Impact Of Microfinance Bank On Small And Medium Enterprises Pdf

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Introduction 1.

Skip to search form Skip to main content You are currently offline. Some features of the site may not work correctly. Simple random sampling technique was employed in selecting the SMEs that constituted the sample size of the research.

Small businesses play significant role to the economic stability and development of emerging economies, and access to financial services is crucial to their growth and performance. This study seeks to ascertain whether microfinance products such as loans, savings, insurance, and education effects small business growth in Ghana. The study uses descriptive and inferential statistics on responses of small business owners for data analysis. Using a multiple linear regression analysis, the study found that all the microfinance product or services positively affects small business growth, and the greatest influence is micro loans.

The impact of microfinance on the growth of micro, small and medium enterprises in Namibia

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To learn more, view our Privacy Policy. Log In Sign Up. Download Free PDF. Ojo Sunday. Download PDF. A short summary of this paper. It was carried out under the supervision of Dr. Olawale Dopemu. I further wish to declare that, to the best of my knowledge and belief, it contains no material previously published or written by another person nor material which to a substantial extent has been accepted for the award of any other degree or diploma of any university or other institute of higher learning, except where due acknowledgement has been made in the text.

Olawale Dopemu Date B. I express thanks to many people for their contributions and assistance especially Dr. Dopemu my supervisor for your immense contributions amidst your tight schedules and fatherly advice to make the research work a great success.

Sincerely, you are a great supervisor with a difference. I equally extend my regards to Prof. To my industrious and resilient parents, Mr. Olapade, I appreciate you greatly for your unprecedented love, care and the burden you took to make my life what it is today. And to my entire siblings, Olumide Olapade and Abisola Olapade your goodwill love and maximum support is highly appreciated.

They avoid doing business with the poor and the micro enterprises because they believed the associated cost and risks involved are relatively high. Microfinance institutions MFIs are therefore saddled with the responsibilities of providing funds for micro, small and medium enterprises in Oyo State.

The study therefore, examines the impact of microfinance Bank on small and medium enterprises development in Oyo State. However, the study reveals a handful of challenges faced by this sub-sector that is, microfinance and how they are addressed accordingly. Hence, the objectives and characteristics of microfinance are equally stated in this study. The population used in the research was the Polytechnic Ibadan Microfinance Bank.

Nevertheless, the sampling used to justify the findings of the study is survey method. Data were majorly collected from primary sources. The hypothesis testing in this research work was done using Chi-Square. Amongst other proffered solutions, it was recommended that there is need for development of a regulatory and supervisory framework for all forms of operations of the MFIs in Nigeria in general and Lagos in particular so as to assist the development of small and medium scale industry.

It is not only desirable to regulate only Microfinance Banks, but also others that mobilize savings for purposes of lending to their clients. According to Kalu , this sector of Nigerian economy lacks the funds to finance its activities towards contributing to the growth and development of the Nigerian economy. This is a result of the fact that, the Micro, Small and Medium Enterprises MSMEs that are operating in this sector of the Nigerian economy are unable to access the financial services of the money deposit banks in the country.

This is so because, these money deposit banks in the country Nigeria avoid doing businesses with these enterprises as they believe that, the risks and associated cost of doing businesses with theses enterprises are considerably high due to inability of these enterprises to supply the required collateral securities for money deposit banks loans and advances as well as, the associated costs of operating accounts and carrying out transactions with these enterprises.

Therefore, those enterprises are left at the mercy of the funds the entrepreneurs of these enterprises were able to raise themselves either through their personal savings or through borrowings from friends and relatives for the financing of their business activities. As such, the development of this sector is impaired due to this problem of lack of adequate funds to finance every viable business ideas that could contribute to the development and growth of the economy.

According to Anyanwu , microfinance institutions have therefore become the main source of funding micro, small and medium enterprises in Nigeria.

Small and medium enterprises are believed to be the engine room for the development of any economy, because they form the bulk of business activities in a growing economy like that of Nigeria.

This is manifested in the following ways, Employment generation, rural development, Economic growth and Industrialization, Better Utilization of Resources. It was also observed that the real GDP growth slows to 2. Such situation could plunge the country into economic embarrassment and posed a major challenge to the government. However, with the trend of those events, the Government under vision program came up with undoubtedly consolidated empowerment program called the National Economic and Empowerment Development Strategy NEEDS and other reforms which imperatively leads to the recognition given to the development of SMEs.

The SME sector is positioned to generate employment, create wealth, reduce the prevalence of poverty and sustain economic growth and development. There is an increasing recognition of its pivotal role in employment generation, income redistribution and wealth creation NISER, Despite Micro, Small and Medium Enterprises MSMEs important contributions to economic growth, small enterprises are plagued by many problems including stagnation and failure in most state of the country Nigeria.

