EFFECT OF ACCESS TO MICROFINANCE SERVICES ON THE PERFORMANCE OF SMALL-SCALE WOMEN ENTERPRISES IN ABIA STATE, NIGERIA

Abstract

This study analyzed the effect of access to microfinance services on the performance of small-scale women enterprises in Abia State, Nigeria. The specific objectives were to; determine socio-economic characteristics of women entrepreneurs the enterprise involved in by women entrepreneurs the type of microfinance services available to women entrepreneurs, the access to microfinance services and criteria used in selecting beneficiaries and non-beneficiaries of microfinance services among women entrepreneursffect of microfinance services on the performance of  women involved in small and medium scale enterprises and the factors that determine access to microfinance services among women involved in small and medium scale enterprises. Multistage random sampling technique was used in selecting 150 women entrepreneurs (75 beneficiaries and 75 non-beneficiaries) from 5 Local Government Areas of Abia State. Data were collected using structured questionnaire and analyzed using descriptive statistics tools such as means, percentages, frequency distributions, Double Difference (DD) estimator and logit model. The results of the study revealed that majority of the respondents were young (X=41.5 years), married (92%), educated (about 72% completed secondary education), experienced (X= 9.5 years) in business, and could adopt financial and innovative ideas. The study concluded that microfinance services had positive effects (since the outcome difference for both beneficiaries and non-beneficiaries was N 7, 720,000) on the business performance of small-scale women entrepreneurs. In addition, the mean access to microfinance services among the beneficiaries and non-beneficiaries was about 52% and 11%. The study therefore recommends that more awareness should be created on the services of microfinance banks and the benefits attached to it. Entrepreneurs are encouraged to gain formal education, experience and training in their businesses to enhance efficiency and effectiveness in entrepreneurial activities.