+234 813 0686 500
+234 809 3423 853
info@grossarchive.com

THE IMPACT OF MICRO FINANCE BANK IN NIGERIA IN THE PROVIVISION OF SHORT-TERM LOANS TO SMALL SCALE ENTERPRISES

  • Type:Project
  • Chapters:5
  • Pages:92
  • Methodology:Statistical Technique
  • Reference:YES
  • Format:Microsoft Word
(Banking and Finance Project Topics & Materials)
 
THE IMPACT OF MICRO-FINANCE INSTITUTION IN THE PROVISION OF SHORT-TERM LOAN TO SMALL SCALE ENTERPRISES (A STUDY OF EKONDO MICROFINANCE BANKS LIMITED), CALABAR SOUTH LOCAL GOVERNMENT AREA.
CHAPTER ONE

INTRODUCTION
Entrepreneurship is the foundation for small scale enterprises.  Small scale enterprises are the key for economic growth and development. They constitute the bedrock of many economies by providing the impetus for employment creation and value added activities.
In Nigeria, small scale enterprises play crucial roles in economic growth and development process. For instance, they are responsible for the establishment of a robust industrial sector by stimulating indigenous entrepreneurship and technology. They represent an essential link between primary production and large scale industrialization. Besides, they have enormous opportunities for growth due to their nature. But the worst hit is that most of them exist in rural areas. As such, they face a myraid of problems that limit their positive contribution to the economy, Summarily as Financial constraint, Poor infrastructure, poor management etc. But their major challenge is financial constraint.
 To solve their problem of financial constraint, government over the years has put in place a number of economic schemes, programmes and policies. One of them is the rural banking programme (RBP) which was introduced   in 1977. Under the progamme, banks were mandated to open a number of rural branches and bring banking services nearer to the rural dwellers. It was hoped that banking habits would be imbibed by the people and savings would also be mobilized. But this scheme was not successful because, it turned out to be costly and unprofitable for commercial banks.
 Apart from the rural banking progamme , some development finance institutions were established by government to support and promote SSEs such as Nigeria Agricultural and Cooperative Bank(NACB), the People’s Bank of Nigeria, the  Community Banks, Bank of industry (BOI), the Nigeria Export Import Bank (NEXIM) and the Nigeria Agricultural Cooperative and  Rural Development Bank(NACRDB). In addition to these includes: The Agricultural Credit Guarantee Scheme (ACGS), Agricultural Credit Support Scheme (ACSS) and Small and Medium Enterprises Equity  Investment Scheme (SMEEIS). Also some specialized poverty alleviation agencies were equally set up by government to ameliorate the problem and promote SSEs, such as  the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), National Directorate of Employment (NDE) and National Poverty Eradicate Programme  (NAPEP). All these institutions did not meet the expectations owing to lack of adequate government commitment and poor management.
 Consequently, in December 2005, the microfinance policy, regulatory and supervisory framework for Nigeria was launched. The aim was to provide an appropriate menu of financial services by diverse institutions to meet the need of the poor and low income groups. The policy provides for participation of the deposit money banks, non-governmental organizations, newly licensed microfinance banks in microfinance provision.
 Despite these attempts, the small scale entrepreneurs are yet to achieve their optimal potential in the economic equation of the nation. However, the trust of this study is to examine the impact of MFBs in provision of short -term loans to SSBs. Besides, the rate at which MFBs finance  SSBs, the types of credit facilities available to SSBs, the maturity structure of such credit facilities, the repayment schedule of such  credit  facilities, the collateral policies of such credit facilities and the general efficiency level of MFBS in financing SSBs, using Chidera MFB as a case study.   
 1.1   BACK GROUND OF THE STUDY
 In economics, it is usually said that our wants are unlimited but the resources to satisfy them are limited. Even in business, expectations are often high but finance is always scarce or limited to meet them. This shows that paucity of fund is a hard-nut-to crack for every organisation be it profit or non-profit making organisation.
 Nigeria’s future rests on its ability to train and fund local entrepreneurs that can nature home-grown firms and encourage innovation, risk taking and local investment. But the under development nature of  the SSE sector of the Nigerian economy needs urgent step to put it in good order with  the micro finance funding of the SSEs, just as instructed by the CBN. However, one question which still yearns for an answer is how the microfinance banks are performing this duty of financing the SSBs in Nigeria. Hopefully, this will be established and proved beyond every reasonable doubt with clear facts and figures as we progress in this work.


