Abstract:
Small and Medium Enterprises (SMEs) in developing and developed countries play a vital role in
economic development. Despite their crucial role in the economy, SMEs continue failing in large
numbers due to various problems that Microfinance Institutions (MFIs) claim to offer solutions
such as access to finance. This study intended to assess microfinance institutions' contribution to
SMEs' growth. Precisely, the study aimed at examining the contribution of credit to SMEs,
determining the extent to which entrepreneurial training contributes to the growth of SMEs, and
examining the contribution of MFIs technological innovations to the growth of SMEs. The study
used a cross-sectional research design with a sample size of 231 respondents to collect the
information required. Multiple Regression Analysis (MRA) and descriptive statistics were used
in data analysis, whereas graphs and tables were used to present the results. It was found that
MFIs play an important role in providing services to SMEs. With access to credit, the adjusted
R
2
growth. The results of entrepreneurial training also showed an adjusted R2
of 38.8%, implying a
therefore, be concluded that MFIs play an important role in facilitating the growth of SMEs.
However, it was also revealed that the SMEs were still struggling to have a high pace of growth
due to unfavorable credit terms, less entrepreneurial training, and low awareness of
technological innovations. The study recommended that the MFIs improve the credit terms, and
the government should also intervene in the activities of MFIs by creating policies aiming to
favor the SMEs to improve the sector
