International Journal of Research and Innovation in Social Science (IJRISS) | Volume VI, Issue VIII, August 2022 | ISSN 2454–6186

Customer Satisfaction Towards Micro Finance Bank Services Rendered to Small and Medium Scale Enterprises in Nigeria

EMERAH Ajevata. Apollos PhD
Dept. of Business Studies,
Edwin Clark University, Kiagbodo P.M.B.101.Ughelli. Delta State, Nigeria.

Abstract: This study examined the level of satisfaction of small and medium scale enterprises (SMEs) with the services of micro finance banks in Nigeria. Purposive sampling was used to choose two states, namely Lagos and Oyo that had the largest percentage of registered SMEs in Southwestern Nigeria while Slovin’s formula was used to select 374 SMEs. The relevant data was obtained through the administration of structured questionnaire to SME’s operators. Descriptive tools such as percentages and mean as well as inferential statistical tools such as ANOVA were used for analysis. The result showed that small and medium scale enterprises were satisfied with the services of microfinance banks especially in the area of responsiveness, reliability and assurance.

Keywords: microfinance, customer, satisfaction, enterprises, services

I. INTRODUCTION

Microfinance as it is known today originated in Bangladesh but has also taken root in other less developing countries like Nigeria. Microfinance has become a veritable source of finance to small and medium scale enterprises (SMEs) world wide, especially in less developing countries where the conventional banking system has little or nothing to offer firms with low turnover and profits. Although small and medium scale enterprises are in dire need of capital to grow to maturity, most deposit money banks are not willing to finance start ups and other smaller enterprises. It should be noted that due diligence and the assurance of safety of their funds is of paramount importance to most banks, and that is why they could be seen as slow in responding to requests for funding from small and medium scale enterprises.
Financing of small businesses in Nigeria by Micro Finance Banks has become an important policy choice in government’s economic programmes. Nigeria started microfinancing with the establishment of community banks which later metamorphosed into microfinance banks.It is believed in many quarters that the activities of microfinance banks are tailored towards the growth and survival of small and medium scale enterprises. It is important to emphasise that it is the primary responsibility of microfinance banks to ensure that their customers are provided acceptable quality of service and to promptly and professionally address complaints