RECOMMENDATIONS FOR FURTHERING ACCESS TO MICROFINANCE FOR MSMES IN MAKURDI METROPOLIS

Abstract

The Micro, Small, and Medium Enterprises (MSMEs) sector is crucial for the economic growth of developing countries, and microfinance facilities play a vital role in their financial performance. In this study, we investigate the impact of microfinance on the performance of MSMEs in Makurdi, Nigeria. We analyze the number of MSMEs receiving microfinance intervention, the sources of microfinance, the effects of microfinance credit on MSME performance, the participation rate of women in MSME ownership, and the types of businesses that medium enterprises engage in within Makurdi metropolis. Our research design is descriptive and employs the survey method, with a sample size of 323 MSMEs. The study found that microfinance has a positive effect on sales revenue, profitability, and non-current assets of MSMEs. However, we also found that there is a need to create more awareness on the importance of microfinance in entrepreneurship development and for governments to facilitate access to microfinance credit by MSMEs, especially from microfinance banks. Additionally, women's participation in entrepreneurship activities needs encouragement, and more loans should be granted to them to enhance their engagement in MSME ownership.