RESEARCH REPORT THE CONTRIBUTION OF MICRO FINANCE BANK IN THE EMPOWERMENT OF SMALL-SCALE BUSINESS
ABSTRACT
This study reviewed the crucial contribution 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 significance 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.
CHAPTER ONE
1.1 INTRODUCTION
A well functioning and developed Small and Medium Enterprises (SMEs) sector is a function of economic growth, which is according to economic theory. According to Kalu (2013), this sector of Nigerian economy lacks the funds to finance its activities towards contributing to the growth and development of the Nigerian economy. This is a result of the fact that, the Micro, Small and Medium Enterprises (MSMEs) that are operating in this sector of the Nigerian economy are unable to access the financial services of the money deposit banks in the country. This is so because, these money deposit banks in the country (Nigeria) avoid doing businesses with these enterprises as they believe that, the risks and associated cost of doing businesses with these enterprises are considerably high due to inability of these enterprises to supply the required collateral securities for money deposit banks loans and advances as well as, the associated costs of operating accounts and carrying out transactions with these enterprises.
Therefore, those enterprises are left at the mercy of the funds the entrepreneurs of these enterprises were able to raise themselves either through their personal savings or through borrowings from friends and relatives for the financing of their business activities. As such, the development of this sector is impaired due to this problem of lack of adequate funds to finance every viable business ideas that could contribute to the development and growth of the economy.
Microfinance Institutions (MFIs) according to Anyanwu (2014), exist primarily to meets the unsatisfied demand (needs) created by