EVALUATION OF UGA MICRO

CHAPTER ONE

BACKGROUND OF THE STUDY

The history of micro financing can be traced back as long to the middle of the 1800s when the theorist by sander spooner was writing over the benefits from small credits to entrepreneurs and farmers as a way getting the people out of poverty. But it was at the end of world war II with Marshall plan the concept had an big impact. The today use of the expression micro financing has it roots in the 1970s when organizations, such as Grammeer Bank of Bangladesh with the micro finance pioneer Mohammad Yunus, where starting and shaping the modern industry of micro financing (Wikipedia 2015).

In United states, micro finance institutions was developed in 1980s. They served low income and marginalized minority communities. By 2007, there were 500 micro finance organizations operating in the US with 200 lending capital (Wikipedia 2015).

In Africa the first credit union in Africa was established in Northern Ghana in 1955 by Canadian Catholic missionaries. However, susu, which is one of the micro finance schemes in Ghana, is thought to have originated from Nigeria and spread to Ghana in the early twentieth century (www.economicswebinstitute.org).