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 Impact of Financial Management Practices on SMEs Profitability with Moderating Role of Agency Cost

2017 ◽  
Vol 9 (1) ◽  
pp. 23-30 ◽  
Author(s):  
Saqib Muneer ◽  
Rao Abrar Ahmad ◽  
Azhar Ali
Keyword(s):  
Financial Management ◽  
Structural Equation ◽  
Management Practices ◽  
Small And Medium Enterprises ◽  
Agency Cost ◽  
Partial Least Square ◽  
Least Square ◽  
Primary Data ◽  
Medium Enterprises ◽  
The Impact

The importance of Small and medium enterprises (SMEs) towards economic development and growth is considerable. Some SMEs are facing difficulties to their development due to the lack of financial resources and management experience. The objective of this study is to check the relationships of financial management practices on profitability of small and medium enterprises and also to check the impact of agency cost on this relationship. This study consists of data analysis of two hundred SMEs from Faisalabad Pakistan. The study used primary data predominantly. SPSS 23 is used for descriptive analysis and Structural Equation Model (SEM) through Partial Least Square (PLS) 3 for hypothesis testing. The findings of this study indicate the presence of positive relationship between financial management practices and SMEs profitability but agency cost as a moderator has no effect on this relationship. The study strongly recommends higher adherence to financial management practices. Policy makers, developments partners, owners, and managers of SMEs may use these findings for sustainability of their business in Pakistan.

scholarly journals Orientasi Kewirausahaan dalam Kinerja UMKM di Jember

2021 ◽  
Vol 9 (1) ◽  
pp. 54
Author(s):  
Enny Hindarwati ◽  
Agus Rahayu ◽  
Lili Adi Wibowo
Keyword(s):  
Entrepreneurial Orientation ◽  
Structural Equation ◽  
Small And Medium Enterprises ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Study Population ◽  
Medium Enterprises

The entrepreneurial orientation that affects the performance of Micro, Small and Medium Enterprises (MSMEs) in Jember is a research objective. The study population was 172 micro, small and medium enterprises in Jember. This research uses 100 respondents with simple random sampling technique. The research respondents were the owners of the MSME as informants. Collecting data by distributing questionnaires to 100 respondents. The collected data were analyzed using Structural Equation Modeling (SEM) Partial Least Square (PLS) software. The results showed that the autonomous dimension had a significant effect on the performance of MSMEs, while the other dimensions of entrepreneurial orientation: innovation, proactivity and risk had no significant effect.

scholarly journals The Impacts of Interest Rate on Stock Market: Empirical Evidence from Dhaka Stock Exchange

2019 ◽  
Author(s):  
Md. Mahmudul Alam ◽  
Gazi Salah Uddin
Keyword(s):  
Interest Rate ◽  
Management Practices ◽  
Stock Exchange ◽  
Empirical Relationship ◽  
Negative Relationship ◽  
Least Square ◽  
Share Price ◽  
Stock Index ◽  
Significant Negative Relationship ◽  
Policy Risk

Stock exchange and interest rate are two crucial factor of economic growth of a country. The impacts of interest rate on stock exchange provide important implications for monitory policy, risk management practices, financial securities valuation and government policy towards financial markets. This study seeks evidence supporting the existence of market efficiency on the Dhaka Stock Exchange (DSE) based on the daily general price index 1994 to 2005 and also shows empirical relationship between stock index and interest rate in Bangladesh based on monthly data from May 1992 to June 2004. Stationary of market return is tested and found DSE Index does not follow random walk model indicate DSE is not efficient in week form. The linear relationship between share price and interest rate, share price and growth of interest rate, growth of share price and interest rate, and growth of share price and growth of interest rate were determined through ordinary least-square (OLS) regression. For all of the cases, included and excluded outlier, it is found that Interest Rate has significant negative relationship with Share Price and Growth of Interest Rate also has significant negative relationship with Growth of Share Price. So if the interest rate is considerably controlled in Bangladesh than it will be the great benefit of Dhaka Stock Exchange through demand pull way of more investor in share market and supply pull way of more extensional investment of companies.

scholarly journals ANALYSIS OF FACTORS AFFECTING THE IMPLEMENTATION OF FINANCIAL ACCOUNTING STANDARDS FOR MICRO, SMALL AND MEDIUM ENTITIES (SAK-EMKM) ON SHARIA-BASED MSMEs IN KUDUS REGENCY

2021 ◽  
Vol 6 (2) ◽  
pp. 79
Author(s):  
ZULIYATI ZULIYATI ◽  
ZULIYATI ZULIYATI ◽  
INDRIANINGRUM INDRIANINGRUM
Keyword(s):  
Quantitative Research ◽  
Small And Medium Enterprises ◽  
Linear Regression Analysis ◽  
Accounting Standards ◽  
Sampling Technique ◽  
Multiple Linear Regression Analysis ◽  
Financial Accounting ◽  
Primary Data ◽  
Factors Affecting ◽  
Medium Enterprises

