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Entrepreneurship & Organization Management

ISSN: 2169-026X

Open Access

Role of Micro Finance Institutions in Skill Development of Micro Entrepreneurs in UAE: An Exploratory Study

Abstract

Beenish Shameem* and Saleem Mushtaq

This study aims to investigate the skills that are important for entrepreneurs in UAE. MFI institutions in UAE enables entrepreneurs in development of entrepreneurial skills in which further help in their development and growth of businesses. The study stated that skills like accounting skills like maintenance of accounting books of business, development in technical skills, specialized management, business development and technology skills were developed by MFI and played important character in strengthening the overall role of MFI. Business planning and management skills improve among the entrepreneurs, they develop a better understanding to use the available capital and profits to further invest and use in their businesses and moving towards further development. Some of the findings of research reflect that MFIs did not help in development of entrepreneurial skill and faced major challenge in analyzing the status of the market that is the current market scenario, the situations like when to invest and when to withdraw, where to invest, quantity of invest and many such understanding of the market thus. Making it difficult for them to move ahead with their business plan or the existing business. Such entrepreneurs can fail even after being financed by MFI since they lack the skill of utilization of the capital. MFIs provide assistance in development of certain skills that assist the beneficiaries in growth and development of their business. Micro finance institutions play a vital role by empowering individuals with credit facilities to start their business and imparting skills to carry business in a proper way. The role of micro finance institutions is all pervasive and helps the businesses to work on sustainable basis. In this research it was found that entrepreneurs get the finance from MFIs, they invest them in technical and technological aspects of their businesses due to which these aspects of the business improve leading to development of the business and thereby of the SMEs in UAE.

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