Microcredit and Business Performance in Nigeria: The Case of MFI Finance Enterprise

摘要

This paper investigates the impact of microcredit loan on business performance of MicrofinanceudInstitutions (MFI) finance microenterprises in Nigeria. A Microenterprise refers to an individualudbusiness that consists of less than five employees and is generally organized as a sole proprietorshipudor family business. The objective of the study is to examine the effects of micro credit on severaludbusiness performance criteria of MFI clients. Data for the study are derived from both primary andudsecondary sources. A survey of MFI and entrepreneur – clients was undertaken using simpleudrandom sampling technique to select our respondents. The data obtained was analyzed usingudmultiple regression analysis. We find a positive relation between microcredit and profit of theudmicroenterprise. The study recommends a wider coverage of microfinance through effectiveudimplementation of micro-fund scheme and mandatory business related training for all microudentrepreneurs.