Modelling Microfinance Management for Industrialization and Economic Development of Nigeria: Factor Analytic Approach
Okafor, S.O., Oleribe, E.C. & Mba, S.A. (2013). Modelling microfinance management for industrialization and economic development of Nigeria: Factor analytic approach. Journal of Economic Studies, 10(1), pp.21-31
11 Pages Posted: 30 Jun 2016
Date Written: June 28, 2013
The study was aimed at identifying the potent factors of the inter-relationship among microfinance, economic growth and development for a possible infusion as active micro finance policy instrument. It was designed essentially as a correlational study. Data were sourced from national bureau of statistics and central bank of Nigeria. Results indicate that:
(1) The two potent factors which affected the impact of micro finance on industrialization and economic development are economic empowerment and entrepreneurial ship training.
(2) Aggregate output was an active variable which propelled economic development in Nigeria.
(3) Microfinancing was effective for providing advisory services and enhancing the employability of operators of SMEs.
(4) Microfinance impacted positively on output in the industrial sectors.
(5) Entrepreneurial ship training for operators of SMEs contributed size ably to economic growth.
Based on the findings it was recommended inter alia. That federal government should pursue more vigorously the economic empowerment of the operators of the SMEs by providing massive financial support for the MFDIs to contribute maximally to growth.
Keywords: Direct investment, Economic growth, Public sector theory, Factor analytic theory
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