THE ROLE OF BANKING FINANCIAL INSTITUTIONS IN THE GRANTING OF MICROCREDIT FINANCING FOR THE DEVELOPMENT OF MSME'S: A STUDY APPLIED IN BANCO SOL (2017 - 2020) AND IN MSME'S IN THE MUNICIPALITIES OF ZAIRE

Abstract

Microcredit, as a financial product of banking financial institutions with micro, small and medium-sized companies, is a short-term financing instrument that aims to promote activities of companies, whose financial availability made available to them is of low value and the repayment periods vary between 30 and 120 days, according to the requirements of the contracts agreed between the parties. Regarding aspects related to the methodology. This article aims to analyze the impact of microcredit financing granted by Banco Sol for the promotion of MSME's from 2017 to 2020, specifically to 2016 companies in the municipalities of Mbanza Kongo, Nzeto and Soyo, all municipalities belonging to the province of Zaire / Angola . To achieve this objective, a qualitative and quantitative methodology was used, supported by bibliographic research and a questionnaire technique, for the treatment of quantitative data, SPSS version 20 was used. Throughout the research, primary data were used with the application of a questionnaire to the 2016 companies and secondary data from the information contained in the reports and accounts of Banco Sol in the period corresponds from 2017 to 2020. The research proved that with the access to microcredit by the surveyed companies, it was found that the promotion of their activities in the different sectors of activities or even the improvement of its commercial facilities, the expansion of its business portfolio and the formalization of the business before the competent authorities of the municipalities described in this research.