Impact Of Microfinance Banks On Development Of Small And Medium Scale Enterprises (A Study Of Umuahia South L.G.A Abia State)

ABSTRACT

 The theoretical foundation of microfinance banking model is Lu provide finance to sustain the development of small and n1ccliu111 enterprises. This study was carried out to empirical ascertain the role of microfinance banks in sustaining the cleve1op1nent of small and medium enterprises in Nigeria. The study was carried out with the use of primary data obtained through administration of questionnaire. The collated data was analyzed using frequency/ simple percentage and regression analysis. The ordinary least squares (OLS) estimation of two models revealed a positive and statistically significant relationship between development of small and medium enterprise and loan and repayment period of microfinance bank, while interest rate and loan processing procedure are negative but statistically insignificant impact on government grant and manpower had positive but statistically insignificant impact on development of small and medium enterprises. It was suggested that government should thinker with the current microfinance banking model and revitalize the industrial development fund.