scholarly journals Does Micro-Credit Lending to Small Scale Enterprises Stimulate Economic Advancement in Nigeria? Evidence from ARDL Analysis

2021 ◽  
pp. 53-66
Author(s):  
Chuks Nwaogwugwu ◽  
John U. Ihendinihu
Keyword(s):  
Financial Services ◽  
Small Businesses ◽  
Financial Sector ◽  
Cointegration Analysis ◽  
Policy Framework ◽  
Small Scale ◽  
Microfinance Institutions ◽  
Economic Advancement ◽  
The Impact ◽  
Micro Credit

The microfinance institutions are evident tools for Small Scale Enterprises development due to the roles they perform in the economic advancement. Past studies have shown microfinance serves as a key player in the financial sector that has positively impacted in all works of life through the services it offers. This study is positioned to explore the case of Nigeria by examining the impact of micro-credit lending to Small Scale Enterprises on economic advancement in Nigeria over the period 1992–2019, using the autoregressive distributed lag approach to cointegration analysis. Controlling for the possible effects of crude oil price and trade openness on economic advancement in Nigeria, this study found the relationship between micro-credit lending to Small Scale Enterprises and economic advancement is negative and significant in the long‐run and positive but insignificant in the short‐run, thus, suggesting the weakness of financial intermediary sector in resource mobilization and allocation in Nigeria. The result, in general, illustrates the vulnerability of the financial sector in stimulating economic advancement by providing micro-credit for small businesses and the unbanked.  Hence, this study suggests a well‐articulated policy framework that will facilitate access to financial services.

scholarly journals Micro-credit for the Small Enterprises Development: A Case of Kaski District, Nepal

2021 ◽  
Vol 4 ◽  
pp. 27-38
Author(s):  
Deepesh Ranabhat ◽  
Bharat Ram Dhungana
Keyword(s):  
Service Industry ◽  
Sampling Technique ◽  
Primary Sources ◽  
Living Standard ◽  
Small Scale ◽  
Small Enterprises ◽  
Microfinance Institutions ◽  
Generation Expansion ◽  
The Impact ◽  
Micro Credit

The aim of this paper is to examine the impact of micro-credit on the small or micro-enterprises development with reference to Kaski district of Nepal. The descriptive and analytical research design is used and the research is based on the primary sources of data collected through structured questionnaires. During the study, the researchers selected 170 respondents, who were involved in the micro-credit programme in the last five or more years in the microfinance institutions, using the purposive sampling technique. The study finds that the majority of the clients are involved in agriculture and livestock and the rest are involved in the micro-business and enterprises related to service industry (such as tailoring, beauty parlor, hotel or restaurant), trade or business and small-scale manufacturing sectors. Micro-credit has a positive correlation with initial investment, revenue generation, employment generation, expansion of business and profit generation. The study also finds that micro-credit has encouraged clients to engage in the micro-business and enterprise development activities. The study recommends that it is necessary to adopt an effective utilization policy of micro-credit that may benefit both microfinance institutions for its sustainability and clients for their living standard improvement.

scholarly journals Evaluating the Impact of Microfinance at the Individual Level in Albania, Particularly in the Region of Vlora and Fier

2018 ◽  
Vol 1 (1) ◽  
pp. p143
Author(s):  
Oltiana Muharremi ◽  
Edlira Luҫi ◽  
Filloreta Madani ◽  
Erald Pelari
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Microfinance Institutions ◽  
Way Of Life ◽  
Individual Level ◽  
Right To Development ◽  
Micro Insurance ◽  
The Individual ◽  
The Impact ◽  
Micro Credit

Microfinance is defined as the provision of financial services such as micro-credit, micro savings, and micro insurance for individuals with low income. Although access to micro credit is seen as a right to have credit, it rather represents a right to development and economic initiatives that could change the borrower’s way of life. The purpose of this article is to examine the impact of microfinance loans in improving the living conditions of borrowers. This study is based on an empirical investigation of 384 structured questionnaires directed at microfinance institutions in the regions of Vlore and Fier, Albania.

