Microfinance and Micro

Abstract

The main objective of this study is to examine the impact of microfinance on micro and small business survival in Nigeria. Data for the study are derived from both primary and secondary sources. First, a survey of MFB entrepreneur #x2013; clients was undertaken using simple random sampling technique to select our respondents; then, some data were extracted from the client#x2019;s record with the Microfinance Banks (MFBs) on profit and sales. The data obtained were analysed using Kaplan Meier and Cox regression analysis. The findings revealed that micro financing enhance survival of Micro and Small Enterprises (MSEs) but most of the enterprises remain at the survival level of the business life cycle. We recommend that enterprise finance by MFBs should be linked up with larger financing window like the Small and Medium Enterprise Equity Investment Scheme (SMIEIS) fund or Strategic Partners like the commercial banks for expansion and growth funding after survival. We also recommend immediate recapitalization of the MFBs to enable them support MSEs adequately.