The Relationship between Small Scale Enterprises Performance and Access to Credit from Microfinance Institutions in Mount Elgon Constituency, Kenya

2014 ◽  
Vol 4 (9) ◽  
Author(s):  
Abraham Kimtai Kiboki ◽  
Dr. Maurice Sakwa ◽  
Aloys Nyagechi Kiriago
Keyword(s):  
Small Scale ◽  
Microfinance Institutions ◽  
Access To Credit ◽  
Mount Elgon ◽  
The Relationship

The Effects of Behavioral Factors on the Creditworthiness of Small-Scale Enterprises

2018 ◽  
pp. 100-114 ◽  
Author(s):  
Dmitry Shevchenko ◽  
Ellah Igoche Godwin
Keyword(s):  
Regression Model ◽  
Small Businesses ◽  
Small Scale ◽  
Behavioral Factors ◽  
Access To Credit ◽  
The One ◽  
The Relationship

This chapter uses the relationship between behavioral factors and the creditworthiness of small-scale enterprises to increase access of SMEs to credit facilities. The inability of several small businesses to secure loans cannot be overemphasized. Heuristics affecting entrepreneurs are explained in this chapter, and a regression model showing the dependence of creditworthiness on behavioral factors is proposed. If banks consider using psychometric tools in testing for creditworthiness of small-scale entrepreneurs, access to credit facilities will be significantly increased and businesses will flourish. Regressesion models such as the one explained in this chapter may be imbedded in psychometric tools to enhance creditworthiness testing and improve the quality of loans that banks give.

Microfinance, entrepreneurship and institutional quality

2020 ◽  
Vol 9 (1) ◽  
pp. 137-148
Author(s):  
Malavika Nair ◽  
Martha Njolomole
Keyword(s):  
Economic Growth ◽  
Private Property ◽  
Institutional Quality ◽  
Empirical Literature ◽  
Small Scale ◽  
Microfinance Institutions ◽  
Content Type ◽  
Private Property Rights ◽  
Access To Credit ◽  
Institutional Failure

Purpose The purpose of this paper is to consider the success and failure of microfinance institutions in generating economic growth over the past 30 years and propose a dual criterion of evaluation. Design/methodology/approach It surveys the empirical literature on microfinance and finds that while there has been small and localized success in various countries in improving access to credit, at the same time there has been a broader failure to generate economic growth. The authors argue that this broader failure should be viewed from the viewpoint of institutional failure or the lack of supporting institutions such as private property rights and stable rule of law within developing countries. Findings Using Baumol’s (1968) theory of entrepreneurship, the authors argue that the broader failure of microfinance is a case of poor institutional quality leading to unproductive or even destructive entrepreneurship rather than productive entrepreneurship. The paper also suggests a link between the literature criticizing foreign aid and this view on microfinance. Originality/value The paper provides a survey of the empirical literature on micro finance as well as a novel framework that aids in understanding both the localized small-scale success as well as broader failure to generate economic growth.

scholarly journals Factors Determining the Credit Accessibility by the Small-Scale Entrepreneurs: A Case of Handloom Weaving in Bangladesh

2020 ◽  
Vol 15 (8) ◽  
pp. 93
Author(s):  
Mst Tania Parvin ◽  
Kanij Fatema ◽  
Sadika Haque
Keyword(s):  
Financial Services ◽  
Work Experience ◽  
Sampling Technique ◽  
Farm Size ◽  
Primary Data ◽  
Small Scale ◽  
Microfinance Institutions ◽  
Institutional Perspective ◽  
Credit Access ◽  
Access To Credit

This study examines the determinants of access to credit by the handloom weavers in Bangladesh. Using the multistage sampling technique, the primary data for the analysis were collected from 311 randomly selected handloom weavers from Sirajganj district of Bangladesh during July to December 2015. The data are analyzed by using the Logit model. The model identifies several individual, household, community, and institution-specific factors as the significant determinants of credit access. Among them, family size, farm size, work experience, saving and the flexibility in the terms and conditions of loan use increase the probability of credit access by the handloom weavers whereas the risk aversion attitude and the distance between the Microfinance Institutions (MFIs) from the commune reduce such possibility. Therefore, this study suggests that respondents should utilize the joint effort of the available family members in this labor-intensive business while undertaking rational decisions enhanced through the skills and capabilities acquired over the years. They should maintain a sufficient amount of saving to prove them eligible in repaying their credit. From the institutional perspective, it is suggested that the MFIs should provide adequate financial and non-financial services to its clientele as per their needs. Borrowers’ easy accessibility to the institutions should also be ensured. In doing so, they should open up more branches in the villages so that the door to door services are available to the borrowers. It is expected that these recommendations will help in improving the credit access by the handloom weavers in Bangladesh.

