THE IMPACT OF MICRO-FINANCE IN STIMULATING BANKING HABIT RURAL DWELLERS
CHAPTER ONE
INTRODUCTION
1.1
Background of the study
Micro-finance is often
considered one of the most effective and flexible strategies in the fight
against global poverty. It is sustainable and can be implemented on the massive
scale necessary to respond to the urgent needs of those living far below average.
Micro-finance seeks to combat poverty, especially in developing countries,
through the use of small loans and community- based resources. The World Bank
and several NGOs across the world are conducting innovative experiments to
bring Micro-finance into the mainstream. One of the pioneers in the field is
Grameen Bank of Bangladesh.
In the development paradigm,
micro-finance has evolved as a need-based policy and programme to cater for the
so far neglected target groups (women, poor, rural, deprived, etc). Its
evolution to based on the concern of all developing countries for empowerment
of the poor and alleviation of poverty. Development organizations and policy
makers have included access to credit for poor people as a major aspect of many
poverty alleviation programmes.
Micro-finance programmes have
in the recent past become one of the more promising ways to use scarce
development funds to achieve the objectives of poverty alleviation.
Furthermore, certain micro-finance programmes have gained prominence in the
development field and beyond. The basic idea of micro-finance is simple: if
poor people are provided access to financial services, including credit, they
may very well be able to start or expand a micro-enterprise that will allow
them to break out of poverty.
There are many features to this
seemingly simple proposition which are quite attractive to the potential target
group members, government policy makers, and development practitioners. For the
target group members, the most obvious benefit is that micro-finance programmes
may actually succeed in enabling them to increase their income levels.
Furthermore, the poor are able to access financial services which previously
were exclusively available
to the upper and middle income population.
Finally, the access to credit and the opportunity to begin or to expand a
micro-enterprise may be empowering to the poor, especially in comparison to
other development initiatives which often treat these specific target group
members as recipients.
For development practitioners,
the success of micro-finance programmes is encouraging. Too often in the past,
costly large scale development initiatives have failed to achieve any
sustainable benefit, especially after funds have dried up.
Thus, micro-finance has become
one of the most effective interventions for economic empowerment of the poor.
1.2
Statement of the problem
The impact of microfinance in
stimulating banking habit rural dwellers. Despite the great impact on the rural
dwellers which has changed the environment for better place of living, it still
has some inherent problems.
Other problems, include
difficulty in obtaining credit, foreign exchange, inadequate trained man power, technological and
managerial know-how, marketing of their product, inadequate financial record of
account, under capitalization etc.
13.
Hypothesis of the Study
The following hypothesis was
put to test in the study
H1: There is relationship
between banking habits and the impact of Micro-finance.
Ho: There is no relationship
between banking habits and the impact of Micro-Finance.
Ho: There is no relationship
between the saving ability of rural dwellers and banking habits.
H1: There is relationship
between the saving ability of rural dwellers and banking habits.
A Research proposal for the impact of micro-finance in stimulating banking habit rural dwellers:
Reviews: A Review on the impact of micro-finance in stimulating banking habit rural dwellers, impact, microfinance, stimulating project topics, researchcub.info, project topic, list of project topics, research project topics, journals, books, Academic writer.
Micro-finance is often considered one of the most effective and flexible strategies in the fight against global poverty. It is sustainable and can be implemented on the massive scale necessary to respond to the urgent needs of those living far below average. Micro-finance seeks to combat poverty, especially in developing countries, through the use of small loans and community- based resources. The World Bank and several NGOs across the world are conducting innovative experiments to bring Micro-finance into the mainstream. One of the pioneers in the field is Grameen Bank of Bangladesh... accounting project topics
THE IMPACT OF MICRO-FINANCE IN STIMULATING BANKING HABIT RURAL DWELLERS