This is a new development from the old economic models, which emphasized on
economic growth. For instance (Keyness 1936) emphasized savings and
investment as a major component of economic growth. The African states
deprived of economic resources have been at the forefront at encouraging micro
finance institutions to pump their funds into micro and small medium enterprises
to quicken economic growth.
Ditcher-1986 and Little-1987, pointed out in their respective reports that small
enterprises are wasteful in their use of financial resources and that they are not
business focused. In view of the high cost of credit by Micro Finance institutions,
these small scale enterprises are usually unable to repay the loans disbursed to
them and so such end up worse off and stuck in debts. Other critics argue that
even though the sector is significant employer of poor, micro and small
enterprises are not part of a dynamic process of economic growth.
However, Boomgard-1989 observed that as a result of Micro Finance Institutions,
the small scale enterprises have been able to create jobs per unit of investment,
encourage local ownership, promote entrepreneurial skills and create
employment. This sector has also been able to produce goods and services for the
poor. On the other hand, there are those who believe that the priority of the
industry in Africa is first to become a sustainable business before it can scale up
to reach its target of nearly 800 million poor people (according to I 997 UNDP
development report). Contrary, others still believe that the priority of the industry
should be to develop market driven products and reach large numbers of the poor.
Mumbi, M (2021). Microfinance Services And The Financial Performance Of Small Scale Enterprises A Case Study Of Kcb Micro Finance Customers. Afribary. Retrieved from https://afribary.com/works/microfinance-services-and-the-financial-performance-of-small-scale-enterprises-a-case-study-of-kcb-micro-finance-customers
Mumbi, Mundati "Microfinance Services And The Financial Performance Of Small Scale Enterprises A Case Study Of Kcb Micro Finance Customers" Afribary. Afribary, 11 Jun. 2021, https://afribary.com/works/microfinance-services-and-the-financial-performance-of-small-scale-enterprises-a-case-study-of-kcb-micro-finance-customers. Accessed 04 Aug. 2021.
Mumbi, Mundati . "Microfinance Services And The Financial Performance Of Small Scale Enterprises A Case Study Of Kcb Micro Finance Customers". Afribary, Afribary, 11 Jun. 2021. Web. 04 Aug. 2021. < https://afribary.com/works/microfinance-services-and-the-financial-performance-of-small-scale-enterprises-a-case-study-of-kcb-micro-finance-customers >.
Mumbi, Mundati . "Microfinance Services And The Financial Performance Of Small Scale Enterprises A Case Study Of Kcb Micro Finance Customers" Afribary (2021). Accessed August 04, 2021. https://afribary.com/works/microfinance-services-and-the-financial-performance-of-small-scale-enterprises-a-case-study-of-kcb-micro-finance-customers