The Impact of ‘Branchless Banking’ on Building Society Branch Networks

2001 ◽  
Vol 33 (8) ◽  
pp. 1371-1384 ◽  
Author(s):  
Richard Willis ◽  
J Neill Marshall ◽  
Ranald Richardson
Keyword(s):  
Financial Services ◽  
Financial Sector ◽  
Telephone Call ◽  
Current Phase ◽  
The Internet ◽  
Building Society ◽  
Call Centres ◽  
Complex Picture ◽  
Use Of The Internet ◽  
The Impact

The authors examine the impact of the remote delivery of financial services on the branch network of British building societies. The current phase of branch-network rationalisation in the financial sector in Europe and North America is argued in the academic literature to be the inevitable consequence of the growth of electronic and telemediated forms of delivery of financial services. In the British building society sector, despite some evidence of branch closure as the use of the Internet and telephone call centres in the delivery of financial services has grown, the picture that emerges is of a dynamic branch network that is responding to changing customer demands and new technological possibilities. Face-to-face advice and discussions between customers and trained ‘experts’ remain an important part of the mortgage transaction. In the savings market, where products have become more commodified, telephone call centres and, more recently, the Internet have become more prominent, but institutions still rely heavily on the branch network to deliver services. The authors suggest that, although there have been changes in the relative importance of different distribution channels as sources of business in the financial sector, it is wrong to view these changes in terms of a simple branch-versus-direct dichotomy. A more complex picture is presented, with most institutions adopting a multichannel approach to the delivery of financial services, and electronic forms of delivery of financial services being developed as an additional delivery channel alongside the branch.

scholarly journals A Study on the Sustainability of Microfinance Institutions in Serving the Low-Income Group in Malaysia

2021 ◽  
Vol 8 (Special Issue) ◽  
pp. 339-353
Author(s):  
Nur Harena Redzuan ◽  
Amir Abidin Bashir
Keyword(s):  
Low Income ◽  
Income Group ◽  
Small Scale ◽  
Microfinance Institutions ◽  
Poverty Eradication ◽  
The People ◽  
Start Up ◽  
Low Income Groups ◽  
The Government ◽  
The Impact

A microfinance scheme was introduced in Malaysia in the year 1987 as one of the alternatives to poverty eradication strategies in the country by the government. Since then, several institutions have created to carry out the agenda of providing small loans to the low-income group to start up their small-scale business to generate more sources of income to support their household consumption. However, for a certain reason, the people still do not find microfinance an important tool to uplift their economic positions. Most of the low-income groups are still unaware of this golden opportunity tailored for them. Besides, the sustainability of these subsidized microfinance systems implemented by Malaysia had not been appropriately studied. This study explores the attractiveness of the products offered by microfinance institutions and emphasizes the option that the participants must start utilizing the product. This research also explores microfinance facilities that contain conventional finance element which is prohibited in Islamic trade. The study also discusses the measures and actions taken by microfinance institutions in serving the low-income group in Malaysia. This paper employs a qualitative method through interviews and content analysis. The report, journal publications, and other related documents were also analyzed in achieving the objectives. The study provides the impact that it may pave the way to an indistinct understanding of how Islamic microfinance institutions sustain their operations.

Growth and Development of Small Business Through Microfinance Activities in Nepal

2020 ◽  
Vol 1 (1) ◽  
pp. 26-34
Author(s):  
Chandra Prasad Dhakal
Keyword(s):  
Small Business ◽  
Financial Services ◽  
Small Businesses ◽  
Growth And Development ◽  
Linear Regression Analysis ◽  
Multiple Linear Regression Analysis ◽  
Business Owners ◽  
Small Business Owners ◽  
Microfinance Institutions ◽  
Economic Activities

Small businesses play important role for economic development and stability. It develops access in financial services through enhancing economic activities. The study analyzes the growth and development of small businesses that enhance through the support of micro finance in Nepal. Descriptive and inferential were used to collected data and collected data were analyzed through using multiple linear regression analysis. Only 124 small business owners were selected for this study. The study helps to find out the growth of microfinance institutions (MFIs) and small businesses in emerging economy in Nepal. It also assists MFIs to assess the effectiveness of their services and help to efficient utilization of available resources in the economy of Nepal.

