scholarly journals Effects of Interest Rate on Credit Access of Small and Medium Enterprises in Garissa County

2016 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Abdi Mohamed Maalim ◽  
Dr. Joyce Gikandi
Keyword(s):  
Interest Rate ◽  
Financial Services ◽  
Small And Medium Enterprises ◽  
Primary Data ◽  
P Value ◽  
Significance Level ◽  
Interest Rate Policy ◽  
Credit Access ◽  
Rate Policy ◽  
Medium Enterprises

Purpose: The main purpose of the study was to assess the effects of interest rate on credit access of small and medium enterprises’ in Garissa County.Methodology: A descriptive survey was employed in this study. The target population of this study was 10 SACCOs and 150 SMEs registered within Garissa County. Primary data was collected from respondents via structured questionnaires. The descriptive statistics was analyzed using the Statistical Package for Social Sciences (SPSS) Version 20.0 and presented in the report in the form of tables, bar charts and graphs. Correlation and regression analysis was done to establish the relationship between the variables.Results: The results showed that interest rate policy was significantly related to credit access since its p-value (0.000) was less than the significance level of 0.05. The findings implied that a change in interest rate policy by one unit could result to positive variation of 0.70 units in credit access.Unique contribution to theory, practice and policy: Based on the study findings, the study concluded that SACCO’s interest rate policy affect SMEs accessibility to credit. The study recommended that SACCOs should consider revising their policy on interest rate charged. The study also recommended that County government should intervene to ensure that SMEs have access to financial services to enable them contribute to development and employment creation. The study validates the Credit access theory and its applicability in financing SME’s firms.

scholarly journals Analysis of Dominant Factors in Improving Performance of Small Medium Industry in the Field Marine and Fishing Processing

2017 ◽  
Vol 6 (6) ◽  
pp. 42-51
Author(s):  
Edy Supriyadi ◽  
Iha Haryani Hatta ◽  
Darmansyah Darmansyah
Keyword(s):  
Business Performance ◽  
Small And Medium Enterprises ◽  
Market Competition ◽  
Positive Influence ◽  
Global Market ◽  
Primary Data ◽  
Moderator Variables ◽  
Significance Level ◽  
Performance Variables ◽  
Medium Enterprises

The existence of global market resulted in the increasing number of business actors, especially Small and Medium Enterprises (SMEs). Currently SMEs are experiencing increasingly fierce market competition. Even the competition is in an increasingly complex condition. Faced with this condition, SMEs are required to have the ability to survive and improve its performance. The population of this research is the perpetrators of SMEs in the field of fishery and marine processing business in Lontar Village, Banten Province. The sample are participant of 46 SME actors. Technical sampling is purposive sampling. The data in this study is the primary data collected through questionnaires. The result are (1)Competence leader (KOM) has a positive influence on business performance variables (KIN) with a significant value of 0.070 at a significance level of 0.10.(2). Innovation (INO) has a positive influence on business performance variables (KIN) with a 0.000 significance level at a significant level of 0.05.(3). Entrepreneurship (WIRA) has a positive influence on business performance variables (KIN) with a synergy value of 0.00 at a significant level of 0.05.(4). Investment (INV) has no effect on business performance with significance of 0.223.(5). The moderator variables of entrepreneurs have an influence in contributing to the leadership competence of performance. With a significant value of 0.032.(6). The moderator variables of entrepreneurs have an influence in contributing to innovation on the performance of Entrepreneurship, with a significant value of 0.000 at the 0.05 level (7). The moderator variables of the entrepreneur have no influence in contributing to investment on the performance of the company. with a significant value of 0.060 at the 005 level.

EFFECT OF MICRO LENDING RATE ON SMES GROWTH IN NIGERIA

2021 ◽  
Vol 9 (1) ◽  
pp. 62-78
Author(s):  
Adegbite Adewale ◽  
◽  
Alli Ismail ◽  
Keyword(s):  
Interest Rate ◽  
Small And Medium Enterprises ◽  
Negative Relationship ◽  
Sampling Technique ◽  
Least Square ◽  
Primary Data ◽  
Ogun State ◽  
Significant Negative Relationship ◽  
Ordinary Least Square Regression ◽  
Medium Enterprises

