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THE ROLE OF MICROFINANCE INSTITUTIONS IN FINANCING SMALL SCALE BUSINESSES
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INSTANT PROJECT MATERIAL DOWNLOADABSTRACT
The study on the roles of micro finance institutions (MFI) in Kaduna metropolis, base on a survey of five MFIs Yamans's sampling technique was used to determine the sample size in this research work. Primary data was gathered through the administration of questionnaires. In testing the various hypotheses, the chi-square method was used. The findings indicated that there is inadequate knowledge on the part of small scale entrepreneurs on improved lending conditions of MFIs, clients' apathy and the number of beneficiaries seems to be small. The recommendation given in the study include: information dissemination and Involvement of clients, proper documentation of records to meet the diverse loan requirements of clients and proper documentation of records by the Kaduna state ministry of commerce and Industry.
CHAPTER ONE
INTRODUCTION
1.1 Background to the Study
Studies on industrial development countries have shown that small and medium enterprises constitute a fundamental part of the industrial sector and play an active role and bring development to these countries. Over the year, the Nigeria economy has been dominated by large industries which are mostly multinational. This is obviously due to the government policies which encouraged and emphasized the development of these large industries at the at the expense of the small scale industries. Eventually, the Nigerian government recognized the development of small scale industrial as an imperative prerequisite for sustaining a well balanced industrial sector. Faust (2000) submits that four basic interrelated inputs are required to give impetus to their development. They included;
i. Favorable government policies and incentives
ii. Technical assistance
iii. Managerial assistance
iv. Finance assistance
Due to the uncertainties, the lower rate of return, the expense of administration and the mediocre expense of previous government lending programs, Faust added, financial assistance for the small entrepreneur has been lacking from both government and commercial source.
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