to select our respondents. The data obtained was analyzed using multiple regression analysis. We find a positive relation between microcredit and profit of the microenterprise. The study recommends a wider coverage of microfinance through effective implementation of micro-fund scheme and mandatory business related training for all micro entrepreneurs.

Item Type: Article
Uncontrolled Keywords: Microfinance Institutions Microenterprise, MFI clients MFI and entrepreneur.
Subjects: H Social Sciences > HG Finance
Divisions: Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User: Mrs Patricia Nwokealisi
Date Deposited: 25 Apr 2014 13:41
Last Modified: 25 Apr 2014 16:40
URI: http://eprints.covenantuniversity.edu.ng/id/eprint/2458

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