Micro-Credit and Micro-Enterprise Development: An Analysis of Some Rural-based Enterprises in Nigeria

This paper examines the impact of micro-credit, as administered hy a UNDP-sponsored microji.nance institution (MFI) among some ruralbased enterprises in some selected local government areas in Lagos State, Nigeria. The data for the study were obtained from an enterprise survey of 70 micro-enterprises randomly chosen from the list of emerprises financed by the MFI. The analysis suggests that most of the enterprises that received financial assistance in the form of micro-credit reported improvement in their businesses. Furthermore, a linear probability model was specified and estimated and the results exhibit rharacteristics (both of the enterprises and the emrepreneurs) that were responsible for business success. The paper concludes by calling on national governmellls and imenzational donors to give more support to MF!s to enable them support wealth-creation programmes, especially among the rural poor in Nigeria. It is also of prime importanre that the recent Nigerian microji.nanre policy be assiduously implemellled