The Impact of Financing Programs on Small Projects in Development Organizations in Taiz City: A Field Study

Abstract

This study aimed to identify the impact of microfinance programs with its dimensions (volume of financing, repayment period, follow-up and control) on the development of small projects with its dimensions (capital increase, increase of employee's number and profits increase) in development institutions in Taiz city.

In order to achieve the objectives of the research, the descriptive was used in both types, survey (IBM 24. SPSS V), and the approach. addition, the questionnaire form was designed, including which were distributed to a simple random sample of small projects owners benefiting from the microfinance programs provided by the Naaman Microfinance Foundation in the city of Taiz. Their number was (85) borrowers, who were chosen from the study population consisting of (345) borrowers. The analysis was done by means of structural equations, and the study concluded that there is a statistically significant effect of microfinance programs with their combined dimensions on the development of small projects with their individual dimensions (capital increase, project profits increase). The study also concluded that there was no statistically significant effect of microfinance programs on the increase of workers number in the project.

In light of these results, a number of suggestions and recommendations were presented.