Abstract
The paper explored the extent to which current microfinance lending impacts on indigenous SME access to finance and how the intermediation services of the microfinance banks (MFBs) contributed to or otherwise to the development of SMEs. A total of 800 such indigenous SMEs were identified, however, data were obtained from 300 of the identified indigenous SMEs from a questionnaire survey in four states (provinces) within the country that make up the Niger Delta region. The result shows positive contribution of microfinance lending to the development of such enterprises. However, it appears that a number of factors including cumbersome process, poorly packaged business plans and perceived high cost of credit still limit the access of indigenous SMEs to credit. Keywords: microfinance banks, SMEs, entrepreneurship, financial services. JEL Classification: G21, L26, M13
Highlights
Small and medium sized enterprises (SMEs) play a critical role in sustainable economic development of many nations, because it has been identified as a catalyst for economic growth and development in both emerging and developed economies of the world (Normah, 2007; Obokoh, 2008, p. 92)
The result is presented in two parts commencing with the questionnaire survey and, the interview
It was indicated by 44.0% that they were able to secured credit from microfinance banks (MFBs) which is contrary to Nikolaos et al (2013) findings of Greek SMEs preference for own funds
Summary
Small and medium sized enterprises (SMEs) play a critical role in sustainable economic development of many nations, because it has been identified as a catalyst for economic growth and development in both emerging and developed economies of the world (Normah, 2007; Obokoh, 2008, p. 92). Small and medium sized enterprises (SMEs) play a critical role in sustainable economic development of many nations, because it has been identified as a catalyst for economic growth and development in both emerging and developed economies of the world It has been observed that commercial banks traditionally prefer to Lawrence Ogechukwu Obokoh, James Unam Monday, Udechukwu Ojiako, 2016. Lawrence Ogechukwu Obokoh, Professor, Department of Cost and Management Accounting, Cape Peninsula University of Technology, Cape Town Campus, South Africa. Udechukwu Ojiako, Professor, Faculty of Engineering and Information Technology, The British University in Dubai, Dubai
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