The Impact of Gombe Micro Finance Bank on Profitability and Income of Agricultural Businesses in Gombe Metropolis, Gombe State, Nigeria

Abstract

The study examined the impact of Gombe micro finance bank on profitability and income of agricultural businesses in Gombe metropolis, Gombe  State , Nigeria. Multi stage sampling technique was used in selecting 105 beneficiaries of the bank comprising of  fifty (50) microprocessors, thirty (30) vegetables sellers and  twenty five (25) fruits sellers. The data were collected using structured questionnaire. Secondary data were also collected from the bank. The data were e analyzed using descriptive statistics, T-test, Gross margin analysis and multiple regression models. The results of the analysis revealed that Women constituted 49% of the beneficiaries of the bank loans since its inception in 2008. There was significant difference in income of the respondents before and after benefiting from the loan. The gross margin analysis revealed that the respondents had an average gross margin of 2096.70 NGN.The major problems encountered by the respondents while accessing the loan were; compulsory saving with the bank, high interest rate, loan maturity period and frequency of visits for the loan recovery.

Keywords: Impact, Gombe Micro finance bank, Profitability, Income, Agricultural businesses