THE EFFECT OF MICROFINANCE BANKS ON THE DEVELOPMENT OF SMALL SCALE BUSINESS

This research shop investigates the effect of microfinance bank, on the growth of small scale enterprise. The basis for this research work stem for the fact that small and medium scale enterprise face challenges of starting expansion and smooth operations due to problem of raising capital through microfinance bank. The purpose for this study therefore, is to investigate whether microfinance banks actually contribute to the growth of small scale business in general, four research question of small and three research hypothesis where formulated for the study. The researcher used ,Usman water depot a small and medium scale business based in Uyo. In data generation through the use of questionnaire. The population of the study comprises of all the active staff working in Usmer water depot with the total number (25) staff comprising of two males and (15) females. The researcher adopted the entire population of as the sample size in the study. A structure questionnaire was developed by the researcher and used in data country. Out of (25) questionnaire distributed, only (20) were correctly filled and returned to the researcher and this number was used for analysis. The major source of data collection used in carrying out this work is the primary and secondary source of information. Data collected for this study was presented in a tabular form, a frequency distribution table, simple percentage and chi-square method was employed as a statistical tool in the study. The result of findings shows that microfinance banks contribute immensely to the growth and development of SMEs. It can be concluded that the impart of microfinance banks aids the growth of SMEs in several ways from provision of loans, charging of low interest rate monitory of activities of SMEs and provision of professional adviser on effective ways of application of credits, facilities provided. It is recommended that an effective monitoring mechanism and method of loans recovery should be put in peace in case of defaulting.