This study examines the
impact of microfinance on economic, financial and social empowerment of women
micro entrepreneurs in Ikeja, Lagos State. A sample of 50 women micro
entrepreneurs were selected in Ikeja some of which include traders,
hairdressers, fashion designers, fish farmers and boutique owners. Survey
method was employed to obtain a picture of the population. Research data was
collected using a 24 item questionnaire in order to measure the empowerment of
women micro entrepreneurs and access to capital from microfinance banks.
Reliability and validity of the instrument was tested to ensure the instrument
has face and content validity. Data collected were analyzed using descriptive
and inferential statistics. Research questions were tested using frequency
counts and percentages while the hypotheses were tested using correlation
coefficient, analysis of variance and regression analysis. The result of my
analysis showed that; there are more women micro entrepreneurs between the ages
of 18-45, 68% of the respondents were married, half of the population engaged
in trading, 24% were hairdressers and fashion designers constituted 8%. The
finding shows that women micro entrepreneurs can be economically empowered and
there is an existing appreciable level of economic empowerment; 14% of
respondents have purchased lands, 4% were able to build houses, 68% are
sponsoring their children's education. It was proved that loan facilities,
trainings and monitoring through microfinance can improve women's business capacity
in various ways like buying more goods, buying in bulks, increasing stocks and
buying more work tools. There is a positive relationship between the access to
capital through Microfinance and the empowerment of women micro entrepreneurs,
there is a significant difference in access to capital based on business types.
Age and marital status of women combined gave 4% variation in economic
empowerment of respondents. Based on these findings we recommend that Women
Micro entrepreneurs should embrace the services of microfinance and seek
information about the product/service that will help in empowering them and
should use the resources appropriately. Microfinance banks should ensure they
increase their efforts/strategies to reach all women micro entrepreneurs,
develop packages suitable for each type of business and personality. More
adequate follow up and training/monitoring should be provided for women micro
entrepreneurs and microfinance should create a warm and welcoming environment
in their offices to win the women and also use friendly approaches.
non-parametric statistical tests and analysis were called out. For clarity purpose results of data analysis
were presented using statistical table percentages, charts and chi-square. Of
the 100 questionnaire administered, 82 were retrieved duly completed. These were analyzed to elicit answers to the
research questions. The questionnaires
retrieved represented 71.6% retrieval rate.
TABLE OF CONTENTS
Front Page i
Title Page ii
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study 1
1.1.1 Differences between Microfinance and
1.1.2 Gender Difference 5
1.1.3 The Nigerian Microfinance 7
1.2 Statement of Problem 16
1.2.1 Purpose of study 16
1.2.2 Objectives of Study 16
1.2.3 Significance of Study 17
1.2.4 Scope of Study 17
1.3 Research Questions & Hypothesis 18
CHAPTER TWO: LITERATURE REVIEW
2.1 Microfinance 19
2.1.1 The History of Microfinance 20
2.2 Providers And Models of Microfinance
2.2.1 Rotating Savings and Credit Associations 23
2.2.2 The Grameen Solidarity Group Model 24
2.2.3 Village Banking Models 24
2.3 Microfinance and Its Impact on Development
2.3.1 The Impact of Microfinance on Poverty 29
2.3.2 Empowering Women 29
2.3.3 Reaching the Poor 33
2.4 Financial Sustainability versus Serving
the Poor 34
2.5 Women Empowerment As Development Vehicle 38
2.5.1 UNFPA 40
2.5.2 CGAP 40
2.5.3 Fostering Financial Stability 41
2.5.4 Microfinance in Tanzania 45
2.5.5 Microfinance in US 45
CHAPTER THREE: RESEARCH METHOD
3.0 Introduction 56
3.1 Methodologies Used In Other Empirical
3.2 Data Analysis: Qualitative and
Quantitative Analysis 64
3.3 Impact assessment of Microfinance 67
3.4 Methodology Used for this Research study 69
CHAPTER FOUR: DISCUSSION OF FINDINGS/SIMPLIFICATION
4.1 Descriptive Analysis of Variables 73
4.2 Research Questions 76
4.3 Testing Of Hypotheses 78
4.4 Summary of Results 82
CHAPTER FIVE: SUMMARY, RECOMMENDATIONS AND CONCLUSION
5.1 Summary 84
5.2 Conclusion 90
5.3 Recommendation & Suggestion 91
1.1 Background of the Study
refers to the provision of financial services to low-income clients, including
the self-employed. The term also refers to the practice of sustainably
delivering those services. More broadly, it refers to a movement that envisions
"a world in which as many poor and near-poor households as possible have
permanent access to an appropriate range of high quality financial services,
including not just credit but also savings, insurance, and fund transfers".
