Cross sectional survey research design was used. The population of the study were eighty 80 was sampled for the study. Five research questions were raised to guide the study. Structured questionnaire which was validated by lectures was the instrument used for data collection statistical means were instrument used for data analysis.
More so, its industrial growth is not quite impressive.
Before the emergence of formal microfinance institutions, informal microfinance activities flourished all over the country. Traditionally, microfinance in Nigeria entails traditional informal practices such as local money lending, rotating credit and savings practices, credit from friends and relatives, government owned institutional arrangements, poverty reduction programmes etc Lemo, The Central Bank of Nigeria Survey in indicated that the operations of former microfinance institutions in Nigeria are relatively new, as most of them never registered after Before now, commercial banks traditionally lend to medium and large enterprises which are judged to be credit-worthy.
They avoided doing business with the poor and their micro enterprises because the associated cost and risks are considered to be relatively high Anyanwu, The Federal and State governments have recognized that for sustainable growth and development, the financial empowerment of the rural areas is vital, being the repository of the predominantly poor in society and in particular the SMEs.
If this growth strategy is adopted and the latent entrepreneurial capabilities of this large segment Impact of microfinance bank to the the people is sufficiently stimulated and sustained, then positive multipliers will be felt throughout the economy.
To give effect to these aspirations various policies have been instituted over time by the Federal Government to improve rural enterprise production capabilities.
Olaitan In view of this, the impact of micro finance bank in economic growth and development of Nigeria started showcasing itself. With the initiative of microfinance, rural areas are opportune to grow and develop as loan and fund are easily given to rural farmers and entrepreneur.
Jobs opportunities were created since there is avenue for lending and investing. Other objectives are as fellows i. It will investigate the ways microfinance bank can contribute in building entrepreneurship within the country. There are so many problems and challenges that hinders the functionality of the microfinance bank in carrying out their major role of improving economic growth ad development in Nigeria.
These problems include poor attitude of Nigerians towards MFBs insufficient support from the regulators and government There are communication gaps and inadequate awareness among the masses.
The researcher will in the research find possible ways of solving or making better the conditions for the operation of MFBs. It will also serve as a reference point for future researchers who in one way or the other will try to unveil the role and impact of micro finance bank to economic development.
For accuracy and coherency, the research work will take as a case study the Community bank Enugu to enable precision and distinctiveness. Thus, the uncooperation of most people working in the library and other offices where the researcher needed to get materials posed great problem to the researcher.
Some of the staffs do not feel safe letting us have access to some materials while others will charge me more than double cost of Photostat before I can get what I wanted.
Financial constraint is another limitation to this work which is as a result of high cost of transportation fare to the areas of study to gather data, combined with the cost of materials to carry this work to conclusive end.
It also took great strength to convince the respondents that their responses to the questions in the questionnaire will be treated with great confidentiality and are purely academic.
To this effect, the following hypothesis will be tested, thus. Micro finance bank is irrelevant to the economic development and growth of Nigeria since the number of entrepreneurs that uses their services is low Hi: Micro finance bank is relevant to the economic development and growth of Nigeria since the number of entrepreneurs that uses their services is low Hypothesis II H0: Microfinance institution do not contribute to entrepreneurial productivity H1: Micro finance institutions do contribute to entrepreneurial productivity.According to the Nigerian Banking Act, (as amended Bank amendment act ), Microfinance banks are institutions constructed as a company licensed to carry on the business of providing microfinance services such as collection of savings, loans provision, insurance money transfer services and other non financial services that are needed by the poor.
Specifically, to extent to which micro finance bank have any effect on Micro, Small and Medium Scale Enterprises (MSMEs) in Ilorin metropolis, to extent to which small and medium scale enterprise improve with the introduction of microfinance bank in Ilorin metropolis and do small and medium scale enterprise improve economic development in Ilorin metropolis.
Microfinance banks serve as a means to empower the poor and provide valuable tool to assist the economic development process. Kolawole () is of opinion that the promotion of micro. The Impact Of Microfinance Bank On Economic Growth Of Nigeria. ACCOUNTING PROJECT TOPIC AND urbanagricultureinitiative.com project topic.
A benchmark impact assessment of Grameen Bank and two other large microfinance institutions in Bangladesh found that for every $1 they were lending to clients to finance rural non-farm micro-enterprise, about $ came from other sources, mostly their clients' savings.
amended Bank amendment act ), Microfinance banks are institutions constructed as a company licensed to carry on the business of providing microfinance services such as collection of savings, loans provision, insurance money transfer services and other.