THE ROLE OF MICROFINANCE INSTITUTIONS AND SMALL SCALE BUSINESS PERFORMANCE IN IBADAN SOUTH WEST LOCAL GOVERNMENT AREA, IN NIGERIA

This work therefore examined the effect of micro finance scheme on the performance SMEs Enterprise in Ibadan South West Local Government. Small and medium enterprises are believed to be the engine room for the development of any economy, because they form the bulk of business activities in a growing economy like that of Nigeria. This is manifested in the following ways, Employment generation, rural development, Economic growth and Industrialization, Better Utilization of Indigenous Resources. In the past, Nigeria’s the methodology adopted in this study is mainly the use of primary data which includes questionnaire and personal interview. Simple percentage and Chi-square statistical method were used to analyze the data collected before reaching conclusion. The findings of the research indicated that micro finance banks financing scheme positively affect the performance of SMEs in Nigeria. It is therefore recommended that it is important for SMEs to understand the source of its funds and the costs associated with the funds. The research instrument used in this study was the questionnaire. Copies of the questionnaire were distributed proportionally to the selected members of staff of selected microfinance in Ibadan South West Local Government in order to solicit their Respondent as regards the research work. The questionnaire was made up of two sections. Section A elicited Respondent as regards the biographical data of the respondents, it contained (5) questions. Section B elicited responses on the peculiar research questions.