ABSTRACT

This study on the role of micro finance institutions in entrepreneurship development of Ntarikon
cooperative Credit Union was mainly set out to assess the effect of Microfinance Institution In
enhancing entrepreneurship development at Ntarikon cooperative Credit Union in the Mezam
Division of the North West region of Cameroon. This study was also centered on 3 specific
objectives.
The study was based on descriptive survey design. Questionnaires were used to collect primary
data from the employees of Ntarikon cooperative Credit Union. Secondary data was also
collected from textbooks, journals, websites. The sample size for the study was 40 which the
stratified sampling technique was used . The Pearson’s coefficient of correlation was used to test
the relationship between the two random variables.
The reports from questionnaires were looked and analyzed of which results and
recommendations were made. The finding on the first objective which was based on
Microfinance saving services on entrepreneurship development indicated that, there is a positive
relationship between micro finance saving services and entrepreneurship development. The
second objective which was based on Microfinance lending services on entrepreneurship
development showed that there is a significant relationship between micro finance lending
services and entrepreneurship development. The third objective which was based on
Microfinance training and education services was analyzed and results showed that Microfinance
training and education services have a significant positive relationship with entrepreneurship
development. Generally the services of Microfinance helps to accelerate and sustain growth in
entrepreneurship development in Mezam Division of Cameroon. Suggestions have also been
made for further researchers.

CHAPTER ONE
GENERAL INTRODUCTION
1.1 Background of the Study

Microfinance, which means “little loan,” is made up of the two terms “micro” and “finance.” It
continues to give small loans to those in need. The facility of microfinance financial services to
the underprivileged is grounded on market theory and business practices. The financial services
included in this description include saving, money transfer, payment, remittance, insurance, and
others services. Because of shared responsibility lending, it is required to borrow money from a
collection of other borrowers. Microfinance serves as the medium for each loan. One of the
finest options for encouraging self-employment is microfinance. It offers services to
communities with native talent and a strong desire to engage in economic activities for selfemployment and income production but no collateral to pledge as security for the loans they
borrow. Levine (2018) has a Schumpeterian theory of financial intermediation is suggested.
According to this approach, the financial industry encourages productivity investment by
boosting activities through entrepreneurial choice and financial intermediaries. With the hope
and a big part of it that if the poor had fair access to credit, they would use it to behave
entrepreneurially and increase their earnings to escape poverty. (Bradley, 2012). Micro-lending,
a novel approach to providing financial services, has emerged in recent years as the preferred
financial intervention for promoting economic expansion and reducing poverty (Pellegrini,
2014). Rapid development in the microfinance industry has now given rise to a national
movement for women’s emancipation. Microfinance is essential to help the rural poor, especially
women, escape exploitation and develop the confidence they need to become economically
independent.

The act of creating new enterprises, especially those based on possibilities like financial support
or business training, can be regarded to be part of entrepreneurship. The item or service may or
may not be novel or distinctive, but the entrepreneur must nevertheless provide value by
acquiring and securing the required competencies and resources (Anokhin, Grichnik, & Hisrich,
2008). These definitions lead to an examination of essential entrepreneurial skills, that are related
to the entrepreneurial.ability which are entrepreneurial acumen competitiveness, and recognizing
small business benefits to ensure the sustainability of the company (Ligthelm, 2017). These
characteristics are significant because they are linked to better results for low-income
households, including company development and greater income risk tolerance. The dimensions
comprise the necessary skill sets such as entrepreneurial acumen, product innovation, market
orientation, risk propensity, and strategic competence.

