Assessment of the Effect of Small and Medium Enterprises’ Patronage on Financial Performance of Microfinance Banks in Ilorin, Kwara State
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Date
2018
Journal Title
Journal ISSN
Volume Title
Publisher
Faculty of Management Sciences, University of Ilorin, Ilorin
Abstract
Small and Medium Scale Enterprises (SMEs) are the entire variety of moneymaking activity within all sectors such as banking sectors and share amount of general harms that deter effective performance in many nations. However, effect of SMEs in the economy generally on microfinance banks have not been observed due to low effect of microfinance banks service products as expected to meet the. Therefore, it becomes imperative to examine the effect of SMEs patronage on performance of Microfinance Banks (MFBs) in Ilorin, Kwara State. The used a well-structured questionnaire to collect data from 104 employees of five (5) selected Microfinance Banks (MFBs) in Ilorin Metropolis. Pearson correlation 5% level of significant was used to test the formulated hypothesis of the study. Findings of the study shows that there is a significant correlation between small and medium scale enterprise (SMEs) and product services of microfinance banks which include loan service (R=0.950), e-transacts (R=O.939), financial advisory (R=O.964) and group collection services (R=0.926) is high at 5% level of significant. The study concludes that when SMEs properly harnessed and supported by microfinance financial product services it will contribute significantly to the performance of MFBs. The study recommends that SMEs as a sub-sector of the economy improve the performance of MFBs but the growth of Micro financing industry required further improvement for better financial performance in the industry.
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Keywords
Financial, Microfinance Bank, Patronage, Performance, SMEs.
Citation
Salman et al