INFORMAL FINANCIAL INSTITUTIONS AS SOURCE FOR FINANCING SMALL AND MEDIUM SCALE BUSINESS ENTERPRISES IN NIGERIA: A CASE STUDY OF CYCLE SAVINGS SCHEME
INFORMAL FINANCIAL INSTITUTIONS AS SOURCE FOR FINANCING SMALL AND MEDIUM SCALE BUSINESS ENTERPRISES IN NIGERIA: A CASE STUDY OF CYCLE SAVINGS SCHEME
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Date
1997-09
Authors
Mohammed, Zakari
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Abstract
ABSTRACT
The research study was conducted to i d e n t i f y among o t h e r things,
why people engage/participate in Cycle "Savings Scheme {CBS) even with
the presence of modern banking f a c i l i t i e s and s e r v i c e s within reach,
hoy CSS are being organised and managed, and what the members of the
scheme use t h e i r r e t u r n s (shares) from the saving schemes for,
The study was based on the assumption t h a t : -
(a) the socio-economic base and c u l t u a l o r i e n t a t i o n of the r u r al
people and indeed t h a t of the low income earners who c o n s t i t u te
the majority of the Nigerian Population would not a l l ow them to
b e n e f i t fully from the secured and unsecured loans provided
by banks to finance any type of business e n t e r p r i s e they would
want to e s t a b l i s h and manage; and
(b) that the r e t u r n s (shares) from GSSs are adequate, realistic,
r e l i a b l e end v i a b l e sources of funis for financing small and
medium scale business e n t e r p r i s e s.
The research method adopted for the study is survey method.
The choice of the research method was based on the fact that the
r e s e a r c h covered a wide spectrum of the Nigerian Society with the
research subjects running i n t o hundreds of thousands. The
population of fhe study are the p r o p r i e t o r s / c o l l e c t o r s of the
CSSs and the members of the saving schemes in Nigeria,
A simple random sampling technique was used to s e l e c t 20
CSSs represented by t h e i r p r o p r i e t o r s / c o l l e c t o r s and 20 c o n t r i b u t i ng
members from each of the 20 CSSs selected from Kaduna and Z a r ia
environments - being cosmopolitan areas with different people from
a l l works of l i f e across the country and beyond. The sample size
is therefore made up of 20 CSSs and 400 c o n t r i b u t i n g members
drawn from these areas. The major instruments used for c o l l e c t i ng
data were questionnaires, i n t e r v i e w s / d i s c u s s i o n s and observation
of the books of the CSSs. Simple descriptive s t a t i s t i cs
P a r t i c u l a r l y percentages and frequency t a b l e s were used to analyse
the data c o l l e c t e d for the study,
The findings of t h i s study, reveals that majority of the
CSSs members engage/participate in the Savings Scheme for economic
reasons p a r t i c u l a r l y to get some money in bulk to s t a r t and/or
maintain t h e i r business e n t e r p r i s e s . Although the CSSs are not
r e g i s t e r e d with any government agency, majority of the CSS
p r o p r i e t o r s have R u l e s , Regulations and Procedures as legal tender
governing the CSS matters to be s t r i c t l y observed and complied
with by both the members and the p r o p r i e t o r s . Inspite of some
problems associated with the management of CSS, both the
p r o p r i e t o r s and members of the saving scheme believe in the
v i a b i l i t y and r e l i a b i l i t y of CSSs as source of funds for financing
small and medium scale business e n t e r p r i s e s.
Description
A THESIS SUBMITTED TO THE DEPARTMENT OF BUSINESS
ADMINISTRATION FACULTY OF ADMINISTRATION, AHMADU
BELLO UNIVERSITY ZARIA, IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE AWARD OF MASTER OF BUSINESS
ADMINISTRATION (MBA)
SEPTEMBER.
Keywords
INFORMAL,, FINANCIAL,, INSTITUTIONS,, SOURCE,, FINANCING,, SMALL,, MEDIUM,, SCALE,, BUSINESS,, ENTERPRISES,, NIGERIA,, CASE,, STUDY,, CYCLE,, SAVINGS,, SCHEME.