THE EFFECT OF MICROFINANCE BANKS ON THE DEVELOPMENT OF SMALL SCALE BUSINESS (A CASE STUDY OF USMER WATER DEPOT)

THE EFFECT OF MICROFINANCE BANKS ON THE DEVELOPMENT OF SMALL SCALE BUSINESS (A CASE STUDY OF USMER WATER DEPOT)

 TABLE OF CONTENT

Title page   –         –         –         –         –         –         –         –         –         –         i

Certification         –         –         –         –         –         –         –         –         –         ii

Declaration          –         –         –         –         –         –         –         –         –         –          iii

Dedication –         –         –         –         –         –         –         –         –         –         iv

Acknowledgements      –         –         –         –         –         –         –         –         v

Abstract     –         –         –         –         –         –         –         –         –         –         vi

Table of content  –         –         –         –         –         –         –         –         –         vii

Chapter one: Introduction

1.1  Background of the study –         –         –         –         –         –         –         1

1.2 Statement of the Problem –         –         –         –         –         –         –         4

1.3  Objectives of the Study   –         –         –         –         –         –         –         5

1.4 Research Question  –         –         –         –         –         –         –         –         6

1.5 Research hypothesis         –         –         –         –         –         –         –         6

1.6 Significance    –         –         –         –         –         –         –         –         –         7

1.7 Scope of the study  –         –         –         –         –         –         –         –         9

1.8 Limitation of study –         –         –         –         –         –         –         –         10

1.9 Definition of terms –         –         –         –         –         –         –         –         10

Chapter two: Review of Related Literature

2.1 Introduction  –         –         –         –         –         –         –         –         –         13

2.2  Concept of Micro-Finance Bank         –         –         –         –         –         14

2.3 Policy guideline for Micro-Finance Institution     –         –         –         15

2.4 The role of Small and medium scale business in

Development of the state and Nigeria economy         –         –         17

2.5 Micro Finance          –         –         –         –         –         –         –         –         19

2.6 Theoretical framework     –         –         –         –         –         –         –         20

Chapter three: Research Design and Procedure

3.1 Introduction  –         –         –         –         –         –         –         –         –         22

3.2 Research Design      –         –         –         –         –         –         –         –         22

3.3 Area of the study    –         –         –         –         –         –         –         –         23

3.4 Population of the study   –         –         –         –         –         –         –         23

3.5 Sample size and sampling technique  –         –         –         –         –         23

3.6 Instrument     –         –         –         –         –         –         –         –         –         24

3.7 Administration of the Instrument       –         –         –         –         –         24

2.8 Validity and Reliability of the Instrument   –         –         –         –         25

3.9 Method of Data Collection        –         –         –         –         –         –         25

3.10 Method of data analysis –         –         –         –         –         –         –         26

 Chapter four: Data Presentation, analysis and Interpretation

4.1 Introduction  –         –         –         –         –         –         –         –         –         28

4.2 Analysis of Questionnaire Administration  –         –         –         –         28

4.3 Respondent profile analysis      –         –         –         –         –         –         29

4.4 Presentation and analysis of Research question    –         –         –         32

4.5 Analysis and Testing of Hypothesis   –         –         –         –         –         36

4.6 Discussion of findings      –         –         –         –         –         –         –         40

 Chapter five: Summary, Conclusion and Recommendations

5.1 Introduction  –         –         –         –         –         –         –         –         –         42

5.2 Summary       –         –         –         –         –         –         –         –         –         42

5.3 Conclusion     –         –         –         –         –         –         –         –         –         43

5.4 Recommendations  –         –         –         –         –         –         –         –         44

References

Appendix

CHAPTER ONE

INTRODUCTION

• BACKGROUND OF THE STUDY

Micro finance bank is a source of financial services for entrepreneurs and small business lacking access to banking and related services.  Micro finance bank is one devoted to extending small loans, referred to as micro loans, to individual businesses, and organizations in low-income regions, including under-developed countries where small amounts of money can go a long way. The concept of micro finance as a tool for economic development involved in social investing that is fostering the growth and economic development in a vulnerable region by extending loans to families business and entrepreneurs.