The Effects of Behavioral Factors on the Creditworthiness of Small-Scale Enterprises

2021 ◽  
pp. 362-376
Author(s):  
Dmitry Shevchenko ◽  
Ellah Igoche Godwin
Keyword(s):  
Regression Model ◽  
Small Businesses ◽  
Small Scale ◽  
Behavioral Factors ◽  
Access To Credit ◽  
The One ◽  
The Relationship

This chapter uses the relationship between behavioral factors and the creditworthiness of small-scale enterprises to increase access of SMEs to credit facilities. The inability of several small businesses to secure loans cannot be overemphasized. Heuristics affecting entrepreneurs are explained in this chapter, and a regression model showing the dependence of creditworthiness on behavioral factors is proposed. If banks consider using psychometric tools in testing for creditworthiness of small-scale entrepreneurs, access to credit facilities will be significantly increased and businesses will flourish. Regressesion models such as the one explained in this chapter may be imbedded in psychometric tools to enhance creditworthiness testing and improve the quality of loans that banks give.

scholarly journals Factors Effecting The Elasticity Of Micro Credit Demand In Southern Punjab, Pakistan

2019 ◽  
Vol 1 (2) ◽  
pp. 46-53 ◽  
Author(s):  
Shazma Razzaq ◽  
Nadeem Maqbool ◽  
Waseem Ul Hameed
Keyword(s):  
Future Research ◽  
Poor People ◽  
Microfinance Institutions ◽  
Poverty Level ◽  
Access To Credit ◽  
Credit Demand ◽  
The Interest Rate ◽  
Conceptual Study ◽  
The Relationship ◽  
Research Studies

Purpose of the study: Microfinance institutions (MFIs) are delivering various services of microcredit, savings as well as insurance. The key objective of microcredit is to decrease the poverty level and for empowering the women as well as other poor people under various developing countries. There is the various factor which effects on the demand of microcredit. Therefore, the objective of the current study is to explore the factors which affect the demand for microcredit. Methodology: In this conceptual study, the qualitative research technique was used. The data were collected from previous research studies and companies’ websites. Main Findings: It is concluded that numerous factors may influence the demand for microcredit by the various borrowers. These comprise the interest rate, the relationship between lenders as well as borrowers, different government policies, gender differences, prospective beneficiaries, the creditworthiness of the borrower, transaction cost, limited access to credit, economic condition and the availability of information. Applications: This helps analyze the barriers which the borrower and lender must face in operating the microcredit. In this way, microfinance institutions can take help from this study by considering these factors during the distribution of credit. Novelty/Originality: The findings of this research study fulfilled the theoretical gaps in the literature by identifying the different fact which may help to revise the poverty level. Future research studies may focus on these factors, which may help to increase the economy and reduce poverty in southern Punjab, Pakistan.

The Role of Mobile Money in Moderating Financial Exclusion: A Tanzanian Experience

2020 ◽  
Vol 2 ◽  
pp. 1-24 ◽  
Author(s):  
Deogratius Joseph Mhella
Keyword(s):  
Developing Countries ◽  
Financial Institutions ◽  
Banking Sector ◽  
Research Question ◽  
Microfinance Institutions ◽  
Mobile Money ◽  
Access To Credit ◽  
Financial Exclusion

Prior to the advent of mobile money, the banking sector in most of the developing countries excluded certain segments of the population. The excluded populations were deemed as a risk to the banking sector. The banking sector did not work with cash stripped and the financially disenfranchised people. Financial exclusion persisted to incredibly higher levels. Those excluded did not have: bank accounts, savings in financial institutions, access to credit, loan and insurance services. The advent of mobile money moderated the very factors of financial exclusion that the banks failed to resolve. This paper explains how mobile money moderates the factors of financial exclusion that the banks and microfinance institutions have always failed to moderate. The paper seeks to answer the following research question: 'How has mobile money moderated the factors of financial exclusion that other financial institutions failed to resolve between 1960 and 2008? Tanzania has been chosen as a case study to show how mobile has succeeded in moderating financial exclusion in the period after 2008.