The problem is not limited to lack of long term financing and inadequate management skills and entrepreneurial capacity alone, but also, includes the combined effects of low market access, poor information flow, discriminatory legislation, poor access to land, weak linkage among different segments of the operations in the sector, weak operating capacities in terms of skills, knowledge and attitudes, as well as lack of infrastructure and an unfavorable economic climate.

Also, of what relevance are these listed factors to the topic of this project work? Other objectives include the following; i. To show microfinance as alternative to serve the poor enterprise that have no access to formal financial service. To ascertain microfinance as a tool to develop MSMEs iii. To ascertain microfinance as an effective tool iv. To promote economic growth. More also, it will provide information and help the small and medium enterprises in Oyo State to know the impact of Microfinance on the development of their business and enlighten them to the available opportunities provided by the microfinance banks.

Successive governments in Oyo State have always had a policy programmed for SMEs, but most of the programmes have failed to achieve sustainable growth in the SMEs sub sector. Most of the government assisted programmes have themselves become failures. The findings of this study is expected to inform policy makers regarding the direction of further research into interventionists programmes for SMEs in Oyo State.

This study is expected to help the government to validate or reject the choice of microfinance as the main source of financing SMEs in Oyo State and also suggests ways of improving the existing financing arrangements, if need be. It is aimed at building up on the lapse on previous investigations. The findings of the research will therefore, provide a veritable base for the effective functioning of microfinance to the development of small and medium enterprises in Oyo State.

It covers MSEs that have access to microfinance for a period of at least 5years So, the needed primary data shall be sourced from this microfinance bank, by administering questionnaire on this microfinance bank. Such enterprises are mostly privately owned and operated sole proprietorships, corporations or partnerships.

Although the banking sector is the largest and most important source of external financing for small and medium scale enterprises, by and large, it is believed to be undeserving the needs of this sector.

Small Scale enterprises alternatively draw financing from a variety of sources. Small firms rely proportionally more on non-bank services such as internal funds savings, reformed earning family network and the informal sector money lender as a result of their inability to produce the collateral needed by the money deposit bank Salta, The microfinance institutions have gone a long way to improve the small scale enterprises by granting them loans and also they help the small scale industries or enterprise to finance their projects.

Without microfinance institutions loans the small scale enterprises will suffer, since they lack huge capital base. These methods include group lending and liability, pre-loan savings requirements, gradually increasing loan sizes, and an implicit guarantee of ready access to future loans if present loans are repaid fully and promptly. From a global perspective, microfinance organizations envision a world in which low income households have permanent access to a range of high quality and affordable financial services offered by a range of retail providers to finance income producing activities, build assets , stabilize consumption, and protects against risks.

Nyor, et. Furthermore, Ledge wood viewed microfinance as an economic development approach intended to benefit low income women and men. It means that the purpose of microfinance is to reach the low income entreprenuers with financial services that will enable them creates wealth without any discrepancy as to sex of such person Idowu and Salami, Therefore, microfinance is the practice of offering small and short term loans to entrepreneurs who otherwise would not have access to capital to begin small business or other income generating activities.

Microfinance idea became popular in the development discourse of the early s Iyoha and Igbatayo In general, microfinance has five features that distinguish it from credit supplied by the conventional financial institutions. Secondly, the primary customers of these loans are the people who have little access to conventional banking facilities. Thirdly, the purpose of these loans is to create income-generating activities.

Fourthly, tangible collateral is not necessarily required for taking this kind of loan. Finally, this is another aspect of micro credit programme that distinguishes itself from conventional banking. Microfinance, with regard to this study, is the practice of offering financial and non-financial services, to entrepreneurs who hitherto cannot access the conventional financial institutions, at a fee that is affordable and economic to the users of such services.

This will enable them to start or build up their own enterprises. Based on their minimum paid up capital, Microfinance banks are categorized in to Unit, State and National. Unit Microfinance Bank is authorized to operate in one location and it has a minimum paid up capital of N20,, T and has a minimum paid up capital of N,, It has been observed that microfinance and MFBs are intended to fill a definite gap in the finance market and the financial system respectively, to assist the financing requirements of some neglected groups who may be unable to obtain finance from the formal financial system.

Through microfinance, entrepreneurs in most countries were able to have access to variety of financial and nonfinancial services. The non-financial services mainly entail training in MSMEs investment and business skills which mainly addresses capital investment decisions, general business management and risk management. The accessibility has resulted in employment generation, poverty reduction and consequently economic growth and development Taiwo, Not with standing, the basic definitional parameters are not the same.

They include numbers of employees, Assets and turnover. Sule stated that, it is evidence around the world that small and medium scale enterprise provide an effective means of stimulating indigenous entrepreneurship, enhancing greater employment opportunities per unit capital invested and aiding the developing of local technology.