THE IMPACT OF MICRO FINANCE BANK IN NIGERIA IN THE PROVIVISION OF SHORT-TERM LOANS TO SMALL SCALE ENTERPRISES

Share This

Details

Type Project
Department Banking and Finance
Project ID BFN0322
Price ₦4,000 ($11)
Chapters 5 Chapters
No of Pages 92 Pages
Methodology Statistical Technique
Reference YES
Format Microsoft Word

500
Leave a comment...

    Details

    Type Project
    Department Banking and Finance
    Project ID BFN0322
    Price ₦4,000 ($11)
    Chapters 5 Chapters
    No of Pages 92 Pages
    Methodology Statistical Technique
    Reference YES
    Format Microsoft Word

    Related Works

    THE IMPACT OF MICRO-FINANCE INSTITUTION IN THE PROVISION OF SHORT-TERM LOAN TO SMALL SCALE ENTERPRISES (A STUDY OF EKONDO MICROFINANCE BANKS LIMITED), CALABAR SOUTH LOCAL GOVERNMENT AREA. CHAPTER ONE INTRODUCTION Entrepreneurship is the foundation for small scale enterprises. Small scale enterprises are the key for economic growth and development.... Continue Reading
    (A STUDY OF EKONDO MICROFINANCE BANKS LIMITED), CALABAR SOUTH LOCAL GOVERNMENT AREA. TABLE OF CONTENTS CHAPTER ONE: INTRODUCTION Background of the study Statement of the problem Purpose of the study Research questions Research hypothesis Scope of... Continue Reading
    ABSTRACTS This research work is carried out to evaluate the Impact of Micro Finance Banks (MFBs) on the Survival of Small and Medium-Scale Enterprises (SMEs) in Nigeria to determine the financial service of (MFBs) of... Continue Reading
    ABSTRACT Small and Medium enterprises are the catalyst for economic growth in most economies thus, the fundamental objective of this study is to investigate the impact of loans on Small and Medium Enterprises (SMEs) in Nigeria. So that the ability of SMEs to develop positively and drive economic growth in the Nigeria will become real. Simple... Continue Reading
    CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF THE STUDY The development of the various sectors of any economy is the basis for its survival, different measures have been put in place by the Federal Government of Nigeria in order to achieve this objective, such as, the establishment of the Finance and Research Institution in 2001, provision of direct... Continue Reading
    (A CASE STUDY OF CRUTECH MICRO FINANCE BANK, CALABAR) CHAPTER ONE INTRODUCTION 1.1   BACKGROUND TO THE STUDY Effectively functioning financial markets like micro finance banks have fundamental roles to play in fostering development among small and medium... Continue Reading
    CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF STUDY The issue of financing small and medium scale enterprises has been the center piece of discussions between the government and banks. While banks want to lend... Continue Reading
    (BRASS MICRO FINANCE BIDA)   ABSTRACT This project work is carried out to examine the contribution of micro finance banks to the development of Small and medium scale enterprises in Nigeria. The Brass micro finance bank is used as a... Continue Reading
    CHAPTER ONE INTRODUCTION 1.1 BACKGROUND FOR THE STUDY Banks are in the Business of accepting deposit from the public and on lending those funds to borrowers and make profit in return. Banks therefore as a custodian of depositors funds... Continue Reading
    ABSTRACT This study examines the performance of Micro finance Institutions (MFIS) in Lagos State, based on the development of small and medium Scale Industry. The findings indicate that the operations of MFIs have grown phenomenally in the last three years, driven largely by expanding informal sector activities, the conversion of the community... Continue Reading