Modeling Microfinance Management for Industrialization and Economic Development in Nigeria: Factor Analytical Approach

Abstract

the study was aimed at identifying the potential factors in the inter-relationship among microfinance, economic growth and development for a possible infusion as active microfinance policy instruments. it was designed essentially as a correlation study. data were sourced from National Bureau of Statistics and Central Bank of Nigeria. Results indicate that 1. the two potent factors which affect the impact of microfinance on industrialization and economic development are economic empowerment and entrepreneurship training 2. aggregate output was an active variable which propelled economic development in Nigeria.3. microfinance 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. entrepreneurship training for operators of SMEs contributed sizably 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 SMEs by providing massive financial support to MFIs.