Small and medium enterprises are acknowledged as the lubricants that wheel the socio-economic development of a nation yet their growth has been stunted by harsh fiscal and monetary policies. This study seeks to investigate the effect of micro financing interest rate on small and medium scale enterprises growth in Lagos and Ogun State, Nigeria. Primary data was employed using structured self-administered questionnaire with five-point Likert scale. The study adopted a descriptive survey research design to give an accurate description of the research variables. Yaro Yamane’s sampling technique was used to select four hundred (400) SMEs from the total population of thirteen thousand four hundred and fifty-seven (13,457) in both Lagos and Ogun States, while stratified and proportionate sampling methods are used to determine the sample size of three hundred and fourty eight (348) SMEs in Lagos state and fifty-two (52) in Ogun state. Ordinary Least Square Regression (OLS) was used to estimate the regression. In the study, one hypothesis was formulated and tested. The results from the hypothesis tested revealed that a significant negative relationship exist between micro finance interest rate and SMEs growth in Nigeria at 5 per cent level (tc= -1.570731; p= 0.0009). Based on the finding, the study concluded that significant negative relationship exist between micro finance interest rate and small & medium enterprises growth in Nigeria. The study recommends that microfinance banks should charge moderate interest rate to SMEs without stringent collateral requirements to boosts SMEs growth in Nigeria.

scholarly journals Relationship lending and access to financial services by SMEs in Kenya

2021 ◽  
Vol 10 (5) ◽  
pp. 235-244
Author(s):  
Edward Kiring'a ◽  
Fredrick W.S. Ndede ◽  
Argan Wekesa
Keyword(s):  
Financial Services ◽  
Small And Medium Enterprises ◽  
Critical Role ◽  
Sampling Technique ◽  
Credit Rationing ◽  
Target Population ◽  
Primary Data ◽  
Relationship Lending ◽  
Lending Institutions ◽  
Medium Enterprises

Policymakers and scholars acknowledge the significance of small and medium enterprises in stirring the economic growth and development in developing and developed economies. In spite of the generally fast pace by which access to financial services for small and medium enterprises is being established, significant segments of the small and medium enterprises sector do not yet benefit from the expansion. This study, therefore, investigated the effect of relationship lending on access to financial services by small and medium enterprises in Kenya. The study was based on credit rationing theory and information asymmetry theory. The target population comprised 4,253 small and medium enterprises in Kenya. A sample size of 366 SMEs was used by the study. The study adopted a multistage sampling technique to obtain the SME respondents. Primary data was utilized and was acquired through semi-structured questionnaires. Data were analyzed using descriptive and inferential statistics utilizing Heckman two-stage regression model. The study findings showed that relationship lending had a positive and significant effect on access to financial services among SMEs in Kenya. The study concluded that relationship lending plays a critical role in access to financial services by SMEs in Kenya. The study recommends that SMEs owners should strive to meet the terms and conditions provided by lending institutions in their various financing practices while management of the lending institutions should adopt financing practices favorable to SMEs to increase their access to financial services.

Analysis of Credit Access and Utilization Among Poultry Farmers in Nigeria

2021 ◽  
Author(s):  
Ayodeji Afolayan ◽  
E. T. Omisope ◽  
Adedamola M. Ajayi ◽  
Oluwafemi Samuel Adeoti ◽  
Oluwatoyin F. Ogunjinmi
Keyword(s):  
Interest Rate ◽  
Regression Models ◽  
Sampling Technique ◽  
Primary Data ◽  
Farm Income ◽  
Significance Level ◽  
Credit Access ◽  
Multiple Regression Models ◽  
Poultry Farmers ◽  
Multistage Sampling

Abstract This study assessed credit access and utilization among poultry farmers and its determinant. Primary data were analyzed from 78 farmers using multistage sampling technique using descriptive statistics, logit and multiple regression models. Findings from the study showed that majority of the respondents were in their active age and 75.6 percent of the poultry farmers were males. Majority (83.3 percent) of the respondents were married and educated. Majority was also in their active age (37.2 percent). The factors determining farmers’ decision to use credit which were significant at 5 percent include; number of years spent in school, farm income, labour cost, cost of feeds and sources of capital while only interest rate was significant at 1 percent. Factors that influenced the credit utilization by the farmers in the study area at 5 percent significance level include; farm income, cost of feeds, and number of birds. It is recommended that subsidization of cost of feeds, usage of family labour, and provision of loan at no or low interest rate should be employed in the study area.

