Internal Controls and Organization Performance

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  • Topic: Microfinance, Grameen Bank, Muhammad Yunus
  • Pages : 23 (7680 words )
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  • Published : October 3, 2012
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THE IMPACT OF MICROFINANCE INSTITUTIONS ON GROWTH OF SMES
A CASE STUDY OF KONYOKONYO MARKET -JUBA

BY TABU FLORENCE
S09B24/801

A RESEARCH PROPASAL SUBMITTED TO THE FACULTY OF BUSINESS AND ADMINISTRATION IN PARTIAL FULFILLMENT FOR THE REQUIREMENTS OF THE AWARD OF DEGREE OF BACHELOR OF PROJECT PLANNING AND ENTREPRENEURSHIP UGANDA CHRISTIAN UNIVERSITY

MARCH 2012 LIST OF ACRONYMS
MFIs Microfinance institutions SMEs Small and Medium enterprises CBD Central Business district NGOs Non-Governmental organisations SHGs Self help groups

IRDP
UCBs Urban cooperative banks UCCS Urban Credit Cooperative society DCCBs District credit cooperative bank CB Cooperative banks

RDBs Rural Development Banks HFI Housing finance institutions SACCO Savings and Credit Cooperative organisations

CHAPTER ONE
INTRODUCTION AND BACKGROUND TO THE STUDY
1.0 IntroductionS
This chapter contains background of the study, statement of the problem, purpose of the study, research objectives and questions, scope of the study, significance of the study the organization of the research 1.1 Background of the Study

Micro-finance concept has operated for centuries in different parts of the world for example, Notable in Indonesia, cheetu in Srilanka, tontines in Ghana West Africa and pasanaku in Bolivia. One of the earliest and longest serving micro-credit organization providing small loans to rural poor dwellers with no collateral is the Irish loan Fund system initiated in the early 1700s by Jonathan swift. His idea began slowly in 1840s and became widespread institution of about 300 branches all over Ireland in less than one decade. The principal purpose was to advance small loans based on some trust for short periods. The Irish loan fund attracted about 20 percent of all Irish SMEs leading to growth of small and medium enterprises every year. In the 1800s various types of longer and more formal savings and credit institutions began to emerge in Europe organized primarily among the rural and urban people. These institutions were known as people’s banks credit unions and savings and credit cooperative. The credit unions and cooperatives were motivated by concern to assist the rural population to break out of their dependence on money leaders and to improve their welfare. From 1870 the unions expanded rapidly over a large cooperative movement and quickly spread to other countries in Europe and North America and eventually supported by the cooperative movement in developed countries and donors and also to developing countries. In the early 1900s various adoptions of these models began to appear in parts of rural Latin America. While the goal of such rural finance intentions was usually defined in terms of modernizing the agricultural sector, they usually had two specific objectives: first, Increase the commercialization of the rural sector and second, Increase the investment through credit. It is against such background and the second objective that this study sought to investigate the impact of micro financing on performance of SMEs.The micro finance industry in South Sudan has experienced slow growth over the years in an attempt to meet the large demand from the estimated 65 percent of South Sudanese lacking access to financial services. The demand for micro-finance service in South Sudan is high yet the industry is only able to meet about 20 percent of their demand because of lack of financial resources and the capacity to assess risk process and monitor loans. SMEs are dynamic entities where some grow into...
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