scholarly journals THE IMPACT OF MICROFINANCE SUPPORT ON THE DEVELOPMENT OF MANUFACTURING SMEs OPERATING IN WINDHOEK, NAMIBIA

2022 ◽  
Vol 9 (12) ◽  
pp. 250-272
Author(s):  
Romeo Asa
Keyword(s):  
Financial Services ◽  
Financial Management ◽  
Financial Support ◽  
Capital Accumulation ◽  
Financial Constraints ◽  
Positive Impact ◽  
Early Stage ◽  
Microfinance Institutions ◽  
Qualitative Approaches ◽  
The Impact

Over the years, the superlative contribution of SMEs on economic growth predominantly in emerging states such as Namibia has been gaining considerable prestige at a rapid rate. However, deficient access to cost-effective financial adequacy remains a leading stumbling block that denies them the opportunity to survive in a competitive market, grow and develop above the average. That being true, the rate of SMEs’ failure continues to escalate precisely among those that are in their early stage of operation. To curb that specific issue, microfinance institutions (MFIs) intervene to provide dual supports through the delivery of financial and non-financial services. Access to such support helps SMEs to reduce their financial constraints, resulting in sound and viable development for businesses. In this respect, the central objective of this study was to investigate the impact of microfinance acquisition on SMEs’ development with reference to the manufacturing firms in Windhoek, Namibia. Evenly relevant, the study sought to further assess the effect of acquired microfinance support on competitiveness and finally devise suitable strategies that MFIs could adopt or adapt to improve the provision of microfinance services to penurious SMEs. The study employed a pragmatistic paradigm. Therefore, mixed research methods constituting both quantitative and qualitative approaches were utilised to successfully attain the threefold objectives of the study. 60 questionnaires were disseminated through emails to the sampled SMEs for data collection where only 44, accounted for 73% were considered for further analysis. Regarding financial support, the study assessed the matter based on technology enhancement, assets capital accumulation, job creation, business’ branches extension, and product development and expansion. Similarly, assessment on non-financial support was focused on managerial and leadership skills, as well as unblemished financial management. To test the nexus between microfinance support and SMEs’ development, multiple regression analysis was employed at 5% level of significance. Findings presented by the study revealed a positive strong relationship between the variables. More to that, the correlation between microfinance support and SMEs’ competitiveness was tested using correlation coefficient analysis and results found the variable to be statistically correlated. To this end, the study affirms that there exists a significant positive impact of microfinance support on SMEs’ development and competitiveness, implying that healthy and ample microfinance institutions are immensely essential to provide the required support lucratively, using the most satisfying strategies for a mutual benefit of the involved parties. Therefore, three strategies for improving the provision of microfinance support, constituting Public Credit Guarantee Schemes (PCGS); compensation of interest rate with the repayment period; and the provision of tools and equipment were designed. Also, the study recommended government intervention in formulating policies necessary for easing collateral requirements. More, MFIs are also advised to find ways for fastening their evaluation processes and give feedback on approval or disapproval of the application soon. They should also allow potential SMEs to borrow multiple times in a year or increase the principal amount. Finally, the study suggested future studies to focus on the role of the government in addressing SMEs’ financial constraints and use a longitudinal approach with a predominant focus on other sectors.  

Role of Microfinance Institutions in Development of India

2018 ◽  
pp. 138-155
Author(s):  
Amir Manzoor
Keyword(s):  
Rural Areas ◽  
Financial Services ◽  
Urban Areas ◽  
Positive Impact ◽  
Easy Access ◽  
Microfinance Institutions ◽  
Related Services ◽  
Using Data ◽  
The Impact

The role and contribution of microfinance institutions (MFIs) is very important in development. Microfinance is a very important source of financial services for people and microenterprises that do not have easy access to banking and related services. The objective of this chapter is to assess empirically the impact of MFIs on development of India. This study aims to fill a gap in econometric assessments of microfinance institutions. Using data of MFIs operating in India and using savings of client as proxy for development, this chapter found empirical evidence for significant positive impact of microfinance institutions on development. While development in rural regions generally lags behind urban areas, this chapter found no statistical evidence for differences in the marginal impact of microfinance institutions subject to geographical positions. It can therefore be concluded that impact of MFIs on development in rural areas is positive and independent of environment.

scholarly journals The Effect of Microfinance Bank Services on Women Empowerment: The case for Women Entrepreneurs in Irbid, Jordan (SMEs)

