micro finance

THE ACCESSIBILTY OF MICROFINANCE FOR SMALL
BUSINESSES IN MOGADISHU

BY
ABDIGANI ABDIJALIL ABDIGANI
ABDIMAJID OMAR ABU-HADI
SU’AD HASSAN ABDIRAHMAN

A GRADUTION PROJECT SUBMITTED IN PARTIAL

FULFILLMENTS OF THE REQUIREMENTS
FOR THE DEGREE IN BACHELOR OF ACCOUNTING

FACULTY OF BUSINESS AND
ACCOUNTANCY

SIMAD UNIVERSITY

JUNE, 2012

ABSTRACT

This study investigated the accessibility of microfinance for small businesses in
Mogadishu. Since, the accessibility of microfinance for small businesses considered difficult due to heavy collateral requirements. The main objective of the study was to examine the challenges facing by small businesses in accessing microfinance services in Mogadishu. Purposive sampling technique was employed in selecting the 100 Small businesses that constituted the sample size of the research. To achieve the objectives of this study, data was collected through questionnaire instrument. Data analysis, the researchers employed descriptive analysis also used Statistical Package for the Social
Science (SPSS). the main findings of this study identifies that Small businesses in
Mogadishu are facing challenges to access loan from MFIs and this results many small business to demise soon or may not be started due to lack of ability to overcome the challenges. Moreover, the findings of this study will be helpful for the academicians, businesses, practitioners, researchers, planners, and policy makers who are involved in the concerned area. The researchers recommended microfinance institution are required to set more flexible, affordable and attractive requirements in financing Small businesses, their role need to be felt by the Small enterprises in terms of growth and development.

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ABASTARKTI
Diraasadaan waxay ku saabsaneyd baarida helida microfinance-ga ee ganacsiyada yar-yar ee magalada Muqdishu. Helida microfinance-ga waxaa loo tixgilaa inuu ku adg yahya ganacsiyada yar-yar taasoo ugu wacan damaanad

References: (Zeller & Meyer, 2002). Asian, Dr. Yunus began a micro-finance program among women in Bangladesh in 1976, following the wide-spread famine in 1974 (Abdulrahman, 2007). In 1998, it was first time micro finance industry in Somaliland (as cited in Bekkin, 2007) program; in 1996, SA’ID received its first substantial capital injection from Oxfam America (Saacid Foundation report, 2005) microfinance program to help the poor and small businesses named as “Kalkaal” (Somali term for help) (Salam Somali Bank, 2011). According to Thomas (2002), Micro finance has become a major tool of development, and is fast developing as an international industry, with its own trade otherwise would not have access to credit services (Zeller & Meyer, 2002). business- there may be other factors that prevent economic growth(Thomas, 2002). The definition of this study is derived from Ngehneu & Nimbo (2010), Microfinance is defined as a development tool that grants or provides financial According to Ojo (2009), Microfinance involves the provision of financial services such as savings, loans and insurance to poor people living in both urban