Microfinance Banks and the Growth of Small Scale Enterprises in Cross River State

Abstract

This study examined microfinance banks and the growth of small scale enterprises with particular reference to Cross River State, Nigeria. The research design was descriptive survey. The instruments used in collecting data were questionnaire and personal interview. The data collected were analyzed using simple percentage and Pearson product moment correlation. The results of the analysis showed that microfinance banks services impacted the development of small scale enterprises. It was found that microfinance banks do not carry out adequate awareness campaign programme in order to increase patronage. It was found that most small scale entrepreneurs who procure loans from microfinance banks hardly put it to use in growing their businesses. It was recommended that microfinance banks should create adequate public awareness campaigns especially utilizing the electronic media. Also, microfinance banks should review the requirement for granting loans to small scale enterprises. The study recommended that microfinance banks should have task force or teams to monitor how the loan granted to any small scale entrepreneur are being utilized.