ABSTRACT
This
study reviewed the crucial role of micro Finance Bank in promoting small scale
enterprise.
The
purpose of this study is to provide means through which those problems facing
small scale can be solved; the significant of this is to provide means in which
government can assist microfinance banks will bring lasting solution to those
problems facing small scale industries, in the analysis of data collected, the
research used descriptive method.
All
the data gathered by the researcher were tabulated and analyzed accordingly.
It
is included that microfinance banks is an indispensable ingredient for
efficient, effective and successful performance of an organization, it also
showed that microfinance banks is the source of fund to small scale business.
The study of recommendation is that small scale owners should motivate good
employees because it is another key success in business enterprises.
.
TABLE OF CONTENT
Chapter I
1.1
Background Of Study………………………………….1
1.2
Statement Of The Problem………………………………2
1.3
Purpose Of The Study…………………………………….5
1.4
Significance Of The Study………………………………..6
1.5
Research Question…………………………………………7
1.6
Hypothesis Formulation………………………………….8
1.7
Scope Of The Study………………………………………….9
1.8
Definition Of Terms…………………………………………..10
Chapter 2
Literature Review
2.1
The Review Should Be Studied Under The Following Sub-Headings.
2.2
Conceptual Framework
2.3
Theoretical Framework
2.4
Empirical Review
2.5
The Empirical Review May Be Ignored When It Is Not Possible To Adopt.
CHAPTER 3
RESEARCH METHODOLOGY
3.1
Design Of The Study……………………………………21
3.2
Area Of The Study……………………………………….21
3.3
Population Of The Study……………………………….22
3.4
Sample Of The Study…………………………………….22
3.5
Instrument For Data Collection……………………….24
3.6 Validation Of The
Instrumentation………………….24
3.7
Distribution And Retrieval Of Instrument…………….24
3.8
Method Of Data Analysis………………………………….25
CHAPTER 4
DATA PRESENTATION AND ANALYSIS
4.1
Preamble
Chapter 5
Summary Of Findings, Conclusion And
Recommendations
5.1
Summary Of Findings……………………………………45
5.2
Conclusion…………………………………………………46
5.3
Recommendations…………………………………………46
5.4
Limitation Of The Study…………………………………….47
5.5
Suggestion Of Furthers Review……………………………..48
CHAPTER 1
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The history of community Banks (Micro finance
banks) can be traced to 1990 when general Ibrahim babangida announced the establishment
of community banks now microfinance Bank in his 1990 budget speech.
In January 2007, there was a new reform in
banking sector which led to changing, its name from community bank microfinance
bank. Various effort have been made in the past to extend banking activities to
rural areas and improve their banking of which most of the establishment
policies could not achieved but the introduction of microfinance bank stands
out to the remedy to this problem.
Section 61 of bank and other financial institution
act (BOFIA) stated that one of the levels of banking in Nigeria is microfinance
bank. This can be seen as bank whose activities are restricted to specified
geographical area in Nigeria. Microfinance bank is a scheme introduction by the
federal government though central bank of Nigeria aimed at producing financial
service to the less privileged which are traditionally not served with
conventional financial institutions. Its capital base is twenty million naira
(N20,000,000), and this will enhance efficiency in microfinance banking system
and increase banking habit among the community dwellers and eradicate poverty.
1.2 STATEMENT OF PROBLEM
Several studies have helped to identify the
major problem facing small scale business in Delta State. The primary focus of
this study emanates from the fact that small scale enterprises owners are
contend with daunting challenge:
1.
Lack
Of Finance: finance has been the major problem faced by the
small scale enterprise owners. Due to insufficient finance or capital needed
for successful business transaction by small scale enterprises owners, they
have decided to get loans from micro finance bank to support their business
finance/ capital.
2.
Lack
of experience in the field: this is another problem
facing small scale enterprise owners. It is meant to understand that any
business decision require experience and knowledge to avoid business failure.
3.
Poor planning: as a result of poor planning, so many small
enterprises have failed in the long run. This is because business success
entails adequate plan on how to get the required resource such as fund raising
customers, raw-materials, recording, employees that will make the business grow
effectively.
4.
Week marketing strategy/skill: the beginning and end
of any successful business is satisfying customer’s wants and need. Small scale
enterprises owners lack the adequate marketing skills, and this has stand as
one the problems facing enterprises.
