Financial Inclusion as A Tool for Survival of Small and Medium Family Enterprises: Lessons for Nigerian Microfinance Banks


  • Odetayo, Tajudeen. A Osun State Polytechnic, Iree, Nigeria
  • Ademola Sajuyigbe Landmark University, Omu-Aran Kwara State, Nigeria.
  • Adeyemi, Adewumi. Z Osun State University, Okuku Campus, Nigeria


Credit, Interest rate, Financial Inclusion, SMFEs MFBs, NFIS


The study evaluates the scope SMFEs have access to funding and examines the challenges against SMFEs accessing finance in Nigeria. Data were collected from 380 participants through a structured questionnaire designed for the study. Simple percentage, mean, standard deviation and factor analysis were employed to analyze the data.  The results revealed that many of SMFEs leverage on the informal sector as a vector of inclusion.  Furthermore, lack of collateral, interest rate and short payback period were found to be the most factors preventing SMFEs from accessing credit from Nigerian Microfinance banks. Therefore, authorities should act quickly to accelerate progress towards financial inclusion by distributing digital services as simple, flexible and simple alternative channels to reach our areas and rural hinterland. Additionally, financial institutions like microfinance banks must assimilate the objective of inclusion in their overall business plan and accept a holistic strategy to reach the financially invisible.


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Author Biographies

Odetayo, Tajudeen. A, Osun State Polytechnic, Iree, Nigeria

Department of Accountancy

Ademola Sajuyigbe, Landmark University, Omu-Aran Kwara State, Nigeria.

Department of Business Studies 

Adeyemi, Adewumi. Z, Osun State University, Okuku Campus, Nigeria

Department of Accounting


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How to Cite

Odetayo, Tajudeen. A, Ademola Sajuyigbe, & Adeyemi, Adewumi. Z. (2020). Financial Inclusion as A Tool for Survival of Small and Medium Family Enterprises: Lessons for Nigerian Microfinance Banks. SOCIALSCI JOURNAL, 6, 140-151. Retrieved from



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