IMPACT OF MICROFINANCE BANK ON GROWTH OF SMALL AND MEDIUM SCALE ENTERPRISES.

The broad objective of this study was to examine the impact of Microfinance Banks on Growth of Small and medium Scale in Nigeria. The study adopted the survey research design and data was gotten from owners and staff of SMEs operating in Edo state via structured questionnaire. A total of three hundred and twenty three (323) copies of the questionnaire was used to perform the analysis. The Chi-square statistical analysis was used to test the hypotheses of the study. The findings of the study revealed that microcredits granted by Microfinance banks has positive and significant impact on growth of SMEs in Nigeria. Secondly, the study found that Microfinance Payment Services has positive and significant effect on on growth of SMEs in Nigeria. Thirdly, the result of the study revealed that Savings mobilization role Microfinance Banks has positive and significant impact on growth of SMEs in Nigeria. The study recommended that Government should create an enabling environment for Microfinance Banks to perform its primary role of savings mobilization, payment services and granting of microcredits to Small and medium Scale Enterprises in Nigeria