d) 1.

3 Objectives of Research

This study is intended to investigate the problems and opportunities that smll

businesses face in their development efforts, with a particular interest in the role

that microfinance institutions may be playing. In addition to gaining a more

general understanding of the challenges facing developing small firms, the study.

will identify how MFls are contributing to the development of small businesses .

and small businesses succeed or fail in their efforts to acquire financing for their

development. This study is focus on the resource needs of developing rural smll

and medium size firms, and how microfinance may be contributing to small firms'

development, and thus the sustainable development of rural agricullural, and

manufacturing infrastructure in Cameroon. The specific objectives are:

To investigate the extent in which AZICCUL helps its members in

developing their small or medium size businesses.

If these services provided by AZICCUL are helpful to those who receive it.

If any other institution provided more better services than MFI's

111. 5.1 Discussion

In this part of the paper, we shall take each of the specific objectives to compare

with theory. A conclusion will then be drawn whether there are any discrepancies

or the findings are in line with theory. We shall then try to find out why these

inconsistency and suggest possible solutions.

The main focuses of our investigation were:

To investigate how Microfinance Institutions tries to help its members in

developing their small or medium size businesses.

To find out whether Microfinance Institution members feel they have reasonable

and fair access to micro financing

Micro finance, its members and the development of their businesses

Microfinance in its mission statement has as priority to improve the welfare of its

members by promoting them to become financially strong. This microfinance

institution is a semi formal financial institution providing banking services to the

poor. They do not cater for the poorest. The criteria set up are difficult for the

poorest to meet and hence they cannot be a member and cannot benefit from

MFI's intermediation services. They give out loans to boost the economic sectorand also train members
how to judiciously use the money granted to them so as

to repay back without any difficulty. According to Ledgerwood (1999), some MFIs 1

provide financial and social intermediation services such as the formation of

groups, development of self confidence and the training of members in that

group on financial literacy and management. We can say here that, this study.

realized the similarity of the empirical study and theory.

They have services and products that members or inhabitants of rural localities.

never use to have. The services that were only meant for the rich can now be

enjoyed by the poor though not the poorest, who were unable to finance their

economic activities previously due to lack of access to commercial banks.

Making a comparative analysis, both the members and the credit unions

confirmed that the MFI's is helping them in most of their business activities.

When a business is flourishing, it means the living standards of the family concern

will be better and also the expansion and consequently job opportunities will I

come up.

The increase in membership indicates that there is a positive impact in MFI's

activities. They have rated the level of awareness of their products and services to

members as high. They notice this by the influx of new members and that the

number increases at an increasing rate. Here some of the staffs are deployed tothe various localities to
sensitize on the availability and need for small businesses

to contact them for the services they offer and that it will help them. They also go

around mobilizing their members to save and this is done from business to

business.

5.2 Conclusion

Microfinance institutions are an asset to the developing and transition

countries. The services they provide are tailored to meet the needs and
aspirations of the local inhabitants and emphases are towards the poor. The products and services put
forth to the members are not by itself al

solution to the numerous problems affecting the poor. These problems

range from business skills, lack of financial intermediation services, and

the lack of markets, technology etc. This financial intermediation

services will only provide a plat-form for those who are considered not

fit to meet the obligations of the banks to be a client. SMEs are very

much affected by these constraints and these MFIs are towards

bridging the gap between formal and informal financial services. These

institutions and its network being a typical example, provides a focal

point that makes its members financially comfortable but with their

hard work and commitment. It should be noted that microfinance does

not serve or solve all the problems of the poor but it serves as a means

of helping them to boost their economic activities or augmenting their

status. According to Hulme et al (1996), microfinance schemes often

are of paramount importance when the targeted problem is in its initial

stage and not when it has emanated. Microfinance is only a portion of

what is needed to boost an enterprise activity in the rural areas and

who are incapable of getting the necessary assistance from a

commercial bank. It develops new markets, increases income, createsi

and accumulates assets and promotes a culture of entrepreneurship.

Besides infrastructural development, MFI'S needs information from the

poor micro entrepreneur about market trends and skills so as to createa favorable financial environment
for them. MFI's has as mission

statement to sustain and develop a secure and law abiding network of

cooperatives credit unions that offer efficient development of their

members and communities. It is noticed that MFIs has as main target

the poor and the poorest. MFI's and its network can be considered asi

targeting the poor but not the poorest. The requirements needed by
the credit unions to become a member are not easy to be met by these

poorest individuals. The amount demanded to own a share is high for

these poorest. The products and services and also the convenience of

the microfinance institutions are noted to be one of the driving forces

behind its success.

Despite the high interest rate charged sometimes, their products

and services are still demanded but at times they are subsidized by the

government or NGOs. The main underlying factor here is that

commercial banks do not serve poor clients with small loans as.

compared to Microfinance Institutions in the society for their growth.

5.4 problems encountered during the Research

During this survey, I went through some inevitable problemsi

which hindered me to fully acquire data to get an understandable

result, however it didn't stop the completion of the research.

