Impact Assessment Of The Role Of Micro Finance Banks In Promoting Small And Medium Enterprises Growth In Nigeria

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.