MICROFINANCE BANK SERVICES AND EMPLOYMENT GENERATION OF SMALL AND MEDIUM SCALE ENTERPRISES IN NORTH-CENTRAL NIGERIA

Abstract

One of the important roles of Small and Medium Enterprises (SMEs) play in Nigeria’s economy is employment creation. But with the persistent increase in the rate of unemployment in the country, one begins to marvel whether the prevailing numbers of SMEs are insufficient or poorly managed to address the cahllenge. It is in the light of this that this study examined microfinance bank services and employment generation of small and medium scale enterprises in north-central Nigeria. Data was elicited from 370 respondents who were carefully chosen using a 4-stage sampling technique. Data was collected through a well-structured questionnaire. Data analyses were carried out by employing ordinary least square regression. Variables that suggestively give details of the employment generation of small and medium enterprises among the respondents were gender of SME owners (p < 0.05), microfinance banking services (p < 0.05), electronic banking services (p < 0.1), banking supervision (p < 0.05) and group formation (p < 0.05). It could be inferred from the study that both the Microfinance Banks (MFBs) financial and non-financial service are vital instruments for improved levels of SMEs employment generation. Policies that will improve the availability of financial and non-financial services of microfinance banks, particularly those related to the provision of microfinance and electronic banking services, supervision/monitoring and group formation should be put in place in order to enhance the level of employment generation of SMEs in the region. Attempt should also be made to improve the quality of banking supervision rendered by microfinance banks so as to exert positive influence on SMEs employment generation