2021 ◽  
Vol 9 (1) ◽  
pp. 38-49
Author(s):  
Ahmed Mahmoud Abdallah Alshammari ◽  
Wan Mohd Nazri Wan Daud
Keyword(s):  
Cultural Values ◽  
Gender Discrimination ◽  
Financial Services ◽  
Women Entrepreneurs ◽  
Structural Equation ◽  
Positive Impact ◽  
Least Square ◽  
Microfinance Institutions ◽  
Cross Sectional Survey ◽  
The Impact

Generally, women, entrepreneurs face problems in accessing funding due to factors that stem from cultural values, ??societal needs, family ties, illiteracy, gender discrimination, strict government policies, economic crisis, and the lack of training in entrepreneurship and skills acquisition that hinders entrepreneurial activities. This study was conducted to examine the impact of microfinance bank services in empowering female entrepreneurship in Irbid Governorate. The study used a cross-sectional survey research design consisting of 20,000 registered businesswomen. A total of 392 working women were selected using stratified sampling technique and the data was analysed using Least Square Structural Equation Modelling (PLS-SEM) with the help of SmartPLS3 software. The results showed that microfinance loans, microfinance savings, and financial interventions or donations had a significant, positive impact on empowering women's businesses in Irbid, Jordan. The study concluded that microfinance deposits could elevate women’s income and act as a guarantee to obtain loans and other microfinance services. Consequently, microfinance institutions (MFIs) should empower more women-owned businesses. In addition, the government through the Central Bank of Jordan should reduce the interest rate of microfinance banks to attract more female entrepreneurs and create more microfinance bank plans and financial intervention packages to enhance financial services to ensure donations and funds reach women entrepreneurs.

SFC’s new guidance note redefines cooperation in disciplinary, civil court and market misconduct tribunal proceedings

2018 ◽  
Vol 19 (3) ◽  
pp. 45-47
Author(s):  
Cynthia Tang ◽  
Bryan Ng ◽  
Gloria Ng
Keyword(s):  
Financial Services ◽  
Positive Impact ◽  
Early Stage ◽  
Active Role ◽  
Current Approach ◽  
Senior Management ◽  
Content Type ◽  
Civil Court ◽  
Guidance Note ◽  
The Impact

Purpose The purpose of this paper is to discuss the new “Guidance Note on Cooperation with the SFC” released by the Hong Kong Securities and Futures Commission (“SFC”) on 12 December 2017, which updates the SFC’s previous guidance note issued in 2006. Design/methodology/approach This paper explains key features to the guidance note, the SFC’s current approach in investigations and enforcement and the impact on regulated parties and senior management. In particular, the authors discuss what cooperation means in disciplinary, civil court and market misconduct tribunal proceedings. Findings The new guidance note confirms that the SFC will play an increasingly active role in investigations and that taking proactive steps at an early stage, including involving senior management, will have a positive impact on the outcome of the investigation. Originality/value Commentary and practical guidance from experienced securities enforcement and financial services regulatory enforcement lawyers.

scholarly journals The Impact of Information Communication and Technology Utilization on the Financial Performance of Microfinance Institutions in Rwanda Case Study: Reseau Interdiocesain De Microfinance (Rim) Ltd, Rwanda (2011 -2015)

2017 ◽  
Vol 4 (2) ◽  
pp. 13
Author(s):  
Jean Bosco Harelimana
Keyword(s):  
Financial Performance ◽  
Quantitative Methods ◽  
Positive Impact ◽  
Financial Sustainability ◽  
Microfinance Institutions ◽  
Information Communication ◽  
Qualitative And Quantitative Methods ◽  
Descriptive Survey ◽  
The Impact

The study analyzed the impact of ICT utilization on the financial performance of microfinance institutions inRwanda with case study of Réseau Interdiocesain de microfinance (RIM) Ltd undertaken within 5 years (2011-2015). The study adopted the use of descriptive survey using both qualitative and quantitative methods for a totalsample size of 132. Purporsive and simple random simpling was used for this purpose. Primary and Secondary datawere collected and thene analyzed using SPSS version 16.00. The study found that ICT has been introduced and usedabout 5 years and above. The study found that ICT impact firstly on financial sustainability and profitability (65.8%),secondly on financial efficiency and productivity (23.7) and finally on portfolio quality (5.3%). ICT utilization havea high influence to the RIM Ltd.’s financial performance compared to the previous situation.The correlation results imply that ICT usage has a positive impact on financial sustainability and profitability as theymove in the same direction (R=0.502). The strength of the impact was found to be low due to the low investments inICT among microfinance institutions.

scholarly journals The Impact of Financial Development on Innovation Activities in Emerging and Developing Countries