The purpose of this study is to analyze the effect of owner perceptions, education, socialization, business scale and business age on the application of the Accounting Standards for Micro, Small and Medium Enterprises (SAK EMKM) on sharia-based MSMEs in Kudus Regency. This study uses a quantitative research design, with the data used are primary data obtained from respondents through questionnaires, with the method of analysis using multiple linear regression analysis. A sample of 100 used purposive sampling technique with the criteria of Sharia-based MSMEs in Kudus Regency. The results showed that the variable owner perception, business scale, and business age had no effect on the application of SAK EMKM. Education and socialization have a positive effect on the implementation of SAK EMKM. The limitations of this study are that the independent variable is only able to influence the implementation of SAK EMKM by 28% and the object is only limited to sharia based MSMEs in Kudus Regency, so it cannot be generalized.

The long-run performance of SME IPOs in India: empirical evidence from Indian stock market

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nischay Arora ◽  
Balwinder Singh
Keyword(s):  
Initial Public Offerings ◽  
Small And Medium Enterprises ◽  
Abnormal Returns ◽  
Least Square ◽  
Calendar Time ◽  
Content Type ◽  
Event Time ◽  
Long Run ◽  
Ordinary Least Square Regression ◽  
Medium Enterprises

Purpose The purpose of this paper is to study the pattern of long-run performance of small and medium enterprises (SMEs) initial public offerings (IPOs) and examine the firm- and issue-related determinants of long-run performance of SME IPOs in India. Design/methodology/approach The 3 6, 9 and 12 months share returns of Indian SME IPOs is studied using event time methodologies, i.e. buy and hold returns, cumulative abnormal returns and wealth relatives on a sample of 375 SME IPOs issued during February 2012 to May 2018. Additionally, ordinary least square regression has been used to investigate the determinants of long-run performance of SME IPOs on a reduced sample of 104 because of non-availability of price observations. Findings The findings reveal that Indian SME IPOs exhibit long-run overperformance contradicting the international evidences of underperformance, and this overperformance is significantly evident using buy and hold abnormal return (BHAR). Furthermore, based on the divergence of opinion hypothesis, fads theory and windows of opportunity hypothesis, the results reveal that on one hand, issue size and oversubscription negatively affect BHAR, while on the other hand, auditor reputation, underwriter reputation, hot market, underpricing, inverse of issue price, profits prior to listing positively affect long-run performance. However, firm age, firm size, debt equity ratio, volatility and long-run performance computed through BHAR lacks significant relationship. Research limitations/implications The study relied on event time methodology of measuring aftermarket performance of one year because of the limited availability of price offerings. Hence, the study could be extended to analyze aftermarket returns over a period of three to five years to enable reaching the vivid conclusions. Calendar time methodology may also be used to compute abnormal returns. Practical implications The results based on the study provides an implication to the investors by providing them an opportunity to bank higher long-run returns by engaging in active and timely trading strategies. Nevertheless, the results also show that investors should be cautioned while taking investment decisions. Originality/value The study contributes to rising body of international literature by analyzing the larger and recent sample of IPOs issued from 2012 to 2018 listed on SME exchange.

Analisis �Financial Teknology (Fintech)� pada Permodalan Usaha Mikro Kecil dan Menengah (UMKM) dengan Model Peer-To-Peer (P2P) Lending

2019 ◽  
Vol 17 (2) ◽  
pp. 125
Author(s):  
Ria Manurung ◽  
A. Kristiadji Rahardjo
Keyword(s):  
Small And Medium Enterprises ◽  
Descriptive Analysis ◽  
Secondary Data ◽  
Peer To Peer ◽  
Least Square ◽  
Primary Data ◽  
Analysis Methods ◽  
P2p Lending ◽  
Medium Enterprises ◽  
The Impact

The purpose of this study is to analyze the impact of Fintech on Micro Small and Medium Enterprises (MSME) capital with the P2P Lending model. The formulation of the problem is What is the impact of Fintech on MSME capital with the P2P Lending model? Research locations in the Banyumas Regency area with a concentration of 110 MSME as a research sample, with the criterion that ever or currently lending with P2P Lending system. Primary data were obtained from the results of questionnaire processing and interviews with respondents, namely MSME, while secondary data was sought from OJK, BPS, the Ministry of Cooperatives and Micro, Small and Medium Enterprises, BI, articles, and textbooks relevant to research. Data analysis methods are descriptive analysis methods, paired difference analysis and ordinary least square (OLS). The conclusion obtained in this study is a tendency to increase in the Number of Workers, Turnover, Product Sales, Profits and Business Costs after the use of Fintech with the Peer to Peer (P2P) Lending model in MSME. So venture capital loans obtained through FinTech with the P2P Lending model have a positive effect on the improvement and development of the MSME business.