We had a problem in administering the questionnaire

because some microfinance institution refused to receive me, claimingthat they were too busy. Other
refused because they didn't want to

disclose private information about their institutions.

Furthermore when the questionnaires were administered the

institution gave me appointments during their break and on reaching

there, no one would be on seat. At times, I had to stand outside their

office for about an hour and a half before being attended to.

More so getting the financial statement of the Small and medium.

size Enterprises was very difficult because they did not want their

financial data to be publicized.

Again during the interviewing process, business owners

deliberately refused to collaborate because they thought I was a tax

inspector.

Also the fact this research this work was carried out at the same
time attending lectures was a limitation. The microfinance institution

gave us appointment at the same hours we were supposed to be in

class. So we had to forgo one.

Finally we had financial difficulties. The manuscript were

repeatedly printed or documented each time we had to correct as well

as research was tough due to our low accessibility to internet as we

always bought time and other research kits and accessories. 5.4 Recommendation

The membership fee for new applicants should be reduced so as

to incorporate the very poor into the system. This will enable them get

access to the products and services that those just below or just above

the poverty line enjoy.

The mode of repayment should be revised so that the poorest can

borrow without collateral. This should be done in a way that will

increase the frequency of repayments and this is known to reduce the

risk of non-payments. Evidence from Bangladesh by Armendariz and

Morduch (2005) suggest that MFIs with high repayment rates have low

moral hazard problems.

The Cameroon Government on its part should a more stable and

predictable environment to encourage nationals to keep their money

with microfinance institutions. For many Cameroonians do not consider

Microfinance institutions as a safe place to keep money especially the

smaller and newly created ones due to their constant liquidation of

these institutions for example FIFFA

Group-based lending should be encouraged. This will serve as a

means to increase its depth since some poor men and women cannot

have access to these products and services. But with the formation of a

group, members of that group may apply for the services and members.

in the group act as guarantors for the others. 1.5 OBJECTIVE5 OF THE STUDY

The general objective is to examine the role of microfinance institutions in finance small cale businesses
in Kaduna metropolis. Apart rom the general objective, the research work also aimed at the following.

objectives:

To find out extent to which micro finance institutions have supported the small scale business?

To find out the extent to which the small scale businesses benefited from the credit scherne .

designed for them by micro finance institutions.

To find out if the small scale business are making good use of their advances.

To find out if the loan given by microfinance institutions have improved the general performance .

of small scale businessA

DISCUSSION OF FINDINGS

4.3

From the results and discussion afore, it emerged that the role of microfinance institutions in Kaduna l

metropolis have positiv impact on the economic growth of the state, and have significantly enhance the

s0Cio-conomic development of small cale traders because viable approach to sustainable growth and

development lies in the financial and economic advancerment of small seale trader and rural dwelers in .

Nigeria.

Findings has show that microfinance institutions has immensely contr buted a lot on the economy,
growth

of Nigeria through lending of loans to individual and groups for entrepreneur activities to bring about

general Increase in the production of goods and services creates employment opportunities to the
youth.,

attracts foreign investment.

The finding has also made us understand that microlinance institution is very relevant to the growth of

Nigeria, economy this microfinance institution has contrbuted greatly on the growth and development
of

the Nigeria economy. he effectiveness of microfinance is not attainable despite the availability of credit
due to the factors lik.

high interest rate, loan repayment problem. and unchanging levels of poverty and failure to cat.

effectively for their target group. This chapter also contains the over view of microfinance activites in

Nigeria as well as the participation institution. This further brings to highights the various microfinanc.

models, roles of SMEs as wells as the challenges of micro finance. Chapter three was on researc
nethodology. The research methodology contains the method of data collection, sampling data anlysi .

and difficulties encountered in the course of obtaining the data. Chapter four contains the frequencies o

response gathered through the administration of questionnaires. It further presents the testing of

hypothesis using the chi square statistical technique. Chapter five states the chapters' summar.

conclusion and recommendation of the study.

5.2 CONCLUSION

This study has assessed and observed that the transaction between the microfinance Institutions and
smal

and medum Enterprises in Kaduna town has been enhanced following the inauguration of the Kadun:

state is promising. the extent to which the SMEs should benefit from the loan scheme has not reached
the

optional potential as some SMEs are still unable to access these loans due to reasons which include

Inadequate knowledge on the part of small scale entrepreneurs on improved lending conditions of MIF:

In the cause of this study, the researcher deduced that a good number of small scale entrepreneurs are.

indifference about accessing these loans because they assume that the lending conditions of MFIs are

similar to that of commercial Banks which is cumbersome and therefore prefer to raise funds through

other sources.

Clients Apathy; some clients have decided to stop patronizing the Microfinance Institutions. They feel

hat the MFIs are unable to meet their needs considering the nature of their business and lending.

conditions are flexible to meet those need.

