Marketing Research Proposal Writing

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  • Topic: Microfinance, Poverty, Microcredit
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  • Published : April 6, 2013
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MULUNGUSHI UNIVERSITY
SCHOOL OF BUSINESS
BUSINESS RESEARCH PROPOSAL
NAME: CHITAMBO LENGWE

PROGRAMME: BACHELOR OF ENTREPRENUESHIP IV

STUDENT No: 022809018

SUPERVISOR: Mr. Chibangula

TOPIC: CONTRIBUTION OF MICROFINANCE TO WOMEN OWNED BUSINESSES- A CASE STUDY OF KITWE

BACKGROUND
Entrepreneurship is not a new phenomenon, it derives from the French literally meaning someone who takes between or goes between. Entrepreneurship is therefore the process of creating something new of value by devoting the necessary time and effort, assuming the accompanying financial, psychic and social risks, and receiving the resulting rewards of monetary and personal satisfaction and independence (Hisrich and peters, 2002). Even though female entrepreneurship and the formation of women business networks are steadily rising, there are a number of challenges and obstacles that female entrepreneurs face. Among others like dominant stereotype one major challenge that many women entrepreneurs may face is sourcing for finance. In general, women have lower personal financial assets than men. This means that for a given opportunity and equally capable individual, women must secure additional resources compared to men in order to exploit the opportunity because they control less capital. A question that has developed into its own sub-field in the women’s entrepreneurship literature is if women have a harder time getting finance than men for the same business opportunity. A specific solution for solving women’s difficulties for obtaining financing has been micro financing. Microfinance is a financial institution that has become exceptionally popular especially in developing economies. The most important source of start-up capital comes from entrepreneurs and owner-managers themselves with help from family and friends. Three quarters of small firms use retained profits and cash flow from existing businesses to fund their development, according to the bank of England Microfinance institutions (MFI’s) have emerged around the world in response to the need for deeper financial service provision in developing economies. In Zambia, formal microfinance services prior to the 1990’s were dominated by cooperative societies registered as credit unions under the cooperative societies act. The liberalization of the economy under the third republic, starting in 1991, facilitated a resurgence of microfinance institutions both in rural and urban areas. (B.Wilkinston: 1999)

PROBLEM STATEMENT
Microfinance has become exceptionally popular and is seen to be the best alternative source of financial services for low income earners leading to the expansion and growth of many small and medium enterprises (SME’s). A question that has developed into its own sub-field in the women’s entrepreneurship literature is if micro financing has any impact on the growth of women owned businesses. HYPOTHESIS

* Null hypothesis- microfinance leads to growth of women owned businesses. * Alternative hypothesis- microfinance does not lead to growth of women owned businesses LITERATURE REVIEW
Women as micro and small entrepreneurs have increasingly become a key target group for micro-finance programmes. Providing access to micro-finance is considered a precondition for poverty alleviation, but also for women's empowerment. As poor women are increasingly recognized to be better borrowers, they are starting to become of interest also to regular financial institutions. But despite the proven positive impact of providing microfinance services to female entrepreneurs in the informal sector, microfinance is just one tool among others to address the multiple causes of poverty, unemployment and social exclusion. Since the mid-1980s women as micro and small entrepreneurs have received increased attention and assistance by governments, international donors and NGOs. Microenterprises have been seen as having particular advantages for women: e.g. their flexibility and...
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