scholarly journals MODELLING SMEs’ BEHAVIORAL INTENTION TO ADOPT ISLAMIC CROWDFUNDING-SMALL AND MEDIUM ENTERPRISES (ICSMEs) MODEL AS A SOURCE OF FINANCING IN MALAYSIA

2019 ◽  
Vol 4 (2) ◽  
pp. 293-310
Author(s):  
Mohamed Asmy Bin Mohd Thas Thaker
Keyword(s):  
Technology Acceptance ◽  
Behavioral Intention ◽  
Financial Services ◽  
Positive Impact ◽  
Small And Medium Enterprises ◽  
Perceived Usefulness ◽  
Primary Data ◽  
Intention To Adopt ◽  
Acceptance Model ◽  
Medium Enterprises

The present study has proposed Islamic Crowdfunding-Small and Medium Enterprises (ICSMEs) model to assist SMEs in meeting their need to access external financial services in Malaysia. Upon the proposed model, this study examines the behavioural intention of SMEs to use ICSMEs model. The primary data are collected from the survey administered to SMEs in the Klang Valley (n=250) and the analysis is conducted using Partial Least Squares (SmartPLS). Furthermore, the model has been validated its acceptance in the field by adopting the Technology Acceptance Model (TAM). This study has revealed that both the perceived usefulness and perceived easy to use are found to have a positive impact on the behavioral intention of SMEs to use ICSMEs model, which later assist them to access to financial services in Malaysia. Furthermore, perceived easy to use has a positive relationship and direct effect with perceived usefulness of SMEs to use the ICSMEs model. The findings of this study can be used to develop a specific framework in which to examine other components of using the ICSMEs model’s behavior and to plan appropriate intervention strategies to increase financial accessibility by SMEs.

scholarly journals FAKTOR-FAKTOR YANG MEMPENGARUHI PEMBIAYAAN USAHA MIKRO KECIL DAN MENENGAH PADA BANK PEMBIAYAAN RAKYAT SYARIAH DI INDONESIA

2020 ◽  
Vol 6 (4) ◽  
pp. 846
Author(s):  
Fany Arista Wati ◽  
Dian Filianti
Keyword(s):  
Regression Analysis ◽  
Linear Regression ◽  
Multiple Regression Analysis ◽  
Analytical Method ◽  
Financial Services ◽  
Small And Medium Enterprises ◽  
Linear Regression Analysis ◽  
Secondary Data ◽  
Significance Level ◽  
Medium Enterprises

The purpose of this study was to analyze the effect of Non-Performing Financing, Inflation and the BI rate on Financing Micro, Small and Medium Enterprises (MSMEs) in the Sharia People's Financing Bank in the period January 2013 to October 2018. This study used a quantitative approach. The data used is secondary data from the official website of the Financial Services Authority. The analytical method used in this research is multiple regression analysis (Muliple Linear Regression Analysis) with a significance level of 0.05. The results show that the Non Performing Financing and Inflation variables partially have a significant effect on MSME financing. While the BI rate variable does not have a significant effect on MSME financing. The results show that the Non Performing Financing, Inflation and BI rate variables simultaneously have a significant effect on MSME Financing.Keywords: Financing MSME, Non Performing Financing (NPF), Inflation, BI rate

scholarly journals ANALISIS PROSEDUR PEMBIAYAAN DAN MANAJEMEN RISIKO PADA PERUSAHAAN PEER TO PEER (P2P) LENDING SYARIAH DI INDONESIA

2019 ◽  
Vol 1 (2) ◽  
pp. 1-28
Author(s):  
Evy Iskandar ◽  
Ayumiati Ayumiati ◽  
Novita Katrin
Keyword(s):  
Risk Management ◽  
Financial Services ◽  
Small And Medium Enterprises ◽  
Peer To Peer ◽  
Primary Data ◽  
Free Access ◽  
P2p Lending ◽  
Stake Holder ◽  
Medium Enterprises