Microfinance encompasses any financial service used by poor people, including
those they access to in the informal economy, such as loans from a village
moneylender. In practice however, the term is usually only used to refer to
institutions and enterprises whose goals include both profitability and
reducing the poverty of their clients.
services are needed everywhere, including the developed world. However, in
developed economies intense competition within the financial sector, combined
with a diverse mix of different types of financial institutions with different
missions, ensures that most people have access to some financial services.
Efforts to transfer microfinance innovations such as solidarity lending from
developing countries to developed ones have met with little success.
also be distinguished from charity. It is better to provide grants to families
who are destitute, or so poor they are unlikely to be able to generate the cash
flow required to repay a loan. This situation can occur for example, in war zone
or microfinance means providing very poor families with very small loans
(microcredit) to help them engage in productive activities or grow their tiny
businesses. Over time, microfinance has come to include a broader range of
services (credit, savings, insurance, etc.) as we have come to realize that the
poor and the very poor who lack access to traditional formal financial
institutions require a variety of financial products.
DIFFERENCES BETWEEN MICROFINANCE AND MICROCREDIT
to prominence in the 1980s, although early experiments date back 30 years in
Bangladesh, Brazil and a few other countries. The important difference of
microcredit was that it avoided the pitfalls of an earlier generation of
targeted development lending, by insisting on repayment, by charging interest
rates that could cover the costs of credit delivery, and by focusing on client
groups whose alternative source of credit was the informal sector. Emphasis
shifted from rapid disbursement of subsidized loans to prop up targeted sectors
towards the building up of local, sustainable institutions to serve the poor.
Microcredit has largely been a private (non-profit) sector initiative that
avoided becoming overtly political, and as a consequence, has outperformed
virtually all other forms of development lending.
microfinance was focused on providing a very standardized credit product. The
poor, just like anyone else, need a diverse range of financial instruments to
be able to build assets, stabilize consumption and protect themselves against
risks. Thus, we see a broadening of the concept of microfinance--our current
challenge is to find efficient and reliable ways of providing a richer menu of
microfinance products after a natural disaster.
refers to loans, savings, insurance, transfer services and other financial
products targeted at low-income clients. Microcredit refers to a small loan to
a client made by a bank or other institution. Microcredit can be offered, often
without collateral, to an individual or through group lending.
Microcredit is the
extension of very small loans (microloans) to the unemployed, to poor
entrepreneurs and to others living in poverty who are not considered bankable.
These individuals lack collateral, steady employment and a verifiable
credit history and therefore cannot meet even the most minimal qualifications
to gain access to traditional credit. Microcredit is a part of microfinance,
which is the provision of a wider range of financial services to the very poor.
Microcredit is a
financial innovation which originated in Bangladesh where it has successfully
enabled extremely impoverished people to engage in self-employment projects
that allow them to generate an income and, in many cases, begin to build wealth
and exit poverty. Due to the success of microcredit, many in the traditional
banking industry have begun to realize that these microcredit borrowers should
more correctly be categorized as pre-bankable; thus, microcredit is increasingly
gaining credibility in the mainstream finance industry and many traditional
large finance organizations are contemplating microcredit projects as a source
of future growth. Although almost everyone in larger development organizations
discounted the likelihood of success of microcredit when it was begun in its
modern incarnation as pilot projects with ACCION and Muhammad Yunus in the mid-
1970s, the United Nations declared 2005 the International Year of Microcredit.
is a person who has possession over a new company, enterprise, or venture,
and assumes significant accountability for the inherent risks and the outcome.
