Social and Political Connections and Access to Credit: Evidence from Micro-Enterprises in India

2021 ◽  
Author(s):  
Malik Altaf ◽  
Malvika Tyagi
Keyword(s):  
Political Connections ◽  
Access To Credit ◽  
Micro Enterprises

scholarly journals FAKTOR-FAKTOR YANG MEMPENGARUHI PEROLEHAN KREDIT OLEH PENGUSAHA MIKRO

2018 ◽  
Vol 4 (3) ◽  
Author(s):  
Abdul Azis Safii ◽  
Tri Suwarno
Keyword(s):  
Logistic Regression ◽  
Regression Model ◽  
Large Scale ◽  
Logistic Regression Model ◽  
Banking Sector ◽  
Binary Logistic Regression ◽  
Binary Logistic Regression Model ◽  
Access To Credit ◽  
The Poor ◽  
Micro Enterprises

Abstract: The number of micro-entrepreneurs and the dominant number of micro enterprises compared to medium and large-scale enterprises in Indonesia are not balanced by the provision of access to credit and venture capital for micro businesses. This resulted in a micro-sector sector identical to the poor being vulnerable to exploitation by moneylenders who exploit the difficulties of micro entrepreneurs accessing credit from the banking sector. This study examines the factors that determine the accessibility of credit by micro entrepreneur in Bojonegoro regency. A total sum of 270 micro entrepreneurs who have applied for banking loan were sampled from the study area. With an binary logistic regression model the research resulting that education, skill on entrepreneur, and monthly net profits generated by the microenterprise are significant in determining the accessibility of microcredit. Keywords: micro entrepreneur, microcredit, credit accessibility Abstrak: Perkembangan jumlah pengusaha mikro serta dominannya jumlah usaha mikro dibandingkan dengan usaha menengah dan usaha besar di Indonesia, tidak diimbingi dengan penyediaan akses kredit dan modal usaha bagi para pelaku usaha mikro. Hal tersebut mengakibatkan sektor usaha mikro yang identik dengan masyarakat miskin rentan dieksploitasi oleh rentenir yang memanfaatkan sulitnya para pengusaha mikro mengakses kredit dari sektor perbankan. Penelitian ini menggunakan data primer yang di ambil langsung dari pengusaha mikro dengan teknik kuesioner. Analisis data dengan metode binary logistic regression mendapatkan hasil variabel yang berpengaruh signifikan terhadap akses kredit para pengusaha mikro adalah variabel usia pengusaha, laba bersih usaha tiap bulan, dan jumlah karyawan yang di pekerjakan. Kata kunci : usaha mikro, microcredit, akses kredit

scholarly journals Driving Model of Determinant Factors Affecting the Performance of Small and Micro Enterprises: Empirical Evidence from Amhara Region, Ethiopia

2021 ◽  
Author(s):  
Zhang Yutang ◽  
Ayele Eshetu Yesuf
Keyword(s):  
Empirical Evidence ◽  
Outcome Variable ◽  
Enterprise Performance ◽  
Amhara Region ◽  
Initial Capital ◽  
Access To Credit ◽  
Determinant Factors ◽  
Market Linkage ◽  
Driving Model ◽  
Micro Enterprises

The purpose of this study is to examine the driving model of determinant factors that affects the performance of small and micro enterprises empirical evidence from Amhara Region, Ethiopia. The study used primary and secondary data from manufacturing, construction, urban agriculture, trade, and service entrepreneurs found in Bahirdar, Dessie & Gonder Cities using a purposive sampling technique. It also used the descriptive research design with a self-administered survey questionnaire. The Statistical analysis tools, SPSS and Amos, software were applied to analyze the data. Multiple regression model results revealed that access to credit, initial capital, working premises, industry category, market linkage, ICT adoption have a positive relationship and a major impact on the Amhara region's enterprise performance. Hence, the outcome variable, enterprise performance, is highly affected by all predicted variables. As the study finding shows, a lack of access to credit, , market linkage, working premises), initial capital, and information communication Technology problems are critical challenges of SMEs. The Regional Government, TVED Bureau, Micro Finance Institutions, , should take corrective action to provide sufficient credit and long-term loans to protect inflation. Moreover, this study proposed a sustainable cluster management approach that solves their challenges in an integrated way.

scholarly journals Influence of Crediting Strategy on Growth of Small and Micro Enterprises in Kenya: A Case of Women Enterprise Fund

2019 ◽  
pp. 1-17
Author(s):  
Tom Ongesa Nyamboga ◽  
Edwin Odhuno ◽  
Walter Okibo Bichanga
Keyword(s):  
Linear Regression Analysis ◽  
Target Population ◽  
Primary Data ◽  
Group Leaders ◽  
Access To Credit ◽  
Specific Objective ◽  
Financial Credit ◽  
The Government ◽  
Descriptive Survey ◽  
Micro Enterprises

Effective implementation of crediting strategy is paramount to the growth of Small and Micro Enterprises (SMEs) worldwide. Crediting provides adequate amount of initial capital needed by entrepreneurs to establish and operate their businesses. The government of Kenya having realized this scenario initiated the formation of Women Enterprise Fund (WEF) in 2007 as a micro credit to provide financial credit to women entrepreneurs throughout the country. Despite this, many women micro traders have inadequate access to credit to start and expand their SMEs. The specific objective of this study was to assess the influence crediting strategy on the growth of SMEs in Kenya. This research used a descriptive survey based design. The study’s target population constituted 2032 women group leaders from which a sample size of 335 respondents was selected randomly. Primary data was collected by use of structured researcher administered questionnaires. Data collected was analyzed by use of both descriptive statistics and inferential statistics, by the aid of SPSS version 24. Both Analysis of Variance (ANOVA) and Linear Regression Analysis were computed to correlate the study’s variables. The study established a positive relationship between crediting strategy and the growth of SMEs. The findings of this study will help the government of Kenya in formulating and implementing crediting strategies that would make credit accessible and therefore boost growth of SMEs in the country. The study recommends that the government establishes policies that will necessitate accessibility of credit to SMEs in the country.