2019 ◽  
Vol 10 (1) ◽  
pp. 112 ◽  
Author(s):  
KamiliaKamilia LoukilLoukil
Keyword(s):  
Developing Countries ◽  
Financial Development ◽  
Financial Services ◽  
Positive Impact ◽  
Threshold Model ◽  
Threshold Value ◽  
Innovation Activities ◽  
Linear Effects ◽  
Emerging And Developing Countries ◽  
The Impact

We investigate in this paper the effect of financial development on innovation in emerging and developing countries. The estimation of panel threshold model for a sample 54 countries during the period 1980-2009 shows the presence of non linear effects in the relationship between financial development and innovation. We find a threshold value of economic development below which the financial development level has no significant impact on innovation and above which financial development has a significant positive impact on innovation. In sum, our findings suggest that the presence of a healthy economic environment is crucial for financial institutions to offer high-quality financial services, promoting more innovation.

scholarly journals Impact of unemployment and income on entrepreneurship in post-apartheid South Africa: 1994–2015

2018 ◽  
Vol 10 (1) ◽  
Author(s):  
Darma Mahadea ◽  
Irrshad Kaseeram
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Employment Growth ◽  
Positive Impact ◽  
Early Stage ◽  
National Development ◽  
Entrepreneurial Activity ◽  
Per Capita Gdp ◽  
Per Capita ◽  
The Impact

Background: South Africa has made significant progress since the dawn of democracy in 1994. It registered positive economic growth rates and its real gross domestic product (GDP) per capita increased from R42 849 in 1994 to over R56 000 in 2015. However, employment growth lagged behind GDP growth, resulting in rising unemployment. Aim and setting: Entrepreneurship brings together labour and capital in generating income, output and employment. According to South Africa’s National Development Plan, employment growth would come mainly from small-firm entrepreneurship and economic growth. Accordingly, this article investigates the impact unemployment and per capita income have on early stage total entrepreneurship activity (TEA) in South Africa, using data covering the 1994–2015 period. Methods: The methodology used is the dynamic least squares regression. The article tests the assertion that economic growth, proxied by real per capita GDP income, promotes entrepreneurship and that high unemployment forces necessity entrepreneurship. Results: The regression results indicate that per capita real GDP, which increases with economic growth, has a highly significant, positive impact on entrepreneurial activity, while unemployment has a weaker effect. A 1% rise in real per capita GDP results in a 0.16% rise in TEA entrepreneurship, and a 1% rise in unemployment is associated with a 0.25% rise in TEA. Conclusion: There seems to be a strong pull factor, from income growth to entrepreneurship and a reasonable push from unemployment to entrepreneurship, as individuals without employment are forced to self-employment as a necessity, survival mechanism. Overall, a long-run co-integrating relationship seems plausible between unemployment, income and entrepreneurship in South Africa.

scholarly journals Alleviating Poverty through Islamic Microfinance: Outreach and Efficiency (Study on BMT and Islamic Cooperatives in Indonesia)

2020 ◽  
Vol 16 ◽  
pp. 1362-1376
Author(s):  
Purwanto Purwanto ◽  
Ina Primiana ◽  
Dian Masyita ◽  
Erie Febrian
Keyword(s):  
Coefficient Of Determination ◽  
Data Envelopment ◽  
Strong Positive Correlation ◽  
Microfinance Institutions ◽  
Social Efficiency ◽  
Qualitative Approaches ◽  
The Social ◽  
Dependent Variables ◽  
Islamic Microfinance ◽  
The Impact

The involvement of Islamic Microfinance Institutions (IMFI) in building the national economy is paramount to help the poor. However, provision of access and services to lower-level households can potentially conflict with the sustainability of the institutions. This study analyses the social outreach factors that determine financial and social efficiencies. To reach the set goal and solve this issue, we used mixed methodology combining quantitative (statistical instruments, such as Data Envelopment Analysis (DEA) and multivariate analysis) and qualitative approaches (interviews to clarify or deepen the existing information). The assessment of the dependent variables is influenced by proxies of depth, breadth, length, scope, and cost. The results showed that the average loan instalments and the number of offices and branches significantly influence financial and social efficiency. The age of the institution only has an effect on financial efficiency. Simultaneously, profit orientation, the amount and type of financing and the amount and type of savings only have a high impact on social efficiency, whereas the impact of fund collection and cost per borrower is insignificant. There is a strong positive correlation between the two dependent variables. The influence of independent variables on financial and social efficiency is significant with the coefficient of determination 23.1274 % and 53.2941 %, respectively.

scholarly journals The Impact of Employee Characteristics in the Relation of Financial Knowledge, Financial Management Behavior and Personal Income with Investment Decision of Employee

