This work investigated the relationship between micro finance and entrepreneurial development aimed at reducing poverty in the economy.The primary method of data collected from small and medium enterprise were used for their study. In the analysis table and simple percentage were used.Major findings of this work reveals that there is a strong positive relationship between micro financing and entrepreneurial development further findings shows that provision of long term loans and equity capital by micro finance bank for enterprise are factors that militated against micro finance in the economy.This work recommended that guidelines for micro finance institutions to finance SME’s need to be flexible to accommodate the SME’s in terms of granting them long-term loans and quality capital participation.This will be of immense benefit to SME’s micro finance banks authority and the students of body and firms who may be interested in further research on this topic.




The issue of sustainable development in the third world countries like Nigeria has been a growing concern to both the government and the private sector. The huge amount of money the government has been investing on this platform over the years have not yielded any meaningful result. Poverty is a characteristic OF Nigeria households or individuals. In recent years, it has been recognized that there are limits to what the state can do to support development. Most of the traditional functions of government in most countries, from providing economic development, are becoming increasingly difficult to perform. As a nation, Nigeria has its own administration, corruption, declining infrastructure, insecurity for life and property, unstable macroeconomic regimes, and unpredictable tax regimes under successive governments (Fasug, 2006).

Therefore, both the public and private sectors of the economy and all parts of the country’s society. Based on this, the government begins to get involved in privatization policies, allowing the private sector to participate in the country’s economic development and thus in various governmental processes of the country’s economy. One of the responses to development challenges in developing countries is promoting entrepreneurship issues. Nigeria has taken another strong step by including entrepreneurship studies in the academic he curriculum of the education system. The belief of such politicians is that such decisions instill an entrepreneurial spirit in people and prepare them to create wealth through SMEs (Fasua, 2006).

SMEs are very important for development.

From the economy of the country, especially the economy of a country like Nigeria. Entrepreneurship is essential to national development, poverty eradication and employment in general. It is the basis of industrialization in all countries. Many studies have been conducted on the impact of microfinance on entrepreneurship development. Indeed, academic interest shows that the impact of microfinance on the development of entrepreneurship is evidenced by the fact that some academic journals devote special issues to research demonstrating this link. increase.

According to Amin, Rai, and Topa (2003), their article focuses on the ability of microfinance to reach the poor and vulnerable. They fear that microfinance serves only those just below or above the poverty line, systematically excluding the truly poor and the destitute, hence the article as follows: I am focused. Therefore, the question of whether microfinance improves or impairs the development of entrepreneurship deserves further investigation, such as that conducted in this study.

1.2 Problem Description

In every country in the world, microfinance contributes to national development by providing loans to low-income people. According to Copestake, Halotra and Johnson (2001) analyze the impact of microfinance on business and individual well-being. Copestake even focused on performance and household income to establish links with time availability, but microfinance did not appear to be finance for the poor and business customers. . Research was continued to examine the problems of this study.

Inability to encourage new business development.
Inability to support existing business growth or business diversification
low employment rate
Failure to create employment and income opportunities through the creation and expansion of microenterprises. Inability to increase productivity and income of vulnerable groups and poor people.
high poverty rate
Economic dependence on foreign countries.
I.3 Purpose of the survey

The goal of microfinance for entrepreneurship development has led the Central Bank of Nigeria to adopt it as the primary source of finance for entrepreneurship in Nigeria.

Nonetheless, finance is still considered one of the major obstacles to entrepreneurship development in Nigeria.Government and non-governmental organizations (NGOs) run numerous programs in the county. The specific purpose of this research is to:

Examine the importance of entrepreneurial activity for the sustainable development of entrepreneurship in Nigeria.
Examine the impact of microfinance institutions on entrepreneurship.
Examines the challenges of accessing capital for entrepreneurship development in Nigeria.
Raise awareness of the importance of microfinance institutions in fostering entrepreneurship in Nigeria.
1.4 Research question

In order to achieve the above objectives, we will proceed with the following research subjects.

Is microfinance contributing to entrepreneurial activity leading to sustainable development in Nigeria? B:
Do entrepreneurs have access to capital for small business development in Nigeria?

What prospects does microfinance have for entrepreneurship development in Nigeria?

1.5 Research hypothesis

Is the development of entrepreneurship influencing Nigeria’s development? The following null hypothesis is proposed and tested in this study causally.
There is not much difference between entrepreneurs who use microfinance and those who do not. The activity of microfinance institutions does not have a significant impact on predicting entrepreneurial productivity.
The activity of microfinance institutions has no significant impact on predicting the development of entrepreneurship
1.6 Importance of research

The importance of microfinance to the development of entrepreneurship has led the Central Bank of Nigeria to adopt microfinance as a major source of funding for entrepreneurship in Nigeria.

The significance of this study is:

Microfinance helps provide financial services to the low-income, the poor and the very poor self-employed (Otero 2000).
Microfinance has the ability to reinforce best practices for SMEs and small businesses.
Microfinance helps provide financial services to low-income customers, including the self-employed.

1.7 Scope/Boundaries of the Study

This study focuses broadly on the impact of banks on SME entrepreneurship development, but with a focus on SMEs, but on growth and development in the staunch Nigerian economy.

We also look at the spreads between parallel microfinance banks and official microfinance banks to identify the factors and culprits for the differences. and how it contributed to the growth of the country.

The study covers commercial locations, locations, business environments, cities and towns in various states, but primarily focuses on Lagos State.

1.8 Research Limitations

Limitations refer to potential weaknesses in your research, i.e. difficult situations or challenges that cause you to feel uncomfortable while writing your project. Weaknesses in this study stem from certain factors that occur at multiple levels of practice, including such limitations

This limitation is due to some microfinance banks in Lagos State and lack of funds to obtain important information from respondents.
A small sample compared to the total population:
Please note that due to limited resources to conduct investigative dispositions, we may not or may not allow larger sample sizes.
Lack of cooperation from respondents:
This limitation is due to lack of cooperation and insufficient information from respondents.
Unnecessary bottleneck issues:
I had to sign documents, move from one counter to another, and go through unnecessary procedures to get the materials to the bank. it gets messy. 1.9 Definition of terms

Microfinance has evolved into an economic development approach designed to benefit low-income men and women. The term refers to the provision of financial services and typically includes savings and loans. However, some microfinance institutions also offer insurance and job placement services.

An entrepreneur is a person who owns a company or organization and manages and controls the company’s operations and activities.

Entrepreneurs are sometimes referred to as sole proprietors or sole proprietors of a business. He or she runs the company’s day-to-day activities.

A loan is considered a long-term debit issued by a financial institution to a corporate customer to be repaid with interest over a specified period of time using collateral as collateral.

According to Nzoha (1999), this is the asset that the borrower willingly pledges to the bank as a secondary source of payment when the primary source of funds (income and profits) of the bank-lending instrument is exhausted. Collateral in this sense is a right or interest in property conferred by a debtor to a creditor so that the debtor can repay the debt from the assets when the debtor settles the debt .

A petition grants the creditor exclusive ownership of the property until the pledge settles the debt, with the risk that ownership remains with the debtor subject to the exercise of the right.


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