5.
Poor human relation: another problem facing small scale
enterprises is poor human relation. The level at which managers relate with
their employees is very poor because of this; the enterprises will experience a
very low rate of turnover as a result of poor communication between the small
scale owners and their employees.
1.3
PURPOSE OF THE STUDY
The aim objective of
this study is to determine, the contribution of micro-finance bank in the
empowerment of small scale business in Agbor, Delta State. The following are
the specific objective:
I.
To determine whether the provision to
fund to small scale business owners help in promoting such business.
II.
To determine whether micro-finance banks
provide training exercise skill acquisition programme to those who wants to
start up business, on the management or fund and running of small scale
business.
III.
To determine whether micro-finance bank
adopt strategy that help in managing small scale industries do as to enable
them complete effectively, in the market environment.
IV.
To determine whether loans from
micro-finance banks are favourable to small scale industries in other to
encourage borrowing.
1.4 SIGNIFICANCE OF THE STUDY
Considering the research topic “the
contribution, of microfinance banks in the empowerment of small scale business
in Agbor”. The following, group of people would derive great benefit from the
study. The people in both urban and rural areas through the promotion of
economic growth and development.
Microfinance
banks have encourage infants industries through the provisions of loan to
support their capital. Finally, the study will make government appreciate the
need to assist micro-finance banks in bringing out lasting solution to those
problems that are affecting small and medium scale enterprise in Nigeria at
large, also would benefit future researchers on same topic as the material
would be a great source of better guides to the and also a great benefit to
small scale business owners to know the usefulness of micro finance banks and
their functions in the empowerment of business in rural and urban areas.
1.5 RESEARCH QUESTION
1.
Does the provision of fund to small
scale business owners by
micro-finance banks help to promote small scale business?
2.
Does the provision of training exercise
by microfinance banks help to promote or solve the problem of
small scale industries lack of management issues?
3. What strategy does a micro-finance bank adopt
in promoting small scale industries
as to enable them compete effectively
in the market environment?
4. What is the interest rate of those loans
provided by micro- finance banks to small
scale business?
1.6
HYPOTHESIS FORMULATION
In the course of the study, the following
hypothesis is formulated:
Null hypothesis (Ho)
- there is no provision of fund to
small scale business owners by microfinance banks that helps to promote small
scale business.
Alternative hypothesis (Hi) -
there is provision of fund to small scale business owners by microfinance banks
that helps to promote small scale business.
Null hypothesis (Ho)
- there is no provision of training
exercise by micro-finance banks that helps to solve the problem of small
industries.
Alternative hypothesis (Hi) -
there is no provision of training exercise provided by micro-finance banks that
helps to solve the problem of small scale.
Null hypothesis (Ho) –
there is no strategy adopt by micro-finance banks in promoting small scale
industries in market environment.
Alternative hypothesis (Hi) -
there is no strategy adopt by micro-finance banks in promoting small scale
industries in market environment.
1.7 SCOPE OF THE STUDY
This research work focuses on the promoting of
small scale and medium enterprises in Nigeria by paying special attention to
the impact of bank credit on the development of small scale enterprise.
Although there are other types of banks that
grant credit facilities to small and medium scale enterprise in Nigeria, this study
focuses on micro-financed banks only.
The researcher studies the essential problems
encountered by small and medium scale enterprises and suggest ways by which
they can be adequately and efficiently financed.
1.8 DEFINITION OF TERMS
1.
Finance:
management of money, management of flows of money through an organization, whether it is
private, government organization and the claims and the
claims of money, finance can be seen as a concept, principle and facts concerned
in the evaluation and acquisition of production assets, procurement of
funds and disbursement of funds.
2.
Management:
this is defined as the process of organizing, staffing, directing and controlling at levels
of an organization.
3.
Planning:
This includes process of forecasting, formulating, policies, objectives and
event which will enable management in
achieving the overall objectives of an undertaking.
4.
Entrepreneur:
this is defined as the willingness and ability of an individual to seek out investment
opportunities, establish and
run enterprise successfully.
5.
Research:
this is the process of finding out the solution to a problem, it includes the
methodology and the magnitude of the
problem.
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