scholarly journals Financial inclusion and the growth of small medium enterprises in Uganda: empirical evidence from selected districts in Lango sub-region

2021 ◽  
Vol 10 (1) ◽  
Author(s):  
Marus Eton ◽  
Fabian Mwosi ◽  
Constant Okello-Obura ◽  
Abanis Turyehebwa ◽  
Gilbert Uwonda
Keyword(s):  
Financial Services ◽  
Service Providers ◽  
Small And Medium Enterprises ◽  
International Markets ◽  
Financial Inclusion ◽  
Cross Sectional ◽  
Correlation And Regression Analysis ◽  
Small Medium Enterprises ◽  
Medium Enterprises ◽  
The Cost

AbstractThe growth and failure of small and medium enterprises has been a topic of discussions world over among policymakers and researchers. This study was guided by the following objectives: to examine the contributions of small medium enterprises (SMEs), to determine the challenges affecting small medium enterprises, to examine how financial inclusiveness supports the growth of small medium enterprises, and to establish the relationship between financial inclusion and growth of small medium enterprises. The study used a cross-sectional research design. Descriptive design was used and supplemented by inferential statistics. Correlation and regression analysis were adopted. The study revealed that financial inclusion is significant in supporting SME growth. The study further also revealed that the cost of acquiring and servicing financial services is high; there is also difficulty in using some of the financial services, and the way financial providers treat financial users, some lacked some degree of respect and dignity. The study recommends that financial providers should continue sensitizing the public on the available financial services beyond credit services, which are common and known. Digital financial service providers should encourage their clientele to use digitalized financial services which are cheap, secure, and risk averse. The cost of capital should also be reduced to encourage borrowing while SMEs should innovatively produce goods that can be competitive at both domestic and international markets.

scholarly journals Financial Inclusion And The Growth Of Small Medium Enterprises In Uganda: Empirical Evidence From Selected Districts In Lango Sub Region

2020 ◽  
Author(s):  
Marus - Eton ◽  
Fabian Mwosi ◽  
Constant Okello-Obura ◽  
Abanis Turyehebwa ◽  
Gilbert Uwonda
Keyword(s):  
Financial Services ◽  
Service Providers ◽  
Small And Medium Enterprises ◽  
International Markets ◽  
Financial Inclusion ◽  
Cross Sectional ◽  
Policy Makers ◽  
Correlation And Regression Analysis ◽  
Small Medium Enterprises ◽  
Medium Enterprises

Abstract The growth and failure of small and medium enterprises has been a topic of discussions world over amongst policy makers and researchers. This study was guided by the following objectives: To examine the contributions of Small Medium Enterprises (SMEs), to determine the challenges affecting Small Medium Enterprises, to examine how financial inclusiveness supports the growth of Small medium enterprises and to establish the relationship between financial inclusion and Small Medium Enterprises. The study used a cross sectional research design. Descriptive design was used and supplemented by inferential statistics. Correlation and regression analysis were adopted. The study revealed that financial inclusion is significant in supporting SMEs growth. The study also revealed that cost of acquiring and servicing financial services are high, there is also difficulty in using some of the financial services, and the way financial providers treat financial users, some lacked some degree of respect and dignity. The study recommends that financial providers should continue sensitizing the public on the available financial services beyond credit services, which are common and known. Digital financial service providers should encourage their clientele to use digitalized financial services which are cheap, secure and risk averse. Cost of capital should also be reduced to encourage borrowing while SMEs should innovatively produce goods that can be competitive at both domestic and international markets.

scholarly journals Financial Inclusion and the Growth of Small Medium Enterprises in Uganda: Empirical Evidence from Selected Districts in Lango Sub Region

2020 ◽  
Author(s):  
Marus Eton ◽  
Fabian Mwosi ◽  
Constant Okello-Obura ◽  
Abanis Turyehebwa ◽  
Gilbert Uwonda
Keyword(s):  
Financial Services ◽  
Service Providers ◽  
Small And Medium Enterprises ◽  
International Markets ◽  
Financial Inclusion ◽  
Cross Sectional ◽  
Policy Makers ◽  
Correlation And Regression Analysis ◽  
Small Medium Enterprises ◽  
Medium Enterprises