The term is a loanword from French and was first defined by the Irish economist
Richard Cantillon. A female entrepreneur is sometimes known as an entrepreneuse.
However, with the word "entrepreneuse" being the French feminine
form of entrepreneur, its usage in English in delineating sexes detracts from
the meaning of the word "entrepreneur". Entrepreneur in English is a
term applied to the type of personality who is willing to take upon herself or
himself a new venture or enterprise and accepts full responsibility for the
entrepreneurs are the owners of small businesses that have fewer than five
employees. Examples of micro entrepreneurs are owners of bakeries, beauty
parlours, child care facilities, repair shops, arts and crafts shops, painting
businesses, contracting businesses, family-owned shops, auto body shops, small-scale
restaurants, and small-inventory trading businesses.
1.1.2 GENDER DIFFERENCE
This is a
distinction of biological and/or physiological characteristics typically associated
with either males or females of a species in general. In the study of humans,
socio-political issues arise in classifying whether a sex difference results
from the biology of gender. This article focuses on quantitative differences
which are based on a gradient and involve different averages. For example, men
are taller than women on average, but an individual woman may be taller than an
The differences in
the work patterns of men and women, and the 'invisibility' of work that is not
included in national accounts, lead to lower entitlements to women than to men.
Women's lower access to resources and the lack of attention to gender in macroeconomic
policy adds to the inequity, which, in turn, perpetuates gender gaps. For
example, when girls reach adolescence they are typically expected to spend more
time in household activities, while boys spend more time on farm or wage work.
By the time girls and boys become adults, females generally work longer hours
than males, have less experience in the labour force, earn less income and have
less leisure, recreation or rest time.
implications for investments in the next generation. If parents view daughters
as less likely to take paid work or earn market wages, they may be less
inclined to invest in their education, women's fastest route out of poverty.
WOMEN AND ECONOMIC
microfinance institutions (MFls) have already recognized that the twin goals of
empowering women and developing poor communities are closely connected. The
Nobel Prize-winning Grameen Bank, for example, gives around 96 percent of its
micro-loans to women, while the UN estimates that around 76 percent of all
microfinance clients globally are women.
two different ways to look at this: one is that microfinance is good for women;
the other is that women are good for microfinance," says Susy Cheston of
Opportunity International, a US-based organization that gives around 86 percent
of its micro-credit loans to women. "There are lots of different reasons
that people lend to women. For some, it's about having customers that are very
credit-worthy and bring better value to the institution
AS DEVELOPMENT VEHICLE
Wise business or
household investments can increase a woman's status in communities where women
otherwise seldom assume the role of owner, employer or decision-maker.
Financial empowerment has, in many cases, helped women acquire more
self-esteem, more respect within their families, and has even linked to
decreases in domestic violence. Empowered women also have a positive impact on
their communities, and are considered to be more responsive to the long-term
needs of their households than men.
WOMEN'S WORK AND
economies, women spend much of the day performing tasks to maintain the
household, such as carrying water and collecting fuel wood. In many countries
women are also responsible for agricultural production and market work. Often they
take on paid work or entrepreneurial enterprises as well. Unpaid domestic work
- from food preparation to caregiving - directly affects the health and overall
wellbeing and quality of life of children and other household members. The need
for women's unpaid labour often increases with economic shocks, such as those
associated with the HIV/AIDS pandemic or economic restructuring. Yet women's
voices and lived experiences - whether as workers (paid and unpaid), citizens,
or consumers are still largely missing from debates on finance and
development. Poor women do more unpaid work, work longer hours and may accept
degrading working conditions during times of crisis, just to ensure that their
1.1.3 THE NIGERIAN MICROFINANCE
There have been
different operators in the Microfinance Industry in Nigeria; NGO- MFI,
Community Banks, Microfinance Banks, Development Financial Institutions,
Informal Financial Institutions/Cooperative Societies. There are numerous
financial and semi- financial institutions during the past centuries. Nigerian
Government used different means to boost financial services for the MSME
market, despite modest success during the 1960s and the 1970s another
initiative was launched, thus we have the introduction of the community bank,
Community banks were licensed in 1992 and supervised by the CBN, who also made
some changes in the community bank regulatory framework. In 2000 Community bank
were recognised not be functional and achieving it purpose. Therefore in 2005
the new Microfinance policy was implemented, it replaces the Community bank
scheme and it requires that; all Community Banks would have transformed to
Microfinance banks by 31st Dec 2007.
