The Role of Micro Credit Schemes in the Growth of Small and Micro Business Enterprises in Botswana
C. R. Sathyamoorthi (Department of Accounting and Finance ,Faculty of Business, University of Botswana,Gaborone, Botswana ), B. S. Khupe (Department of Accounting and Finance , Faculty of Business, University of Botswana, Gaborone, Botswana)
Download Article | Published On 01/07/2002

Abstract

Small and micro enterprises in Botswana are relatively young (G.Sunny & V.Babikanysia, 1994) Although this is the case, the Government has long recognized the importance of developing small business and all efforts are made to encourage them through various assistance programmes In its policy formulation processes, the Botswana government is guided by four major economic factors: Rapid economic growth , economic independence, sustained development and social justice .These are principles enshrined in the country's National Development Plan for the past two decades (Government of Botswana 1988) For its part, SMME encourages rapid economic growth by increasing employment prospects thereby enabling economic independence by reducing dependence on imports (Government of Botswana : 1988 b and contributes toward sustained development by upgrading citizen skills through on-the-job Training and providing essential training for employees who would be better empowered to start other own business (Government of Botswana, 1988 a). SMME also promotes social justice by creating sustained employment for unskilled workers (Alexander. 1983).The biggest stumbling block towards flourishment of small and medium enterprises in Botswana is finance and the Botswana government has both realized this fact and raised to the occasion by way of establishing a Micro Credit Scheme administered by the National Development Bank. The study looked into the role played by the scheme in the growth of small and micro enterprises. Two sets of questionnaires were distributed for data collection, one targeting the National Development Bank (NOB) administration and the second to the beneficiaries of the scheme. The study revealed that the scheme has been partial successful in addressing its intended objectives. The most prominent problem faced by the scheme Administrators being overdue loan repayment s which have over time mounted to unstable levels. A Scheme re-structuring is recommended with an aim of addressing problems identified by the research study.

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