KIJHUS Volume. 1, Issue 1 (2020)

This study focused on effect of microfinance banks on the growth and survival of SMEs. The study adopted a survey research design using both primary and secondary data. A sample of 125 SME owners/operators who are duly registered with Edumana MFB, Bida constituted the study population.  Questionnaires were administered to SME owners/operators, while interviews were conducted with selected staff of the MFB. Data generated were analysed with the aid of tables, frequencies and percentages while test of hypotheses were done using Spearman Rank correlation coefficient and Chi-square. Findings of the study revealed that the bank's credits facilities and support services have considerably enhanced the survival and growth of SMEs in terms of increased business capital, assets acquisition and sales but not without some challenges such as small size of credit, cumbersome procedures involved in securing credit and unfavourable loan repayment modalities. Consequently, the study recommends increased credit size, relaxing credit repayment modalities, and providing advisory services to SMEs in order to effectively boost their performance and enable them contribute significantly to economic growth and development.