AN APPRAISAL OF THE MICRO, SMALL, AND MEDIUM ENTERPRISES DEVELOPMENT FUND (MSMEDF) AND ITS IMPACT ON ENTERPRISE GROWTH IN KADUNA STATE, NIGERIA

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play a vital role in Nigeria’s economic development through employment generation and income creation. However, limited access to finance continues to hinder their growth, prompting the establishment of the Micro, Small, and Medium Enterprises Development Fund (MSMEDF) as an intervention measure. This study analyzed the activities of MSMEDF in Kaduna State, focusing on its contribution to enterprise growth, MSME awareness, operational efficiency, and repayment experiences. Using a descriptive survey design that combined quantitative and qualitative methods, data were collected from 286 respondents comprising MSME operators, commercial bank officials, and microfinance representatives. Supplementary data were obtained from CBN, SMEDAN, and related literature. Data analysis employed descriptive statistics, Chi-square, Pearson correlation, and multiple regression. Findings revealed that MSMEDF moderately supports business expansion, revenue growth, and job creation, but is constrained by low awareness, bureaucratic processes, stringent collateral demands, high interest rates, and short repayment terms. The study recommends increased funding, improved sensitization, simplified procedures, and flexible repayment structures supported by financial literacy training for sustainable MSME growth.