RESEARCH REPORT THE CONTRIBUTION OF MICRO FINANCE BANK IN THE EMPOWERMENT OF SMALL-SCALE BUSINESS

RESEARCH REPORT THE CONTRIBUTION OF MICRO FINANCE BANK IN THE EMPOWERMENT OF SMALL-SCALE BUSINESS IN AGBOR DELTA STATE

ABSTRACT

This study reviewed the crucial role 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 significant 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 1

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The history of community Banks (Micro finance banks) can be traced to 1990 when general Ibrahim babangida announced the establishment of community banks now microfinance Bank in his 1990 budget speech.

In January 2007, there was a new reform in banking sector which led to changing, its name from community bank microfinance bank. Various effort have been made in the past to extend banking activities to rural areas and improve their banking of which most of the establishment policies could not achieved but the introduction of microfinance bank stands out to the remedy to this problem.

Section 61 of bank and other financial institution act (BOFIA) stated that one of the levels of banking in Nigeria is microfinance bank. This can be seen as bank whose activities are restricted to specified geographical area in Nigeria. Microfinance bank is a scheme introduction by the federal government though central bank of Nigeria aimed at producing financial service to the less privileged which are traditionally not served with conventional financial institutions. Its capital base is twenty million naira (N20,000,000), and this will enhance efficiency in microfinance banking system and increase banking habit among the community dwellers and eradicate poverty.

1.2 STATEMENT OF PROBLEM

Several studies have helped to identify the major problem facing small scale business in Delta State. The primary focus of this study emanates from the fact that small scale enterprises owners are contend with daunting challenge:

  1. Lack Of Finance: finance has been the major problem faced by the small scale enterprise owners. Due to insufficient finance or capital needed for successful business transaction by small scale enterprises owners, they have decided to get loans from micro finance bank to support their business finance/ capital.
  2. Lack of experience in the field: this is another problem facing small scale enterprise owners. It is meant to understand that any business decision require experience and knowledge to avoid business failure.

3. Poor planning:  as a result of poor planning, so many small enterprises have failed in the long run. This is because business success entails adequate plan on how to get the required resource such as fund raising customers, raw-materials, recording, employees that will make the business grow effectively.

4. Week marketing strategy/skill: the beginning and end of any successful business is satisfying customer’s wants and need. Small scale enterprises owners lack the adequate marketing skills, and this has stand as one the problems facing enterprises.

5. Poor human relation: another problem facing small scale enterprises is poor human relation. The level at which managers relate with their employees is very poor because of this; the enterprises will experience a very low rate of turnover as a result of poor communication between the small scale owners and their employees.  

1.3 PURPOSE OF THE STUDY

     The aim objective of this study is to determine, the contribution of micro-finance bank in the empowerment of small scale business in Agbor, Delta State. The following are the specific objective:

  1. To determine whether the provision to fund to small scale business owners help in promoting such business.
  2. To determine whether micro-finance banks provide training exercise skill acquisition programme to those who wants to start up business, on the management or fund and running of small scale business.
  3. To determine whether micro-finance bank adopt strategy that help in managing small scale industries do as to enable them complete effectively, in the market environment.
  4. To determine whether loans from micro-finance banks are favourable to small scale industries in other to encourage borrowing.

1.4 SIGNIFICANCE OF THE STUDY

      Considering the research topic “the contribution, of microfinance banks in the empowerment of small scale business in Agbor”. The following, group of people would derive great benefit from the study. The people in both urban and rural areas through the promotion of economic growth and development.

      Microfinance banks have encourage infants industries through the provisions of loan to support their capital. Finally, the study will make government appreciate the need to assist micro-finance banks in bringing out lasting solution to those problems that are affecting small and medium scale enterprise in Nigeria at large, also would benefit future researchers on same topic as the material would be a great source of better guides to the and also a great benefit to small scale business owners to know the usefulness of micro finance banks and their functions in the empowerment of business in rural and urban areas.

