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THE EFFECT OF MICRO-FINANCE BANK ON ENTREPRENEURSHIP DEVELOPMENT

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CHAPTER ONE
INTRODUCTION
1.0     BACKGROUND TO THE STUDY
Entrepreneurship first and foremost is the act of being an entrepreneur, while entrepreneur is a person who create and innovate to establish something of recognized value round perceived opportunities. An entrepreneur is a person of very high aptitude who pioneers change, organizes production process. An entrepreneur engage in wealth creation, financing, therefore, is needed to carry-out these functions effectively.
Micro-finance Institution is a financial institution that provides financial
Services to low income client or the self –employed. It is the entire flexible structure and processes by which financial services are delivered to micro- entrepreneur as well as poor or low income population in a sustainable basis. Micro- finance can be seen as a supply of loan, saving and other financial services  in a sustainable manner that the poor  household will have access to financial services.
There is no doubt that our banks and other financial institution occupy strategic position in the operation of our economic system .The importance of these banks and other financial institution are so encompassing that one may not imagine the working of the economic system without them.
No wonder the government is always sensitive to the happening in this important sector. Thus in operating our economic system, banks and other financial institution plays may important roles in the development of the entrepreneur, such as important role include giving out loans, managing investments, giving financial advise such as use to finds and  providing safety for investment.
1.1            1.1   STATEMENT OF THE PROBLEM

Financing  SMEs is considered by many capital   by many capital & provider as a risky venture due to high transaction costs and low returns, and going concern of the business especially in the early stages. Despite this finance remains a strategic resource.

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