§ 1st NGO to provide Microcredit was registered from
the early 1980's
§ Few operators have reached a considerable scale:
COWAN, FADU, LAPO and DEC
§ Loan portfolio are insignificants in absolute value
§ Low average loan amount i.e., provide loan to the
§ Enable to develop the MSME customers on a long term
§ Most NGOs provide loan to women
§ Grameen based group lending methodology
§ In Jan 2007, 750 Community Banks were listed &
located in rural areas
Banks were transformed in MFB by 31/1212007
§ In Jan 2007,300 were transformed and 100 in process
§ Not all of them will fulfil capital requirements
million/branch for a unit license
N 1 billion for a
§ In the year 2003, 57% of the Community Bank's
portfolio were in arrears.
§ A large part of lending activity is for salary
§ Introduced at the end of 2005
§ In Jan 2007,37 fully licensed MFBs of which 15 are
§ In general most MFBs have more deposit than lending
§ MFBs are still experimenting both: Individual and
Banks: Products ranges and conditions
The MFI use the
Grameen model of small groups of 10 in contrast to NGO large group
Payback- 30 - 90
days maturity (which vary a times), payment can be made daily or weekly
Credit Collateral used by Microfinance Banks
Due to low degree
of registered fixed assets of the target, MFB use alternative sources; Chattel,
Inventory, Postdated cheques, shares and Guarantor
Debt Recovery Agent
There are times
when Microfinance banks have to engage the services of agents to recover loans
from customers who are unwilling to pay and these agents charge the bank a
certain percentage of the loan.
In Lagos State the
Governor has inaugurated Board of Trustees for the State Micro Finance
Institutions, this was done on Monday 12th May 2008 with the aim of building a
new Lagos, creating jobs, encourage entrepreneurial mentality, reduce poverty
level and raise the standard of living of the people. The board is to provide
corporate governance and manage the Lagos State Microfinance fund, attract
people oriented development projects, implement and coordinate Microfinance
The usual savings and current account, Olive Fast Pay
which is a loan programme with interest rate of 5-6%, Olive Shares
acquisition package, Olive save and Grow for Children, Olive LPO, Agric
Account for farmers, Olive Help for Higher Education Learning Plan, and a
savings account that attract 7% annual interest.
Interest charged is 5% -6% lending rate.
Savings account is &% annual interest Corresponding
Banks. Diamond bank and Bank PHB Have a relationship of 6 weeks to enjoy a
-Bank's vision and mission boldly written
Enjoy ATM se4rvices Cheques don't go for clearing.
No maintenance charges
-Staff come for regular collection
-Branches at Mile 12, Agege and Ikorodu. Very
comfortable interior or could compete with commercial banks
Awolowo way, Ikeja
Infinity Microfinance Bank
Gave brochure that has detailed analysis of all
the banks products
Saving accounts N500 weekly contributions. Entitled to
loan after 30days of consistent contribution Prepayment over a period of 30
LPO financing - need not be an account holders,
interest and charges negotiable.
Current account - Basic requirements, Cheques goes for
Good customer care. Staff willing to talk about
products and services. Vast knowledge about bank products Flyers available
for further information.
Savings -open with 1 k and minimum balance 1 k
interest is 5%PA. Short term loan is available on the savings a/c. interest charged is 5% monthly.
