THE ROLE OF MICROFINANCE BANKS IN SMALL AND MEDIUM SCALE INDUSTRIES IN NIGERIA

ABSTRACT

This research work
focus on the role of microfinance bank in small and medium scale industries in
Nigeria with a specific reference to a case study of ifelodun  micro finance bank ltd ikirun . An analysis
of the profile of SMEs shows that most SMEs area their Micro stages since they
employ less than six people and these ctoris considerably dominated by the
commerce sub-sector. There search also indicates that MFIs have had a positive
effect on the growth of SMEs. Some of the critical contributions of MFIs
include; greater access to credit, savings enhancement and provision of
business, financial and managerial training. Irrespective of the contributions
of MFIs to the development of SMEs, there are challenges that affect the
operations of both SMEs and MFIs. The major challenge faced by SMEs is the
cumbersome process associated with
accessing credit of which collateral security and high interest rate are major setback. On
the other hand, MFIs face some challenges relating to credit misappropriation
and non- disclosure of the relevant facts of the business operations of SMEs.
The final analysis of their search clearly reveals that MFIs have a positive
effect on the growth of SMEs. In order to enhance a sustained and accelerated
growth in the operations of SMEs, credits should be client- oriented and not
product-oriented. Proper and extensive monitoring activities should be provided
for clients who are granted loans.


TABLE OF CONTENT


CHAPTER ONE - Introduction


CHAPTER TWO - Literature Review


CHAPTER THREE - Research Methodology


CHAPTER FOUR - Data Analysis and Presentation

CHAPTER FIVE - Summary, Conclusion and Recommendations