Microcredit and Business Performance in Nigeria: The Case of MFI Finance Enterprise
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This paper investigates the impact of microcredit loan on business performance of Microfinance
Institutions (MFI) finance microenterprises in Nigeria. A Microenterprise refers to an individual
business that consists of less than five employees and is generally organized as a sole proprietorship
or family business. The objective of the study is to examine the effects of micro credit on several
business performance criteria of MFI clients. Data for the study are derived from both primary and
secondary sources. A survey of MFI and entrepreneur – clients was undertaken using simple
random sampling technique to select our respondents. The data obtained was analyzed using
multiple regression analysis. We find a positive relation between microcredit and profit of the
microenterprise. The study recommends a wider coverage of microfinance through effective
implementation of micro-fund scheme and mandatory business related training for all micro
entrepreneurs.
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HG Finance