THE ROLE OF MICRO-FINANCE BANKS IN ENTREPRENEURSHIP DEVELOPMENT IN NIGERIA AND SOME SELECTED COUNTRIES

This article investigated the role of micro-finance banks in entrepreneurship development in Nigeria and some selected countries. Micro-finance banks in Nigeria and other parts of the world are recognized to be the key players in the urban-rural financial intermediation system. Their functions are positively affecting the live of individuals, small business organizations, artisans and market women in both the rural and urban centres. The core functions of microfinance institutions include; the provision of credit to small businesses, giving financial advice and assistance to petty traders, market women and artisans engaged in various trades in both the rural and urban centres. The distinctive characteristic of micro-finance banks is that they are customer-friendly and in close touch with local dwellers. The major objective of this article is to weigh and measure the role of micro-finance banking as a tool for achieving both entrepreneurship development and rural economic advancement in Nigeria. The result of the study revealed that micro-finance banking is making great impact in rural economic development and raising the standard of living of the people. Descriptive research method was adopted in this article. 20 questionnaires were administered to each of the 10 chosen micro-finance banks operating in Lagos State. Interviews sessions were also held with the chief executive officers and some key members of staff in each micro-finance bank with a view to identifying their areas of success, problems and future prospects. Literature review on micro-finance banking in some foreign countries was carried out to compare operations and activities in those countries with current realities in the Nigerian micro-financing environment