SMEs Supply Chain Finance The Role of Micro Finance Banks Activities in Abuja FCT Nigeria (original) (raw)
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EFFECT OF MICRO FINANCE BANK ON THE GROWTH OF SMALL AND MEDIUM ENTERPRISES IN NIGERIA
Microfinance banks are key to the growth and development of small and medium enterprises most especially in the wave of turbulence and unfavorable business environment, this is due to the fact that they provide short term facilities to SMEs. The study examined the relationship between micro finance bank and the growth of small medium enterprises in Nigeria. The descriptive survey design was adopted for the study. The population of the study consists of 100 selected SME's operators within Wuse business area Abuja, Simple random sampling technique was use to arrive at a sample size of 100. In other to address the objective of the study, structured questionnaire was employed as the research instrument used to obtain relevant information from 100 respondents and were all filled and returned. Descriptive statistics, cross tabulation and simple linear regression were used to analyze the data collected. Findings revealed that micro finance banks domestic fund transfer services contribute to the growth of small and medium enterprises, this is revealed by the regression result (Beta =0.500; P = 0.000 < 0.05). Also, the study also discovered that repayable loans provided to small medium enterprises enhances the development of their businesses as revealed by the regression result (Beta = 1.074; P 0.000 < 0.05). The study concludes that there exists a positive relationship between micro finance bank and small medium enterprises. The study recommends that customers and beneficiaries of micro finance loans should avoid default in the repayment of loans. Furthermore, Microfinance banks should avoid charging high interest and much collaterals when granting loans.
International Journal of Economic Development Research and Investment, 2010
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.
Challenges of Finance and the Performance of Small and Medium Enterprises (SMES) in Lagos State
Developing Country Studies, 2015
This study examined the challenges of finance as is experienced by business operators classified into micro, small and medium scale (MSMEs), and how this affects their financial performance. The study evaluated the efficiency of the different sources of funds available for the SMEs as well as other non financial factors responsible for the poor performance of SMEs in Nigeria. Given some of the government interventions to solving the issue of credit to SMEs, the operations of the micro finance banks were also evaluated to determine their capacity toward closing the funding gap for SMEs. This study became imperative given the conflicting reasons adduced to why small scale enterprises perform poorly in developing economies including Nigeria There was a need to find out if the major challenge of SMEs is indeed credit using the five divisions in Lagos State as the study area. The useable sample size consisted of 222 returned copies of questionnaire out of the 250 distributed representing 88.8% response rates. Quota sampling as well as stratified random sampling technique was applied in the choice of the five divisions under study and the distribution of the sampling frame; while convenience sampling technique was used to get to the individual respondents. Correlation and one sample t-test was used to test the hypotheses. The study indicated significant statistical difference for sources of funds and in the efficiency of the various sources. The challenge of funds still ranked highest followed by unstable power supply, while micro finance banks were expected to do more to assist the SMEs.
Kampala International University Interdisciplinary Journal of Humanities and Social Sciences
This study focused on effect of microfinance banks on the growth and survival of SMEs. The study adopted a survey research design using both primary and secondary data. A sample of 125 SME owners/operators who are duly registered with Edumana MFB, Bida constituted the study population. Questionnaires were administered to SME owners/operators, while interviews were conducted with selected staff of the MFB. Data generated were analysed with the aid of tables, frequencies and percentages while test of hypotheses were done using Spearman Rank correlation coefficient and Chi-square. Findings of the study revealed that the bank's credits facilities and support services have considerably enhanced the survival and growth of SMEs in terms of increased business capital, assets acquisition and sales but not without some challenges such as small size of credit, cumbersome procedures involved in securing credit and unfavourable loan repayment modalities. Consequently, the study recommends in...
World Journal of Innovative Research
This study investigated the influence of commercial banks in financing small and medium scale enterprises in Nigeria to determine the extent to which SMEs access relevance services and credit facilities from Fidelity and First banks as well as their contributions to economic growth in Ibadan metropolis. Descriptive research design was adopted. Purposive sampling technique was used to sample 200 owners of SMEs in Oluyole Local Government Area of Oyo state. Data collected were analysed using frequency counts, simple percentage score and regression analysis. The study showed that only 9.37% of the respondents had access to the banking services whereas 37.1% had no access to the banking services being provided by Fidelity and First banks in Ibadan metropolis. From the findings, 2.3% of the respondents strongly agreed that they obtained loans frequently whereas 32.1% strongly disagreed; 8% of them strongly agreed that bank charges on loans are moderate and affordable 38.9% refuted the position. The findings generally revealed that SMEs do not have adequate access to loan facilities from the commercial banks. It is therefore recommended that commercial and microfinance banks should offer financial services like credit facilities at moderate rate of interest with less stringent conditions to SMEs to grow their businesses and generate more employment within the economic hub of the country.
