The Impact Of Microfinance Banks On The Development Of Entrepreneurship (A Study Of Decency Microfinance Bank Old Umuahia)

ABSTRACT One of the significances of development in the economy of any nation is the transition from a dependent nation to an independent nation. It is also referred to as a period when nations are struggling to solve some tasks (economic problem). One essential development task of every nation is to attain a steady and sustainable economy. In Nigeria as a developing country, several efforts have been made to provide a suitable means to aid economic development such measures include; the establishment of microfinance banks currently known for the purpose of financing both small and medium sector. This research will look at the objective of establishing microfinance bank by the federal government and its effects to the development of the Nigeria economy, its limitations and comparison between the commercial bank and the microfinance banks as well as the Nigerian business environment as it relates to the growth and development of small and medium scale enterprises (SMEs) in Nigeria. Other people’s work will be reviewed as it relates to the research five (5) randomly selected areas that surround the case study (Old Umuahia microfinance banks). Different sources of data collection were used especially questionnaires which were distributed to the study area to determine the impact of microfinance to the study area. The data were collected and analysis using different statistical tool such as simple percentage, analysis of variable (ANOVA), simple regression and chi-square (X2) were used to determine if there is any significant different since the introduction of microfinance banks to the economy. 
  CHAPTER ONE 1.0INTRODUCTION 1.1BACKGROUND OF THE STUDY  The world is a dynamic place whereby nothing remains static and steady. Every phase of development in a country’s economy has its own inherent characteristic and peculiarities as well as problems. One of such phase is the economic development phase. The word economic development refers to a period of growth or changes to maturity in economy. It is a transitional period from dependent to independent nation which is also referred a midway between savagery and civilization.
There are some inherent characteristics, which make this period of national growth prominent among this are both social and economic changes. The number of small and medium scale enterprises increases as well as the level of faming technology. Many of these firms and adopted several strategies for the funding of their various businesses. For any business to sustain its going concern it must make adequate provision for raising cheap capital. The problems facing the economy of Nigeria are multitanous and heterogeneous ranging from personal, social, political, educational and financial problems in the 1940s, the report from many national and local dailies speck of cases of liquidation of business firms which lead to the establishment of many monitoring authorizes such as the central banks, national insurance company the ministering of finance among other to regulate and manage the economy of the nation. 
In other to provide capital to business enterprises, the federal government through the CBN established the commercial bank and the financial institution empowering them participate in direct funding of small and medium scale enterprises (SMES). The commercial bank raised the eye bro high interest rate. 
John (1988) observed that on the part of the banks it was necessary so that the shareholders and depositors funds could be protected on the other hand, some people or businessmen to meet up with the security conditions and be able to pay the accumulated interest businessmen find it difficult to obtain loans from the commercial banks as they only resort to their retained earnings and shareholders’ funds to finance their business which might not be sufficient to cover the daily operational expenses incurred by the firm or corporate body. 
It is therefore on this essence to study the effects of microfinance banks to the national development as it relates to the funding of business enterprises in the nation following of small and medium scale enterprises. Eight (8) microfinance banks were established during the first phase across the six (6) geopolitical zones currently there are over 3000 microfinance bank across the nation. 

CHAPTER TWO

2.0     LITERATURE REVIEW 

CHAPTER THREE

RESEARCH METHODOLOGY

CHAPTER FOUR

4.0DATA PRESENTATION AND ANALYSIS OF DATA 

CHAPTER FIVE

5.0SUMMARY, CONCLUSION AND RECOMMENDATION