Impact of Microfinance Bank Services on the Growth of Women Entrepreneurs in Awka, Anambra State

Access to microfinance has been widely recognised as a transformative enabler for women entrepreneurs in developing economies, addressing the structural credit gaps that conventional banking systems have long failed to close. This study investigates the impact of microfinance bank services on the growth of women-owned enterprises in Awka, Anambra State. The study is anchored on the Financial Intermediation Theory, which emphasises the role of financial institutions in channelling funds from surplus units to productive deficit units, thereby stimulating entrepreneurial activity. A survey research design was adopted. The population comprised 267 women entrepreneurs who had accessed microfinance facilities within the last three years in Awka metropolis. A sample of 160 respondents was selected using stratified random sampling based on business sector. Data were collected using a structured questionnaire and analysed with descriptive statistics, Pearson correlation, and multiple regression. Results indicate that microcredit access, business development advisory services, and savings mobilisation programmes offered by microfinance banks significantly and positively predict business growth in terms of revenue, employment generation, and asset acquisition. The study also finds that loan repayment periods and collateral requirements remain the most significant barriers limiting women's full utilisation of microfinance services. It is concluded that microfinance banking constitutes a verifiable catalyst for women entrepreneurial growth when institutional barriers are minimised. The study recommends that microfinance banks in Awka redesign their credit products to offer more flexible repayment terms and tailor financial literacy programmes specifically for women business operators.

Keywords: Microfinance, women entrepreneurs, business growth, financial intermediation, Awka