Impact of Microfinance Bank on the Economic Development of Rural Populace

Student: Efosa Blessing Agborumen (Project, 2025)
Department of Business Administration and Management
Osun State Polytechnic, Iree, Osun State

Abstract

ABSTRACT
The study investigated the Impact of micro finance bank on the economic development of the rural populace using Ospoly Microfinance Bank Iree as case study. The primary data used for investigation were sourced through the structured questionnaires administered to 30 customers of the bank. Descriptive analysis; mean values and histograms were used to explain variables and their effects and Modified multiple regressions were used for data analysis. The result indicated that the bank despite its numerous challenges/limitations has great impact on the performance of small scale business in its area of operation. This is because, all explanatory variables (except business sustenance) in the chi-square analysis; source of capital, profit generation, business expansion, savings/investments, and wealth creation have significant coefficients, an indication of positive impact on miero business performance and poverty level. Ospoly Microfinance Bank however, needs more efforts to roll out more enriched loan packages and to enlighten the customers to be able to fully utilize the micro loans available at the bank. The Small Business Owners must also be encouraged to cultivate culture of Business sustenance so that consistency and experience is guaranteed.

Keywords
business impact microfinance analysis economic development rural populace micro ospoly
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