CHAPTER ONE

INTRODUCTION

1.1 Background

1.2 Problem statement

1.3 Research Questions

1.4 Research Hypotheses

1.5 Research Objectives

1.6 Significance of the study

Most researchers over the past years acknowledge the importance of the issue under study. Since SMEs are viewed as the engine that boost any emerging economy, the soundness and efficiency of this sectors have to be a matter of concern for each and every one.
This study is centred on the activities of microfinance institutions and how they attempt to alleviate extreme poverty in the economy. The findings of this research will be useful to the government, in designing a policy that favours economic development via the SME and Microfinance sectors.
In addition, our economic environment is characterised by a public who lost confidence in a microfinance sector, which is mean to help them. For this reason, the study is intended to educate the public on the utmost importance of microfinance institutions in promoting microbusiness ventures, thus increasing overall public confidence in the sector and mobilizing savings. Findings of the research will be useful to SMEs entrepreneurs and other MFIs, as it will highlight possible reasons for their failures.
Furthermore, it will enable MFI improve their engagement with the SMEs. Therefore, this research will focus on CAMCCUL which has been exploited in terms of its contributions to the growth of SMEs and particularly in agricultural domain. A study of this nature is equally very important because it is going to add more scientific facts on the role microfinance plays in the society. This is because MFI as a whole provides the rural population a means to access financial services in their localities to boost their living standards in a sustainable manner in line with the millennium development goals of alleviating poverty in developing countries of 2035.
Lastly, the research will serve as a source of reference to other researchers wishing to look deeper in the area under study.
1.7. Organisation of the study

This study is organized in five chapters. Chapter one provides a general introduction to the study. Chapter Two presents a literature review embodying conceptual definitions, scholarly work on support provided by microfinance institutions to SMEs is reviewed. In addition, the literature review enabled a theoretical literature in which relevant theories related to the study is presented as well as the empirical evidence of the work.
Chapter Three describes the research methodology. It entails the background of the area of study, method of data collection, method of data analysis, tools used in data analysis, source of data collection, the sample design, model specification, as well as the limitation of the study. Chapter Four presents the study findings, analysis and statistical test. The chapter includes key characteristics of respondents, discussions and interpretation of the findings. Chapter Five presents the summary of the research, conclusions and recommendations.

CHAPTER TWO
LITERATURE REVIEW

2.1. Conceptual Literature
2.1.1. Microfinance Institutions Service

Different authors have defined microfinance differently. The various definitions from the different authors are as follows: Julia Kagan (March 2021) Microfinance, also called microcredit, is a type of banking service provided to unemployed or low-income individuals or groups who otherwise would have no other access to financial services. The goal of microfinance is to ultimately give impoverished people an opportunity to become self-sufficient. Matt D’Angelo (2020) defined Microfinance as “A type of lending that can have a significant impact, especially in the developing world”. That is, “Micro financing or microfinance is defined as a provision of financial services that is available to low-income people”. This type of loan helps aspiring entrepreneurs generate income, build assets, manage risks and meet their household needs.