Effect of Micro-Credit on Micro Business Development among Women Entrepreneurs

Women have been recognized as key contributors toward livelihood and poverty eradication, especially in developing countries. Hence, entrepreneurs planning to start their own businesses rely on microfinance as a source of resources for their micro businesses. Therefore, the study examines the effect of micro-credit on micro business development among women entrepreneurs. However, the methodology of the study is based on the results of the previous studies, hence, inclusive criteria were used; therefore, the paper is conceptual in nature. Moreover, the study found that there is a significant positive effect of micro-credit on microbusiness development among women entrepreneurs. The implication of the result is therefore positive on the micro business development, the more women businesses are using micro-credit the more their development and vice versa. The study concluded that a positive relationship between micro-credit and business development among women entrepreneurs. Based on the findings, the study recommends that women micro businesses should introduce the use of microcredit to expand their businesses while employing different phases of accountability as well as treating the business as a separate entity with the owner in order to protect the loan liability that the business is entitled to pay as at when due.