TABLE OF
CONTENTS
Title
page
Certification
Table
of contents
Abstract
CHAPTER ONE: INTRODUCTION
1.0
Introduction
1.1
Background to the Study
1.2
Statement of the Problem
1.3
Objective of the Study
1.4
statement of Hypothesis
1.5
Justification for the study
1.6
Scope and Delimitation of the study
1.7
Organization of the Study
CHAPTER TWO: REVIEW OF LITERATURES
2.0
Introduction
2.1
Theoretical Review
2.1.1
The Informal model
2.1.2
The Formal Model
2.1.3
Theories of entrepreneurship
2.2
Empirical Review
2.2.1
Other Related Literatures.
2.2.2
Nigeria Business Environment
2.2.3
Objective of Micro finance Institution
2.2.4
Microfinance in Nigeria: The Challenges
2.2.5
Justification for the Establishment of
Microfinance Banks
2.2.6
Weakness of Microfinance Institution
2.2.7
Strength of Microfinance Institution
2.3
Summary of Review
CHAPTER THREE: RESEARCH METHODOLOGY
3.0
Introduction
3.1
Theoretical Population
3.2
Sampling Technique
3.3
Method of Data Collection
3.4
Estimation Technique
3.5 Limitation of the Study
CHAPTER FOUR: RESULT AND DISCUSSION
4.0
Presentation and Analysis of Data
4.1
Test of Hypothesis
4.2
Discussion Findings
CHAPTER FIVE: SUMMARY, CONCLUSION
AND RECOMMENDATIONS
5.1
Summary
5.2
Conclusion
5.3
Recommendations
Reference
Appendix
ABSTRACT
This research study investigated the impact of
microfinance on entrepreneurial development of small scale enterprise that are
craving for growth and development in a stiffened economy called Nigeria. In an
attempt to provide a basis for the research, a background of the study is
provided and accompanied by a review of related literatures. A case study of
small- scale enterprises in Lagos State, Nigeria was also undertaken in which
questionnaire was administered on selected small- Scale enterprises on the
object of this study. Tables and simple percentages were used in data
presentation.
Available evidence shows that the bed rock of any
nation's industrial development is entrepreneurial activities. Unfortunately,
there is uneasy access to conventional loan from the commercial banks to start
up a small or medium Scale enterprise. The resultant effect is that the
underdevelopment situation of the country is getting worse while government
seems incapable of taming the ugly incidence.
The evolution of microfinance is to break/he bam-ode to access capital by low income
individuals for developmental purpose. To say that microfinance empowers the
entrepreneurial spirits that exist among Small- Scale Entrepreneurs worldwide
is not an exaggeration. Micro finance has the ability to strengthen micro
enterprises and encourages best practices among operators of small and medium
scale enterprise.
With the objective to determine whether or not, the
activities of micro finance institution have played significant role in
entrepreneurial development Nigeria an hypothesis testing procedure based on
the Chi-square test is adopted as the method of data analysis the result of the
test an appropriately interpreted, relevant conclusion are inferred and some
recommendations are equally provided
CHAPTER ONE
1.0 Introduction
1.1 Background to the Study
The issue of sustainable development in the Third World
countries like Nigeria has been a growing concern to both the government and
the private sector. The huge amounts of money the government has been investing
on this platform over the years have not yielded any meaningful result. Poverty
is a characteristic of Nigerian households or individuals. It has been realized
in the recent years that there are limits to which government can singly
promote development. Most of the traditional functions being carried out by the
government in most countries ranging from the provision of economic development
are becoming increasingly difficult to accomplish. Nigeria as a nation has her
own peculiar developmental challenges because of maladministration, corruption,
infrastructural decay, insecurity of lives and properties, unstable
macroeconomic regime and unpredictable fiscal policies by successive
administration (Fasua 2008).
Thus, both the public and private sectors of the economy
and every segment of the society need to be involve in the industrial
development process of the country it is on this basis that government begins
10- engage in privatization policy within the view of allowing the private
sector participate in the economic development of the
nation. Consequently, various governments of the nation
begin to find pathways to involve the private sector in the developmental
process of their country's economy.
One of the responses challenges of development in the developing
countries IS the encouragement of
entrepreneurial development scheme. Nigeria had even taken a more strongly
robust stop by including entrepreneurial studies in the academic curriculum of
her educational system. The believe of such policy makers is that such decision
will inculcate to fix an idea into someone's mind entrepreneurial spirit in the
mind of people so as to prepare them for wealth creation through small scale
enterprises (Fasua 2006). Small scale enterprises are very crucial to the development
of a country's economy, especially countries like Nigeria. Entrepreneurship
brought about fact that provides a strong base for something. It is bedrock of
any nation's industrialization.
A number of studies have been carried out on the impact
of micro finance on entrepreneurial development is evidenced by the fact that
some academic journals have devoted special issues to research establishing
this linkage. Some scholars focused on the mechanism by which poverty is
reduced. Amin, Rai, and Topa (2003) their article on the ability of micro
finance to reach the poor and easily named (vulnerable)
They focus their article in such a manner because of
concerns that micro finance is only serving people slightly below or above the
line of poverty, however the really poor and destitute having no money, no
home, no food etc. are being systematically excluded, By contrast something
that is very life to something else, a very notable difference between Copestake,
Halokra and Johnson (2001) analyse the impact of micro finance on firm and
individual wellbeing. Cope stake at all focus on business performance and
household income to establish a link between the availability of micro finance
and overall wellbeing of the poor.