Microfinance Banks Services and Small Scale Enterprises Financing in Abuja, Nigeria
European Journal of Accounting, Auditing and Finance Research
Microfinance Banks (MFBs) was majorly established in Nigeria to empower and provide financial services to the poor and Small Scale Enterprises (SSEs) in the rural and urban areas. Yet the contribution of the SSEs to the Nigerian economy is meagre, this is simply because MFBs is hijack by the money bags in the society. The study therefore, examined the impact of microfinance banks on financing small scale enterprises (SSEs) in Abuja, Nigeria. The specific objectives of the study were to: (i) evaluate the impact of micro loans on SSEs financing in Abuja, Nigeria; (ii) assess the influence of micro savings on SSEs financing in Abuja, Nigeria. The research design used for the study was survey research design. The population of the study comprises of 57 MFBs and 2,794 SSEs in Abuja, Nigeria. A sample of 349 SSEs and 26 MFBs were selected through stratified random sampling techniques. Copies of questionnaires were distributed to the selected sample. The data was analyse through simple percentages and order logit regression. The finding of the study revealed that: (i) an increase in the amount of loan given by microfinance banks increase the growth of small scale enterprises; (ii) an increase in micro savings of small scale enterprises lead to an increase in small scale enterprises financing by microfinance banks. Based on the findings, the study therefore concluded that MFBs impact positively on financing SSEs in Abuja, Nigeria. The study recommends that MFBs should increase the supply of micro loans to SSEs, this will help in a long way to expand their business and create more employment opportunities to the country. The study also stated that more programmes and policies should be put in place that will create an enabling environment for small businesses to operate optimally in Abuja, and other part of Nigeria.
THE IMPACT OF MICRO-FINANCE ON SMALL SCALE BUSINESS IN NIGERIA
This study examines the performance of Micro finance Institutions (MFIS) in Lagos State, based on the development of small and medium Scale Industry. Simple random sampling technique was employed in selecting the 110 (SMES)s that constituted the sample size of the research. Structured questionnaire was designed to facilitate the collection of relevant data which was used for the analysis. Descriptive statistics which involves simple percentage ,and Chi-square (contingency test). The findings indicate that the operations of MFIs have grown phenomenally in the last three years, driven largely by expanding informal sector activities, the conversion of the community banks to micro finance banks and the reluctance of banks to fund the emerging micro enterprises. The study also reveals the sub-sector faces a number of challenges, which have been addressed in this research. They include the urgent need to approved and implement a policy framework that would regulate and standardize the MFI operations;-accessing medium to long term sustainable commercial sources of funds, such as SMIEIES. Commercial banks traditionally lend to medium and large enterprises, which are judged to be creditworthy. They avoid doing business with the small and medium scale industry because the associated cost and risks are considered to be relatively high. Microfinance institutions (MFIs) have therefore become the main sources of funding small and medium scale industry in Africa and in other developing regions.
Effect of Micro-Finance Banks on Small and Medium Scale Enterprises (MSMEs) in Nigeria
This study examines the impact of micro finance banks on Micro, Small and Medium Scale Enterprises (MSMEs) in Nigeria. We used survey questionnaires to collect the data from the respondents who are stakeholders of Micro, Small and Medium Scale Enterprises (MSMEs).. We find that there are challenges of access credit facilities, the micro credit programs have increased self-employment, create jobs and enhance economic growth. However, some bank customers do not pay their interests as at when due. We recommend that the supervisory agency (CBN) should ensure that Micro finance banks operate in line with the microfinance policy objectives of increased credit access to Micro, Small and Medium Scale Enterprises (MSMEs) for sustainable development. Also, the monitoring department of the microfinance banks should make regular on-site visitations to the MSMEs to carry-out continuous monitoring and ensure the approved credit facilities are used appropriately.
2012
Evolving strategies towards the promotion of entrepreneurship is sine qua non to propelling economic growth and development of a nation. The promulgation of the micro finance policy by the federal government of Nigeria in 2005 has three principal objectives of promoting both entrepreneurship activities in small and medium scale enterprises (SMEs), reducing poverty and enhancing economic growth. This research assesses the contributions of Micro Finance Institutions (MFIs) to the sustainable growth of SMEs. Data is collected from 360 randomly selected SMEs using the questionnaire instrument. The questionnaire was complimented with the interview method of data collection. The data elicited was analyzed using the simple percentage statistic. The analysis revealed that MFIs does and could contribute to the sustainable growth of SMEs in the country. Nevertheless, the study also found among others that MFIs services outreach to SMEs at present is poor. The study recommends periodic review ...
Assessment of Microfinance Banks and the Growth of SMEs in Jos South Plateau state, Nigeria
IJMRAP, 2022
The study seeks to examine the assessment of microfinance banks and the growth of Small and Medium scale Enterprises (SMEs) in Jos South, Plateau State, Nigeria. The study covered small and medium scale farmer entrepreneurs within Jos South. A sample size of 150 was obtained from the population of 201 at 5% error tolerance and 95% level of confidence, using Simple Random Sampling. 140(93.3%) of the questionnaire distributed were returned while 10(7.1%) of the questionnaire distributed were not returned. selfstructured questionnaire was used to collect data. The study conducted a pre-test on the questionnaire to ensure the validity of the instrument. Data collected were presented in frequency tables. To measure the effect of microfinance bank on the growth of SMEs, descriptive statistics and Pearson's Chi-Square model were used. The Chi-Square value is shown as X 2 calculated 29.376 > X 2 tabulated 14.201. The study therefore revealed that Microfinance bank activities has made significant contribution to the growth of SMEs in Nigeria. The study recommends among other things, that government form a powerful team made up of all relevant parties to ensure that microfinance banks stay focused on their primary goal of providing ongoing funding for SMEs and that the Central Bank of Nigeria (CBN) be more proactive in addressing any areas where microfinance banks violate the law.