THE IMPACT OF MICRO-FINANCE BANKS ON THE DEVELOPMENT OF COMMUNITY TRADERS

Abstract

This study aimed at examining impact of micro-finance banks on the development of community traders in Ovia North East Local Government Area of Edo State. Four research questions were raised to guide the study. The design adopted for this study is the survey research design. The sample consisted of 125 basically petty traders in the Local Government Area. Questionnaires were used for the collection of data from 125 (one hundred and twenty) respondents which were basically petty traders. The research instrument was validated by the researcher’s supervisor. The test re-test method was adopted in testing the reliability of the instrument after which the research instruments were administered by the researcher herself. The data obtained were analyzed using mean and standard deviation. Findings revealed that ABC micro finance bank limited, Lapo micro finance bank limited, Lift micro finance bank, Lofty height micro finance bank are the functional micro finance banks. It was also revealed that financial services of microfinance banks have impact on sales and profit overtime of the community traders. Based on the findings, it was recommended that the management of Micro-Finance Banks should intensify to extend their services to other rural communities for economic development of the people. This will help to reduce poverty among the host communities and beyond, Micro-Finance Banks should ensure the provision of basic and social amenities to these communities as part of their corporate social responsibility. This will in a way attract more customers from within the catchment zone.