The Benefit of Microfinance Bank in Poverty Alleviation: A Case of Selected Micro, Small and Medium Enterprises in Anambra State

Abstract

Poverty is an endemic problem that affects not just the individual or his or her immediate family, but the entire state, and eventually the nation. Poverty causes anger and hunger and this leads to violence in turn leads to reduction in economic growth and development. Through the utilization of descriptive survey involving questionnaire and microfinance banks’ directory, and Pearson Product Moment of Correlation Coefficient at 0.05 significant level, the study reveals that microfinance deal with the provision of financial services to SMEs who are traditionally not served by the conventional financial institutions in the country. The study also reveals that Micro Finance Banks have made a lot of impact in alleviation of poverty, thereby increasing the living standard of the people. More so, Micro-Finance Institutions throughout the developing world are providing small loans to the poor for self-employment and proving to be sustainable enterprises in the sight against poverty. The study recommended that federal government should put in place policies and programs that support the existence of Micro finance banks across the country so as to help the SMEs to growth and at the long run, alleviate poverty within the country.