The impact of microfinance institution on development of small and medium enterprises: a case study of lagos state

Authors

  • Hauwa Daniyan Bagudu Doctorate Program, Finance and Banking, Universiti Utara Malaysia
  • Shazida Jan Mohd Khan Specialist in Banking structure and performance, Education system and policy, gender studies, School of Economics Finance and Banking, College of Business, Universiti Utara Malaysia
  • Abdul-Hakim Roslan Specialist in development issues; economic growth and development, poverty, and income distribution, Microfinance and Micro Entrepreneurship, social business, and social capital and quality of life. Othman Yeop Abdullah Graduate School of Business. Universiti Utara Malaysia

Keywords:

financial institution, Lagos state, microfinance, Nigeria, small and medium enterprise

Abstract

The major target of this study is to evaluate the effect of Microfinance Institution (MFIs) on the development of SMEs (Small and medium enterprises) in Lagos state Nigeria. Simple random techniques of sampling were employed in this study in selecting 70 SMEs which constituted the size of the sample of the research. To facilitate the obtaining of relevant data that was used for analysis in this study, a structured questionnaire was designed. Descriptive statistics involving simple graphical charts and tables were strategically applied in presentation and analysis of data. The outcome of the findings indicates that a large number of SMEs are benefiting from the loans granted by the MFIs, despite the fact that few of them have sufficient ability to secure the needed amount. Interestingly, most of the SMEs admit positive MFIs loans contribution towards advancing their market share, the economic competitive advantage of the company and achieving market excellence through product innovation.

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Published

2016-09-30

How to Cite

Bagudu, H. D., Khan, S. J. M., & Roslan, A.-H. (2016). The impact of microfinance institution on development of small and medium enterprises: a case study of lagos state. International Research Journal of Management, IT and Social Sciences, 3(9), 95–106. Retrieved from https://sloap.org/journals/index.php/irjmis/article/view/418

Issue

Vol. 3 No. 9 (2016): September

Section

Peer Review Articles
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