1.5 RESEARCH QUESTION

  1. Does the provision of fund to small scale business owners           by micro-finance banks help to promote small scale                      business?
  2. Does the provision of training exercise by microfinance               banks help to promote or solve the problem of small scale       industries lack of management issues?
  3.  What strategy does a micro-finance bank adopt in      promoting small scale industries as to enable them compete      effectively in the market environment?
  4.  What is the interest rate of those loans provided by micro- finance banks to small scale business?

1.6 HYPOTHESIS FORMULATION

    In the course of the study, the following hypothesis is formulated:

Null hypothesis (Ho) there is no provision of fund to small scale business owners by microfinance banks that helps to promote small scale business.

Alternative hypothesis (Hi) – there is provision of fund to small scale business owners by microfinance banks that helps to promote small scale business.

Null hypothesis (Ho) there is no provision of training exercise by micro-finance banks that helps to solve the problem of small industries.

Alternative hypothesis (Hi) – there is no provision of training exercise provided by micro-finance banks that helps to solve the problem of small scale.

Null hypothesis (Ho) – there is no strategy adopt by micro-finance banks in promoting small scale industries in market environment.

Alternative hypothesis (Hi) – there is no strategy adopt by micro-finance banks in promoting small scale industries in market environment.

1.7 SCOPE OF THE STUDY

This research work focuses on the promoting of small scale and medium enterprises in Nigeria by paying special attention to the impact of bank credit on the development of small scale enterprise.

Although there are other types of banks that grant credit facilities to small and medium scale enterprise in Nigeria, this study focuses on micro-financed banks only.

The researcher studies the essential problems encountered by small and medium scale enterprises and suggest ways by which they can be adequately and efficiently financed.

1.8 DEFINITION OF TERMS

  1. Finance: management of money, management of flows of          money through an organization, whether it is private,                   government organization and the claims and the claims of            money, finance can be seen as a concept, principle and facts         concerned in the evaluation and acquisition of production              assets, procurement of funds and disbursement of funds.
  2. Management: this is defined as the process of organizing,   staffing, directing and controlling at levels of an                         organization.
  3. Planning: This includes process of forecasting, formulating,         policies, objectives and event which will enable management          in achieving the overall objectives of an undertaking.
  4. Entrepreneur: this is defined as the willingness and ability                of an individual to seek out investment opportunities,                   establish   and run enterprise successfully.
  5. Research: this is the process of finding out the solution to a        problem, it includes the methodology and the magnitude of            the problem.
Download Full Material-N5000

One Reply to “RESEARCH REPORT THE CONTRIBUTION OF MICRO FINANCE BANK IN THE EMPOWERMENT OF SMALL-SCALE BUSINESS”

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Post

SELF-EMPLOYMENT SKILLS POSSESSED BY BUSINESS EDUCATION STUDENTS OF COLLEGES OF EDUCATION FOR SUSTAINABLE DEVELOPMENT IN CROSS RIVER STATE, NIGERIA

Abstract

One of the goals of NCE business education programme is the acquisition of both physical and intellectual skills which will enable individuals to be self- reliant and useful members of the society. In spite of available business opportunities, and conducive environment for businesses to thrive in Cross River state, Business Education graduates are yet to maximize these opportunities, by using their creative abilities in establishing jobs for themselves and others instead, the business graduates go about the streets in search of jobs which are either few in supply or not available leading to high rate of unemployment, which has led to frustration and low self-esteem, and other negative vices amongst NCE graduates. It was on this note the study was conducted to determine the self-employment skills possessed by business education students of Colleges of Education for sustainable development in Cross River State. The study adopted a descriptive survey research design and was conducted in Federal College of Education Obudu and College of Education Akamkpa, Cross River State. The population for the study was 745 made up of: 425 NCE final year students of Business Education from Federal College of Education Obudu, and 320 NCE final year students of Business Education from College of Education Akamkpa. The sample of the study was 384 made up of 206 and 178 respondents from the Federal College of Education Obudu and College of Education Akamkpa respectively. A structured questionnaire containing 63 items was used to elicit responses from respondents and generate data for the study. The instrument was face-validated by three experts in the Department of Vocational Education was used to collect data from the respondents. The study made use of Cronbach Alpha reliability method Sto determine the internal consistency of the instrument. The data collected for the study was analyzed using mean to answer the research questions and standard deviation to determine the closeness or otherwise of the responses from the mean, while t -test statistic was used to test the null hypothesis of no significant difference at the probability of 0.05 level of significance at relevant degree of freedom with the use of Statistical Package for Social Sciences (SPSS). Findings from the analysis showed that business education students of Colleges of Education in Cross River State slightly possess creative skills, information and communication skills, marketing skills and accounting skills for self employment and sustainable development. Based on the findings of the study, it was recommended amongst others that Business education students should be mandated to develop a viable business plan before graduation as this would bring out their creative abilities in creating jobs for themselves in particular and the nation at large.

