Oyinlola Oluwafunmilayo Falade


Most of the small enterprises in Nigeria are still at a low level of development, especially in terms of number of jobs, wealth and value creation. This is because 65% of the active populations, who are majorly entrepreneurs, remain unserved by the formal financial institutions. The microfinance institutions available in the country are not able to adequately address the gap in terms of credit, savings and other financial services. identified the unwillingness of conventional banks to support micro-enterprises, paucity of loanable funds, absence of support institutions in the sector, as well as weak institutional and managerial capacity of existing microfinance institutions among other reasons as the major reasons for the failure of past microfinance initiatives in the country. Despite the potential importance of small enterprises in any economy, high mortality rate among established small enterprises is a matter of major concern in developing economies. The data for this study was obtained from primary sources. They were gathered using questionnaire structured on the basis of the research hypothesis, which was presented to the respondents to express their views, opinions, and observations. The researcher sampled SMEs in Cmputer Viilage, Ikeja using simple random sampling. The researcher however made use of 200 respondents for this study. Following the major findings of this study, a correlation of .972 which showed a strong direct correlation between microfinance bank services and SMEs while p-value of 0.001 which is considered less than 0.05. On the backdrop of the aforementioned analyses the null hypothesis is at 5% level of significance is rejected while the alternative hypothesis is accepted. Thus the analysis inferred that there is significant relationship between microfinance bank services and SMEs in Computer Villiage, Ikeja. Based on the findings of this research study, the following recommendations are made, After a careful analysis of the topic and the following recommendations have been made as: Microfinance bank shareholders should increase the share capital to afford them ability to provide and meet up with the customers (including SMEs) loan request. The MFBs should carefully carried out their due diligence and know your customer (KYC) to avoid wrong credit/loan decision. The MFBs should be more involve in joint investment with reliable and trusted SMEs rather leverage on interest charges only. The SMEs owners should careful analysis their available finance options in relation to duration, interest charges, tax savings est. before taking financing decisions.


Microfinance Bank, Bank Services, Small and Micro Enterprise.

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