Micro-Finance and Performance of Micro, Small and Medium Enterprises in Jos Metropolis

Abstract

The Micro, Small and Medium Enterprises (MSME) sector plays a vital role in the growth of the economies of developing countries. Similarly, microfinance facilities are crucial to MSMEs financial performance as they facilitate the growth and development of MSMEs. This study, therefore, investigates the effects of microfinance on MSME performance in Jos metropolis of Plateau State. The research design is descriptive and employs the survey method. Simple random sampling technique was adopted as a technique in selecting the 323 MSMEs that form the sample size of the study. A structured questionnaire was used in the collection of relevant data used for analysis. Data was presented through the use of frequency tables and Chi-square test was used to carry out the analysis. The study found that microfinance has a positive effect on sales revenue and profitability and non-current assets. The study recommends creating awareness especially for women on the importance of microfinance in entrepreneurship development. The study also recommends that the Plateau State government should set up and implement policies that will ease access to microfinance credit by MSMEs, especially from microfinance banks. The study also recommends the granting of more loans to women to increase the number of women engaged in entrepreneurship activities within Jos metropolis.