Current a/c-open with 5k minimum balance zero.
Overdraft facility is available with an interest of 5% Cheque book cost
N2000. COT of N5/mill concession of N2/mill for a turnover of N4m monthly.
Kakaaki a/c- hybrid
between current and savings account. Zero COT. Loan max N 1 OOk for a period
of 3mth. Share certificates for collateral. Open with 10k to obtain loan, 4%
regular fee is charged. It comprises 1 %-mgt fee, 1 % legal fee 1 % process
fee. Then 5% interest is charged on the loan obtained.
Bank employees go around to customers for daily
Fixed deposit is available and negotiable based
on the amount and duration. Correspondent bank is Access bank and GTB. Salary
relief - this is a salary account that enables the beneficiary enjoy up to a
maximum of 50% of his 3 months’ salary which can be repaid in 3months.
Quick -quick--: this is a salary advance that
enables the beneficiary enjoy up to a maximum of his monthly salary which
must be repaid back within 30- 90 days. Freedom One a/c: this savings alc enables customers to the
opportunity to save and meet specific future needs within a flexible tenor.
It is a high interest yielding account for people who are saving to start up
SERVICES: Group Deposits, Group Savings, Group
loans, Overdrafts, financial Advisory, SME Financing, Mobile ISMS Banking,
Fund Transfer, Payroll/pension.
They have eight branches.
KFC Microfinance bank
Flyers available for further information and bank profile were written on
Current a/c - open with 3k, minimum bal 5k. COT is N2.5
I mill to obtain a loan
facility must have relationship with them for 3mths.
Other core products include: Savings (individual
corporate) Current Accounts (individual corporate) Premium savings account
Investment project multiplier.
Affiliates include: staco insurance, 1st
Guarantee pension, LASACO assurance
Kings Microfinance Bank Limited
No handbill, got verbal information
Savings A/C- opening No flyers Oba balance 2k,
with 5 %per available Akran, annum including a minimum Ikeja balance of 2k
King's target account - For festivity which money is deposited and interest
is paid at 5% annually Children's account - meant for children's welfare and
can be renewed for 2 or 3 years with an annual interest rate of 5%
Current Alc - opening balance of 5k with zero
minimum balance possibility. COT is N5 per every 1 k withdrawal
Project account which is based on sponsoring
Corporate account which is run by formal
Salary Account where standing order is given to
pay salaries to some listed
groups of people
No flyers available
Oba Akran, Ikeja.
MIC Microfinance Ltd.
Allen Avenue, Ikeja.
Imperial Microfinance Bank
Savings – normal type and the daily contribution
Lift Above Poverty Organization (Lapo) MFB
Good attention from customer care.
Bank products are strictly No Mile 12 for women.
The women are grouped into a minimum of 8. They are trained for a period of
6wks on how well to utilize the loan that will be given to them. Each member
of the group signs an undertaking that they would be held responsible if any
member of the group defaults in the repayment of the loan that will be given.
Thus no need for collateral. The first stage a loan of N20k will be given to
the women. The maximum loan for the product is 150k. It is repaid over a period
of 8 months with an interest rate of 3% monthly. Each stage of the loan is
10k. 10% of the loan is deposited by the
benefactor. It can be withdrawn by the benefactor at any time. At stage of
the loan, an individual qualifies for another product called micro investment
scheme. The first stage of the loan is 50k. It is incremental by 30k. 3%
interest is charged monthly for a period of 8 months.
Money Wise MFB
Information got based on questions asked. Flyers
were available for further information
Savings alc - open with 1 k, Flyers were
Olowu minimum bal N500. Interest available for Ikeja rate is 4% PA current
open with 5k to get a loan facility. 50% of the loan for collateral. interest
on loan is 4% monthly
Flyers were available for further information.
Staff explained & flyers were available
Roster a/c OPERATIONS- Open with an amount e.g. 1 k, after
10days triple the amount saved is given out as a loan. And 1 k is deducted as
maintenance charge at the end of the month.
