IMPACT OF MICRO-CREDIT ON ENTERPRENURSHIP DEVELOPMENT IN NIGERIA

The importance of credit to small and medium scale business is to stimulate SME production, and most of these improved implement and seeds are not found in Nigeria and are pretty expensive. Microfinance institutions as a means of resolving financing problems of small and medium scale businesses so as to create wealth, improve standards of living and achieve economy growth and development. The traditional microfinance institutions provide access to credit for the rural and urban, low-income earners. The study seeks to examine the prospects and challenges of microfinance business in Nigeria and identify the role of microfinance bank in wealth creation in the rural areas. Data were collected from sample population 289 small business operators located in FCT-Abuja and the data were subject to analysis. The findings indicate amongst other that microfinance institutions (MFIs) has immensely contributed a lot to the wealth creation and investment in the study area through lending of loans to individual and groups for entrepreneur activities to bring about general increase in the production of goods and services create employment opportunities to the business, attracts foreign investment. The study recommends that MFIs should provide institutional structure for client’s participation in government and management of the institutions.