SECTION ONE

INTRODUCTION

1.1     BACKGROUND TO THE STUDY

          Microfinance is about providing financial service to the poor who are traditionally not served by the conventional financial institutions (United Nations 2006). Generally, micro-plans are granted to the operators of micro-enterprises, such as peasant farmers, artisans, fishermen, rural women and men, senior citizens (those who are retired from service), those with low salary grade level in the formal and informal sectors.         

          The concept of micro-finance originated in Bangladesh around 1970 through a pioneering experiment by Dr. Muhammed Yunus; a professor of economics (Khander 2001). Financial services are given to clients and most commonly in the form of loans and saving though some micro-finance institutions will offer other services such as; insurance and payment services (Robinson, 2001).

          Canadian International Agency (CIDA 2015), defined microfinance as the provision of very small loans for micro enterprise, agriculture, education and consumption purposes as well as insurance facilities and other financial product such as, insurance services, housing and pension funds (Khander, 1998). Microfinance is also said to be the provision of thrift, credit and other financial services and products in very small amounts to the poor to enable them raise their income levels and improve their standard of living (Eluhaiwe, 2005) Khandeer (1998) opined that microfinance is a successful opening of economic opportunities for the poor, increasing access to resources and contribute to the confidence and well being of those living in poverty. Microfinance is unique among developmental interventions because it delivers benefit to the poor on large scale and permanent basis.

1.2     OBJECTIVE OF THE STUDY

i.                   The primary objective of this study is to examine the impact of micro-finance banks (palm coast and prospect microfinance banks) on growth and development of small and medium scale enterprises (SMES) in Uyo Local Government Area.

ii.                The study will also identify, the impact of lack of financial support on small scale businesses.

iii.             To suggest means by which microfinance institutions can respond the more to small scale needs in Uyo Local Government Area. 

1.3     SIGNIFICANCE OF THE STUDY

          In view of the fact that the government had in the past come out with series of financial micro/rural credit scheme services to Nigeria’s rural area which is targeted at the poor, this study will be useful in assessing the impact of this programme on small and medium scale development in Uyo Local Government Area, it will also uncover the lapses and disparity in this financial scheme.      

1.4     SCOPE/LIMITATION OF THE STUDY

          In carrying out this study, some problems in the area of finance and the time allotted for the work may come up. Furthermore, the level of sincerity of the respondents may differ, due to their opinion and attitude.

1.5     ORGANIZATION OF WORK

          The work is organized in four sections. Section one gives an introduction to microfinance financial services to small enterprise development, background of the study, objectives, significance, scope/limitation and organization of work. Section two deals with the theoretical/conceptual issues, literature review. The impact of microfinance banks on small and medium scale development, analysis, impact assessments in Uyo are discussed in chapter three. Chapter four has the summary, conclusion and recommendation of the work.

1. 1. This material content is developed to serve as a GUIDE for students to conduct academic research work
2. 2. As a source for additional understanding of the subject.
3. 3. As a source for ideas for your own research work (if properly referenced).
4. 4. For PROPER paraphrasing (see your university definition of plagiarism and acceptable paraphrase)
5. 5. Direct citing (if referenced properly)
Thank you so much for your respect to the authors copyright.