MFIs have become the main source of funding for small-scale enterprises in developing
countries. It has created room for millions of households usually excluded from classical
financial services to commence their own economic activities or to reinforce existing efforts and
become entrepreneurs in developing countries. Entrepreneurship is a potent instrument for
activating economic growth in developing countries. It is associated with job creation, wealth
creation, poverty eradication, innovations, and its related welfare effects. As a result, many
developing countries including Cameroon embark upon the promotion of entrepreneurship
through microfinance so as to achieve this objective. Iweala (2015) opines that the latent
capacity of the poor for entrepreneurship would be significantly enhanced through the provision
of microfinance services to enable them to engage in more economic activities and be more selfreliant, increase employment opportunities, enhance household income, and create wealth.
Fashola (2008) asserted that with microfinance, graduates roaming the streets in search of jobs
would have a new orientation to start their own businesses and become employers of labor and
generate wealth for themselves, their families, and the nation. Niekerk (2008) believed that
robust economic growth could not be achieved without putting in place a well-structured
framework that could be meaningfully supported by economic activities at the grassroots, such as
the microfinance platform. He stressed that microcredit is an important liberating force in an
economy and must be extended not only to the poor but, to the active sector of the economy.
Microfinance is a method of delivering loans and mobilizing savings that are specifically
designed to fulfill the distinctive financial needs of the underprivileged. Saving services give
businesses the ability to save extra cash for later use and earn returns on their investments. Credit
services make it possible to use projected revenue for present purchases or expenditures.
Through access to more funds for commercial purposes, the financing plan enables the
participants to raise their standard of living. The microfinance strategy has developed as a tool
for economic development aimed toward low-income women and men, especially independent contractors. One of the best strategies for reducing poverty and promoting economic growth and
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development in the economy is microfinance. According to the Asian Development Bank
(ADB), microfinance involves the provision of a wide variety of financial services to lowincome people and their micro businesses (ADB, 2013).. Microfinance is encouraged as a source
of capital, especially for small business owners. People from low-income groups may have an
original company concept in developing nations, but even as store owners or producers of
domestic goods, they lack the financial wherewithal to implement their ideas, therefore they have
stayed in a condition of economic inactivity or low activity (Ledgerwood, 2015). Low levels of
economic activity in low-income areas cause them to live in poverty and with subpar conditions
of living. Even while promoting entrepreneurship has been suggested, Khavul (2015), slightly
learned work has attempted to incorporate the works on the entrepreneurial expansion of
microfinance services. Similarly, in Nepal, most of the studies address the research gap, to
determine the effect of microfinance services development of entrepreneurship among service
recipients and its contribution to their business sustainability. Amin et al., (2013) focus their
article on the ability of microfinance to reach the poor and vulnerable. They focus their article in
such a manner because of concerns that microfinance is only serving people slightly below or
above the line of poverty, however, the really poor and destitute are being systematically
excluded. Thus, the question of whether microfinance improves or worsens entrepreneurial development is still worthy of further research such as the one being undertaken in this study.

1.2 Statement of the Problem
Insufficient cash remains the key source of some Ntarinkon Cooperative Credit Union ‘
unproductive activities and closure, which is why microfinance banks become the major sources
of capital providers for entrepreneurs in rural areas (Obasan, 2011). In addition, many
microfinance banks offer social intermediation services to group members, including group
creation, confidence building, training in financial literacy, and company management skills
(Bashyal, 2008). These are targeted to develop a more sustainable business and to raise the living
standard of the clients. A comprehensive range of financial services is provided through
microfinance to low-income people. These services are including deposit, loan, payment
services, money transfer, and insurance products. The Fundamentals of Microfinance include.
Microfinance is a powerful instrument for reducing poverty because the poor require access to adequate financial services, can repay loans, pay the true cost of loans, and can save money.
(Randhawa & Gallardo, 2013).
From the previous studies, entrepreneurship skills have been identified and the types of services
provided by microfinance have been categorized. Since such a study has not been conducted in
Cameroon; the research examines the impact of the types of services provided by microfinance
in the Kanchanpur district on the entrepreneurship development of its clients. This research deals
with issues: In any country of the world, microfinance helps in the development of the country
by granting loans to low-income earners. According to cops take, halotra, and Johnson (2011)
analyze the impact of microfinance on firms and individual welling. Copestake at all focus on
business performance and household income to establish a link between the availability of the
time, it appeared that microfinance is not financing to the poor and business client. The research
went forward to research the problems of this study which are: Inability to encourage the
development of new business, Inability to help existing businesses grow or diversity their
activities, Low rate of employment, Inability to create employment and income opportunities
through the creation and expansion of micro-enterprises, Inability to increase the productivity
and income of vulnerable groups especially and the poor, High rate of poverty, Economic
dependence on foreign countries.
Entrepreneurs running small and medium-sized enterprises always Face serval difficulties,
especially with startup capital, and the running of their businesses resulting in so many failures
within the context of their business due to a lack of adequate technical, soft, and marketing skills.
This research looks to provide a solution to these problems. It is based on this problem that this
research is being carried out.