scholarly journals Moderating role of social capital on the effect of financial behavior on financial inclusion

2021 ◽  
Vol 19 (3) ◽  
pp. 502-512
Author(s):  
Chike Onodugo ◽  
Ifeoma Onodugo ◽  
Anastasia Ogbo ◽  
Henry Okwo ◽  
Charles Ogbaekirigwe
Keyword(s):  
Collective Action ◽  
Financial Services ◽  
Small And Medium Enterprises ◽  
Financial Inclusion ◽  
Policy Implications ◽  
Financial Behavior ◽  
Financial Behaviors ◽  
Study Results ◽  
Medium Enterprises

The need for improved institutional interventions aimed at increasing access to financial services by small and medium enterprises (SMEs) has been emphasized. Complimenting these efforts, this study proposes that building social networks capable of informing requisite financial behaviors would facilitate the financial inclusion of SMEs co-existing in business clusters. This study aimed to empirically test the moderating influence of collective action, bonding, trust, and bridging on the effect of financial behavior on financial inclusion. Using a sample of 311 owners/managers of small and medium scale businesses in sub-urban clusters in South-Eastern Nigeria, the hierarchical moderated regression analysis was used to test the hypotheses of the study. Results show a positive main effect of financial behavior on financial inclusion (βf = 0.162; t (304) = 1.503; p < 0.05). Also, collective action (βfca = 0.201; t (304) = 6.906; p < 0.05) and bridging (βfbr = 0.201; t (304) = 6.906; p < 0.05) had positive moderating effects, bonding (βfb = 0.032; t (304) = 1.423; p > 0.05) and trust (βft = 0.014; t (304) = 0.9609; p > 0.05) were statistically insignificant. For policy implications, social virtues such as bridging and collective action are more veritable tools for financial inclusion than the personal virtues of trust and bonding and should be factored into economic and social intervention being deployed by institutions interested in meeting the banking/financial needs of businesses.

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 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 The Role of Financial Literacy on Financial Behavior

2019 ◽  
Vol 4 (1) ◽  
pp. 24
Author(s):  
Pipit Rosita Andarsari ◽  
Mega Noerman Ningtyas
Keyword(s):  
Financial Literacy ◽  
Pension Fund ◽  
Small And Medium Enterprises ◽  
Empirical Studies ◽  
Partial Least Square ◽  
Least Square ◽  
Financial Behavior ◽  
External Funding ◽  
Medium Enterprises

A number of previous empirical studies found that, financially speaking, literate people tends to do budgeting, saving, controlling expenses, managing debt well, participating in stock market and planning pension fund, etc. In other words, the higher an individual’s knowledge and understanding of financial concept, the more likely they are to behave financially well in their daily life. Financial literacy is needed by everyone, including womenpreneur because not only they have to be able to manage their personal finance, they should also manage their business finance. Financially literate people are more likely to get access to external funding and to develop their business. This research aims to examine the role played by financial literacy on financial behavior of womenpreneur in Malang. Financial literacy was measured using 11 questions modified from Lusardi & Mitchell (2011) and financial behavior was measured using 8 questions taken from INFE. The sample was 95 respondents who were female (owners of) Micro, Small and Medium Enterprises in Malang. The data were collected using questionnaire. We used Partial Least Square with Smart PLS 3 to examine the variables. After the first bootstrapping process, we drop some invalid indicators and then perform the second bootstrapping. The result showed that all of the remaining indicators were valid and financial literacy had been found to have positive significant (influence) on financial behavior.  

scholarly journals The Role of Financial Inclusion in Women Entrepreneurs in Small and Medium Enterprises: Evidence from South Western Nigeria

2020 ◽  
pp. 16-23
Author(s):  
Oyebamiji, Funmilola Florence
Keyword(s):  
Financial Institutions ◽  
Rural Areas ◽  
Women Entrepreneurs ◽  
Small And Medium Enterprises ◽  
Internet Banking ◽  
Financial Inclusion ◽  
Southwestern Nigeria ◽  
Financial Products ◽  
Medium Enterprises

The study examines the role of financial inclusion in women entrepreneurs in Small and Medium Enterprises (SMEs) with particular reference to southwestern Nigeria.  Purposive sampling technique was employed to select 120 respondents from Lagos, Abeokuta, Ibadan, Osogbo, Akure and Ado-Ekiti.  A structured questionnaire designed for the study was used to collect data. Data analysis was performed with helps of mean, frequency, and simple percentages. The result shows that contribution, cooperative society, family and friends, and non- governmental organizations are the main sources of finance of women entrepreneurs in SMEs, while only a few financial products being offered by financial institutions are known to women entrepreneurs in SMEs. Therefore, the study recommends that women entrepreneurs in SMEs should be sensitized about the availability of financial products/services being offered by financial institutions, relaxing the conditions attached to loans, reduction of interest rate, and bring internet banking closer to the people especially women entrepreneurs in rural areas.

