scholarly journals Financial Access and Business Performance of Urban Unorganised Sector Enterprises: A Study of Assam in Northeast India

2020 ◽  
Vol 29 (1) ◽  
pp. 119-147
Author(s):  
Prasenjit Bujar Baruah ◽  
M. P. Bezbaruah
Keyword(s):  
Developing Countries ◽  
Financial Performance ◽  
Financial Services ◽  
Business Performance ◽  
Northeast India ◽  
Access To Finance ◽  
Financial Access ◽  
Logit Regression ◽  
Indian State ◽  
Dominant Characteristic

The urban unorganised sector has been a dominant characteristic feature of the developing countries providing livelihood to a disproportionately large number of households for prolonged period. However, enterprises in this sector are often stunted by myriads of problems among which meagre access to formal financial services is a crucial constraint, as access to other enabling conditions often hinges upon access to finance. This article is based on a study of such enterprises in the Northeast Indian state of Assam, where access to finance is relatively limited in general. Using inputs from a customised survey, the article explores the extent to which the accessibility of financial services influences the growth and financial performance of the unorganised sector enterprises in Assam. Tools employed include a customised financial access index, a generalised linear model and an ordered LOGIT regression. The results show that the financial performance of the enterprises is not significantly associated with the extent of their financial access, but their growth is critically dependent on it.

Understanding and Adoption of E-Finance in Small and Medium Enterprises (SMEs) in Developing Countries

2017 ◽  
pp. 159-184
Author(s):  
Brenda Scholtz ◽  
Melisa Koorsse ◽  
Siyasanga Loleka
Keyword(s):  
Developing Countries ◽  
Financial Services ◽  
Data Privacy ◽  
Small And Medium Enterprises ◽  
Access To Finance ◽  
Privacy And Security ◽  
Ict Infrastructure ◽  
Medium Enterprises ◽  
The Cost ◽  
Developed Nations

The lack of access to finance is hindering growth and development to small and medium enterprises (SMEs), particularly in developing countries. Access to finance can be facilitated by ICT and e-finance, which can reduce the cost of financial services and increase access to international markets. However, in spite of the potential benefits of e-finance, developing countries have been reported to be lagging behind in terms of e-finance adoption as compared with developed nations. The reason for non-adoption could be due to barriers such as lack of ICT infrastructure, data privacy and security concerns. The purpose of this chapter is to investigate the extent of understanding and adoption of e-finance by SMEs. A survey of SMEs in two developing countries, South Africa and Bangladesh, was conducted. The results of the survey revealed that access to financial products and services was the highest rated benefit of e-finance to respondent SMEs, whereas regulatory environment and policy was the highest rated barrier.

Understanding and Adoption of E-Finance in Small and Medium Enterprises (SMEs) in Developing Countries

2020 ◽  
pp. 1149-1174
Author(s):  
Brenda Scholtz ◽  
Melisa Koorsse ◽  
Siyasanga Loleka
Keyword(s):  
Developing Countries ◽  
Financial Services ◽  
Data Privacy ◽  
Small And Medium Enterprises ◽  
Access To Finance ◽  
Privacy And Security ◽  
Ict Infrastructure ◽  
Medium Enterprises ◽  
The Cost ◽  
Developed Nations

The lack of access to finance is hindering growth and development to small and medium enterprises (SMEs), particularly in developing countries. Access to finance can be facilitated by ICT and e-finance, which can reduce the cost of financial services and increase access to international markets. However, in spite of the potential benefits of e-finance, developing countries have been reported to be lagging behind in terms of e-finance adoption as compared with developed nations. The reason for non-adoption could be due to barriers such as lack of ICT infrastructure, data privacy and security concerns. The purpose of this chapter is to investigate the extent of understanding and adoption of e-finance by SMEs. A survey of SMEs in two developing countries, South Africa and Bangladesh, was conducted. The results of the survey revealed that access to financial products and services was the highest rated benefit of e-finance to respondent SMEs, whereas regulatory environment and policy was the highest rated barrier.

scholarly journals Strengthening access to finance for women-owned SMEs in developing countries

