The past one and a half decades is known in development circles as the era of micro-finance. This concept became widely accepted as the way out to the crunching problem of poverty the world over. This period also brings with it the proliferation of development agencies called micro-finance institutions (MFIs). While most of the poverty-alleviation strategies that employ micro-finance have happened in the developing countries where poverty is more prevalent, the developed world has also witnessed such initiatives. This thesis reports the result of a survey of a minority group in Nova Scotia--the Black community to explore whether micro-finance is a viable tool to combat poverty and increase the socio-economic standing of this group. This thesis identifies factors that create disparity in credit flows to Black business owners in Nova Scotia, relative to all business owners elsewhere in Canada. Among these factors are the small scale of operation, concentration in low-productivity industries and low level of education. Moreover, problems of moral hazard and adverse selection beset the delivery of credit. This study concludes that micro-finance is not a viable option as a result of less demand for such services and amidst various small business lending initiatives by both the federal and provincial governments. Other recommendations that flow from the survey analysis include the formation of an autonomous but well-monitored, quasi-governmental institution to cater to the special needs of Black business owners. To foster community economic development, there must be an improved flow of credit to the community. The findings of this research will help policy makers, government institutions, politicians and those serving the particular needs of the Black community in Nova Scotia better understand the credit problems facing this community. The findings will also contribute to academic discussions related to the dynamics and functioning of micro-finance in both developed and developing countries.