Epsilon Archive for Student Projects

Abstract

Microfinance is a term used by many in different domains to fight poverty. Poverty is a syndrome that is affecting the developing countries and especially in sub Saharan Africa. This thesis is focused on three specific objectives:

The first of them is to investigate whether CamCCUL helps its members and/or customers in developing their small or medium size businesses. The second aim is to find out whether rural SMEs can secure micro-financing with ease and on reasonable terms. Lastly, to determine if there are underlying factors, such as size of operation, securable wealth, or gender of application, is a factor in getting a loan.

In other to accomplish the task, we had to gather data from primary and secondary sources in the rural areas of Cameroon. The primary sources where from questionnaires and interviews. The population was drawn from two different groups; the members of CamCCUL and the credit unions constituting CamCCUL league. We made used of closed and open ended questions. The responses were analysed using percentage frequency tables.

From the information that we have, it is realised that CamCCUL has a positive impact in the development of the members’ businesses. CamCCUL provide its members with financial and social intermediation services to help improve their businesses.

Securing micro-financing by SMEs is determined by the stage or level of development in which the business is. Businesses that are viewed as growing had it easy to get a loan. But the main criteria used were the ability to pay back and to meet the set requirements to obtain a loan. The main requirement is fixed tangible assets such as land.

We noticed that the poorest of the poor were not included in designing and implementing their policies. The entry requirements are difficult for the poorest to meet thus they do not enjoy the services of CamCCUL. We can say that the poorest are those who are not involve in any income generating activities.