IMPACT OF MICROFINANCE LOAN ON GROWTH AND DEVELOPMENT OF ENTERPRISES
INTRODUCTION AND BACKGROUND
The economic development of a country primarily depends upon the establishment of
industries, which require sufficient amount of capital which may be facilitated by microfinance institutions. Microfinance is a form of financial services for entrepreneurs and small business lacking access to banking and related services. The two main mechanisms for the delivery of financial services to such clients are relationship-based banking for individual entrepreneurs and small businesses and group-based models, where several entrepreneurs come together to apply for loans and other services as a group population. Microfinance covers a wide array of microfinance institutions ranging from indigenous rating savings and credit association and self-help groups to financial cooperatives rural banks and community banks as well as non-banking financial institutions including credit NGOs. This means that, microfinance is the supply of basic financial services to poor and low income households and their microenterprises.
Statement of the Problem
Although MSEs are vital in alleviating the problem of unemployment and poverty to
the majority of Tanzanians; their growth, expansion and general performance is not satisfactory.In many developing countries, small and medium enterprises (MSEs)
make up a large share of registered businesses, but a much smaller share of GDP.
Data from several countries suggest that few MSEs grow to become larger
businesses.(Gharad Bryan, Pam Jakiela, Dean Karlan and Daniel Keniston, 2013). The
global financial crisis, which has negatively affected credit to firm, has reignited the
debate about the impact of banks’ funding constraints on the overall performance of
MSEs.( Bank of Amsterdam, 2013).
How to get complete project materials
Step 1: make payment of N2,000 to the below bank details
NAME: TITUS AYANI SOLA
BANK: FIRST BANK PLC
ACCT NO: 3111741042
ACCOUNT TYPE: SAVINGS