...have copied this financing model. The Nigerian governments over the years have had to grapple with poverty and unemployment. The realization that many of these poor and/or unemployed persons are not without skills, ideas and willingness to work, must have propelled the government to make finance accessible to them The seeming popularity of this model among developing countries is predicated on poverty reduction prospect it offers. The Nigerian government cued into this popular thinking in 2005 when it inaugurated the microfinance banking scheme. This was founded to provide finance to economically active poor excluded from financing by conventional banks, provide employment, engender rural development and reduce poverty. This paper theoretically examines the impact of this institutions to Nigeria as a country. International Journal of Finance and Accounting Concept of Microfinance Microfinance pertain to the lending of small amount of capital to poor entrepreneurs in order to create a mechanism to alleviate poverty by providing the poor and destitute with resources that are available to the wealthy, alert at a small scale. Micro-finance is a term used to refer to different methods for giving poor people access to financial services. Irobi (2008) defined microfinance as the provision...
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...Economics & Political Science Post graduate studies Economic Department Finance for Growth and Role of SMEs An Application to Egyptian Case Prepared by: 1- Amr Hassan Elkady 2- Nashwa Mohamed Hussein Presented to: Prof. Hala El-Saied 2010 In September 2004, the Financial Sector Reform Program was launched and endorsed by the Government of Egypt at the highest political level. The five pillars of the program are reforming the banking sector, restructuring the insurance sector, deepening the capital markets, developing a well functioning mortgage market, and activating other non-bank financial institutions and services. The program aims at improving the soundness of the financial sector and promoting an enabling environment for an efficient, competitive and agile financial system that serves Egypt’s development and growth objectives. The progress and pace of the Egyptian Financial Sector Reform Program have been commended at home and abroad. However, we still have some way to go to fully reform the sector and address its main challenges; one of which is ensuring better access to financial services which is imperative to economic growth and development. Improving access to finance allows businesses, especially small and medium enterprises, to capitalize on their...
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...Question 1: How is the Microeconomics different from macro economics? Discuss also the subject matter of Microeconomics in detail. Answer: MICROECONOMICS "Micro Economics is the study of particular firm, particular household, individual prices, wages, incomes, individual industries and particular commodities." ( K. E. Boulding) In micro economics, we study the small segments of an economy or, in other words, we take up the individual decision – making units of an economy in microeconomics e.g., we analyze the demand of a product or often individual and the equilibrium price of a product rather than discussing the aggregate demand of the economy and the general price level in a country. Similarly in microeconomics, we study the determination of price/reward of a factor of production, analysis of an individual firm or industry, the consumption pattern of a person, choice of technique and different market situations etc. Microeconomics is generally called the “Price Theory”. • Production. In this part of microeconomics we study the meaning of the production of wealth, the cost of production and how it is minimized factor of production and their relative importance in the production process, the production function, the analysis of supply etc. • Exchange. This part covers the market mechanism or the exchange of wealth through the forces of demand and supply, perfect and imperfect market at the behavior of the competitors etc. • Distribution. This part starts with the theory...
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...KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY SCHOOL OF BUSINESS THE USE OF STRATEGIC HUMAN RESOURCE DEVELOPMENT AS A MEANS OF ACHIEVING CORPORATE OBJECTIVE IN THE MICROFINANCE SECTOR. (A CASE STUDY OF SOME SELECTED MICROFINANCE INSTITUTIONS) BY: ACKON BEATRICE APRAKU ESTHER ASABEA OPPONG-SEKUM KINGSLEY A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF BACHELOR OF SCIENCE BUSINESS ADMINISTRATION (HUMAN RESOURCE MANAGEMENT OPTION) MAY, 2015 DECLARATION We the undersigned, declare that this is the result of our own research work carried out in the School of Business, and under the supervision of Mr. Emmanuel Oheneba-Acquah ACKON BEATRICE 8535512 …………………………… …………………………… APRAKU ESTHER ASABEA 8548912 …………………………… …………………………… SEKUM-OPPONG KINGSLEY 8584412 …………………………… …………………………… CERTIFIED BY: EMMANUEL OHENEBA-ACQUAH……………………….. ……………………………. (SUPERVISOR) SIGNATURE DATE MR. J.E TURKSON ………………….. ……………………………. (HEAD OF DEPARTMENT) SIGNATURE DATE DEDICATION This study is dedicated to the Almighty God, we made this possible despite the many challenges faced and to our supervisor Mr. Emmanuel Oheneba-Acquah whose patience and intellect, guided us through this whole phase. We appreciate you! ACKNOWLEDGEMENT ...
