CHAPTER ONE

1.1  Background To The Study

Microfinance constitute the facilitation  of financial services to meet  the needs of low income individuals  such as micro-entrepreneurs, through  the provision of small loans (microloans), small savings deposits (micro-savings), micro-insurance and enhancing simple payments services required by micro-entrepreneurs and  economically active poor people who cannot gain access to    financial services provided by the formal banking sector.(USAID, 2000). The loans provided are small in amount and directed for entrepreneurial ventures. The loans are collateral free and grouped based and mostly  direct to women entrepreneur, generally with low interest charges  or interest free with a focus on women and poor clients The focus being shifted to women is due to their ability to handle meager amount of money profitably (UNITUS, 2000

1.2  Statement of the Problem

Microfinance constitute the facilitation  of financial services to meet  the needs of low income individuals  such as micro-entrepreneurs, through  the provision of small loans (microloans), small savings deposits (micro-savings), micro-insurance and enhancing simple payments services required by micro-entrepreneurs and  economically active poor people who cannot gain access to    financial services provided by the formal banking sector.(USAID, 2000).The inability of the poor and small entreprenuers to access conventional banking services precipated the formulation of the microfinance policy to address the financial need of this poor and vulnerable segment of the society particularly the women. The loans provided are small in amount and directed for entrepreneurial ventures. The loans are collateral free and grouped based and mostly  direct to women entrepreneur, generally with low interest charges  or interest free with a focus on women and poor clients The focus being shifted to women is due to their ability to handle meager amount of money profitably (UNITUS, 2000).The research therefore seek to investigate the impact of micro financing on the performance of women entreprenuers in kaduna state

 Several years after the policy on micro financing, a greater number of the poor and vulnerable poor segment are yet to fully maximize the benefit of financial services of obtaining micro credit facility for entrepreneurial businesses. It is pertinent to note that while the microfinance bank are willing to disburse funds to this segment they are however constraint by limited financial resources to meet the large number of client wanting to obtain micro credit. Savings deposit is low due to the nature of the activities carried out by the segment. Consequently there is the need to re-appraise the activities of micro financing on the performance of women entreprenuers with a view to determing the challenges Confronted by micro finance banks towards the effective delivery of their constitutional mandate to provide financial service to the economically active but poor segment of the society particularly the women. Therefore the problem confronting the research is to determine the impacts of micro financing on the performance of women entrepreneurs in Kaduna state

1.3 Objectives of the Study

To determine the impacts of micro financing on the performance of women entrepreneurs in Kaduna state

1.4 Research Questions

What is the level impact of micro financing on the performance of women entrepreneurs in kaduna state

1.5 Significance of the Study

The study shall elucidate on the role and impact of microfinacing on the performance of women entreprenuers in kaduna state

1.6 Research Hypothesis

Ho The level of impact of micro financing on the performance of women in Kaduna state is low

Hi   The level of impact of micro financing on the performance of women in Kaduna state is high

1.7 Scope of the Study

The study focuses on the appraisal of the impact of micro financing on the performance of women entreprenuers in Kaduna state.

1.8 Limitations of the Study

The study was confronted with some constraint such as logistics and geographical factor.

1.9 Definition of Terms

MICRO- FINANCE BANK DEFINED

Microfinance constitute the facilitation  of financial services to meet  the needs of low income individuals  such as micro-entrepreneurs, through  the provision of small loans (microloans), small savings deposits (micro-savings), micro-insurance and enhancing simple payments services required by micro-entrepreneurs and  economically active poor people who cannot gain access to    financial services provided by the formal banking sector.(USAID, 2000). The loans provided are small in amount and directed for entrepreneurial ventures. The loans are collateral free and grouped based and mostly direct to women entrepreneur, generally with low interest charges or interest free

ENTREPRENEURSHIP DEFINED

Entrepreneurship is the ability to identify and venture into new business opportunities with the view of starting, owning and operating a business.