MICROFINANCING AND ENTREPRENEURSHIP DEVELOPMENT IN ILARA MOKIN, ONDO STATE: A CASE STUDY APPROACH

Abstract

The study examined the contribution of micro financing to entrepreneurship development in Ilara-Mokin, using the Shield Microfinance bank as a case study. Microfinance Banks (MFBs) serve as an engine, through which economic industrial development subsists. The study made use of primary data, which was collected through a structured questionnaire. Seventy-four (74) questionnaires were administered to Customers of Shield microfinance bank in Ilara- MokinOndo state, via purposive sampling. Analysis of the Data gathered was carried out through the use of descriptive Statistic like tables, frequencies, charts and percentages while inferential statistical techniques such as Analysis of Variance (ANOVA) and one-sample ‘T’-test were used to test the formulated hypotheses with the aid of Statistical Package for Social Sciences (SPSS) version 20.0.The findings showed that, there was a significant relationship between microfinancing and entrepreneurship development in the community; and high borrowing charges on the loan by the microfinance bank may hinder entrepreneurship development, and which may lead to inability to stimulate economic development and business sustainability in the area. However, the paper recommends that regulatory authorities and policy makers should review the microfinance regulatory framework from time to time, according to global standard in order to ensure that, loans that are made available to the entrepreneurs are at a minimal interest rate, to enhance development