Abstract The growth and failure of small and medium enterprises has been a topic of discussions world over amongst policy makers and researchers. This study was guided by the following objectives: To examine the contributions of Small Medium Enterprises (SMEs), to determine the challenges affecting Small Medium Enterprises, to examine how financial inclusiveness supports the growth of Small medium enterprises and to establish the relationship between financial inclusion and Small Medium Enterprises. The study used a cross sectional research design. Descriptive design was used and supplemented by inferential statistics. Correlation and regression analysis were adopted. The study revealed that financial inclusion is significant in supporting SMEs growth. The study also revealed that cost of acquiring and servicing financial services are high, there is also difficulty in using some of the financial services, and the way financial providers treat financial users, some lacked some degree of respect and dignity. The study recommends that financial providers should continue sensitizing the public on the available financial services beyond credit services, which are common and known. Digital financial service providers should encourage their clientele to use digitalized financial services which are cheap, secure and risk averse. Cost of capital should also be reduced to encourage borrowing while SMEs should innovatively produce goods that can be competitive at both domestic and international markets.

scholarly journals Financial Inclusion and the Growth of Small Medium Enterprises in Uganda: Empirical Evidence from Selected Districts in Lango Sub Region

2020 ◽  
Author(s):  
Marus - Eton ◽  
Fabian - Mwosi ◽  
Constant - Okello-Obura ◽  
Abanis - Turyehebwa ◽  
Gilbert - Uwonda
Keyword(s):  
Financial Services ◽  
Service Providers ◽  
Small And Medium Enterprises ◽  
International Markets ◽  
Financial Inclusion ◽  
Cross Sectional ◽  
Policy Makers ◽  
Correlation And Regression Analysis ◽  
Small Medium Enterprises ◽  
Medium Enterprises

Abstract The growth and failure of small and medium enterprises has been a topic of discussions world over amongst policy makers and researchers. This study was guided by the following objectives: To examine the contributions of Small Medium Enterprises (SMEs), to determine the challenges affecting Small Medium Enterprises, to examine how financial inclusiveness supports the growth of Small medium enterprises and to establish the relationship between financial inclusion and Small Medium Enterprises. The study used a cross sectional research design. Descriptive design was used and supplemented by inferential statistics. Correlation and regression analysis were adopted. The study revealed that financial inclusion is significant in supporting SMEs growth. The study also revealed that cost of acquiring and servicing financial services are high, there is also difficulty in using some of the financial services, and the way financial providers treat financial users, some lacked some degree of respect and dignity. The study recommends that financial providers should continue sensitizing the public on the available financial services beyond credit services, which are common and known. Digital financial service providers should encourage their clientele to use digitalized financial services which are cheap, secure and risk averse. Cost of capital should also be reduced to encourage borrowing while SMEs should innovatively produce goods that can be competitive at both domestic and international markets.

scholarly journals LEGAL PROTECTION OF CONSUMERS ON FINTECH-BASED BUSINESS LOANS FOR SMALL AND MEDIUM ENTERPRISES (UMKM)

2020 ◽  
Vol 1 (2) ◽  
Author(s):  
Mellisa Rahmaini Lubis
Keyword(s):  
Venture Capital ◽  
Financial Institutions ◽  
Consumer Protection ◽  
Financial Services ◽  
Service Providers ◽  
Small And Medium Enterprises ◽  
Legal Protection ◽  
Services Sector ◽  
Medium Enterprises ◽  
Legal Consequences

Consumers loses have occurred in the practice of Fintech-based loans by non-bank financial institutions. The reports of losses arising from Fintech transactions has increased. This is because many Fintech organizers have not received permission from the OJK but are still able to conduct business activities in Indonesia. The problem in this study is: How is the supervision by the Financial Services Authority (OJK) of non-bank financial institutions providing fintech-based venture capital lenders for MSMEs? And how is the legal consequences of fintech-based business capital loan services for MSME entrepreneurs. The study used normative legal approach and the data analyzed by descriptive qualitative.          The results of this study indicate that supervision by the OJK of non-bank financial institutions providing fintech-based venture capital lenders for SMEs as a form of legal protection to consumers. It is carried out in the form of preventive and repressive protection. Preventive protection is implemented by enacting OJK Regulation Number 77 / POJK.01 / 2016, OJK Circular Letter Number 18 / SEOJK.02 / 2017 and OJK Regulation Number 1 / POJK.07 / 2013 concerning Consumer Protection in the Financial Services Sector. Repressive protection is by applying sanctions against fintech organizers who commit violations in the form of written warnings and fines; restrictions on business activities; and revocation of permission. The legal consequences arising from fintech-based business capital loan services for SMEs to fintech providers are required to improve standards and meet consumer protection aspects. The legal consequence for MSMEs is the potential for fraud and misuse of consumer data by Fintech service providers.