Ihe number of beneficiaries of the credit schemes can be increased in Kaduna tow!

nd updated records of increasing numher of SME

It was also discovered that scale business serves as a backbone for economic development not ony fo

developing but for the developed countries. Therefore there is need for Government at all levels to
make

people aware of how to source fund through various institutions and ministries

From the finding. it has shown that the loan given to small scale businesses has improved the

performance and conditions of small scale Businesses in Kaduna State, thereby reducing rural and urbatl

nigration and assuring the attainment of self-reliance.

5.3 RECOMMENDATIONS
nformation Dissemination and Involvement of Clients: Apart from the publications

designed by the central Bank of Nigeria, the micro finance Institutions should expan

their channels of promotion and improve their methods of marketing to genuinel

meet the need of those small and medium Enterprises rather than interested in th

commission attached. Secondly, according to Iganiga (2008), clients should not be

seen as faceless customers of formal financial institution who are identified by their

account number, clients of MFIs should be seen as partners. They should be

constantly engaged. Some FMIs provide institutional structure for client'sDevelop Innovate Products:
MFls must recognize that (i) credit needs of clients art

diverse and (ii) there are always emerging needs. Clients should be constantly

engaged to determine the trends of .their requirements. Tested strategies include

market research, clients exist and assessment exercises (Olaitan. 2005).

Proper Documentation: The Kaduna State ministry of commerce & industry should

Irequently update the records of registered businesses as categorize then according to

their sizes. This will enhance further studies carried out by other researchers as

inadequate information may also limit adequate planning and monitoring.

Training: should be given to staff of SMEs in other to develop their skills and

Regular and Prompt Payment of Dept: It has been noted that default in repayment

brings about hindrance to the disbursement of loans to SMEs. Beneficiaries of loans

should ensure regular and prompt payment of debt. This will encourage the state to

consider more applications and review existing ones. Findings

Most of the women's of SHGs are beneficiaries through microfinance are middle

age group of 25-30years

If we see the educational qualification of the respondents majority of were having.

matriculation and below. It shows that educated women's are not concentrating.

on SHGs activities of microfinance empowering women's.

It is find that 94% of the respondents were married, it reveals that SHGs are.

looking for married women's empowerment their by it can develop their families.

SHGs provide social activities services through Microfinance like savings and
welfare activities and also training for small scale and tinny business.

The majority of responded of women's in SHGs are prefers Dharmasthala sangha

and they were using funds for engaging in economic activity.

The interest rates of Dharmasthala sangha and Swayam krishi Sangha is flat

interest rate of loan amount. Shtri Shakthi Sangha and Mahila Swasahaya

Sangha is cut interest rate of loan.

78% of the respondents were agreed with the interest rate of the SHGs. because.

most of the money lenders charges high than SHGs.

The SHGs provide weekly mode of repayment of loan. as the poor and peoples

who are engaging in activities are getting their income in weekly.

The women population is choosing SHGs microfinance more than going for.

Due to lack of proper knowledge and family problem the women's were under.

utilizing the loan amount. Suggestions

SHGs microfinance has to concentrate on unmarried women's empowerment also.

as unmarried population is more and they will engage in economic activities and

they are free to do business.

It has to slightly reduce the interest rate on loan amounts.

It has to increase the loan amount some more, as we know now a day's all the.

rates and prices are costly the members can't go for business activities that small

amount of loan.

SHGs have to provide knowledge based training programmes which would help

the members in their business.

It has to guide the members in proper utilizing the loan amount.

SGHs have to start group of entrepreneurship activities through providing more

microfinance to the small scale business activities.

Conclusion

Traditionally women have been marginalized. A high percentage of women are

among the poorest of the poor. Microfinance activities can give them a means to climb

out of poverty. Microfinance could be a solution to help them to extend their horizon and
offer them social recognition and empowerment.

On the other hand. thank to women's capabilities to combine productive and

reproductive roles in microfinance activities and society has enabled them to produce a

greater impact as they will increase at the same time the quality of life of the women

micro-entrepreneur and also of her family. Short-term assistance programmes might aim

at increasing the productivity of women's labor by providing credit. technology. and skill

training. Long-term objectives could emphasize eliminating institutional constraints

which limit women's access to productive resources, creating social. technological, and

economilc mechanisms to reduce contflicts between women's productive and reproductiveroles, as well
as defining strategies to address traditional and legal barriers that hamper or.

preclude the active participation of women in the productive sectors of the economy.

The key issue for successtul micro finance program focused on women should

consider them in a broader context. as a family nucleus. that is vital for societal

improvement and progress. Following this idea. micro finance programmes should

provide women with specific adapted products through appropriate methodologies. which .

can offer competitiveness to their business but also well being to them and their familie. Objectives of
the study:

Iostudy the rol ofSIIG's in cmpowering women

To study the economic gains derived by the members aftcr joining the SHG's

To study and examine the social benefits derived from the members

To study the satisfaction of the women from the performance of SHGi's

To offer suitable suggestions to the problems encountered during the study.