IMPACT OF MICROFINANCE BANK ON THE ECONOMIC DEVELOPMENT OF SMALL SCALE INDUSTRIES IN NIGERIA.

The study investigated the impact of microfinance banks on the economic development of small-scale industries in Nigeria. A survey research design was adopted for the study. Data were obtained through a structured questionnaire administered to 120 Small and Medium Scale Enterprises (SMEs) in Osun State. The collected data were analyzed using descriptive statistics and regression analysis with the aid of SPSS. The findings revealed that microfinance banks have a positive impact on the development of small-scale industries in Nigeria. Specifically, microfinance has increased access to financial services for small-scale enterprises, thereby reducing financial exclusion. It has also enabled small-scale industries to invest in new technologies and equipment, leading to improved productivity. Furthermore, microfinance activities have contributed to job creation and employment generation within the sector. The results further indicated that small-scale industries positively influence Nigeria’s economic development through job creation, promotion of entrepreneurship and innovation, development of local skills and technology, improvement in living standards, reduction in poverty and income inequality, and enhancement of rural development. The study established a positive relationship between microfinance banks and the development of small-scale industries in Nigeria. It is therefore recommended that greater efforts be directed toward supporting and strengthening the productive capacities and market competitiveness of small and medium-scale enterprises in the country.