Bulk counting room
Interest on savings account is 6% Per annum
Charge on Current account is N5/mil and
VAT. Loan is 6%-8% monthly.
All accounts have loan facility available.
IMFB dreams savings a/c - minimum regular savings of 3k or N100 per day.
Interest rate is 2% above the normal rate if no withdrawal in one year.
Can be used as collateral for loans.
Interest rate is 6% PA. Withdrawal period is
predetermined by the client, subject to a minimum of one month. The client
can make contribution on a monthly, weekly or daily basis.
IMFB beneficiary trust ale: this product is meant for parents or guardians to save
towards the future of their children opening balance of 1 k. Minimum tenor of
2-5yrs. Interest at call deposit rate.
Insurance cover of up to 200% of the balance on
the alc in the event of
accident or in the event of accident permanent disability of parent or
IMFB greater tomorrow alc IMFB "MDC"
modified daily contribution a/c:
save for thirty days and get one additional one days contribution
for saving for 30days to qualify, minimum tenor withdrawal is 6months and no
interest would be added in the month of withdrawal.
Generic Savings account: clients set the rules themselves. Interest is 5%
PA. It is available to individuals, groups, associations and unions. Minimum
opening balance is N500. Minimum account balance is N500. Any withdrawal of
more than 4 times a month will attract 0.5% flat service charge in addition
to losing the interest.
Hybrid Savings a/c: This type of account allows for payment of cheques and dividend
warrants with the following features; opening balance for Individual is 5k
and for enterprise is 10k and the minimum balance for individual is 2k and
for enterprise is 5k. No charge is made on this account. IMFB timber Savings a/c: This is a type of fixed deposit
account to secure a stable future and the account is run by placing at least
10k and a minimum of 30days.
Gold a/c: The
aim of this type of alc is to
assist high income earners concentrate on their business while effecting
banking transactions on behalf of them. This is with an opening and minimum
balance of 50k for individual and 100k for corporate Current a/c: This is the normal current account
type with a minimum opening balance of 5k for individual and 10k for
My shares savings a/c: this give customers right to own shares by saving 50% of
the required amount and saving 50%
IMFB 'I DEY LEARN' school everywhere (Capacity
building program): here is a type of social responsibility programme designed
to contribute to millennium development goals
IMFB ride: This is created for on to buy
bicycles, tricycles, motorcycles, cars and buses for personal or business
LPO financing: Funding LPO and reputable
Cheque exchange: bridging short term 90 days cash
need of those in full time employments of reputable organizations.
Trading, working and asset loans: Available as
short term working capital for those in micro businesses IMFB easy life: A
kind of products provision with future install mental payments
IMFB Rosca a/c:
This allows groups to save 33% and borrow 100% for working capital
subject to a maximum of 200k. Interest is charged at the normal lending rate.
Adeniyi Jones, Ikeja.
Prompt attention, vast knowledge about bank
products, willing to talk about products. No other branch. Interior is not
conducive. Staffs were not properly dressed. & were eating on duty.
Enterprise current A/c: Form C06, open with N2k,
min bal N500. No maintenance charge, loan facility is available 5% interest
Regular current a/c: Basic requirements. Correspondent bank is oceanic.
Daily contribution is available i. e. staff go
about to get deposits from clients. Corporate Alc: for corporate body 6%
interest on loan. Open with 3k. Open with form COT and basic requirements.
Including passport photographs of signatories to the a/c .. Finance LPO
Fixed Deposit: Open with minimum of 50k interest
rate is 8%PA. It is calculated 8%/12* 30/365. Less 10% WHT. It is also
negotiable based on duration and value. Minimum balance for all alc is N500.
Have a relationship of 2- 3months before access
to a loan facility.
Interior is not conducive. Staffs were not
properly dressed. E.g. eating on duty.
Awolowo way, Ikeja
Berach ach MFB
Current a/c: open with 5k Salary a/c.
