MICRO FINANCE AND SMALL BUSINESSES IN NIGERIA: A DESCRIPTIVE ANALYSIS
Bhola Khan
Department of Economics
Yobe State University, Damaturu
Email: bholakhan.apj@gmail.com
ABSTRACT
Microfinance bank is charged with responsibilities of empowering Small-Scale Businesses (SSBs) in grassroots as its greater challenges; among which at present is how the Microfinance Institutions (MFI) can reach a greater number of small-scale business entrepreneurs. The aim of this study to make a descriptive analysis of micro finance and its impact on Small-Scale Businesses in Damaturu. The study is based on primary data which has been collected from Damaturu Metropolis Area. The sample size of the study is 50. During the analysis of the data, 25% of the respondents’ rated sales volume as low before accessing microfinance loan, while only 10% rated it as poor after accessing microfinance loan. The result also shows that the only 15% agreed that their sales volume was high before accessing, while 42.5% and 30% rated sales volume to average and high respectively. The study also revealed that the rate of returns on investment as poor by 15%, as average by 30% as low by 50% and high by 5%, while the rating changed after accessing Microfinance loan by 32.5% rating it to high as against 5%before and 10% as poor against 15%.
Keywords: Microfinance, Small-Scale Businesses, Multiplier, Gross Domestic Product.