scholarly journals Maternal toxoplasmosis and the risk of childhood autism: serological and molecular small-scale studies

2021 ◽  
Vol 21 (1) ◽  
Author(s):  
Jamila S. Al Malki ◽  
Nahed Ahmed Hussien ◽  
Fuad Al Malki
Keyword(s):  
Neurodevelopmental Disorders ◽  
Repetitive Behavior ◽  
Saudi Arabian ◽  
Childhood Autism ◽  
Small Scale ◽  
Autistic Children ◽  
High Prevalence ◽  
Life Threatening ◽  
The Relationship ◽  
Delayed Language Development

Abstract Background Toxoplasmosis resulting from infection with the Toxoplasma parasite has become an endemic disease worldwide. Recently, a few studies have reported a high prevalence of Toxoplasmosis infections among Saudi Arabian women. This disease could become life threatening for pregnant women and for immunodeficient people. There is evidence that infections during pregnancy, especially in the early stages, are associated with neurodevelopmental disorders. Autism disorder represents one of the most common neurodevelopmental disorders worldwide; it is associated with delayed language development, weak communication interaction, and repetitive behavior. The relationship between prenatal toxoplasmosis and autism in childhood remains unclear. The present study aims to report a link between maternal toxoplasmosis and autistic offspring among Saudi Arabian women. Method Blood samples (36 maternal, 36 from their non-autistic children, and 36 from their autistic children) were collected for serological and molecular evaluation. Results A toxoplasmosis infection was reported for 33.34% of participants using an ELISA assay (5.56% IgG+/IgM+, 11.11% IgG−/IgM+, and 16.67% IgG+/IgM-); however, a nested PCR assay targeting B1 toxoplasmosis specific genes recorded positive tests for 80.56% of the samples. In addition, the present study detected several points of mutation of mtDNA including NADH dehydrogenase (ND1, ND4) and Cyt B genes and the nDNA pyruvate kinase (PK) gene for autistic children infected with toxoplasmosis. Conclusion Considering previous assumptions, we suggest that a maternal toxoplasmosis infection could have a role in the development of childhood autism linked to mtDNA and nDNA impairment.

scholarly journals Institutional quality and the capital structure of microfinance institutions: the moderating role of board gender diversity

2021 ◽  
pp. 1-21
Author(s):  
Michael Adusei ◽  
Beatrice Sarpong-Danquah
Keyword(s):  
Capital Structure ◽  
Institutional Environment ◽  
Gender Diversity ◽  
Institutional Quality ◽  
Microfinance Institutions ◽  
Female Representation ◽  
Long Run ◽  
Board Gender Diversity ◽  
The Relationship

Abstract We test the effect of institutional quality on capital structure in the microfinance setting. In doing this, we rely on data from 532 microfinance institutions (MFIs) located in 73 countries dotted across the six microfinance regions in the world. We observe that institutional quality exhibits a robust negative and statistically significant relationship with capital structure in both the short and long run, implying that MFIs in countries with a better institutional environment are less likely to utilize more debt. Our moderation analysis furnishes us with evidence that the presence of women on the board of an MFI significantly moderates the relationship between institutional quality and its capital structure. We show that in the presence of more female representation on the boards of MFIs, the tendency of MFIs using less debt is higher.

scholarly journals Competition and microfinance institutions’ performance: evidence from India

2020 ◽  
Vol 5 (1) ◽  
Author(s):  
Hailu Abebe Wondirad
Keyword(s):  
Empirical Analysis ◽  
Significant Relationship ◽  
Competitive Market ◽  
Microfinance Institutions ◽  
Self Sufficiency ◽  
Using Data ◽  
The Relationship ◽  
The Empirical Analysis

Abstract This paper empirically examines whether competition (measured by using the new measure of competition, the Boone Indicator) moderates the relationship between Microfinance Institutions’ (MFIs) social and financial performances using data from 183 Indian MFIs over the period 2005–2014. The findings indicate that MFIs’ social and financial performances have a positive significant relationship. Moreover, the form of the relationship is both lead-lag and cotemporal. The Indian microfinance market was very competitive over the period 2005–2014. The empirical findings show that competition positively moderates the relationship between MFIs’ social and financial performances. More precisely, the empirical analysis provides evidence that the association between MFIs’ depth of outreach and operational self-sufficiency is conditional upon competition. These results suggest that in a competitive market, the more MFI deepen their depth of outreach, the higher contribution it has to their operational self-sufficiency.

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