Regular Savings a\c: open with 1 k, minimum daily
contribution of N200. Interest rate is 6% PA Target savings a/c: for meeting children school
fee, land or household acquisition.
Initial deposit of N1000 minimum daily
contribution of N100, minimum monthly contribution of N3000
Daily savings a/c. This is the mode of Esusu. Client determine mode of
daily contribution. Minimum tenor is 30days. After 3 months, opportunity to
save for10days and obtain loan for 30days saving amount.
Corporate alc open with 10k fixed deposit:
minimum 100k, 6% interest rate.
Business expansion/improvement loan:
This is aimed at the micro to small business
customers the purpose of the product is to provide small and medium term
finances for the purpose of stock. 25% contribution from the customer is
required. Maximum tenor 1yr.
LPO financing: clients enjoy bank support in financing orders from
Berachach carry go: buy your bicycles, motorcycles, buses and cars
for business and personal use.
Working capital finance
showing some of the Microfinance banks in Nigeria, products, customer service
P.A = per annum
N5 per Mille = N5 per N1000
1.2 STATEMENT OF PROBLEM
Is Microfinance a
means to economically empower women Micro- entrepreneur? Most women Micro-
entrepreneur are still living below the poverty level and does not even earn
enough to feed and take care of themselves and their family, This study is to
actually look for way forward in helping
Women Micro-entrepreneur, in making them become stable financially, improve
their businesses and expand and also be viable. The study is show if Micro
finance can achieve this or if it has already made a success out of the Women-
It has shown from
studies that the purpose of Microfinance is to alleviate the suffering of the
poor and the less privileged ones, and overtime there has been an imbalance in
the financial capability of Women versus men in most countries and even Nigeria
is not left out, This study is designed to determine how or if Microfinance has
actually helped empowered Women economically i.e. has contributed to the
financial/monetary (growth) achievement and status i.e. social status of women
& if Women are actually benefiting from the new Microfinance Revolution in Lagos.
1.2.2 OBJECTIVES OF STUDY
To find out the
services/products Microfinance Offers?
How accessible the
products/services are to women micro entrepreneurs
Microfinance has made in empowering women micro entrepreneurs.
business types of the women micro entrepreneurs
The level of
awareness of women micro entrepreneurs about the services of MFI
business capacity and how they are doing economically
If they have easy
access to loan and if there is a difference in accessibility based on age,
business type and marital status.
This study is to
help discover if there is need for more work to be done to economically empower
women, though a lot of programmes have been put in place by the government in
the public sector and still majority are not benefiting from it, so coupled
with the private sector initiative of Micro financing individuals who are
interested and ready to be empowered, there should be a positive result or
progression. Also in the course of this study awareness is being made about the
existence of Microfinance and the general services being rendered; insurance,
microcredit, deposit etc and women are reoriented about the fact that
Microfinance is real and out to help them while meeting their objectives of
profit as well (i.e. everybody is out to take advantage of them or their
1.2.4 SCOPE OF STUDY
The study covers
Lagos state and is narrowed down to Ikeja LGA of Lagos. The Women
Micro-entrepreneur being considered are Traders, Hairdressers and Fashion
Designers. These are people with small capital base. Microfinance banks are
mostly located in Ikeja so the population of people in Ikeja are aware of the
existence and services of Microfinance Bank unlike in other part of Lagos
State. Ikeja is wide part of Lagos State which is inhabited by various social
classes of people; low class, middle class, high class etc.
1.3 RESEARCH QUESTIONS
Can Women Micro
entrepreneur be economically empowered
improve women's business capacity
H1 There is a
relationship between the access to capital through Microfinance and the
empowerment of women micro entrepreneurs.
Ho There is no relationship between the access to capital through Microfinance
and the empowerment of women micro entrepreneurs.
H1 There is difference in access to capital on the basis of business type.
Ho There is no difference in access to capital on the
basis of business type.
H1 There is a combined contribution of age and marital status to the
empowerment of women micro entrepreneurs.
Ho There is no combined contribution of age and
marital status to the empowerment of women micro entrepreneurs.