micro finance

Topics: Poverty, Microfinance, Small business Pages: 62 (10125 words) Published: September 26, 2013
THE ACCESSIBILTY OF MICROFINANCE FOR SMALL
BUSINESSES IN MOGADISHU

BY
ABDIGANI ABDIJALIL ABDIGANI
ABDIMAJID OMAR ABU-HADI
SU’AD HASSAN ABDIRAHMAN

A GRADUTION PROJECT SUBMITTED IN PARTIAL

FULFILLMENTS OF THE REQUIREMENTS
FOR THE DEGREE IN BACHELOR OF ACCOUNTING

FACULTY OF BUSINESS AND
ACCOUNTANCY

SIMAD UNIVERSITY

JUNE, 2012

ABSTRACT

This study investigated the accessibility of microfinance for small businesses in Mogadishu. Since, the accessibility of microfinance for small businesses considered difficult due to heavy collateral requirements. The main objective of the study was to examine the challenges facing by small businesses in accessing microfinance services in Mogadishu. Purposive sampling technique was employed in selecting the 100 Small businesses that constituted the sample size of the research. To achieve the objectives of this study, data was collected through questionnaire instrument. Data analysis, the researchers employed descriptive analysis also used Statistical Package for the Social Science (SPSS). the main findings of this study identifies that Small businesses in Mogadishu are facing challenges to access loan from MFIs and this results many small business to demise soon or may not be started due to lack of ability to overcome the challenges. Moreover, the findings of this study will be helpful for the academicians, businesses, practitioners, researchers, planners, and policy makers who are involved in the concerned area. The researchers recommended microfinance institution are required to set more flexible, affordable and attractive requirements in financing Small businesses, their role need to be felt by the Small enterprises in terms of growth and development.

i

ABASTARKTI
Diraasadaan waxay ku saabsaneyd baarida helida microfinance-ga ee ganacsiyada yar-yar ee magalada Muqdishu. Helida microfinance-ga waxaa loo tixgilaa inuu ku adg yahya ganacsiyada yar-yar taasoo ugu wacan damaanad culus oo laga rabo. Hadafka diraasadaan waxa lagu baaray caqabadah kasoo wajaha helida adeegyada microfinance-ga ee magaalada Muqdishu. Diraasadaan waxa loo isticmaalay purposive sampling. Samplka diraasadaan ay dooraty waa 100 kamid ah ganacsiyada yar-yar ee magaalada Muqdishu. Xagta waxaa lagu soo aruuriyay questionnaire si loo gaaro hadafka cilmi barista. xogtan waxa la faaqiday borograaamka SPSS, gaar ahan descriptive anaylsis, faaqidada kadib, waxey diraasad heshay in caqabada inuu soo wajaho ganacsiyada yar-yar iney deymo kaheleen iyo adeegaya ay bixiyaan xarumaha microfinance, tani waxaa kadhalatay in ganaciyada yar-yarka ay sidhaqsiyaha u guuldareestaan taasoo ugu wacan awood dari kaga baxsan Karin caqabdahaan. Waxa sii dheer, waxyaabihi ka soo baxay cilmi baaristaan waxay caawinee dadka waxbarta, ganasiga, dadka ku shaqeeya, cilmi baaraysaasha, qorshe dajiyayaasha kuwaaso ku shaqo leh waxa uu ku saabsanyahay mawduuca cilmi baaristaan oo ah: helida microfinance-ga ee ganacsiyada yar-yar ee magalada Muqdishu. Ugu danbeyn cilmi baarayaasha waxay kutala bixiyeen in xarumaha microfinance-ga loo baahanyahay in ay dajin hab fudud iyo shuruuda soo jiidasho leh taasoo ay awoodi karaan ganacsiyada yar-yar, dowrkooda waa iney dareemeen ganscsiyada yar-yar dhinaca kobaca iyo hormarka.

ii

DECLARATION A

We are hereby declare that this graduation project is from our own work and effort and that it has not been submitted anywhere for any award. All other sources of information used have been acknowledged.

Name of the Candidate:

Abdigani Abdijalil Abdigani

Signature:

___________________________

Date:

02/06/2012

Name of the Candidate:

Abdimajid Omar Abu-Hadi

Signature:

___________________________

Date:

02/06/2012

Name of the Candidate:

Su’ad Hassan Abdirahman

Signature:

___________________________

Date:

02/06/2012

iii

DECLARATION B

I confirm that, to the best of my knowledge, this graduation project was carried out and...

References: (Zeller & Meyer, 2002).
Asian, Dr. Yunus began a micro-finance program among women in Bangladesh in
1976, following the wide-spread famine in 1974 (Abdulrahman, 2007).
In 1998, it was first time micro finance industry in Somaliland (as cited in
Bekkin, 2007)
program; in 1996, SA’ID received its first substantial capital injection from Oxfam
America (Saacid Foundation report, 2005)
microfinance program to help the poor and small businesses named as “Kalkaal”
(Somali term for help) (Salam Somali Bank, 2011).
According to Thomas (2002), Micro finance has become a major tool of
development, and is fast developing as an international industry, with its own trade
otherwise would not have access to credit services (Zeller & Meyer, 2002).
business- there may be other factors that prevent economic growth(Thomas, 2002).
The definition of this study is derived from Ngehneu & Nimbo (2010),
Microfinance is defined as a development tool that grants or provides financial
According to Ojo (2009), Microfinance involves the provision of financial
services such as savings, loans and insurance to poor people living in both urban
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