IDEAS home Printed from https://ideas.repec.org/a/ris/joibac/0162.html
   My bibliography  Save this article

The Role of Microfinance Institutions in Financing Small Businesses

Author

Listed:
  • JN, TAIWO

    (Department of Banking & Finance, Covenant University, Ota, Ogun State, Nigeria)

  • YEWANDE, ONASANYA A

    (College of Business and Social Sciences, Covenant University, Ota, Ogun State, Nigeria)

  • EDWIN, AGWU M

    (Strategic Management and Marketing, School of Business, Covenant University, Ogun State, Nigeria)

  • KN, BENSON

    (College of Business and Social Sciences, Covenant University, Ota, Ogun State, Nigeria)

Abstract

SMEs all over the world play a strong role in national development. This is attributed to the massive employment it provides to the citizenry of the country where it exists. The financing of these ‘’goose’’ which have being laying so many golden eggs has come under scrutiny by academics and practitioners. Due to the recognition accorded this very important sector, the Nigerian government established microfinance banks in the year 2007 to serve as mechanisms for financial sources for various SMEs. This study explored the roles of these micro finance banks and institutions on small and medium enterprises as well as the extent to which the small businesses have benefited from the credit scheme of microfinance banks. Primary data was obtained via interviews conducted in 15 small businesses across Lagos state with their responses summarized in tables. This study advocates the recapitalization of microfinance banks to enhance their capacity to support small business growth and expansion and also to bring to the knowledge of the management of microfinance banks and institutions the impact of the use of collaterals as a condition for granting credit to small businesses.

Suggested Citation

  • Jn, Taiwo & Yewande, Onasanya A & Edwin, Agwu M & Kn, Benson, 2016. "The Role of Microfinance Institutions in Financing Small Businesses," Journal of Internet Banking and Commerce, , vol. 21(01), pages 01-20, April.
    • Handle: RePEc:ris:joibac:0162
    as

    Download full text from publisher

    File URL: https://www.icommercecentral.com/open-access/the-role-of-microfinance-institutions-in-financing-small-businesses.php?aid=70480
    File Function: Full text
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Microfinance; Banks; Small Businesses; Entrepreneurship; Finance; Nigeria;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:joibac:0162. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dale Pinto (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.