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Banking and Finance — 2025, Undergraduate
This study examined the effect of microfinance credit on the growth of small and medium enterprises in Nigeria. A descriptive survey was conducted with SME owners who accessed microfinance loans using a structured questionnaire. Data were analysed using descriptive statistics and regression analysis. The findings revealed that access to microcredit significantly improved working capital, output, and business expansion, particularly for small enterprises. However, high interest rates, collateral demands, and short repayment periods constrained full benefits. The study recommends affordable lending terms, enterprise training, and improved linkage of microfinance with SME development programmes.
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