Evans and Adams (1999) approach the microfinance question
at a slightly different angle. However, they seek to explain non participation
in the microfinance evolution, stating that while micro finance is used as a
viable instrument in fighting poverty, more than 75% of the poor individuals
choose not to participate for various reasons.
Ryne and Holt (1994) provide a meta-analysis of
microfinance and focuses on women empowerment, intending to show while various
studies conflict in their conflict in their conclusions as to the impact of
micro finance bank on women empowerment, Park (2001) evaluation the actual
micro finance programs in china using three(s) keys measure (targeting),
sustainability and overall impact).
Thus both research and practice have seen an increasing
concern about the impact of micro finance. In spite of this emphasis, current
research did not provide sufficient justification for the link between micro
finance and entrepreneurial development in the developing countries. Besides,
the empirical evidences emerging from various studies about the effect of micro
finance on entrepreneurial development have so far yielded mixed results that
are inconclusive and contracting, thus, the question of whether micro finance
improve or worsens entrepreneurial development is stills worthy of further
research such as the one being undertaken in this study. In addition, the
impact of microfinance on entrepreneurial development has not received adequate
research attention in Nigeria. Research also shows most of the studies on
impact of microfinance on entrepreneurial development that have .been reported
were carried out industrialized countries. This means that there is a major gap
in the relevant literature on developing countries including Nigeria, which has
to be cured by research.
This research attempts to fill this gap by studying the
situation of Nigeria and providing more empirical evidence on the effects of
micro finance on entrepreneurial development,
1.2 Statement of the Problem
The role of entrepreneurial in the development of Nigeria
cannot be ruled out. Entrepreneurial is sire qua non to national development,
poverty eradication and employment generation. It is the bedrock of any
nation's industrialization.
The importance of micro finance to entrepreneurial
development made the Central Bank of Nigeria adopted it as the main source of
financing entrepreneurship in Nigeria. Despite this, however finance is still
considered as one of the major hindrances to entrepreneurship in Nigeria (Ubom,
2003). While government and non-government organizations (NGOs) have been
engaging a number of programmes and policies to encourage entrepreneurship in
the country. Nigeria is still on the list of the poorest countries in the world
with unemployment level rising alarmingly. It is therefore necessary at this
junction to undertake an assessment of the extent to which microfinance can
impact entrepreneurial development in Nigeria.
l.3 Objectives of the Study
The broad objective of the study is to evaluate the
impact of micro finance on entrepreneurial development in Nigeria.
Other Specific
Objectives are to:-
1. Evaluate the importance of entrepreneurial
activities to the sustainable development of Nigeria.
2. Evaluate the challenges of accessibility
to capital for development of entrepreneurship in Nigeria.
3. Evaluate the relationships that exist
between small scale business and micro finance bank.
l.4 Statement of Hypothesis
The null hypothesis (Ho) will be set against the
alternate hypothesis (HI) in the study. This will call for either to reject or
accept the hypothesis. The following shall be tested.
1. Ho: There is no significant
difference between small scale enterprises who use micro finance and those who
do not in Nigeria.
HI: There is significant difference between small scale
enterprises w40 use micro finance and those who do not in Nigeria.
ii. Ho: There is no significant effect of
micro finance institutions activities In predicting entrepreneurial
productivity.
HI: There is significant of micro finance institutions
activities in predicting entrepreneurial predicting in Nigeria
iii. Ho: That micro finance institution
activities IS not effective In predicting entrepreneurial development.
HI: That micro finance institutions activities IS
effective In predicting entrepreneurial development.
1.5 Justification of the Study
The focus of the study is to investigate the impact of
micro finance on entrepreneurial development of small scale enterprises that
are strong desire craving for growth and development in a suddenly stop moving,
especially when world real fact stiffened economy called Nigeria. The study is
therefore rational and important at the time the country is tailoring herself
toward a self-reliance economy. In view of this, the study is imperative
because it will show the way.
Firstly, to increase the productivity' and Income of
vulnerable groups, especially women and the poor.
Secondly, to create employment and Income opportunities
through the creation and expansion of micro enterprises.
Thirdly, to improve the standard of living of the
citizens and push the economy of Nigeria towards industrialization. Therefore
the role of entrepreneurship cannot be overemphasized it could be realized that
several studies concluded so far indicated that finance constitute the major
problem of entrepreneurship developed in Nigeria. How then this problem could be
eradicated or minimized because the success of the firm will enhance the pace
of economic recovery and growth.
There is no doubt the result of this study will be useful
to the existing and prospective small scale enterprises in the country, general
public, those willing to There is no doubt the result of this study will be
useful to the existing and go into the small scale business and others.
1.6 Scope and Delimitation of the Study
The study focuses on the impact on micro finance on
entrepreneurial development. The study will be limited to small scale
enterprises using Lagos state as III proxy to captured Nigeria.
1.7 Organization of the Study
The study is divided into 5 sections for easy exposition.
Chapter one: deals with the general introduction of the case study which
include essence of entrepreneurial development Chapter two: is concerned with
the review of relevant literature. Chapter three: deals with the research
methodology to provide a background to the study. Chapter four: with centre on
the analysis and presentation as well as interpretation of data gathered.
Chapter five: Is the summary, conclusion and recommendations.
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