Microfinance services and small businesses growth in Mogadishu, Somalia

Abstract

This study investigated the relationship between microfinance services and small businesses growth in Mogadishu. The study was guided by three research objectives. First, to determine the extent of microfinance services in Mogadishu. Second, to find out level of small businesses growth in Mogadishu. Third, to establish the relationship between microfinance services and small businesses growth. To achieve the objectives of this study, data was collected through questionnaire. Data analysis, the researcher employed descriptive survey and correlation analysis also used Statistical Package for the Social Science (SPSS). Finding of this study identifies that that level of Microfinance services in Mogadishu, Somalia is high. And also it revealed that level of small business growth is high to most respondent. Finally, this study showed that there is a significant relationship between microfinance services and small businesses growth in Mogadishu, Somalia. Also, Regression analysis shown the microfinance services effected the small businesses growth. 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 researcher 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