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...INTRODUCTION 1. Overview The chapter will constitute Background of the study, statement of the problem, objectives of the study, research questions, significance of the study, scope of the study, limitations of the study and conceptual frame-work of the study. 2. Background to the study The micro finance business embraced today arose in Bangladesh in 1976 with the founding of the Grameen Bank. It became popular in the 1980s s a response to doubts and research findings about a state delivery of subsidized credit to the poor farmers. According to Ledgerwood (2001), prior the 1980s government agencies were the predominant avenue for providing productive credit to those with no previous access to credit facilities. Their services had and still have limited access, because they need collateral as a requirement for getting a loan and the transaction costs are so high. Governments and international donors assumed that the poor required cheap credit and saw this as a way of promoting agricultural production by small landholders. Since the 1980s the fields of Micro finance (MF) has grown substantially. Donors actively support and encourage micro finance activities focusing on micro finance institutions (MFIs) that are committed to achieving substantial outreach and financial sustainability. In Uganda, the health of the financial sector has been impaired by political and social turmoil. It was indicated that the troubles of the 1970s and early 1980s produced a severe contraction...
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...significance of the study, methodology, limitation and organization of the study. BACKGROUND OF THE STUDY Micro finance is defined as financial service for poor and low income clients. In practice the term is often used more narrowly to refer to loans and other services from providers that identify themselves as micro finance institutions. The introduction of micro finance is a welcome relief to development of various women organization and agencies in Ghana. One of the social problems that affect socioeconomic development of women in Ghana is how to acquire capital to finance their businesses. In Ghana, women have been discriminated against with regards to access to credit. As a result, women’s economic roles are isolated and unimportant which have subsequent economic and social impact on the country. It is important that women’s economic should be realized. Increasing women’s access to micro finance institutions have initiated a series of economic development and have increased the well-being of women and their families. An area of interest that led to this study is the introduction of micro finance initiative by the government of Ghana during the Kuffour Administration and the arrival of several non-governmental organizations (NGOs) and subsequent change in lifestyle of women in Ghana. Over the years the government of Ghana has been introducing micro finance schemes to assist in reducing poverty levels of women in Ghana. Such schemes include Poverty Reduction Fund which...
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...MICROFINANCE INSTITUTIONS AND ECONOMIC GROWTH OF SMALL & MICRO-ENTERPRISES (SMES) ACASE STUDY OF (UWMFO) MICRO FINANCE INSTITUTION BY HENRY EGYEYU DEDICATION To the memory of my grand father Daniel Egeyu Whose love & enthusiasm for academia first kindled mine? ABSTRACT This research study investigates the impact of microfinance institutions on entrepreneurial development of Small & Micro-enterprises (SMEs) that are craving for growth and development in a war revived district called Gulu. The researcher used questionnaire as an instrument of primary data collection. Tables and simple percentages were used in data presentation. For clear analysis, the study centers on two broad variables; the dependent variable which is entrepreneurial development and the independent variable which is microfinance institutions. Three different hypotheses were formulated and tested using various statistical tools such as chi-square test, analysis of variance and simple regression analysis. The study reveals that (i) there is a significant difference in the number of entrepreneurs who used microfinance institutions and those who do not use them; (ii) there is a significant effect of microfinance institutions activities in predicting entrepreneurial productivity; and (iii) that there is no significant effect of microfinance institutions activities in predicting entrepreneurial development. The researcher concludes...
