The Role and Sustainability of Microfinance Banks in Reducing Poverty and Development of Entrepreneurship in Urban and Rural Areas in Nigeria

Abu Ikponmwosa Noruwa, Ezike John Emeka

Abstract


The achievement of good economic growth is anchored around an environment of well focused policies aimed at poverty eradication through the empowerment of the people by availing them of access to factors of production, particularly credit. The study examines the role of Micro-finance banks in reducing poverty and the development of entrepreneurship. Data were collected through structured questionnaires and administered to entrepreneurs (small scale enterprises) and micro-finance banks within the Lagos State area.
The study identified high rate of loan default among the SMEs, which poses serious consequences for microfinance banks. It was also established that the challenges facing microfinance banks include, among others, the documentation of credit process, wrong information, identity of the loan applicant, and unstable economic situation in the country.

Full Text: PDF DOI: 10.5430/ijba.v3n3p33

Creative Commons License
This work is licensed under a Creative Commons Attribution 3.0 License.

International Journal of Business Administration
ISSN 1923-4007(Print) ISSN 1923-4015(Online)

 

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