Microfinance bank as a catalyst for entrepreneurship development in Enugu North LGA, Enugu State

Abstract

The research examined Microfinance Banks as a catalyst for entrepreneurship development in Enugu North LGA, Enugu State, Nigeria. The objectives of the study were to: examine the extent to which microfinance bank saving services has improved the productivity of entrepreneurs in Enugu North LGA, Enugu State, examine the extent to which microfinance bank lending services has on the growth of entrepreneurs in Enugu North LGA, Enugu State. The research design adopted for the study was the survey research design. Data were sourced from both primary and secondary sources. The population of the study consists of 300 registered SMEs with LAPO Microfinance Bank, Enugu North LGA of Enugu State, which a sample size of 171 was determined using the Taro Yamane’s formula. Chi-square statistical tool was adopted to test the hypotheses. Findings from the study revealed that microfinance bank saving services had significant positive effect on the productivity of entrepreneurs in Enugu North LGA, Enugu State with test result χ2 (4,n=140) = 81.57, p<0.05; microfinance bank lending services had significant positive effect on the growth of entrepreneurs in Enugu North LGA, Enugu State. χ2 (4,n=140) = 85.4, p < 0.05 The study recommended that management of microfinance banks should develop quality saving products that would encourage entrepreneurs to save more and equally have basic access to financial credits in order to increase their productive capacity, there should be an effective management, mentoring and monitoring of the microenterprises to ensure that the credits granted are utilised for the purpose intended.