The effects of non-financial intermediation of Microfinance banks on micro, small and medium enterprisesrsquo; performance in Kano state, Nigeria

Abstract

The study examined the effects of microfinance banks’ non-financial services on the performance of micro and small enterprises in Kano state, Nigeria. The sample was drawn through multistage stratified random sampling and comprised 544 beneficiaries of microfinance banks selected from 10 local governments across the state. Data was collected using questionnaires and analysed with the aid of OLS model. The findings showed a significant positive relationship between business advisory services, pre-loan trainings and MSEs’ performance, while group membership and networking meetings have positive but insignificant relationship with MSEs’ performance. Business experience, education, and gender were also found to be positively and significantly related with business performance. The study recommends that, microfinance banks should put more efforts in improving business advisory services and pre-loan trainings so as to promote better performance of beneficiaries’ business.