Impact of Microfinance on Entrepreneurial Development: The Case of Egypt
Hala Helmi El Hadidi

Abstract
This research investigates the impact of microfinance on entrepreneurial development of small scale enterprises that are aiming for growth and development in Egypt. The research used questionnaire as an instrument of primary data collection. Tables and simple percentages were used in data presentation. The study centers on two broad variables; the dependent variable which is entrepreneurial development and the independent variable which is microfinance institutions. Three different hypotheses were formulated and tested using various statistical tools such as chi-square test, analysis of variance and simple regression analysis. The study reveals that (i) there is a significant difference in the number of entrepreneurs who used microfinance institutions and those who do not use them; (ii) there is a significant effect of microfinance institutions activities in predicting entrepreneurial productivity; and (iii) that there is no significant effect of microfinance institutions activities in predicting entrepreneurial development. The research concludes that microfinance institutions over the world and especially in Egypt are identified to be one of the key players in the financial industry that have positively affected individuals, business organizations, other financial institutions, the government and the economy at large through the services they offer and the functions they perform in the economy.

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