Growth and Development of Entrepreneurship in Nigeria: An Investigation of Microfinance from the Rural Settings

Abstract

This study focused on the significance of microfinance to growth and development of entrepreneurship in rural settings of Nigeria. The study determined the role of microfinance on the economic development of the rural areas of Nigeria. For these purposes, survey research was explored, using well structured questionnaires. The universe of the study (80 respondents) consisted of 55 selected SMEs and 25 will-be entrepreneurs in some rural areas of Nigeria, particularly, Kogi State; and the sample size (67) was determined using Taro Yamane sampling method. Bowler’s proportional allocation method was further employed to ensure objective questionnaires distribution process. This study analyzed the data collected in tables with percentage method, and used Chi-Square for hypotheses testing. Findings revealed that microfinance is significant to the growth and development of entrepreneurship, and equally, economic development in the rural settlements of Nigeria. It was concluded that small scale agricultural practice and micro-small scale enterprises are developing in the rural settlements. This makes microfinance significant to the growth and development of entrepreneurship, and equally the economic development in the rural settings of Nigeria. The study therefore recommends that the government should design and implement policies and programmes that are capable of serving as road map for effective and efficient microfinance services in the rural settlements of Nigeria, and that entrepreneurs should carefully manage microfinance facilities to combat peculiar challenges facing their entrepreneurial activities and economic development.

Keywords: Rural Entrepreneurs, Microfinance, Economic Development, Financial Products, Small Scale Enterprises