Assessment of the Effectiveness of Microfinance Banks’ Enhanced Service Delivery to Small Scale Enterprises in Imo State.
ABSTRACT
This research work was carried out to assess the effectiveness of Microfinance Banks’ enhanced service delivery to small scale enterprises in Imo State. The survey research method was adopted for this study.
A 35 items questionnaire was used in studying a population size of the managers of 58 registered small and medium scale enterprises in Imo State, which include companies dealing on farming such as fishery, piggery, poultry and cassava processing industry.
Also other firms that deal on garment making, fabricating and construction industries etc. The mean statistics and t-test analytical tools were adopted in analyzing data. The study revealed that the savings services of microfinance banks facilitate operations of small scale business managers.
Also that the study revealed among others that microfinance banks makes efforts to encourage the savings habit of operators which is important in ensuring small scale business growth.
The study recommended among others that microfinance banks should organize enlightenment workshops on a regular basis for small business owners to equip them with knowledge and understanding of microfinance banks operations services and how the small business owners can benefit from microfinance banks.
TABLE OF CONTENTS
Title Page- – – – – – – – – – – i
Approval Page- – – – – – – – – – ii
Certification – – – – – – – – – – iii
Dedication – – – – – – – – – – iv
Acknowledgements – – – – – – – – – v
Table of Contents – – – – – – – – – vi
List of Tables – – – – – – – – – – vii
Abstract – – – – – – – – – – – viii
CHAPTER 1: INTRODUCTION
Background of the Study- – – – – – – – – – – – 1
Statement of the Problem- – – – – – – – – – – – – 6
Purpose of the Study- – – – – – – – – – – – – 8
Significance of the Study- – – – – – – – – – – – 9
Research Questions- – – – – – – – – – – – – – 10
Hypotheses- – – – – – – – – – – – – – – – 11
Delimitations- – – – – – – – – – – – – – – 11
CHAPTER 2: REVIEW OF RELATED LITERATURE
Conceptual Framework- – – – – – – – – – – – – 12
Microfinance Banking- – – – – – – – – – – – – 12
Theoretical Framework- – – – – – – – – – – – – 29
Related Empirical Studies- – – – – – – – – – – – – 31
Summary of review of related literature- – – – – – – – – – 35
CHAPTER 3: METHODOLOGY
Design of the Studies- – – – – – – – – – – – – – 38
Area of the Study- – – – – – – – – – – – – – 38
Population of the Study- – – – – – – – – – – – 39
Instrument for Data Collection- – – – – – – – – – – 39
Validation of the Instrument- – – – – – – – – – – 40
Reliability of the Instrument- – – – – – – – – – – 41
Method of Data Collection- – – – – – – – – – – 41
Method of Data Analysis- – – – – – – – – – – – -41
CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA
Findings of the Study- – – – – – – – – 53
Discussion of the Findings – – – – – – – – 55
CHAPTER FIVE: SUMMARY, CONCLUSIONS, RECOMMENDATIONS
Re-statement of the Problem – – – – – – – – 60
Summary of Findings – – – – – – – – – 62
Implications of the Study – – – – – – – – – 64
Conclusions – – – – – – – – – – – 65
Recommendations – – – – – – – – – – 66
Area for Further Studies – – – – – – – – – 67
REFERENCES- – – – – – – – – – – – – – 68
APPENDICES
APPENDIX 1: QUESTIONNAIRE – – – – – – – – 72
INTRODUCTION
1.1 Background of the Study
Microfinance refers to provision of financial services to the poor who are traditionally not served by the conventional financial institutions.
Microfinance is basically distinguished from other formal financial products by the smallness of loans or savings collected, the absence of asset-based collateral, and simplicity of operations (CBN, 2005).
Microfinance creates access to credits which make small, businesses viable and raise income above poverty line. This underscores the pertinence of microfinance as a catalyst for economic development in any society.
Littlefield, Morduch and Hashemi (2003) cited in Akpomuvie (2010) observed that microfinance is unique among all development interventions because it provides access to flexible, convertible and affordable financial services that empower and equip the poor to make their own choices and build their way out of poverty in a sustainable and self determined way.
As Akpomuvie (2010) noted, extraordinary high interest rates, limited capital and the risk of appropriation often keep the underprivileged operating at levels of marginal productivity that are simply not competitive in regional or world markets.
The numerical growth of private sector and other microfinance institutions in Nigeria is largely due to the unwillingness of the formal financial institutions to provide financial services to the urban and rural poor coupled with the vulnerability of government sponsored development financial schemes.
REFERENCES
Adams, A. A. (2007). The vital Role of Medium and Small-scale Industries in Industrial Transformation and Economic Growth in Nigeria. The Nigerian Banker. July – September, pp. 23 – 26.
Akpala, A. (1998). Management: An Introduction and the Nigerian Perspective. Enugu: Department of Management, University of Nigeria, Enugu Campus.
Akpomuvie, B. (2010). Sustainable rural development in Nigeria through microfinance: the place of women. African research review. 4(2):252-264.
Arizona-Ogwu L.C (2008). CBN and Microfinance Banks: Setting A Robust Village Economy; http://www.nigeriainamerica.com/articles/2357/1/CBN-And-micro… Retrieved April 10, 2008
Asuquo, D. & Latinwo, H. (2010). Entrepreneural developments and small scale industry contribution to Nigerian national development: a marketing interface. Information management and business review. 1(2):51-68.
Asuquo, M. V. (2005) Sustainability: The Role of the Accountant in Africa in I.V.O. Modo (ed). Sustainable Development in Africa: A book of Readings. Ugo: Cultural Research publishers, pp