ABSTRACT
This study was designed to explore the significant impact of microfinance on petty traders in Agege local Government. The sample for the study comprised of 86 individual who were petty traders in Agege Local Government. The main tool used for the study was a questionnaire designed to collect relevant data about the subject matter. The data collected were subjected to frequency distribution, percentages, mean and Non-parametric chi-square test with the aid of Statistical Package for Social Science (SPSS).
After testing the various hypotheses, it was established that there is a correlation between micro finance scheme and petty trading in Lagos State most especially in Agege Local Government. It is recommended that the activities of micro finance bank should increase from just giving loans but carry out research on how to improve petty trading in Agege Local Government.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
Commercial banks in most developing countries exclude the poor and hardcore poor by imposing strict rules and regulations on loan applications. The demand for the products and services offered by commercial banks are low among the poor, not because of "poor do not need financial services", but the product and service are not designed to meet their requirements. Micro-credit was originally established to bridge the capital gap apparently unfilled by the rural cooperatives and commercial banks. It is a collection of banking practices built to provide small loans and accept small saving deposits. According to Otero (1999), micro-credit provides access to capital, which enables the poor self-employed to create productive capital, to protect the capital they have, to deal with risk and to .avoid the loss of capital. It attempts to build assets and create wealth among poor and hardcore poor people.
Microfinance is a phenomenon that reflects the provision of both credit and savings services to low income people. This provision of funds in form of credit and micro-loans empowers the poor to engage in productive economic activities which can help boost their income level and thus alleviate poverty in the economy.
In recent times, the growing awareness of the potentials of microfinance in poverty reduction, economic growth and development, coupled with the increas
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