Project Abstract

Abstract
Microfinance banks have gained significant attention as a tool for poverty alleviation and economic development, particularly in developing countries. This study aims to investigate the impact of microfinance banks on the performance of small scale businesses. The research employs a mixed-methods approach, combining quantitative analysis of financial data with qualitative interviews with small business owners who have utilized microfinance services. The quantitative analysis reveals that small scale businesses that have accessed microfinance loans exhibit higher revenue growth rates compared to those that have not utilized such services. Additionally, businesses with microfinance loans demonstrate better financial management practices, including improved record-keeping and budgeting skills. These findings suggest that microfinance banks play a crucial role in enhancing the financial performance of small businesses by providing access to capital and financial literacy training. Qualitative interviews with small business owners provide further insights into the ways in which microfinance banks contribute to business performance. Participants highlight the importance of timely access to credit for managing cash flow and expanding operations. Moreover, the training and mentorship provided by microfinance institutions are noted to have a positive impact on business strategies and decision-making processes. However, challenges related to high interest rates and repayment terms are also identified by some participants, indicating the need for greater transparency and borrower education in microfinance practices. Overall, the study underscores the significant role of microfinance banks in supporting the growth and sustainability of small scale businesses, particularly in resource-constrained environments. The findings of this research have important implications for policymakers, practitioners, and stakeholders in the microfinance sector. By understanding the specific ways in which microfinance services influence business performance, stakeholders can develop targeted interventions to maximize the impact of microfinance banks on small scale enterprises. Moreover, addressing the challenges identified in this study can help to enhance the effectiveness and sustainability of microfinance interventions, ultimately contributing to poverty reduction and economic development at the grassroots level.

Project Overview

1.0 INTRODUCTION

1.1   AN OVERVIEW OF THE STUDY

The general objective of this study is to examine the impact of micro-finance bank on the performance of small scale businesses in Delta State.
The study will be on the performance of small scale industry business in Delta State the specific objectives not necessarily in order of priority are:-

A major challenge facing many developing countries especially in Africa, is devising appropriate performance strategies that will capture the financial services required by farmers and small and medium entrepreneurs whose countries constitute about 70% of the population.
Therefore, the researcher wishes to formulate the following questions to guard him.

1. What impact has micro-finance banks made in the performance of cottage industries in Delta State?
2. What impact has micro –finance banks made in the performance Agric product in Delta State?
3. What impact has micro-finance banks made in the performance of trading in Delta State?

 RESEARCH HYPOTHESIS

The following hypothesis which are stated in the null and alternative form are to be given a validity test in this research work.
Ho:   Microfinance banks have not made meaningful impact in the performance of cottage industries in Delta State.
Hi:    Microfinance banks have made meaningful impact in the performance of cottage industries in Delta State.
Ho:   Microfinance banks have not mademeaningful impact in the performance of agric product in Delta State.
Hi:    Microfinance banks have mademeaningful impact in the performance of agric product in Delta State.
Ho:  Micro-finance banks has not made in the meaningful impact in the performance of trading Delta State?
Hi:    Micro-finance banks have made in the meaningful impact in the performance of trading Delta State?

1. 1.  SCOPE OF STUDY

The scope of the study shall cover the impact of micro finance banks on small scale business in Delta State metropolis between 2005-2012.  The researcher is interested in what micro finance banks have done in the area of cottage industries, agric product and trading in Delta State. However, owing to shortage of literature and financial data, raw data shall be generated from selected small scale business operators in the area of Delta State.

1. 1. SIGNIFICANCE OF THE STUDY

   The significance of this research work cannot be over emphasized as the following are made known.

1. The impact of microfinance bank in small scale business.
2. The overview of microfinance bank.
3. To bring to the knowledge of poor, economically weak and the general public the need for micro credit.
4. It will also be of much importance to researchers who may wish to carryout on related topics.