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...Microfinance 3 The Goals of Microfinance Institutions 5 Impact of Microfinance on the Economy of Nigeria 6 Negative Impact of MFIs on the country (Nigeria) 10 Conclusion Introduction Since the advent of microfinance institution in Bangladesh in the mid 1970’s, several countries have copied this financing model. The Nigerian governments over the years have had to grapple with poverty and unemployment. The realization that many of these poor and/or unemployed persons are not without skills, ideas and willingness to work, must have propelled the government to make finance accessible to them. The seeming popularity of this model among developing countries is predicated on poverty reduction prospect it offers. The Nigerian government cued into this popular thinking in 2005 when it inaugurated the microfinance institution scheme. This was founded to provide finance to economically active poor excluded from financing by conventional banks, provide employment, engender rural development and reduce poverty. The introduction of microfinance institutions in Nigeria is the inability of Nigerian Deposit Money Banks to provide sufficient financial service to the rural poor. Microfinance institutions have taken up the challenges of the gap created by the Nigerian Deposit Money Banks. Microfinance institutions can be seen as an economic growth method intended to advantage the low income part of a given country like Nigeria, both rural poor and urban poor. This...
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...Leveraging Philanthropy Monetary Waqf for Micro Finance[1] By Dr. Muhammad Anas Zarka [2] Paper Presented to a Symposium Towards an Islamic Micro-Finance April 14, 2007 ISLAMIC FINANCE PROJECT Islamic Legal Studies Program HARVARD LAW SCHOOL ABSTRACT The paper proposes a Monetary Waqf ( MW ) of a variable size, whose major assets are monetary, to provide micro finance to the productive poor. MW depends, as usual in any waqf, on initial permanent donations whose expected income covers the administrative and maintenance needs of MW. A novel feature in the proposed waqf is the mobilization of temporary funds extended to MW as interest-free loans, on call or for a fixed term. MW guarantees repayment to providers of funds, and uses the funds to provide micro-finance to the productive poor in various Shariah Compliant modes, at terms that sustain the waqf but are most favorable to recipients. To strengthen its guarantee, MW must have two tiers of philanthropic guarantors: Guarantors of liquidity, and Guarantors of Losses . Guarantors of Losses help insulate fund providers from risk of default by microfinance recipients. This helps to attract to MW temporary funds many times larger than the guarantee commitments. Payments to make up the losses can be counted by these Guarantors towards their annual zakat obligations. Monetary Waqf in the context of Islam’s economic goals Islamic Shari'ah...
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...Micro enterprise is a low level or small business unit run on the basis of single or group ownership. Micro entrepreneurship promotes entrepreneurial potential among women. It reduces economic dependency and encourages all round development of a community. Empowerment means the process of change by which a person or a group acquire power or capability over their existence such as prosperity availability of resources, increased self-confidence and decision making power. Women empowerment refers to the complete liberation of women from socio economic dependency and impoverishment. Women empowerment leads to economic growth, poverty reduction, increased well-being, etc. Self Help Group (SHGs) based microfinance programme is a...
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...MBA RESEARCH PROPOSAL TOPIC: FACTORS INFLUENCING THE INCREASE AND DEVELOPMENT OF MICROFINANCE IN THE GHANAIAN ECONOMY NAME: BELINDA AKU ATEPOR INDEX NUMBER: 10224399 SUPERVISOR: DR. CHARLES ANDOH TABLE OF CONTENT Background of the Study ………………………………………….......................................3 Problem Statement ……………………………………………….........................................4 Objectives of the Study ……………………………………………………………………..5 Research Problems ………………………………………………………………………….5 Significance of the Study …………………………………………………………………...5 Literature Review …………………………………………………………………………..6 Methodology …………………………………………………………………………………. Scope and Limitations ……………………………………………………………………...7 Chapter Outline …………………………………………………………………………….8 References…... DEFINITION What Is Microfinance? Microfinance, according to Otero (1999, p.8) is “the provision of financial services to low-income poor and very poor self-employed people”. These financial services according to Ledgerwood (1999) generally include savings and credit but can also include other financial services such as insurance and payment services. Schreiner and Colombet (2001, p.339) define microfinance as “the attempt to improve access to small deposits and small loans for poor households neglected by banks.” Therefore, microfinance involves the provision of financial services such as savings, loans and insurance to poor people living in both urban and rural settings who are unable to obtain...
