IMPACT OF MICRO CREDIT ON THE PERFORMANCE OF MSMSE BUSINESSES: A CASE STUDY OF BWARI

This study examines the impact of microcredit on the performance of micro, small, and medium enterprises (MSMEs) in Bwari Area Council, Nigeria. Microcredit has been recognized as a vital financial tool for fostering entrepreneurship, improving business sustainability, and enhancing economic development. However, the accessibility, effectiveness, and challenges associated with microcredit remain key concerns. Using a combination of theoretical perspectives—including Financial Intermediation Theory, Entrepreneurial Finance Theory, and Job Creation Theory—the research assesses the role of microcredit in business growth, employment generation, and financial stability. Through a structured methodology, including surveys and regression analysis, the study explores how microcredit influences business expansion, profitability, and resilience among local entrepreneurs. The findings highlight that while access to microcredit contributes to improved business performance, barriers such as high interest rates, complex application processes, and financial literacy gaps hinder its full potential. The study provides recommendations to enhance microcredit accessibility, optimize financial literacy programs, and create more supportive policies for MSMEs. By addressing these issues, policymakers and financial institutions can strengthen the role of microcredit in driving sustainable economic growth within the region.