MICROFINANCE SERVICES AND POVERTY REDUCTION AMONG RURAL ENTREPRENEURS IN ANAMBRA STATE, SOUTHEAST NIGERIA

Abstract

This study examined the association between microfinance services and poverty
reduction indicators among rural entrepreneurs in Anambra State, Southeast Nigeria. Specifically,
the research investigated how access to microcredit, savings services, and financial literacy training
relates to income levels, business growth, and asset ownership. A descriptive survey design was
adopted, with a structured questionnaire administered to 320 rural entrepreneurs selected through
multistage sampling across six local government areas representing the three senatorial districts.
Data were analyzed using descriptive statistics (mean scores and standard deviation), while
hypotheses were tested using Multivariate Analysis of Covariance (MANCOVA). Findings
revealed that access to microcredit was associated with higher income levels (mean = 3.44, SD =
0.78), with MANCOVA showing significant relationship (Wilks' Λ = 0.763, F = 6.295, p < 0.001).
Savings services were associated with business growth (mean = 3.36, SD = 0.84; Wilks' Λ = 0.815,
F = 5.017, p < 0.001). Financial literacy training was associated with asset ownership (mean = 3.41,
SD = 0.77; Wilks' Λ = 0.802, F = 5.588, p < 0.001). The study concluded that microfinance services
are positively associated with poverty alleviation and business sustainability indicators. It
recommended increased access to microcredit, incentivized savings schemes, and localized
financial literacy programs.