Access to credit for non‐formal micro‐enterprises in Botswana

1995 ◽  
Vol 31 (3) ◽  
pp. 481-504 ◽  
Author(s):  
Boitumelo S. Morewagae ◽  
Monica Seemule ◽  
Henry Rempel
Keyword(s):  
Access To Credit ◽  
Micro Enterprises

scholarly journals Driving Model of Determinant Factors Affecting the Performance of Small and Micro Enterprises: Empirical Evidence from Amhara Region, Ethiopia

2021 ◽  
Author(s):  
Zhang Youtang ◽  
Ayele Eshetu Yesuf
Keyword(s):  
Empirical Evidence ◽  
Outcome Variable ◽  
Enterprise Performance ◽  
Amhara Region ◽  
Initial Capital ◽  
Access To Credit ◽  
Determinant Factors ◽  
Market Linkage ◽  
Driving Model ◽  
Micro Enterprises

The purpose of this study is to examine the driving model of determinant factors that affects the performance of small and micro enterprises empirical evidence from Amhara Region, Ethiopia. The study used primary and secondary data from manufacturing, construction, urban agriculture, trade, and service entrepreneurs found in Bahirdar, Dessie & Gonder Cities using a purposive sampling technique. It also used the descriptive research design with a self-administered survey questionnaire. The Statistical analysis tools, SPSS and Amos, software were applied to analyze the data. Multiple regression model results revealed that access to credit, initial capital, working premises, industry category, market linkage, ICT adoption have a positive relationship and a major impact on the Amhara region's enterprise performance. Hence, the outcome variable, enterprise performance, is highly affected by all predicted variables. As the study finding shows, a lack of access to credit, , market linkage, working premises), initial capital, and information communication Technology problems are critical challenges of SMEs. The Regional Government, TVED Bureau, Micro Finance Institutions, , should take corrective action to provide sufficient credit and long-term loans to protect inflation. Moreover, this study proposed a sustainable cluster management approach that solves their challenges in an integrated way.

scholarly journals Corporate, social, political connections and corporate governance: A review

2021 ◽  
Vol 18 (4) ◽  
pp. 192-206
Author(s):  
Arash Faizabad ◽  
Mohammad Refakar ◽  
Claudia Champagne
Keyword(s):  
Corporate Governance ◽  
Firm Performance ◽  
Firm Value ◽  
Political Connections ◽  
Access To Credit ◽  
Corporate Decisions ◽  
Governance Practices ◽  
Corporate Governance Quality ◽  
Corporate Social ◽  
The Impact

Considering the important role of connections in corporate governance quality, this review paper has investigated the effectiveness of corporate, social, and political connections on corporate governance practices. In general, the findings of this research show that networking activities in various forms positively and negatively affect corporate governance practices. As far as corporate connections are concerned, there is no consensus on the relationship between interlocked boards and firm performance. Moreover, interlocking boards are positively associated with the propagation of some governance malpractices such as earnings manipulation and options backdating. Regarding social connections, the evidence provides contradictory results regarding the effects of social ties on CEO compensation and firm performance. Finally, as for political connections, the findings related to the impact of political connections on corporate decisions and firm value are mixed. Furthermore, politically connected firms pay lower taxes; have more access to credit markets; and enjoy governmental contracts. Additionally, in some cases, political ties are positively associated with corrupt activities

scholarly journals Driving Model of Determinant Factors Affecting the Performance of Small and Micro Enterprises: Empirical Evidence from Amhara Region, Ethiopia

2021 ◽  
Author(s):  
Zhang Yutang ◽  
Ayele Eshetu Yesuf
Keyword(s):  
Empirical Evidence ◽  
Outcome Variable ◽  
Enterprise Performance ◽  
Amhara Region ◽  
Initial Capital ◽  
Access To Credit ◽  
Determinant Factors ◽  
Market Linkage ◽  
Driving Model ◽  
Micro Enterprises

The purpose of this study is to examine the driving model of determinant factors that affects the performance of small and micro enterprises empirical evidence from Amhara Region, Ethiopia. The study used primary and secondary data from manufacturing, construction, urban agriculture, trade, and service entrepreneurs found in Bahirdar, Dessie & Gonder Cities using a purposive sampling technique. It also used the descriptive research design with a self-administered survey questionnaire. The Statistical analysis tools, SPSS and Amos, software were applied to analyze the data. Multiple regression model results revealed that access to credit, initial capital, working premises, industry category, market linkage, ICT adoption have a positive relationship and a major impact on the Amhara region's enterprise performance. Hence, the outcome variable, enterprise performance, is highly affected by all predicted variables. As the study finding shows, a lack of access to credit, , market linkage, working premises), initial capital, and information communication Technology problems are critical challenges of SMEs. The Regional Government, TVED Bureau, Micro Finance Institutions, , should take corrective action to provide sufficient credit and long-term loans to protect inflation. Moreover, this study proposed a sustainable cluster management approach that solves their challenges in an integrated way.

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