2015 ◽  
Vol 34 (7) ◽  
pp. 634-639 ◽  
Author(s):  
Syed Zamberi Ahmad ◽  
Afida Mastura Muhammad Arif
Keyword(s):  
Developing Countries ◽  
Financial Services ◽  
High Growth ◽  
Growth Potential ◽  
Access To Finance ◽  
Content Type ◽  
Women’S Entrepreneurship ◽  
Development Agenda ◽  
Challenges And Opportunities ◽  
Women's Entrepreneurship

Purpose – The purpose of this paper is to highlight key trends, challenges, and opportunities for advancing women’s entrepreneurship and increasing their access to finance. Design/methodology/approach – Due to their high-growth potential, women-owned SMEs in developing countries are of particular interest. The International Financial Corporation and McKinsey built a detailed database for micro-, small-, and medium-sized enterprises. The data derived from the readily available global data sets provide coverage of a large number of countries and national statistics. Findings – Since financing is an important means by which to pursue growth opportunities, addressing the specific needs of women entrepreneurs (WE) in accessing finance must be part of the development agenda. Practical implications – This paper offers valuable practical insights to policy makers to establish a supportive, enabling environment that will facilitate access to financial services for WE in their respective countries; lead efforts to identify, evaluate, and support the replication of successful models for expanding financial services to WE; and lead efforts to gather gender-disaggregated data on small-, and medium-sized enterprise finance in a coordinated fashion. Originality/value – The value of this paper is that it offers insightful information about key trends, challenges, and opportunities for advancing women’s entrepreneurship and increasing their access to finance.

scholarly journals Mobile banking during COVID-19 pandemic in Bangladesh: A novel mechanism to change and accelerate people's financial access

Green Finance ◽  
2021 ◽  
Vol 3 (3) ◽  
pp. 253-267
Author(s):  
Most Nilufa Khatun ◽  
◽  
Sandip Mitra ◽  
Md Nazirul Islam Sarker ◽  
Keyword(s):  
Digital Technology ◽  
Financial Services ◽  
Secondary Data ◽  
Government Policies ◽  
Mobile Banking ◽  
Access To Finance ◽  
Financial Access ◽  
Banking Services ◽  
The Government ◽  
Digital Transactions

<abstract> <p>Limited access to financial services is considered as a vital bottleneck for curbing poverty in Bangladesh. Digital technology such as mobile banking can contribute to accelerate people's access to finance but did not receive proper attention before COVID-19. This study intends to explore the use of mobile banking services to accelerate people's financial access in Bangladesh due to the emergence of the COVID-19 pandemic by using secondary data. Mainly documentation techniques and descriptive statistical methods are used to collect and analyze the data. The study reveals that the number of registered mobile banking customers has escalated during the COVID-19 era. Mainly government policies regarding different mobile banking transactions such as cash in, cash out, person to person (P2P) transaction, salary and utility bill payments etc., have significantly contributed to rise the people's digital financial access during this pandemic. People's changing habit towards digital transactions has also contributed to increasing their financial access. The government should provide a convenient financial access platform to create a cashless society in the country.</p> </abstract>

scholarly journals SUSTAINING THE GROWTH OF RURAL SMEs: EFFECT OF FINANCIAL ACCESS AND ENTREPRENEURIAL CHARACTERISTICS ON BUSINESS PERFORMANCE IN A FELDA SCHEME IN PAHANG

2021 ◽  
Vol 4 (13) ◽  
pp. 89-108
Author(s):  
Shuhaimi Mohd Sauh ◽  
Moha Asri Abdullah ◽  
Rozailin Abdul Rahman
Keyword(s):  
Risk Taking ◽  
Structural Equation ◽  
Business Performance ◽  
Small And Medium Enterprises ◽  
Access To Finance ◽  
Design Data ◽  
Financial Access ◽  
Entrepreneurial Characteristics ◽  
New Business ◽  
Medium Enterprises

