The Role Of Micro Finance Banks In The Establishment And Development Of Small Scale Industries in Umuahia North Local Government Area (A Study Of Umuchukwu Micro Finance Bank In Umuahia North Local Government Of Abia State)

ABSTRACT

This research work examined the role of Micro Finance Banks in the Establishment and Development of Small Scale Industries in Umuahia North Local Government Area of Abia State (A study of Umuchukwu Micro Finance Bank). The objectives were to find out the lending policy of Micro Finance Banks in Nigeria, review the roles of Micro Finance Banks in Umuahia North Local Government Area in the establishment and maintenanëe of small scale industry, and ascertain the rate of small scale industrial development in Umuahia North Local Government Area, and to make recommendations based on the findings. The data collected were both from primary and secondary sources. The primary source were from the questionnaire administered to the respondents and received while the secondary data were obtained from library materials, text book, magazines and seminar papers on the topic of the study and internet. The secondary data were used for literature review. The findings from the research established that large amount of funds that flows to the Microfinance Banks come from the public through their personal deposits and bank deposits. Again, Microfinance Banks including Umuchukwu Microfinance bank have become instrumental to the improved saving habit of the rural communities who appreciates the imperativeness of taking advantages offered by microfinance banks to establish business. Among the recommendations made by the researcher includes the following; business men should improve in their attitude to savings/partnership with Micro Finance Banks, Micro Finance Banks should devise means of attracting more customers for savings and the stringent requirement for getting loans should be soften to encourage entrepreneurs.

TABLE OF CONTENT

Title page i

Certification ii

Dedication iii

Acknowledgment iv

Table of content v

Abstract viii

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study 1

1.2 Statement of the Problem 3

1.3 Objective of the Study 4

1.4 Research Question 4

1.5 Research Hypothesis 5

1.6 The Significance of the Study 6

1.7 Scope and Limitation of the Study 7

CHAPTER TWO

LITERATURE REVIEW 8

2.1 Definition of Small-Scale Business 10

2.2 Growth and development of small-scale business in Nigeria 12

2.3 Problem of Small Businesses in Nigeria 15

2.4 Government Incentives towards Promoting Small Business.

in Nigeria .

2.5 The Scope and Potential of Rural Industrialization Policies

and the Role of Small-Scale Industries 22

2.6 SME'S View 25

2.7 Loan and Advancement for Investment 27

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research Design 30

3.2 Source of Data Collection 30

3.3 Population of the Study . 31

3.4 Sample and Sampling Techniques 31

3.5 Sample and Sample Size 32

3.. 5 Method of Data Analysis 32

CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1 Presentation and Analysis of Data 33

4.2 Summary of Findings 43

CHAPTER FIVE

CONCLUSION AND RECOMMENDATIONS

5.1 Summary 45

5.2 Conclusion 46

5.3 Recommendation 47

References

Appendix