Microfinance Banks, Small and Medium Scale Enterprises and COVID-19 Pandemic in Nigeria

Bako, Yusuf Adebola and Oyegoke, Adebusola Adebola and Idowu, Afolasade Florence and Aderemi, Timothy Ayomitunde (2021) Microfinance Banks, Small and Medium Scale Enterprises and COVID-19 Pandemic in Nigeria. European Journal of Economics, Law and Politics, ELP, 8 (2). pp. 1-10. ISSN 2518-3761

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Abstract

Corona virus otherwise known as COVID-19 has left indelible marks on both human beings and businesses globally. When the virus emerged in Wuhan, China in late 2019, it was viewed as China`s problem. Nobody ever envisioned that the novel virus could spread and result into global pandemic within few months. Meanwhile, the aftermath effects of COVID-19 on various socio-economic activities might not be different from global financial crisis of 2008, which left no economy unaffected. Against this backdrop this study was carried out with a view to investigating the impact of microfinance credit on entrepreneurship development amidst COVID19 pandemic using some selected small and medium enterprises engaging in essentials such as food and consumables, oil and gas and pharmaceuticals in Sango-Ota industrial estate of Ogun state, Nigeria. Primary data were collected with the aid of well-structured set of questionnaire from 100 SMEs which was done purposively. After subjecting the collected data to a rigorous analysis, it was discovered that over 90% of enterprises under investigation used microfinance credit for their businesses during COVID-19 pandemic. Similarly, the study submitted that micro credit increased the stock of goods of the selected and at same time orchestrated a moderate rise in profit for the majority of the SMEs selected for the survey. Consequently, the important findings that originated from this study brought the following recommendations for the policy makers, financial institution and all the stakeholders engaging in SMEs in Nigeria that credit from micro finance has the capacity to facilitate the development of entrepreneurship through expansion of outputs and profitability of SMEs in Nigeria. And as such, the policymakers in Nigeria should create an enabling environment that will facilitate microfinance institution to provide better credit and other financial facilities to SMEs in the country.

Item Type:	Article
Subjects:	H Social Sciences > H Social Sciences (General)
Divisions:	Faculty of Law, Arts and Social Sciences > School of Management
Depositing User:	Unnamed user with email [email protected]
Date Deposited:	13 Jul 2021 14:43
Last Modified:	13 Jul 2021 14:43
URI:	http://eprints.federalpolyilaro.edu.ng/id/eprint/1745

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