In Malaysia, Small and Medium Enterprises (SMEs) contribute more than one-third to the country’s gross domestic product (GDP). Past studies revealed that access to finance and entrepreneurial characteristics are often known as predictors of SMEs performance. Nonetheless, access to finance is still one of the pressing problems faced by SMEs in Malaysia. Studies on this topic have not been extensively explored particularly in the FELDA scheme. Hence, this paper attempts to investigate how access to finance and entrepreneurship characteristics affect SMEs business performance in the FELDA scheme. This study employed a survey research design. Data were collected from a sample of 368 SMEs and analysed using the Structural Equation Modelling (SEM). This study found the insignificant effect of access to finance on business performance. There was no significant effect of innovativeness and pro-activeness on business performance. Interestingly, risk-taking was directly related to SMEs business performance. Overall, findings imply that SMEs in the FELDA scheme have difficulties getting financial access, dare to take bold actions in business but they are lacking the propensity in introducing new business ideas and are not fast enough in taking advantage of new business opportunities. The paper recommends that government agencies should provide adequate business support and financial access to improve SMEs entrepreneurial capabilities and business performance.

scholarly journals THE DEVELOPMENT OF FINANCIAL ACCESS (Study Case in South Sulawesi)

2017 ◽  
Vol 4 (2) ◽  
Author(s):  
Retno . Andrini ◽  
Glenn Nathaniel Pandelaki
Keyword(s):  
Financial Services ◽  
Household Wealth ◽  
Local Economy ◽  
Public Knowledge ◽  
Access To Finance ◽  
Financial Access ◽  
South Sulawesi ◽  
National Economic ◽  
Study Case ◽  
Community Access

The importance of access to finance allows Bank Indonesia to improve financial access for the purpose such as increasing community access and public knowledge to financial services; Providing financial services and products according to the needs of society; Encouraging increased household wealth; Encouraging the growth of the local economy to support the sustainability of national economic growth; and Assist the reduction of the poor. This paper analyze how deep the development of financial access in South Sulawesi. It traces the financial development through the 2010s to the present. Finally, the paper makes an attempt to offer an explanation of development of financial access in South Sulawesi. Keywords : Financial access, South Sulawesi

scholarly journals Profiting from Poverty? A Case Study of UK based Microfinance Institutions

2015 ◽  
Vol 2 (2) ◽  
Author(s):  
Nitin Navin
Keyword(s):  
Developing Countries ◽  
Financial Performance ◽  
Financial Services ◽  
Social Performance ◽  
Financial Sustainability ◽  
Microfinance Institutions ◽  
Trade Off ◽  
External Capital

The success of the microfinance movement is beyond doubt. However, as the scope of the sector increased and commercialised, some problems of it became evident. Issue of profitability and sustainability of Microfinance institutions (MFIs) and, use of external capital by them are the two most debatable issues of the microfinance sector. The current study investigates these issues by targeting MFIs and consultants of microfinance sector located in UK. These MFIs and consultants have operations in different poor and developing countries. The study found that believing that MFIs can alone eliminate poverty is a fallacy. Any such belief by the policymakers will make further delay in eradicating poverty. The study also found that financial sustainability of microfinance seems to remain unachievable for most of the MFIs and, that there are fair chances of having trade-off between financial performance and social performance for those MFIs. On this line of thought, the study concludes by arguing that microfinance cannot be treated only as a substitute of the traditional financial services.

Analisis Kinerja Keuangan Perusahaan dengan Menggunakan Pendekatan Economic Value Added (EVA) dan Market Value Added (MVA) (Studi Kasus pada PT Astra International, Tbk. Periode Tahun 20082012)

2017 ◽  
Vol 1 (1) ◽  
Author(s):  
Abdul Hamid
Keyword(s):  
Financial Performance ◽  
Financial Services ◽  
Stock Price ◽  
Economic Value ◽  
Composite Index ◽  
Value Added ◽  
Secondary Data ◽  
Study Approach ◽  
Market Value Added ◽  
The Interest Rate