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...CHAPTER 1 INTRODUCTION 1. The Tanzania Development Vision foresees that by the year 2025, “Tanzania should have created a strong, diversified, resilient and competitive economy, which can effectively cope with the challenges of development and, which can also easily and confidently adapt to the changing market and technological conditions in the regional and global economy”. The challenge is therefore to mobilise human and other resources towards that goal. 2. Economic Reform Programmes implemented by the Tanzanian Government have been based on the philosophy that Tanzania is committed to a market economy whereby the private sector will take the lead in creating incomes, employment and growth. On the other hand, the State will be a producer of public goods, play a regulatory role to level the playing field and create conducive environment for the private sector to take the lead in driving economic growth. This philosophy is evident in almost all policy statements made since 1986 and in particular after 1996. The private sector has started playing an ever- increasing role in creating incomes and employment. Small and Medium Enterprises (SMEs) account for a large share of the enterprises active in Tanzania. In fact Small and Medium Enterprises are the emerging private sector and do form the base for private sector-led growth. 3. SMEs, important as they are to the economy, have been facing a number of problems despite the on-going reform programmes. This...
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...The Global Financial Crisis: Assessing Vulnerability for Women and Children, Identifying Policy Responses Mayra Buvinic World Bank February 2009 The current global financial crisis, on top of recent food price increases (which, while down from their peak last year continue to affect the poor in developing countries), will have serious gender specific consequences for women in poor countries and their children. While women (and men) in most developing countries are vulnerable to increased risk of poverty and hardship, exposure to gender-specific negative impacts are particularly high in a subset of countries. These are countries where pre-existing high infant mortality rates and/or low rates of female schooling, combined with decelerating growth rates, substantially raise the vulnerability of women and girls to the deleterious effects of the crisis. Their situation is even more precarious in the sub-set of countries where limited fiscal resources constrain governments’ ability to cushion human impacts. If left unchecked, these crisis consequences on women will reverse progress in gender equality and women’s empowerment (and in meeting the MDGs), increase current poverty and imperil future development. Fortunately, policy responses which build on women’s roles as economic agents and their preference for investing resources in child well-being can go a long way towards mitigating these negative effects. These responses are good for women and for development–...
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...WP/04/01 Bank of Uganda Working Paper Recognising the Role of Micro Finance Institutions in Uganda Justine Nannyonjo and James Nsubuga _________________________________ Bank of Uganda 2 WP/04/01 BOU Working PAPER Research Department Recognising the Role of Micro Finance Institutions in Uganda By Justine Nannyonjo and James Nsubuga February 2004 Abstract This paper shows that micro finance is an important part of the growth strategy in Uganda and has in the recent years gained increasing recognition. This is evidenced by initiatives and strong commitment by government, donors and practitioners towards supporting micro finance activities in Uganda, and the rapid expansion of the micro finance industry. Integration of Micro Finance Institutions (MFIs) into the formal financial system has been established, while measures have been taken to build capacity and enhance coordination in the micro finance industry, as well as expand the outreach of sustainable micro finance. The paper, however, identifies a number of challenges to the development of the micro finance industry: There is need to strengthen the capacity of MFIs to build their management information systems, and to rebuild infrastructure in underserved areas as well as strengthen capacity for identifying potential market structures, which could serve as the basis on which to build sustainable micro finance services. Other challenges include restoring peace in conflict areas and strengthening...
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...only to the sectoral equity caps, entry routes and other relevant sectoral regulations. The issue of de-reservation had been a subject of animated debate within government for more than twenty years. The Approach to the Eleventh Five Year Plan noted the adverse implications of reservation of products for exclusive manufacture by the MSEs and recommended the policy of progressive de-reservation. To facilitate further investments for technological up-gradation and higher productivity in the micro and small enterprises, 654 items have been taken off the list of items reserved for exclusive manufacture by the manufacturing micro and small enterprises in the last few years – reducing it to 21 at present. This has helped the sector in enlarging the scale of operations and also paved the way for entry of larger enterprises in the manufacture of these products in keeping with the global standards. Credit/Finance Credit is one of the critical inputs for the promotion and development of the micro and small enterprises. Some of the features of existing credit policy for the MSEs are: Priority Sector Lending: Credit to the MSEs is part of the Priority Sector Lending Policy of the banks. For the public and private sector banks, 40% of the net bank credit (NBC) is earmarked for the Priority Sector. For the foreign banks, however, 32% of the NBC is earmarked for the Priority Sector, of which 10% is earmarked for the MSE sector. Any shortfall in...
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