Implementation of Inclusive Finance in Empowering Micro, Small and Medium Enterprises (UMKM) at Micro Waqf Banks

2021 ◽  
Vol 5 (1) ◽  
pp. 82
Author(s):  
Rahma Jaziyatul Chikmiyah
Keyword(s):  
Financial Literacy ◽  
Financial Services ◽  
Qualitative Method ◽  
Small And Medium Enterprises ◽  
Financial Inclusion ◽  
National Strategy ◽  
Classic Problem ◽  
The Government ◽  
Medium Enterprises ◽  
The Impact

<p><em>This study aimed to analyze the impact of the implementation of financial inclusion at Al-Fithrah Micro Waqf Bank regarding the empowerment of Empowering Micro, Small and Medium Enterprises (MSME). Even though MSME sectors have become a central foundation for the economy, the capital limitation is still considered a classic problem. It influences the government to release National Strategy Financial Inclusion to provide financial services that all levels of society can access. The indicators inclusive financial consists of access, usage and quality to realize empowerment through financing and assistance. This research used a descriptive qualitative method, and data were collected through interviews, observations, and documentation. The results showed that the financial inclusion component had been implemented but still has many potentials to be maximized. The components of access and usage have been appropriately implemented in terms of physical aspects and prices that are easily accessible to customers. These two components have an impact on increasing customer Islamic financial literacy. In the quality component, product variations are expected to fulfill the different business needs of customers. Meanwhile, financing has not significantly impacted fulfilling the welfare component’s capital needs  because the nominal value is too small. Furthermore, business assistance has a more significant impact on improving the business and spiritual aspects</em><em> of clients</em><em>.</em></p><p align="left"> </p><p>Penelitian ini bertujuan untuk menganalisis dampak penerapan keuangan inklusif pada Bank Wakaf Mikro Al-Fithrah terhadap pemberdayaan UMKM di sekitarnya. Meskipun sektor UMKM telah menjadi fondasi yang cukup sentral bagi perekonomian, keterbatasan permodalan masih menjadi masalah klasik UMKM. Hal ini mendorong pemerintah untuk mengeluarkan Strategi Nasional Keuangan Inklusif yang bertujuan untuk memberikan layanan keuangan yang dapat diakses seluruh lapisan masyarakat. Indikator keuangan inklusif yang terdiri dari akses, penggunaan dan kualitas diterapkan untuk mewujudkan pemberdayaan UMKM melalui pembiayaan dan pendampingan. Penelitian ini menggunakan metode deskriptif kualitatif melalui pengumpulan data wawancara, observasi, dan dokumentasi. Hasil penelitian menunjukkan bahwa komponen keuangan inklusif telah diimplementasikan namun masih berpotensi untuk dimaksimalkan. Komponen akses dan penggunaan sudah terlaksana dengan baik dilihat dari segi fisik dan harga yang mudah dijangkau nasabah. Kedua komponen tersebut berdampak pada peningkatan literasi keuangan syariah nasabah. Pada komponen kualitas, variasi produk diharapkan dapat memenuhi kebutuhan modal nasabah yang berbeda. Sedangkan untuk komponen kesejahteraan, pembiayaan belum memberikan pengaruh signifikan untuk memenuhi kebutuhan permodalan karena nilai nominal yang terlalu kecil. Selain itu, program pendampingan usaha (HALMI) memiliki dampak yang lebih signifikan terhadap peningkatan usaha dan spiritual pelanggan.</p>

scholarly journals Digital Financial Inclusion and Sustainable Growth of Small and Micro Enterprises—Evidence Based on China’s New Third Board Market Listed Companies