PENGARUH PENERAPAN PP 23 2018 TERHADAP KEPATUHAN PAJAK PELAKU USAHA MIKRO KECIL MENENGAH (UMKM)

2021 ◽  
Vol 5 (1) ◽  
Author(s):  
MARIA JESSICA SEPTIANI
Keyword(s):  
Research Method ◽  
Government Regulation ◽  
Small And Medium Enterprises ◽  
Tax Compliance ◽  
Sampling Technique ◽  
Primary Data ◽  
Quantitative Descriptive ◽  
Medium Enterprises ◽  
Positive Effect ◽  
Descriptive Method

This study aims to test whether there is an effect of the implementation of Government Regulation no. 23 of 2018 of taxpayer compliance for Micro, Small and Medium Enterprises. This research method using quantitative descriptive method and primary data using a questionnaire. This study took a sample of 37 respondents taxpayer compliance for Micro, Small and Medium Enterprises at the Ruteng Pratama Tax Office, Manggarai, East Nusa Tenggara. The sampling technique was using purposive sampling technique. Data collection was carried out by distributing questionnaires in the form of google. The results showed that the implementation of PP 23 2018 has a positive effect on tax compliance of micro, small and medium enterprises.

ACCESS TO MICROCREDIT DETERMINANTS AND FINANCIAL PERFORMANCE OF SMALL AND MEDIUM RETAILING ENTERPRISES IN WAJIR COUNTY, KENYA

2017 ◽  
Vol 2 (6) ◽  
pp. 103
Author(s):  
Nasteha Kanyare ◽  
Dr. John Mungai
Keyword(s):  
Financial Performance ◽  
Random Sampling ◽  
Small And Medium Enterprises ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
Target Population ◽  
Primary Data ◽  
Eligibility Criterion ◽  
To Come ◽  
Medium Enterprises

Purpose:  The purpose of the study was to establish the effect of determinants of access to microcredit on financial performance of retailing SMEs in Wajir County, Kenya.Methodology: The study adopted a descriptive survey research design. The target population comprised of all the 5000 retailing small and medium enterprises in Wajir County where the units of analysis were the SME owners. The study used stratified random sampling and simple random sampling technique to come up with the sample. The target population was stratified into 6 strata (the 6 sub-counties in Wajir County). Further, random sampling was used to select 146 SMEs from each sub-county. The study used primary data which was largely quantitative and descriptive in nature. The questionnaires were self-administered with the help of two research assistants. The data analysis was undertaken using SPSS Version 20 where the statistics generated included descriptive statistics and inferential statistics.Results: The study findings revealed that savings, meeting the eligibility criterion, loan structuring and some socio economic characteristics positively and significantly affected the financial performance of SMEs in Wajir County.Unique contribution to theory, practice and policy: the study recommended that SMEs should take the initiative to increase the amount they saved so that they could increase their borrowing capacity. The study also recommended that SME owners needed to take the initiative of ensuring that they were all the time able to meet the necessary requirements needed for obtaining loans especially their documentation, business and repayment plans and aim at ensuring that they acquired the necessary collateral. It was further recommended that MFIs needed to ensure that the loan structure presented to SMEs were favorable. The study also recommended that it was necessary for SMEs to expand/grow their asset base so as to increase the ability to repay the loans. They also needed to expand their networks especially within the financial institutions circles so that they could increase the trust the MFIs had on them and for easy considerations for loans.

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.

scholarly journals An Empirical Research on Business Dimensions of Small-Scale Entrepreneurs in Salem, Tamil Nadu

2019 ◽  
Vol 8 (4) ◽  
pp. 2162-2164
Keyword(s):  
Tamil Nadu ◽  
Industrial Development ◽  
Central Government ◽  
Small And Medium Enterprises ◽  
Sampling Technique ◽  
Primary Data ◽  
Small Scale ◽  
Market Place ◽  
Medium Enterprises ◽  
Small Industries

Tamil Nadu is one of the well developed States in terms of industrial development. In the post-liberalization era, Tamil Nadu has emerged as one of the front-runners by attracting a large number of investment proposals particularly in recent times. Today, Tamil Nadu is the third largest economy in India and its current State Domestic Product is well over US $ 23 billion. Small-Scale entrepreneurs in Tamil Nadu, especially in Salem district, produce an enormous variety of products which include mass consumption goods, readymade garments, hosiery goods, electrical products, handlooms and handicrafts. The contribution of small industries in these areas to the balanced regional development of whole state as well as the country is noteworthy. Therefore, there is a need to provide need base training to such people in order to bring them into mainstream in the ongoing process of economic growth. In this study, primary data was collected from 225 entrepreneurs in and around Salem area through questionnaire. Respondents were mainly running MSME (Micro, Small and Medium Enterprises) units and those involved in trading business were not included in the sample size. Convenience sampling technique was adopted for data collection. Simple percentage analysis and Henry Garrett ranking techniques were used for data analysis. Based on the findings of the study suitable suggestions were arrived. This research would be of immense help to Small-scale entrepreneurs and both state and central government to formulate strategies based on key business dimensions and parameters in order to sustain in the competitive market place.

Sign in / Sign up

Export Citation Format

Share Document