Small scale enterprise: An enterprises with a labour size of workers or a total cost of not more than 50 million including working capital but excluding cost of land Sule, while medium scale enterprises is an industry with a labour size of between workers or a total cost of over 50 million, but not more than million including working capital but excluding cost of land Clifford, A special feature of Nigeria SMEs is that distributive trade component is generally considered more commercially viable than the manufacturing component hence they attract more funding from bank and other financial institutions Ibru, In summary SMEs can therefore be said to be conducted in the following terms: i.

As a proprietorship: Single ownership ii. As a legally, incorporated Entity: having the characteristics of a legal person and this could be a private limited sole company.

According to Ranjami SMEs and entrepreneurship are now recognized worldwide as key source of economic growth and development. Kolawole contends that small and medium scale enterprises play a very important role in developing economies. This view appears to be supported by Chijah and Forchu when they argue that the promotion of micro enterprises in developing countries is justified in their abilities to faster economic growth, alleviate poverty and generate employment.

The Impact of Microfinance Banks on the Growth Of Smes in Fct Nigeria (2005-2016)

The impact of microfinance on the growth of micro, small and medium enterprises in Namibia Login. JavaScript is disabled for your browser. Some features of this site may not work without it. Many governments around the world have recognised the vital role that Micro, Small and Medium Enterprises MSMEs play in promoting economic growth and restoring economies. Though with much recognition, MSMEs financing remains a challenge.


The Role of Microfinance Banks on Growth and Sustenance of SMEs in Nigeria Empirical Study of the Impact of Microfinance Bank on Small and Medium.


Impact of Microfinance on Small and Medium-Sized Enterprises in Nigeria

Items in UDSspace are protected by copyright, with all rights reserved, unless otherwise indicated. Show full item record. Ali, R. Using structured questionnaires, the study compared SMEs that accessed microfinance and SMEs that do not access microfinance for business operations with respect to savings culture, employment generation, increased incomes, improvement in household welfare and poverty reduction.

The Impact of Microfinance Banks on the Growth Of Smes in Fct Nigeria (2005-2016)

Но Соши, опередив его, уже отдала команду. - Утечка прекратилась! - крикнул техник. - Вторжение прекращено. Наверху, на экране ВР, возникла первая из пяти защитных стен.

Стратмор повернулся, и Сьюзан сразу же его потеряла. В страхе она вытянула вперед руки, но коммандер куда-то исчез. Там, где только что было его плечо, оказалась черная пустота. Она шагнула вперед, но и там была та же пустота. Сигналы продолжались. Источник их находился где-то совсем близко.

И снова. - На маршруте двадцать семь их отсоединяют.  - Панк снова сплюнул в проход.  - Чтоб мы не надоедали. - Значит, я не могу сойти. Парень захохотал.


consequently the potential source of income and employment in most of the developing countries. Prospects of SMEs and MFIs Institutions in.


Каждое послание состояло из числа букв, равного полному квадрату, - шестнадцати, двадцати пяти, ста - в зависимости оттого, какой объем информации нужно было передать. Цезарь тайно объяснил офицерам, что по получении этого якобы случайного набора букв они должны записать текст таким образом, чтобы он составил квадрат. Тогда, при чтении сверху вниз, перед глазами магически возникало тайное послание. С течением времени этот метод преобразования текста был взят на вооружение многими другими и модифицирован, с тем чтобы его труднее было прочитать. Кульминация развития докомпьютерного шифрования пришлась на время Второй мировой войны.

Подсобка компьютера надежно закрыта. Ни он, ни Сьюзан не услышали тихих шагов в направлении Третьего узла. ГЛАВА 60 По зеркальному коридору Двухцветный отправился с наружной террасы в танцевальный зал. Остановившись, чтобы посмотреть на свое отражение в зеркале, он почувствовал, что за спиной у него возникла какая-то фигура.

Двухцветный замер. Как правильно ответить. - Viste el anillo? - настаивал обладатель жуткого голоса. Двухцветный утвердительно кивнул, убежденный, что честность - лучшая политика. Разумеется, это оказалось ошибкой.

 Не могу вспомнить… - Клушар явно терял последние силы. - Подумайте, - продолжал настаивать Беккер.  - Очень важно, чтобы досье консульства было как можно более полным. Мне нужно подтвердить ваш рассказ заявлениями других свидетелей.

5 Response
  1. Vespasiano C.

    microfinance plays a crucial rule in the revenue and profit growth of SMEs. The study then commercial banks to start up small or medium scale enterprises.

  2. Neandro G.

    The initial efforts were government-led through the vehicle of large industries, but lately emphasis have shifted to Small and Medium Scale Enterprises SMEs following the success of Small Scale and Medium Enterprises in the economic growth in the Asian countries.

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