Influence of Micro Finance Bank on the Performance of Small Scale Businesses at the Community Level: A Case Study of Michika Microfinance Bank Limited

摘要

The study investigated the influence of micro finance bank on the performance of Small Scale Businesses at the Community Level using Michika Microfinance Bank Limited as case study. In doing this, major questions raised are: have the poor at the community level benefited from the services of the Micro-finance bank (in term of micro business capital) and have the services of microfinance bank impacted positively on the Micro Business Performance at the Community Level? The influences of microfinance bank on the performance of small scale business are seen as having positive effect on the poverty level. The primary data used for investigation were sourced through the structured questionnaires administered to 360customers of the bank. Descriptive analysis; mean values and histograms were used to explain variables and their effects and Modified multiple regressions were used for data analysis. The result indicated that the bank despite its numerous challenges/limitations has great impact on the performance of small scale business in its area of operation. This is because, all explanatory variables (except business sustenance) in the regression analysis; source of capital, profit generation, business expansion, savings/investments, and wealth creation have significant coefficients, an indication of positive influence on micro business performance and poverty level. Michika Microfinance Bank however, needs more efforts to roll out more enriched loan packages and to enlighten the customers to be able to fully utilize the micro loans available at the bank. The Small Business Owners must also be encouraged to cultivate culture of Business sustenance so that consistency and experience is guaranteed. Keywords: Microfinance Bank, Microfinance Institutions, Microcredit, Small Scale Businesses, Poverty, Poverty Alleviations