Application of Microfinance Principles in Small Business Development Among Business Education Graduates in Enugu State

This study examined the application of microfinance principles in small business development among Business Education graduates in Enugu State, South East Nigeria. Microfinance institutions provide financial services to entrepreneurs who are excluded from conventional banking, and their role in supporting small business growth has attracted global attention. For Business Education graduates who aspire to establish businesses, understanding and accessing microfinance is a critical competency. However, the extent to which graduates in Enugu State apply microfinance knowledge in their business ventures has not been systematically studied. A descriptive survey design was adopted. The population comprised 280 Business Education graduates engaged in small business operations in Enugu State. A sample of 140 participants was selected through purposive sampling. A validated questionnaire on microfinance knowledge and application was used for data collection. Mean, standard deviation, and Pearson correlation were employed for analysis. Findings reveal a moderate level of microfinance knowledge among graduates, but limited practical application, particularly in loan utilization, interest management, and group savings schemes. Unfamiliarity with microfinance application procedures and distrust of informal financial institutions were identified as key barriers. The study recommends that PGD Business Education programmes should incorporate a dedicated module on microfinance and small business finance, and that professional development seminars connecting graduates with reputable microfinance institutions should be organized regularly in Enugu State. Keywords: microfinance, small business development, business education graduates, Enugu State, entrepreneurship