The history of micro finance begins with one man and one village. Orameen bank was the first micro finance bank and it was established by Muhammad Yunus, a native of Bangladesh. 1976.

But micro finance loans are designed for providing financing to the most under privileged regions in the world. Micro finance banks play at the lowering of the credit delivery system with the aim of extending credit to the poor but economically active members of society. The purpose of this paper is to chronicle the role of sustainable micro finance banking in the economic development. Micro finance was set to reduce the r ate of poverty through empowering people by increasing the access to factors of production especially credit.

The federal government in the attempt of achieve the above stated objective issued guideline through central bank to establish micro finance  institutions (MFI) that could carry on the business of providing micro financial service such as saving loans domestic find transfers and other financial support service. (Epertor 1994) bolter the fill potential of the micro business in the developmental process have not been realized owing to numerous bottle necks such as hack of funds and insecurity of the of the micro finance operate. Microfinance help in the article in specific to small loan for financial services to the poor, see microfinance for small payments while micro credit is the extension very small loans (microloans) to improve shed borrowers. Who typically lack collateral, steady employment and a verifiable credit history. It is designed not only to support entrepreneurship and alleviate poverty, but also in many cases to empower women and uplift entire communities by extension. In many communities, women lack the highly stable employment histories that provide a wider range of financial services especially savings accounts to the poor also in credit is widely used in developing countries and is presented as having enormous potential as a tool for poverty alleviation. Micro credit has generated finds benefits to numerous small loans for entrepreneurial activities to the poor as a way to alleviate poverty in looking at economic development in Akwa Ibom State. Microfinance has enrich microfinance institutions through microfinance bank in granting loans to the poor entrepreneur, business men and women, student and engine of economic growth and self substances.

• STATEMENT OF PROBLEM

One society has become a society of business and organization. The establishment of microfinance banks in Nigeria is aimed at providing micro-credit loans to the poor and providing assist to the unprivileged and assisting the community so as to fast the growth of development. Microfinance institution or bank helps to boost the activities of the banking sector by providing funds to the small scale business, entrepreneurs. In view of this problem it carry out a research to with on this topic I examine the role challenge how microfinance bank can effect on the country state communities and to radicate poverty and boost economic growth development on how poverty will reduce and stability of living and how people business men can invest microfinance bank is tool which Nigerian through CBN enrich the poor through establishing microfinance institutions in given out loans to the poor, small scale business men, student unprivileged one to start up a business.

• OBJECTIVE/PURPOSE OF STUDY

The objectives of the study aim at the following

1. To ascension the extent at which the strategic of microfinance institutions operate in a business and small scale business, farmers, student, and artisans through microfinance bank.
2. To examine whether there is saving culture amongst individual and co-operatives in rural area and beyond.
3. To examine the extant of infrastructural provision of financial service to the poor by given loans through micro finance banks.
4. To investigate some variables that may influence the use at CBN policies in microfinance institution
5. The role of microfinance institutions provides the credit access and financial service needed to develop income earning business
6. To determine how government can elevate poverty through the means of establishing microfinance banks, have access needed for financial substances
7. How microfinance institutions provide services within communities that have limited resources and few avenues for economic development
8. Microfinance has contributed to the growth of the country

•       RESEARCH QUESTION

1 Does microfinance banks contribute to the growth and development of

small scale business?

• Does microfinance banks grants loans to small scale business owners
• Does microfinance banks faced challenge in helping small business to grow.
• Does loans granted by microfinance banks effectively utilized by small scale business owners.

• RESEARCH HYPOTHESIS

Ho:        microfinance banks does not contribute to the growth of small scale business

Hi:         microfinance bank do contribute to the growth of small scale businesses

Ho:        microfinance bank do not grants loans to small scale business owners

Hi:     microfinance bank does not face challenges in helping small scale business to grow.

Ho;    loan offered by microfinance to small scale business owners are not effectively

Hi:  loans offered by microfinance to small scale business owners are effectively utilized

 DOWNLOAD COMPLETE PROJECT MATERIAL

THE EFFECT OF MICROFINANCE BANKS ON THE DEVELOPMENT OF SMALL SCALE BUSINESS (A CASE STUDY OF USMER WATER DEPOT)