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Impact of Micro-finance on the Growth of Small Business

   

Added on  2020-10-22

14 Pages4055 Words314 Views
EntrepreneurshipDesign and CreativityData Science and Big Data
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To investigate the impact of micro-finance on thegrowth of small business units operating in thedeveloping economies
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Table of ContentsDISSERTATION TOPIC................................................................................................................1INTRODUCTION...........................................................................................................................1Overview.....................................................................................................................................1Aim..............................................................................................................................................3Objectives....................................................................................................................................3Question......................................................................................................................................3Rationale of study.......................................................................................................................4Significance of study...................................................................................................................4Scope of study.............................................................................................................................4LITERATURE REVIEW................................................................................................................5RESEARCH SPECIFICATION......................................................................................................6TIME SCALE..................................................................................................................................8STRUCTURE OF DISSERTATION..............................................................................................9REFERENCES..............................................................................................................................11
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DISSERTATION TOPICTo investigate the impact of micro-finance on the growth of small business unitsoperating in the developing economies.INTRODUCTIONOverviewMicro fiance in developing countries has led to tremendous growth of enterprise bysupporting people with easy loan services. It is the credit facility given to poor entrepreneurs orsmall business to lacks access to capital. The financial product of micro fiance are micro savings,micro loans and micro insurance which are core capital need of society. The concept of miccame into existence in 1970 when social entrepreneur started lending money to poor people onlarge scale (Wijesiri, Viganò and Meoli, 2015). This ideology defined the need of capitalrequirement of society which is restriction individual growth.In accordance with emergence of micro fiance it was derived that million of entrepreneurand poor people own innovative ideas but lacks capital investment and therefore the individualare spending their time in unproductive activities. However, it can be said that micro fiance isgrowth opportunity for the poor entrepreneurs across the globe for implementing there inventionand vest their time and money in productive activities (Silva, 2012). Further, it can be arguedthat micro finance is not only beneficial for the poor people but is also effective for growth ofeconomy. Emergence of innovative ideas and small business will increase economic contributionand will support growth of country by eliminating poverty and creating employment.1
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Apparently, micro fiance is not a donation by is financial support to poor people forstaring their own business. It is effective plan for Sri lanka because it will support financialaccess for the low income group of economy. Sri Lanka is lower middle income country whichis located in the Indian Ocean and is considered as fastest growth economies in South Asia. Theeconomy with population of 20 million people and gross domestic product of 3280 USD iscategorized among low or middle level income group (Micro finance sector in Sri Lanka:Opportunities and growth strategies, 2016). The highest growth rate of GDP experienced byeconomy is 7 % which depicts human development opportunities of country. Further, it can besaid that financial system of country is diverse in accordance with other developing economieslike it has 47 licensed financial organizations, 20 commercial banks, 9 leasing firms and primarycredit cooperative societies, provident funds and primary pension and dealer facility. 2Illustration 1: Comparison of Sri Lanka and South Asia on the basis offinancial indicators(Source: Micro finance sector in Sri Lanka: Opportunities andgrowth strategies, 2016)
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