This study to examines the procedures for financing and risk management in Peer to Peer (P2P) lending company in Indonesia with a case study at PT. Ammana Fintek Syariah as a Sharia P2P lending company that was the first registered in Financial Services Authorization (OJK), which was established to free access to Micro, Small and Medium Enterprises (MSMEs) finance from loan sharks and usury interest. This study uses qualitative methods, primary data in research is based the direct information from company management as a stake holder. The results of this study indicate that the application of company financing procedures is carried out with two patterns, in the direct pattern that involving partners (BMT) and in the non-direct pattern carried out directly by the team of PT. AFS. While the application of risk management is mitigation by partners and internal management of PT.AFS to conduct early prevention of the risks to be faced, and in handling the problem of financing jams, the company opens a deliberation room for consensus on the actions of the settlement of both parties.   Keywords: Financing Procedure, Risk Management, peer to peer         Abstrak Penelitian ini mengkaji tentang prosedur pembiayaan dan manajemen risiko pada perusahaan Peer to Peer (P2P) lending di Indonesia dengan studi kasus pada PT.Ammana Fintek Syariahsebagai perusahaan P2P lending syariah pertama kali terdaftar di  Otorisasi Jasa Keuanga (OJK), yang didirikan untuk membebaskan akses untuk keuangan UMKM dari pola rentenir dan bunga riba. Penelitian ini menggunakan metode kualitatif, data primer dalam penelitian adalah informasi langsung dari manajemen perusahaan sebagai stake holder. Hasil penelitian ini menunjukkan bahwa penerapan prosedur pembiayan perusahaan dilakukan dengan dua bentuk yaitu pola directyang melibatkan mitra (BMT) dan non direct dilakukan langsung oleh tim PT. AFS. Sedangkan penerapan manajemen risikonya adalah dengan model mitigasi oleh mitra dan pengelolaan internal PT.AFS untuk melakukan pencegahan awal terhadap risiko yang akan dihadapi, dan penanganan masalah pembiayaan yang macet perusahaan membuka ruang musyawarah untuk mufakat terhadap tindakan penyelesaian kedua belah pihak.   Kata Kunci:Prosedur Pembiayan, Manajemen Risiko, Peer To Peer.

scholarly journals Faktor Penghambat dalam Mengakses Pembiayaan pada Pengusaha Mikro di Karesidenan Madiun: Second Order CFA

2019 ◽  
Vol 12 (3) ◽  
pp. 207
Author(s):  
Hartomi Maulana ◽  
Mohammad Zaenal Abidin
Keyword(s):  
Financial Services ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Second Order ◽  
Primary Data ◽  
Equation Modeling ◽  
Fit Indices ◽  
Access To Finance ◽  
Religious Factors ◽  
Medium Enterprises

This paper examines factors that may hinder micro, small and medium enterprises (MSMEs) in accessing financing from banking services in the area of Madiun Raya. Among barrier access to finance factors is complicated eligibility, low accessibilities and religious factors. However, this study further highlights three factors of barrier access to finance by using Second-order Confirmatory Factor Analysis (CFA) to validate these factors. In achieving the objectives, a quantitative approach was applied in this study. This study uses primary data collected through a questionnaire involving 146 selected respondents who have micro businesses around the Madiun Raya area which includes Magetan, Ngawi, Ponorgo, Madiun and Madiun Kota. Structural Equation Modeling (SEM) in this case, second-order CFA is used as an analysis technique. The study revealed that second order CFA validates three variables which include religious factors, low accessibility and low eligibility are in the best fit indices as factor of access barrier to finance to financial services around Madiun raya area. With the results of this study, it allows academics and researchers to find out the factors that can prevent micro businesses in accessing finance in the context of Indonesian banking institutions.

Analysis of the Bank of Russia information policy

2017 ◽  
pp. 88-110 ◽  
Author(s):  
S. Drobyshevsky ◽  
P. Trunin ◽  
A. Bozhechkova ◽  
E. Gorunov ◽  
D. Petrova
Keyword(s):  
Interest Rate ◽  
Nonparametric Tests ◽  
Information Policy ◽  
Var Models ◽  
New Approach ◽  
Interest Rate Policy ◽  
News Reports ◽  
Internet Users ◽  
Rate Policy ◽  
Exchange Markets

The article investigates the Bank of Russia information policy using a new approach to measuring information effects on Russian data, including the analysis of the tonality of news reports, as well as internet users’ queries on Google. The efficiency of regulator’s information signals is studied using EGARCH-, VAR- models, as well as nonparametric tests. The authors conclude that the regulator communicates effectively in terms of the predictability of interest rate policy, the degree to which information signals affect the money and foreign exchange markets.

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