Financial self-efficacy: a determinant of financial inclusion

2017 ◽  
Vol 35 (3) ◽  
pp. 338-353 ◽  
Author(s):  
Rachel Mindra ◽  
Musa Moya ◽  
Linda Tia Zuze ◽  
Odongo Kodongo
Keyword(s):  
Financial Services ◽  
Self Efficacy ◽  
Structural Equation ◽  
Structural Equation Models ◽  
Service Providers ◽  
Financial Service ◽  
Financial Inclusion ◽  
Financial Behavior ◽  
Cross Sectional ◽  
Content Type

Purpose The purpose of this paper is to examine the relationship between financial self-efficacy (FSE) and financial inclusion (FI) among individual financial consumers in Uganda. Design/methodology/approach Using a quantitative approach and cross-sectional research design, a sample of 400 individuals from urban Central and rural Northern Uganda was drawn. SPSS and AMOS™ 21, regression analysis and structural equation models were used to establish the hypothesized relationship between FSE and FI. Findings The results suggest a strong positive and significant relationship between FSE and FI. The results further suggest that other variables which were controlled for, such as age and gender, had significant influence on an individual’s usage of formal financial services. Research limitations/implications The study was assessed using both potential and actual consumers of financial services collectively. However, if separately assessed, possibly there would be a variation in behavioral responses toward FI. Practical implications Formal financial service providers need to enhance individuals’ levels of confidence in management of finances and utilization of formal financial products and services, so that the financial consumers can realize the changes in financial behavior and consequently FI. Social implications The enhancement of individuals’ level of confidence in evaluating the available financial service options will guide them to take financial decisions that will improve their livelihood. Originality/value The results contribute toward the limited empirical and theoretical evidence for FSE and FI from a behavioral demand-side perspective.

Research on fraud: an overview from small medium enterprises (SMEs)

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Siti Faizah Zainal ◽  
Hafiza Aishah Hashim ◽  
Akmalia M. Ariff ◽  
Zalailah Salleh
Keyword(s):  
Internal Control ◽  
Small Businesses ◽  
Small And Medium Enterprises ◽  
Future Research ◽  
Control Mechanisms ◽  
Content Type ◽  
Small Medium Enterprises ◽  
Medium Enterprises ◽  
The Cost ◽  
The Impact

Purpose The purpose of this paper is to present a review of literature on fraud with a specific focus on small and medium enterprises (SMEs). Specifically, it aims to provide further knowledge on recent developments in fraud research and offers suggestions for future research. Design/Methodology/Approach This paper systematically reviews the fraud literature, by organising them into five sections; definition, elements, theories, factors and prevention mechanisms. Findings The most common factors of fraud in SMEs are the low morale among employees and weak internal control within the organisations. Nonetheless, research on fraud involving SMEs is limited, albeit the importance of SMEs to the economy. Research Limitations/Implications This paper encapsulates the importance of research on fraud in SMEs by offering directions for future research. Among others, future studies might indicate the link between corruption, financing sources and innovation of SMEs, especially within the context of an emerging country and reveal the cost of the criminal justice system to identify more accurately the cost of fraud in SMEs. Originality/Value The focus on fraud in SMEs and the recent period of study offer a foundation for future research directed at the factors of fraud and the prevention mechanisms. Future research can further explore and broaden the literature on fraud involving SMEs through research that focuses on the impact of fraud and the types of control mechanisms that suit the SMEs. Greater understanding of fraud in the SMEs allows in identifying the best approach to prevent and detect fraud for small businesses with limited resources.

Financial Inclusion, P2P Lending, and MSMEs

2022 ◽  
pp. 60-81
Author(s):  
Tulus Tambunan
Keyword(s):  
Economic Development ◽  
Financial Crisis ◽  
Financial Services ◽  
Small And Medium Enterprises ◽  
Asian Financial Crisis ◽  
Aggregate Data ◽  
Financial Inclusion ◽  
Alternative Source ◽  
P2p Lending ◽  
Medium Enterprises

In Indonesia after the Asian financial crisis of 1997–1998, wide reforms were carried out, and “inclusive” economic development were adopted. One component of inclusive economic development is “financial inclusion.” This implies an absence of barriers that might deter micro, small, and medium enterprises (MSMEs) from obtaining financial services. However, the portion of bank credit received by MSMEs is still small. Therefore, financial technology (FinTech) is welcome as an alternative source of funding for MSMEs. This chapter discusses three related issues, namely financial inclusion, MSMEs, and P2P lending. It concludes that Indonesia still has a long way to go to achieve full financial inclusion. This chapter suggests that with the presence of P2P lending, the number of MSMEs, especially MSEs, in Indonesia that have access to formal financing will increase. Even though aggregate data are not available, the interviews with a small number of owners of MSEs who received P2P loans suggest that the presence of P2P lending companies give some benefits for MSEs.

scholarly journals Determinants of entrepreneurial small and medium enterprises performance with the interaction effect of commercial loans

