EFFECT OF FINANCIAL INCLUSION ON THE PERFORMANCE OF MICRO, SMALL AND MEDIUM ENTERPRISES IN NORTH-CENTRAL, NIGERIA

Abstract

This study investigated the effect of financial inclusion on the performance of Micro, Small and Medium Enterprises in North-Central, Nigeria. The research problem lies in the inadequacy of financial services and the exclusion of a substantial portion of MSMEs from the formal financial system. Financial inclusion, characterized by the availability and accessibility of financial services, is imperative for the sustainable development of MSMEs. The absence of adequate financial inclusion may hinder their operational capabilities, growth potential, and overall performance. Generally, the study examined the effects of financial inclusion on the performance of micro, small and medium enterprises in North-central, Nigeria. Specifically, the aimed to: determine the effect of access to financial services on the performance of MSMEs in North-central, Nigeria and to determine the effect of financial literacy on the performance of MSMEs in North-central, Nigeria. The study adopted survey research design. The study concluded that financial inclusion have a good effect on the increase of MSMEs Profit, increase of Labor or employee, and increase of Production on the MSME in North Central Nigeria and recommended that financial institutions, should provide more information to MSMEs, which will attract MSMEs business actors to conduct transactions at these financial institutions.