← Back to Vol. 04 Issue No. 01 — March
Abstract
The rate at which unemployment is growing in Nigeria is a threat to various employers of labour especially small scale businesses. Entrepreneurial businesses in Nigeria are generally characterized by inadequate capital base, low managerial skills as well as low knowledge base. The study examines the effect of microfinance on entrepreneurial business growth in Nigeria using Jos Metropolis as a case study. Descriptive research design and one sample t-test statistics were used to test the hypotheses. It was discovered that microfinance credit has had a significant effect on entrepreneurial business diversification while micro-finance fund transfer was discovered to have a significant impact on entrepreneurial enterprises market share. Lastly, it was revealed that micro-finance financial advices had a significant influence on the operational efficiency of entrepreneurial enterprises. This thus shows that microfinance institutions in Nigeria have been key players in the financial industry that have positively affected individuals, business organizations, other financial institutions, the government and the economy at large through the services they offer and the functions they perform in the economy., The study thus recommends that with adequate finance provided by the Microfinance banks to the beneficiaries they could be able to expand their businesses and take advantage of the economics of scale. More finance could be guaranteed if the Microfinance banks are appropriately well capitalized, while provision of financial advice to the beneficiaries could enhance higher productivity and market share. Financial and Extension advisory services should be provided to the beneficiaries to enable them take advantage of modern skills.