2020 ◽  
Vol 1 (2) ◽  
pp. 195
Author(s):  
Natasha Asmara ◽  
Andreas Lako ◽  
Eny Trimeiningrum
Keyword(s):  
Financial Management ◽  
Positive Impact ◽  
Investment Decision ◽  
Moderating Effect ◽  
Personal Income ◽  
Financial Knowledge ◽  
Management Behavior ◽  
Study Results ◽  
Employee Characteristics ◽  
The Impact

The resarch is to analyze the impact of financial knowledge, financial management behavior, and personal income on investment decision of the employees of PT. Industri Jamu dan Farmasi Sido Muncul Tbk. This study is also to analyze moderating effect of employee’ characteristics in relation to financial knowledge and financial management behavior and personal income to investment decision of the employees. Based on purposive sampling and questionnaire, the study results in financial knowledge, financial management behavior, and personal income have positive impact on investment decision of the employees. However, employee’ characteristics do not show moderating effect in relations to financial knowledge and management behavior and personal income to investment decision of the employees. The results inidicate that emloyees’ characteristics (risk taker or risk adverse) weaken the influence of financial knowledge, financial management behavior, and personal income to investment decision of the employees.

scholarly journals DAMPAK PERUBAHAN PENGGUNAAN LAHAN PERTANIAN TERHADAP SOSIAL EKONOMI PETANI SEKITAR LOKASI PERTAMBANGAN BANYU URIP KECAMATAN GAYAM KABUPATEN BOJONEGORO

2018 ◽  
Vol 20 (1) ◽  
pp. 50
Author(s):  
Aziz Bahtiar Rifa’i ◽  
Fadjar Hari Mardiansjah
Keyword(s):  
Land Use ◽  
Land Use Change ◽  
Agricultural Land ◽  
Positive Impact ◽  
Arable Land ◽  
Mining Area ◽  
Agricultural Land Use ◽  
Socioeconomic Conditions ◽  
Qualitative Approaches ◽  
The Impact

This study examines the impact of agricultural land use change into a petroleum mining area to farmers’ socioeconomic conditions around petroleum mining project area in Gayam District of Kabupaten Bojonegoro. The analyses used a mix method, using both quantitative and qualitative approaches. The quantitative approach is used to determine the impact of agricultural land use change on the social and economic aspects with the respondent farmers were supported with a scoring method to determine the condition of socioeconomic vulnerability of farmers, while the qualitative approach carried out through in-depth interviews to some informants who have been affected by the project. The results shows that the presence of the petroleum mining industry has not had a positive impact yet on the farmers’ socioeconomic conditions. By the 700 hectares of agricultural land conversion, the agricultural production capacity of the area tends to decrease, including by the decreasing of the productivity of some agricultural land in a radius of 500 m from the fenceof the mining area as they are affected by the fence’s spotlight. The farmers' income also tends to decrease because of the decreasing of their working hours as the big loss of agricultural land in the area. As a result, many farmers should work outside of the area to search replacement of the arable land. These situations lead to a moderate condition of social and economic vulnerability for the farmers, especially for those who still have sufficient assets to meet the needs of their economic. 

scholarly journals FNGOs and financial inclusion: Investigating the impact of microcredit on employment growth in Ghana

2019 ◽  
Vol 20 (2) ◽  
pp. 90-106 ◽  
Author(s):  
Victor Yawo Atiase ◽  
Yong Wang ◽  
Samia Mahmood
Keyword(s):  
Employment Growth ◽  
Negative Impact ◽  
Positive Impact ◽  
Financial Inclusion ◽  
Primary Data ◽  
Microfinance Institutions ◽  
Governmental Organizations ◽  
Non Governmental Organizations ◽  
Employment Generation ◽  
The Impact

Financial non-governmental organizations (FNGOs) are regulated microfinance institutions that operate with a social welfare logic in the delivery of microcredit to the financially excluded in Ghana. The microcredit is aimed at supporting the financially excluded individuals to create sustainable micro and small enterprises (MSEs) for the generation of both skilled and unskilled employment. From the institutional theory perspective, this study aims at investigating the impact of microcredit provided by FNGOs on employment growth among MSEs in Ghana. The major contribution of this study is the fact that, there is a little study on FNGOs and their impact on employment growth in the Ghanaian context. Therefore, this is one of the few studies that highlights the role of FNGOs in promoting financial inclusion through the provision of microcredit for employment generation purposes. Through a multiple regression analysis, the study uses primary data collected from 506 MSEs in Ghana. The results show that microcredit which is flexible in repayment mode, accessible and adequate has a positive impact on employment generation among MSEs in Ghana. However, the current cost of microcredit in Ghana has a negative impact on employment growth among MSEs.

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