The Impact of Microfinance institutions on SMEs Performance in Nigeria

Mohammed  Zannah; Jibrin  Mohammed Geidam; Fauziah Mahat

Mohammed Zannah Department of Business Administration and management, Mai Idriss Alooma Polytechnic Geidam, Yobe State, Nigeria
Jibrin Mohammed Geidam Department of Business Administration and management, Mai Idriss Alooma Polytechnic Geidam, Yobe State, Nigeria
Fauziah Mahat Faculty of Economic and Management University Putra Malaysia

Keywords: Microfinance, micro credit, small and medium enterprises, performance

Abstract

Previous studies on the role of microfinance institutions on small and medium enterprises (SMEs) the results were inconsistent to one another, some found the significant impact of microfinance while other results shows negative impacts. This study will assess the impact of microfinance in north eastern Nigeria. Structured questionnaire were used to gather the data, random sampling method were also adopted in surveying the 309 number of respondent. The finding shows significant relationship between microfinance loan and small and medium performance, the relationship is medium and positive. Moreover there is impact of microfinance on small and medium enterprises performance. The loan has highly increase the performance. The study also recommend the government to consider and increase number of microfinance institution in the zone and formulate law for small and medium enterprises to access loan in commercial banks.