Abstract
This research on the effect of microcredit institutions on the development of small and medium scale enterprises (SMEs) in Anambra State was aimed at determining the impact of microcredit institutions in starting up, survival and growth of SMEs as well as the effect collateral requirements in obtaining loans from microcredit institution in Anambra South and North senatorial district of Anambra State. A sample of 450 respondents was selected for the work using the judgmental and systematic random sampling methods. Although a significant relationship were observed to exist between microcredit institutions and SMEs development, the small degree of association that exist suggests that capital (microcredit) is not the only factor that affect SMEs in the study population. Keyword: SMEs, Microcredit, small scale business, SME financing
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