Effects of micro loans and customer satisfaction on MSMES performance in Zaria metropolis

Abstract

The significant role of micro finance institution (MFIs) all over the world have been felt by every individual nation in the world especially the developing nations in Africa. However, the effectiveness and efficiency of the MFIs in the highly volatile environment of Micro, Small and Medium Enterprise (MSMEs) in Nigeria has not been empirically investigated in Zaria metropolis. It was on this note that the study examines the Effects of Microloans, and customer satisfaction on MSMEs performance in Zaria metropolis. The research design used was cross-sectional and descriptive. Samples of 389 registered MSMEs operating in Zaria metropolis were selected. Primary data was used while questionnaire was the data collection instrument adopted. Data was analysed using regression analysis where SPSS 20.0 was used to process the data. The study revealed that MSMEs in Zaria metropolis of Kaduna State patronizes Micro loans to source for finance for their initial and start – up capital as well as their assets, as such, this has assisted in improving their innovative performance. Also, MSMEs in Zaria metropolis has adopted customer satisfaction as a strategy to retain her current customers and to attract potential customers and this initiative has helped in boosting their innovative performance. The study recommend that microfinance banks should make accessible, adequate and sufficient initial or start-up capital to its committed customers and that relevant authority should encourage MSMEs in each state and local governments to register before they commence operation and finally government should endeavor to promulgate friendly monetary policies that will help both MFIs and MSMEs to grow.