Microfinance Bank as a Catalyst for Entrepreneurship Development in Nigeria: Evidence from Ogun State
Alalade Yimka Samson, Amusa Bolanle Olubunmi, Adekunle Olusegun A.

Abstract
It is incontestable that an efficient and effective microfinance system is essential for building a sustained economic growth. The success of these microfinance banks can only be achieved through the safety, soundness and stability of the banks coupled with the effective and efficient management of the sector.This paper examines the relationship and causality between microfinance bank operations and Entrepreneurship development in Ogun State, Nigeria. Survey research design was adopted and data collected through financial statement of some chosen microfinance bank operators within ogun state and the use of questionnaires to collect data from a sample of 20 entrepreneurs from each of the four zones in Ogun State which are Ijebu, Egba, Yewa and Remo zones. The impact of microfinance bank operations and Entrepreneurship development in Ogun State, Nigeria was analyzed using the regression analysis method. The study revealed that there is no significant impact of microfinance bank operations on entrepreneurial development in Ogun State. It has been proved that the capitals of these banks are not adequate and there are high incidences of non-performing loans. The capital of these banks is low and because of this; some of these banks have actually gone down. If their capital are adequate and they are liquid to be able to meet obligations as at when due, then microfinance bank operations would enhance the future development of entrepreneurship assuming that the policy objectives are followed. It was also found out that there is no significant difference between entrepreneurs who use microfinance banks in terms of loan and advances and those who do not. This however was due to the fact that most of the entrepreneurs do not even have access to loans and advances in the microfinance banks.It was found out that majority of the entrepreneurs who are SME owners capitalized mostly on personal income and loans from family and friends and not from the microfinance bank institutions because they could not provide collateral assets requested for by these microfinance banks which negates what is in their policy and objectives.The study recommended that Government should find an avenue for creation of awareness on how entrepreneurs can benefit from loans and monitors the microfinance banks closely to ensure disbursement of loans and grants to entrepreneurs. Entrepreneurs should equally endeavor not to divert loans given to them by microfinance banks.

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