THE IMPACT OF MICRO FINANCE BANKS ON THE DEVELOPMENT OF ON SMALL SCALE BUSINESS IN NIGERIA

ABSTRACT

This study examines the impact of micro finance bank on the development of small scale enterprise (SMEs) in Ekiti State.

          The research reviewed at some literature that has some degree of relevance to the subject matter under study. The study shall adopt the stratified random sampling technique and data collection was done through the questionnaire method consisting of one hundred and ten (110) respondents drawn from the study population. Frequency counts and percentages were used for analyzing the data while Chi-Square was used for the testing of hypothesis.

Based on findings from this study, it was concluded that the use of Microfinance banks has potentials for enhancing the performance of small businesses in two ways- regular participation in micro financing and offering of non – financial services. This suggests that government policies aimed at promoting the performance of small scale enterprise (SMEs) should also address the financial and non-financial activities of the Microfinance banks.     

The study recommended among others that Government and Microfinance banks themselves should enhance the out-reach of microfinance through creating awareness of the activities and operations to small scale enterprise (SMEs)  especially those in rural and semi-urban areas that are yet to appreciate the benefits of the scheme.

 

 

 

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

                                                                                                Page no.

Title Page                                                                                          i

Certification                                                                                                ii

Dedication                                                                                         iii

Acknowledgements                                                                           iv-v

Abstract                                                                                            vi

Table of contents                                                                               vii

CHAPTER ONE: INTRODUCTION                                                     

1.1     Background to the study                                                                   1

1.2     Statement of the Problem                                                                  4

1.3     Research Questions                                                                 6

1.4     Objectives of the Study                                                           6

1.5     Research Hypotheses                                                              6

1.6     Significance of the Study                                                                  7

1.7     Scope and Limitation of the Study                                          8

1.9     Operational Definition of Terms                                             9

 

 

CHAPTER TWO: LITERATURE REVIEW                               

2.2     Conceptual Literature                                                              9

2.3     Theoretical Literature                                                              27

2.4     Empirical Framework                                                              31     

CHAPTER THREE: METHODS

3.1     Research Design                                                                      36

3.2     Population of Study                                                                36

3.3     Sample Size and Sampling Technique                                               36

3.4     Administration of the Instrument                                           37

3.6     Method of Data Analysis                                                                  37

CHAPTER FOUR: DATA PRESENTATION AND INTERPRETATION

4.1     Data Presentation                                                                    39

4.2     Analysis of Results and Discussion                                        39

4.3     Test of Hypotheses                                                                44

4.4     Findings                                                                                  48

4.5     Implications of Findings                                                                   49

 

 

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND POLICY RECOMMENDATIONS

5.1     Summary                                                                                50

5.2     Conclusion                                                                               50

5.3     Recommendations                                                                             51

          References                                                                               53

          Appendix                                                                                69