 

CHAPTER ONE

INTRODUCTION

Background of the Study

Business Education is an educational programme that prepares students for entry and advancement in jobs within business and to handle their business affairs as well as to function intelligently as consumers and citizens in a business economy. Osuala (2004) defined business education as that aspect of vocational education, which emphasizes job competency, career preparation and work adjustments. It involves acquisition of special skills in business subject areas. Njoku (2006) defined business education as an educational programme that equips individuals with functional and sustainable skills, knowledge, attitude and value that would enable the individuals  operate in the environment such individuals find themselves. Business education programme is offered at various levels of tertiary education: Universities, Polytechnics, and Colleges of Education.

College of Education according to the Nigerian Academy of Management Administration (2014) is an educational programme created to prepare individuals to be leaders and practitioners in education and related human service fields by expanding and deepening understanding of education as a fundamental human endeavour in helping society define and respond to its educational responsibilities and challenges. At this level of education, the programme prepares the individual for a career in teaching, employment in industries, civil service and business establishment as well as self-employment (Ubong & Wokocha, 2009). There are two Colleges of Education in Cross River State: Federal College of Education Obudu, located at the urban area of the State, has a better and conducive environment and opportunities for entrepreneurship to thrive unlike the College of Education Akamkpa, which is located at the rural area of the State, which is characterized by lack of market and infrastructural facilities for businesses to flourish. However, both Colleges run a Business Education programme, which lead to the award of Nigeria Certificate in Education (NCE) after three years of full-time postsecondary study.

The Business Education programme is very relevant in Cross River State, which is tagged a “Civil Service State” due to few companies, industries and businesses that employ the youths, thus, the burden of employment in the State lies mainly on Government. The lack of employment generating agencies has led to high rate of unemployment in the State since the government alone cannot absorb all the graduates, including NCE graduates. Evidence of unemployment and under-employment in the State remain at high level. According to State Planning Commission (2012), the unemployment rate of the youths in 2009, 2010 and 2011 were 32.9%, 35.3% and 35.9% respectively. The records also show that over 40% of the unemployed persons in Cross River State had Nigeria Certificate in Education (NCE) inclusive of business education graduates. From the above report, it therefore, means that the business education NCE student, who in this study is referred as the final year business education students, go about in search of jobs that do not exist, thus, increasing the rate of unemployment in the State. The implication of the above statistics is that Business Education programme, which aimed at graduating knowledgeable, skilled, and competent individuals that can be self employed and also create jobs in the society, thereby reducing the unemployment situation in the State is not meeting up with her objectives.

