FACTORS INFLUENCING ACCESS TO MICROCREDIT BY MICROENTERPRISES IN NIGERIA: A QUALITATIVE STUDY OF MICROFINANCE BANKS

Abstract

This is a qualitative study of microcredit supply from the microfinance banks (MFBs) to microenterprises in the three senatorial zones of Kano state that involved interviews with eight staff selected from the MFBs’ branches in the study area, using a purposive sampling technique. It intended to investigate how borrower’s attributes and that of his business influence MFB’s decision to approve credit application. Nvivo 10 software was used to analyse the information gathered from the interviews. Age of borrower, his family size, location of his business, initial investment and his business size (in terms number of employees) were found to be important factors that influence the supply/approval of credit application. It is recommended based on the findings that, policy should be designed to reduce the influence of these factors in credit lending and to provide rural areas with facilities to further stimulate credit demand that will subsequently enhance credit supply in the country.