Journal of Economics and Economic Education Research (Print ISSN: 1533-3590; Online ISSN: 1533-3604)

Abstract

Effectiveness of Microfinance Banks in the Delivery of Credit to Entrepreneurs for Poverty Reduction in Ekiti State

Author(s): Oyerinde David Oluseyi, Aina Mattew Adebayo, Onajite Godwin Onnoh, Olaniyi Oladele Nathaniel

The study investigated effectiveness of microfinance banks in the delivery of credit to entrepreneurs for poverty reduction in Ekiti State. The design adopted for the study is descriptive research of survey type. The population of the study consisted of 381 owners of registered small and medium business in Ekiti State. The whole population was used for the study therefore no sampling was done. A self-design questionnaire on 5-point scale was used to collect data for the study. The instrument was validated by two experts. The reliability of the instrument was established using Cronbach Alpha and yielded a reliability coefficient of 0.72. Data collected were analyzed using mean. Finding of study revealed that microfinance banks are effective in the use of their credit to improve the living standard of entrepreneurs. The study recommended among other things that the capital base of microfinance banks should be increased to enable them grant more credit to prospective entrepreneurs in order to increase the number of small and medium scale business.