IMPACT OF MICROFINANCE ON POVERTY ALLEVIATION IN ONDO STATE, NIGERIA

2012 ◽  
Vol 02 (09) ◽  
pp. 31-37
Author(s):  
AKINLO Anthony Enisan ◽  
ONI Isaac Oluwafemi
Keyword(s):  
Poverty Alleviation ◽  
Small Scale ◽  
Significant Positive Effect ◽  
Access To Credit ◽  
Economic Opportunities ◽  
Ondo State ◽  
The Impact ◽  
Positive Effect ◽  
Micro Credit

The paper examines the impact of microfinance on poverty alleviation in Ondo State, Nigeria. The paper is based on a survey of 240 beneficiaries of microcredit loans in Ondo State. The results of the analysis show that most beneficiaries of micro credit loans are educated youth between the age brackets of 18 and 40 years. Many of the beneficiaries utilized their loans to procure durable equipment needed in their small scale enterprises. The results show that loan empowerment has a significant positive effect on beneficiaries’ welfare. Access to credit allowed the beneficiaries take advantage of economic opportunities by providing a fundamental basis for planning and expanding business activities.

Impact, Reaction, and Learning From Overcoming the COVID-19 Crisis

2021 ◽  
pp. 27-51
Author(s):  
Saptarshi Dhar ◽  
Tahira Farzana ◽  
Sabiha Saju Ibne Abedin
Keyword(s):  
Small Businesses ◽  
Small Scale ◽  
Business Sector ◽  
Qualitative Investigation ◽  
Subsequent Response ◽  
Service Areas ◽  
Food And Beverage ◽  
Response Measures ◽  
Key Driver ◽  
The Impact

The COVID-19 pandemic has created devastating consequences for all businesses globally, including the small businesses in Bangladesh. The small business sector in Bangladesh is a key driver of its economic growth and has been hit particularly hard by the pandemic due to its pre-existing vulnerabilities and lower resilience to crisis. This chapter investigates the impact of COVID-19 on small-scale businesses, their subsequent response measures, and learning experiences that have created a route to resilience. A qualitative investigation on six small-scale enterprises across manufacturing and service areas was included in the study. The cases covered fashion and clothing and organic food and beverage businesses. The findings of the study suggest that the impacts of the pandemic are primarily financial, operational and supply chain, and logistical in nature. The policymakers need to take urgent measures to ensure the sustainability of this sector amid the ongoing pandemic.

scholarly journals The impact of social media on the performance of microfinance institutions in developing countries: a quantitative approach

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmad Daowd ◽  
Muhammad Mustafa Kamal ◽  
Tillal Eldabi ◽  
Ruaa Hasan ◽  
Farouk Missi ◽  
...  
Keyword(s):  
Social Media ◽  
Developing Countries ◽  
Performance Indicators ◽  
Financial Services ◽  
Microfinance Institutions ◽  
Poverty Level ◽  
Content Type ◽  
Media Platform ◽  
Media Applications ◽  
The Impact

PurposeOver the last few decades, microfinance industry is argued to have played a constructive role in alleviating poverty level and providing the underprivileged with access to financial services. Statistics from the World Bank reveal that, currently, only 4% of the underprivileged have been served out of the 3 billion+ potential clients. Such results are due to several claims, particularly the operational and financial challenges faced by microfinance institutions (MFIs) in the constant flux inviting more attentions towards its performance. While explicit attention is given by many researchers towards mobile banking and information and communication technology (ICT) in improving the MFIs’ performance, the study on how social media, as a rapidly growing online phenomenon, can impact on the MFIs’ performance remains scarce. As such, this study aims to investigate this impact based on four dimensional performance indicators: efficiency, financial sustainability, portfolio quality and outreach.Design/methodology/approachA model is proposed and tested to ascertain the relationship between social media applications and organisational performance. In so doing, web-based questionnaires have been used to collect data from MFI employees in developing countries. Results reveal a significant influence of the social media over the MFIs’ performance, offering valuable insights into both researchers and practitioners in the domain of microfinance, as well as social media—conforming that the adoption of social media as marketing, advertising and communication tools may significantly improve the MFIs’ performance.FindingsThe results demonstrate that there is a positive and significant impact of social media use within microfinance on the key indicators of MFIs. They also show that the highest impact of social media usage within the microfinance is on the portfolio quality. In addition, it was found that marketing and advertising; communication and sales and distribution are the main areas where social media is able to support while social networking websites are the most popular platforms employed in MFIs.Originality/valueThis study adds to the existing literature few theoretical and practical aspects. First, this study developed a model for assessing the value of social media as a new phenomenon within this type of organisation. Second, it offers microfinance sponsors, managers and policy makers with a frame of reference to understand what social media platform can be deployed for each purpose. Third, with the identification of the main MFIs’ performance indicators, this research provided a reference of performance measurement guide for microfinance industry when assessing different technological employment.