GET FULL MATERIALSDownload Full Material-N5000

ROLE OF DELEGATION AUTHORITY ON MANAGEMENT DECISION MAKING IN NIGERIAN BANKING INDUSTRY

THE IMPACT OF DELEGATION ON MANAGEMENT DECISION MAKING IN NIGERIAN BANKING INDUSTRY A STUDY OF FIRST BANK PLC ONITSHA

ABSTRACT

The topic of this study is the impact of delegation on management decision making in first bank Plc Onitsha “The researcher used oral interview and questionnaire together, data collected were analyzed using simply average and percentage techniques. This is are the finding; Autocratic style of leadership negatively affect the organization, management of the first bank plc do not involve their workers in decision making, that there was no two ways communication channel in first bank plc, Onitsha, recommendation: first bank plc Onitsha should place high emphasis on direct participation of workers in management decision making, since it is a fact that workers are the bedrock of organizational survival, democratic system of leadership should be adopted and encouraged in order to maintain two ways communication channel which will boast the moral; of the employed as well as increase in productivity, management should regard the workers as partners in program by creating avenue of getting feedback from workers to whom duties have been delegated, In conclusion, when the above findings and recommendation are adequately considered, there should be harmony and improvement in first bank plc Onitsha. Organization should therefore put into practice the concept of delegation of duties, responsibilities and authority for abundant fruit to reap through a better and a purposeful decisionDownload Full Material-N5000

PERSONNEL OUTSOURCING AND ORGANIZATION’S COMPETITIVENESS

ABSTRACT

The study sought to determine the nature of the relationship between personnel outsourcing and organizational competitiveness, ascertain the extent to which commercial banks outsource their personnel services, identify the areas in which commercial banks outsource personnel services, determine the benefits from outsourcing personnel services. The study had a population size of   613, out of which a sample size of 242 was realized using Taro Yamane’s Formula at 5% error tolerance and 95% level of confidence. Instruments used for data collection were questionnaire and interview. A total number of 242 copies of the questionnaire were distributed while 191 copies were returned. The Survey research design was adopted for the study. The four hypotheses were tested using Pearson product moment correlation coefficient and chi- square statistical tools. The findings indicated that there is a significant relationship between personnel outsourcing and organizational competitiveness. Nigerian commercial banks always outsource their personnel services. Recruitment of human resource, cleaning and security services are areas in which Nigerian commercial banks outsource personnel services. Reduced cost, improved quality and time-related advantages are benefits attributed to personnel outsourcing. The study recommended that every organization that operates in a highly competitive environment should embark on personnel outsourcing.

 

CHAPTER ONE

INTRODUCTION

1.1          BACKGROUND OF THE STUDY

With competition becoming stiffer, and the Nigerian business environment increasingly becoming hostile amidst several regulations and government interference nowadays, organizations especially banks are continuously being forced to find ways to improve their business performance and to obtain competitive advantage in all possible means. To this end, many of them have looked beyond the traditional boundaries of their firms to obtain performance improvement. They have turned to personnel outsourcing with an increasing attempt to enhance their competitiveness, increase their profitability and refocus on their core business (Hill, Ireland and Hoskisson, 2007).

Personnel outsourcing can potentially reduce costs, which is one crucial basis for attaining competitive advantage over competitors as well as increasing profitability. Organizations may give away their ‘Crown of Jewels’ if they are not careful when doing the outsourcing .For example, strategic reputation loss, compliance and operational risks arising from failure of a service provider in providing the services, breaches in security, or inability to comply with legal and regulatory requirements of the company, etc(Kremic, Tukel and Rom, 2006).

Personnel outsourcing can only be a panacea for organizational competitiveness if organizations possess the resources and capabilities required to achieve competitive superiority in all primary and support activities (Gillett, 2004).

Linder, Jarvenpaa, and Davenport (2003) state that, few companies can afford to develop internally all the technologies and the competences that might lead to or enhance competitive advantage. And by nurturing a smaller number of capabilities, a firm can increase the probability of developing a competitive advantage because it would not become overextended-which is protective against the great risk of loss in outsourcing. Meanwhile, by outsourcing the personnel, it makes the firm concentrate on those areas in which it can create value (Click and Duening, 2005).

Paraskevas (2001) stresses that personnel outsourcing as an alternative approach:“Outsourcing might be a better alternative when it is believed that certain support functions can be completed faster, cheaper, or better by an outside organization” Nowadays along with traditional outsourcing of internal functions in category of support, advice, audit, and evaluation such as IT, training, accounting and internal auditing, organisation  outsource other service encounters by eliminating internal suppliers like the purchasing department that replace with e-procurement, food production and housekeeping (Paraskevas, 2001).

GET FULL MATERIALSDownload Full Material-N5000