Business_practices_strategy_competition_performance_of_microfinance_Chapter1_Part1.docx - CHAPTER ONE INTRODUCTION 1.0 Background of the Study The

Business_practices_strategy_competition_performance_of_microfinance_Chapter1_Part1.docx

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CHAPTER ONE INTRODUCTION 1.0 Background of the Study The microfinance provided by the microfinance institutions (MFIs) is increasingly being viewed as a significant source of finance for people with limited income as well as those that do not have access to banking and other conventional financial services. More specifically, in developing countries such as Nigeria and Bangladesh, the financial products and services provided by MFIs are considered as important initiative that helps to ease the financial burden of the poor people and also eradicate poverty in these countries (Abu Kasim, Minai & Chun, 1989; Ene & Inemesit, 2015; Geleta, 2016; Nisha & Rifat, 2017; Saleem, 2017; Muhammad Yunus, 1998, 2007). Since the microfinance institutions were introduced in the 1980 s, their numbers have continued to increase in developing countries across the world. These institutions have experienced remarkable growth and acceptance. More specifically, in Nigeria, MFIs are increasingly being recognized as an essential component of the financial industry in the country. Despite their important role in the financial industry in Nigeria, information concerning the nature of MFIs as well as the manner in which these institutions are managed remained limited. The literature reveals that theoretical and empirical contributions in the area of MFIs remained limited, particularly in the Nigerian context. The limited theoretical and empirical contributions in this field of study have resulted not only in little knowledge about MFIs
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but also the lack of information concerning their true nature as well as their business practices and performance as financial institutions. Given the limited research as well as
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