This study is a qualitative study using a case study approach to the PT. Astra International, Tbk. The object of this research is PT. Astra International, Tbk. PT. Astra International, Tbk is a company engaged in six business sectors, namely: automotive,financial services, heavy equipment, mining and energy, agribusiness, information technology, infrastructure and logistics. Researchers chose PT. Astra International, Tbk as research objects due in the year 2012, PT. Astra International, Tbk managed to rank first in the list of 100 Best Companies to Go Public by the 2011 financial performance of Fortune magazines Indonesia. The data used in this research is secondary data, the financial statements. Astra International, Tbk 20082012. Other secondary data used is the interest rate of Bank Indonesia Certificates (SBI), the Jakarta Composite Index (JCI), and thecompanys stock price began the year 20082012. This study aims to determine the companys financial performance by the use of EVA and MVA approach, therefore the data analysis technique used is the EVA and MVA. Based on the value EVA of the year 2008 2012, PT. Astra International, Tbk has good financial performance that managed to meet the expectations of the company and the investors. Based on the value of MVA during the years 20082012, PT. Astra International, Tbk managed to create wealth and prosperity for companies and investors. It concluded that financial performance. AstraInternational, Tbk for five years was satisfactory.

Implementasi Tata Kelola Perusahaan Terhadap Nilai Perusahaan: Studi Empiris pada Perusahaan di Indonesia

2016 ◽  
Vol 7 (2) ◽  
pp. 1-17
Author(s):  
Patricia Diana
Keyword(s):  
Developing Countries ◽  
Corporate Governance ◽  
Financial Performance ◽  
Firm Value ◽  
Stock Exchange ◽  
Investment Decision ◽  
International Market ◽  
Self Assessment ◽  
Result Show ◽  
Observation Period

Indonesia as one of developing countries should prepare for intense business competition in international market by continuously improving their financial performance which reflected by profitability enhancement. In order to achieved this goals, companies should build synergic relationship between stakeholders. Implementation of corporate governance is believed can assist companies in improving firm value by minimizing cost and maximize companies’ profit. This study aims to investigate the effect of corporate governance implementation on Indonesian companies. Corporate Governance Perception Index (CGPI) which establish by Indonesian Institute of Corporate Governance (IICG) used as proxy for corporate governance implementation, and ROA used as proxy for firm value. All the data obtain from Indonesia Stock Exchange (IDX) database and period 2008 to 2012 used as observation period. The result show that implementation of corporate governance has significant effect with firm value proxy by ROA. This study also concludes that market will be more concern on CGPI which generated through documentation and presentation indicators and also observation indicators rather than self-assessment indicators. This indicates that market would trust the information which comes from independen external parties. The result will be useful for investor in making their investment decision which based on profitability consideration. Keywords: Corporate Governance, CGPI, ROA, profitability

Impact of corporate governance on financial performance of sugar sector firms listed in Pakistan stock exchange

2019 ◽  
Vol 12 (2) ◽  
Author(s):  
Muhammad Wasim Jan Khan ◽  
Usman Saeed
Keyword(s):  
Developing Countries ◽  
Corporate Governance ◽  
Financial Performance ◽  
Firm Size ◽  
Stock Exchange ◽  
Balance Sheet ◽  
Board Size ◽  
Return On Equity ◽  
Firm Financial Performance ◽  
Relationship Of

Corporate governance is considered as environment of trust, set of processes, policies and laws affecting the way corporations are administrated and directed. The previous literature in context of the corporate governance relationship with firm financial performance shows controversial findings; similarly literature shows lack of studies in context of developing countries as Pakistan. Therefore, this research explores the relationship of the corporate governance and the firm financial performance in context of developing country as Pakistan. The data has been collected from the sugar sector listed in KSE (Pakistan Stock Exchange), 20 corporations are selected as sample from sugar sector on basis of outstanding shares. Corporate governance taken as independent variable and measured as CEO biformity (CB), board size (BS), firm age (FA), firm size (FS). Financial performance of firms taken as dependent variable and measured as return on asset (ROA), return on equity (ROE), net profit margin (NPM). Data is collected for period of 2000-2013 from reports of the sugar companies listed in KSE (Pakistan Stock Exchange) issued annually and analysis of balance sheet given by State Bank of Pakistan (SBP). Result shows that CEO biformity significantly affecting firm financial performance. Board size (BS) shows partially significant impact on firm financial performance. Firms age (FA) show partially significant impact on firm financial performance. Firm size (FS) shows partially significant impact on firm financial performance. Therefore, conclusion has been drawn based on the results of analysis that this study adds new knowledge to the existing body of knowledge of corporate governance impact on firm financial performance and in context of developing countries as Pakistan. Keywords: Corporate governance, firm financial performance, sugar sector, Pakistan.

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