Examination of the Role of Microfinance Banks in Supporting Women Entrepreneurs in Gombe State

Microfinance banks are critical institutions for supporting women's economic empowerment in underserved markets, and examining their role in Gombe State, North East Nigeria, provides evidence for the effectiveness and gaps in women-focused financial services. This study examined the role of microfinance banks in supporting women entrepreneurs in Gombe, Nafada, and Balanga Local Government Areas of Gombe State. A survey of 180 women entrepreneurs who had accessed microfinance services was conducted, supplemented by interviews with 10 microfinance bank managers. Support dimensions assessed included loan accessibility, business advisory services, group lending programmes, and savings product provision. Business performance outcomes (revenue growth, employment creation, and business survival rate) were compared against a control group of 60 women who had not accessed microfinance services. Independent samples t-tests and logistic regression were employed. Results showed that microfinance bank clients recorded significantly higher mean revenue growth over 2 years (29.4% vs. 12.1% for non-clients, t = 5.14, p < 0.001). Employment creation was 1.8 additional jobs per client business vs. 0.6 for non-clients. Group lending programmes showed the strongest business support impact, attributed to peer accountability and social capital effects. Collateral requirements remained a barrier for 47% of new applicants. Business advisory services were available at only 4 of 10 surveyed microfinance banks. The study concludes that microfinance banks play a significant but potentially greater role in supporting women entrepreneurs in Gombe State if collateral requirements are relaxed and advisory services expanded. Keywords: microfinance banks, women entrepreneurs, Gombe State, North East Nigeria, group lending