2020 ◽  
Vol 14 (2) ◽  
pp. 161-173
Author(s):  
Muhammad Asif Khan ◽  
Asima Siddique ◽  
Zahid Sarwar ◽  
Le Thi Minh Huong ◽  
Qaiser Nadeem
Keyword(s):  
Interaction Effect ◽  
Trade Credit ◽  
Small And Medium Enterprises ◽  
Cross Sectional ◽  
Content Type ◽  
Correlation And Regression Analysis ◽  
Trade Credits ◽  
Commercial Loans ◽  
Medium Enterprises ◽  
First Time

Purpose The purpose of this study is to investigate the interaction effect of commercial loans in between trade Credit, retain earning, and entrepreneurial small and medium enterprises (SMEs) performance. Design/methodology/approach In this research, the cross-sectional research design was used, and data were collected from 362 SMEs located in Pakistan by using a questionnaire. Correlation and regression analysis was adopted to establish the interaction effect of commercial loans in between trade credits, retain earning and entrepreneurial SMEs performance. Findings The results demonstrated that commercial loans, trade credit and retain earning have a positive relationship with entrepreneurial SMEs performance. The findings also confirmed the interaction effect of commercial loans in between retain earnings, trade credit and entrepreneurial SMEs performance. Originality/value The study examined the association and interaction effect of commercial loans in between retain earnings, trade credit and SMEs performance in the emerging state (Pakistan). So, this is the first time to study the relationship between these variables, which highly contributes to entrepreneurial SMEs literature.

scholarly journals DETERMINANTS OF FINANCIAL INCLUSION AND PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES IN NAIROBI CITY COUNTY

2016 ◽  
Vol 1 (3) ◽  
pp. 62
Author(s):  
Elvince Hillary Otiato
Keyword(s):  
Financial Institutions ◽  
Financial Services ◽  
Social Inclusion ◽  
Small And Medium Enterprises ◽  
Financial Inclusion ◽  
Money Transfers ◽  
Resource Levels ◽  
Access And Quality ◽  
And Performance ◽  
Medium Enterprises

Purpose: The general objective of this study was to assess the determinants of financial inclusion and performance of small and medium enterprises in Nairobi City County.   Methodology: The study adopted a descriptive research design.  Findings: Determinants of financial inclusion among the SMEs in Nairobi City County included; access, Quality and usage of various financial services. The study revealed that determinants of performance among the SMEs in Nairobi City County included; product/service costs, volume levels traded, profit margins, human resource levels and efficiency levels. The results also identified technological innovations such as MPESA, Mshwari and Agency banking as the most crucial technology factors which played a crucial part in improving their business. The regression results revealed that there was a direct link between the performance levels of SMEs and financial inclusion. Further, the study findings also revealed that technology included platforms like mobile money transfers, ATMs and agency banking eased and ensured inclusion. This was seen as an integral part of inclusion further enhancing the performance of various SMEs.Unique contribution to theory, practice and policy: This study can be a source of solution to be implemented by government of Kenya and the Central Bank of Kenya to create policies that create room for small and medium enterprises to obtain loans from financial institutions. In addition, the study This study will also create awareness among financial institutions in the importance of usage, access and quality of finances to small and medium enterprises which in turn will enable better performance of enterprises. This will definitely have an effect on social inclusion of citizens and better the economic performance.The aftereffects of the study would also contribute towards filling the gap on the topic. It is trusted that the discoveries of the study will make significant augmentations to the writing in the field of financial inclusion and performance fortifying further interest.

scholarly journals Financial Accessibility and Small-Medium Enterprises (SMEs) in Malaysia

2020 ◽  
pp. 306-325
Author(s):  
Mohamed Asmy Bin Mohd Thas Thaker ◽  
Hassanudin Bin Mohd Thas Thaker ◽  
Choong Pai Wei
Keyword(s):  
Financial Services ◽  
Small And Medium Enterprises ◽  
Islamic Finance ◽  
Modus Operandi ◽  
The Common ◽  
Common Problems ◽  
Financial Need ◽  
Small Medium Enterprises ◽  
Medium Enterprises

One of the common problems faced by worldwide SMEs including Malaysia is accessing external financial services. Given this fact, this chapter offers a sustainable model of source of financing for Malaysian SMEs in meeting their financial need, which is known as Islamic Crowdfunding-Small and Medium Enterprises (ICSMEs) model. Authors review comprehensive literature by focusing on the issues of financial accessibility faced by Malaysian SMEs, and the existing studies relating to SMEs, crowdfunding, and Islamic finance in support to construct ICSME model. Authors discuss the modus operandi of the proposed ICSME model and offer several significances of the model.

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