The Impact of Microfinance Bank On Small and Medium Enterprises Growth and Development in Zimbabwe. A Case Study of Success Microfinance Bank
- Author
- Magumise, Bianca
- Title
-
The Impact of Microfinance Bank On Small and Medium Enterprises Growth and Development in Zimbabwe. A Case Study of Success Microfinance Bank
- Abstract
- This study investigated the impact of microfinance institutions (MFIs) on the growth and development of small to medium enterprises (SMEs) in Zimbabwe. . The study aimed to assess the effect of microfinance funds on branch expansion, the number of employees, and SMEs' annual turnover. Data was collected through questionnaires, and a descriptive research design was used to analyse the data. The sample size consisted of 68 SMEs selected from a population of 217 using Cochran's formula from a Success Microfinance Bank loans database. The study found that loans from MFIs had a significant impact on the financial challenges faced by SMEs, such as lack of capital, cash flow problems, and limited access to credit. The loans provided by MFIs enabled SMEs to invest in their businesses, purchase equipment and inventory, employ more workers and expand their operations. Additionally, loans from Microfinance Institutions (MFIs) have been proven to significantly enhance the performance of Small and Medium Enterprises (SMEs). These loans provide SMEs with the necessary capital to meet their financial obligations and remain operational even during difficult economic times. The study concluded that, loans from MFIs are an important source of financing for SMEs and can help to reduce their financial challenges. The research recommend that Microfinance institutions should consider increasing the size of loans being offered to SMEs, as it has been revealed that access to larger loans can aid SMEs in financing their operations and achieving growth. Overall, this study highlights the importance of microfinance institutions in supporting the growth and development of SMEs in Zimbabwe.
- Date
- June 2023
- Publisher
- BUSE
- Keywords
- Microfinance
- Microloan
- Micro Insurance
- Supervisor
- N/A
- Item sets
- Department of Banking and Finance
- Media
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Bianca Magumise.pdf