2020 ◽  
Vol 12 (9) ◽  
pp. 3733 ◽  
Author(s):  
Liu Yang ◽  
Youtang Zhang
Keyword(s):  
Financial Services ◽  
Small And Medium Enterprises ◽  
Listed Companies ◽  
Sustainable Growth ◽  
Financial Inclusion ◽  
High Tech ◽  
Financial Industry ◽  
Medium Enterprises ◽  
The Impact ◽  
Micro Enterprises

The United Nations’ 2030 Agenda for Sustainable Development aims to promote inclusive and sustainable economic growth and encourage the formalization and growth of micro, small, and medium enterprises through access to financial services. This study examines the impact and mechanism of the digital financial inclusion on the sustainable growth of small and micro enterprises in China. For this purpose, it uses the data from China’s New Third Board Market listed companies from 2011 to 2018 and the digital financial inclusion index of Peking University. The results show that the development of digital financial inclusion helps promote the sustainable growth of small and micro businesses, particularly in private, high-tech industries, and competitive markets. The impact mechanism of this development prevents any financial crisis caused by the capital structure imbalance and capital liquidity problems of small and micro enterprises by alleviating the financing constraints, thus promoting their sustainable growth. The research results show that, under the background of high-quality development of China’s economy, continuous promotion of digital financial inclusion and reshaping of the ecological pattern of the financial industry can provide steady financial support for the sustainable growth of small and micro enterprises, and realize the healthy development of micro enterprises and macro economy.

scholarly journals The role of financial technology on development of MSMEs

Accounting ◽  
2021 ◽  
pp. 225-230
Author(s):  
Ica Rika Candraningrat ◽  
Nyoman Abundanti ◽  
Ni Wayan Mujiati ◽  
Ray Erlangga ◽  
I Made Gilang Jhuniantara
Keyword(s):  
Small And Medium Enterprises ◽  
Financial Inclusion ◽  
The Public ◽  
National Economic ◽  
Capital Development ◽  
Medium Enterprises ◽  
Access Services ◽  
Financial Technology

The purpose of this research is to describe the role of Financial Technology in enhancing financial inclusion in the Micro, Small and Medium Enterprises (MSMEs) industry through accessibility and assistance. MSMEs play a very important role in increasing regional and national economic growth. There are various types of MSMEs that are scattered throughout Indonesia with the main problem being capital. The rapid growth of FinTech's financing business is currently an alternative that can be accessed by all levels of society through financial inclusion, which is one way to socialize the financial sector specially to facilitate financial access services for the public. The population in this study were members of Dekranasda (Dewan Kerajinan Nasional Daerah) Denpasar assisted and the determination of samples was based on purposive sampling method which includes people involved in a weaving craft business and have been fostered for at least 3 years. The method of data collection is by questionnaires, documentation and interviews. The method of data analysis in this study is the instrument test, classic assumption test, and hypothesis testing with the SPSS program. Based on the results of the analysis of accessibility and assistance, financial technology has a significant positive effect on capital development. By funding MSMEs, lenders get investment alternatives with attractive returns. On the other hand, MSMEs borrowers get business capital loans without collateral with an easy and fast online process.

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 Small and Medium Enterprises in the Middle East and North Africa Region

2021 ◽  
Vol 16 (5) ◽  
pp. 55
Author(s):  
Khaled Otman
Keyword(s):  
Middle East ◽  
North Africa ◽  
Small And Medium Enterprises ◽  
Policy Implications ◽  
Future Research ◽  
Mena Region ◽  
Access To Finance ◽  
Mena Countries ◽  
Medium Enterprises

In the Middle East and North Africa (MENA) region, Small and Medium Enterprises (SMEs) are now widely recognized as engines of economic development. This paper discusses the importance of SMEs in the MENA economic area and identifies the challenges and barriers facing SMEs in MENA countries. In addition, this study analyses the effects of two &#39;black swan&#39; Coronavirus disease (COVID-19) phenomena and a decline in oil prices on the economy of MENA in 2020. The current study found that the most significant challenges were identified as lack of access to finance, lack of managerial expertise, inefficiencies of government, lack of a well-trained workforce, inadequate infrastructure, corruption and bureaucratic obstacles. Among these challenges, the lack of access to finance appears to be the major challenge and suggests that future research is required to identify the role of Islamic finance models in the financing of SMEs in MENA countries. This research provides all stakeholders with policy implications intended for enhancing the different features of SME improvement in the MENA region and generally in developing countries.

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.

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