Anti-money laundering – the need for intelligence

2017 ◽  
Vol 24 (3) ◽  
pp. 472-479 ◽  
Author(s):  
Richard John Lowe
Keyword(s):  
Money Laundering ◽  
Organized Crime ◽  
Financial Services ◽  
National Level ◽  
Financial Sector ◽  
International Standards ◽  
Policy Makers ◽  
Content Type ◽  
The Military ◽  
The Impact

Purpose The purpose of this paper is to highlight the need for predictive intelligence to support anti-money laundering programs in the financial sector. Design/methodology/approach The methodology adopted herein consists of a literature review on the use of intelligence in anti-money laundering, the sources of intelligence and information used in the financial sector, supported by experience gained from investigating and prosecuting money laundering cases, and the assistance provided to financial services companies. Findings Banks and other regulated services are required to meet international standards to deny services to criminals and terrorists, identify suspicious activity and report to the authorities. Regulated businesses have large operations which check customers against sources that confirm their identity or against lists of proscribed or suspected offenders at an individual or national level. Their controls tend to look backwards when other organisations that rely on intelligence, such as the military, value predictive, forward-looking intelligence. The penalties that banks and others face for failure in their controls are increasingly severe, as looking backwards and not forwards reduces the extent to which the controls meet their purpose of reducing the impact of organized crime and terrorism. Originality/value This paper serves as a useful guide to alert and educate anti-money laundering professionals, law enforcement and policy makers of the importance of predictive intelligence in countering organized crime and terrorism. It also considers whether lessons in intelligence handling from other areas can inform a debate on how intelligence can be developed to counter money laundering.

scholarly journals Impact Evaluation of Artisanal and Small-Scale Mining on Land Use Land Cover: Implication for Sustainable Mining Environment in Niger State, Nigeria

2021 ◽  
Author(s):  
H.M Liman ◽  
N.G Obaje ◽  
P. Nwaerema
Keyword(s):  
Land Use ◽  
Land Cover ◽  
Water Body ◽  
Policy Framework ◽  
Small Scale ◽  
Land Use Land Cover ◽  
Sustainable Mining ◽  
Mining Sites ◽  
Mining Environment ◽  
The Impact

This study evaluated the impact of artisanal and small-scale mining on land use land cover as it applies to sustainable mining environment in Niger State, Nigeria. Thus, thirteen different mining locations covering the three geo-political locations were geo-referenced. The satellite imagery of Landsat TM and EMT+ from Global Land Cover Facilities (GLCF) and Earth Explorer (EE) for tri-images (1994, 2004 and 2014) at 30m resolution was obtained to establish the changes that occurred over the study years. Landsat imageries were analyzed with the aid of computer-based GIS ILWIS 3.3. The imageries were classified into degraded land, settlement, vegetation and water body. Results showed that in 1994, 33.4% of the land use was degraded due to mining, settlement accounted for 3.7% and vegetation covered 59.2%. In 2004, 21.1% of the land was degraded, vegetation decreased from 59.2% in 1994 to 30.9% in 2004. In 2014, land degraded to 47.36%, settlement expanded to 16.06%, vegetation covered 24.22% and water body occupied 12.37% of the mining sites. Within the study period, mining sites increased from 30,000km2 (33%) to 48,000km2 (45%) indicating the severity of mining impact. Therefore, the government should develop strategic mining policy framework targeting a sustainable mining operation in Niger State. Keywords: Mining Effects, Artisanal mining, Environment, Land degradation, Niger State.

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