Borrowers satisfaction evaluation from Microfinance institution by Using FCEM

Boundless researchers have made efforts to assess the impact of Microfinance on poverty reduction both positively and negatively, but the perception of borrowers about the effectiveness of Microfinance has not been yet found. This study adopts the Fuzzy Comprehensive Evaluation Method (FCEM) in conjunction with the Analytical Hierarchy Process (AHP) to evaluate the level of satisfaction of borrowers with the products and services of microfinance institutions at different criterion levels. The goal is to assess the level of satisfaction for each criterion level under the degree of satisfaction of the borrower about the product and services provided by Microfinance Institution (MFI). Findings show that the claim of MFI was false because study evidence makes it clear that borrowers are not satisfied with the product and services of MFI. In addition to the literature, this study also highlighted the weakness of the MFI product and services. Thus, both the government and the MFIs can improve their performance and change their policies for the welfare of the borrowers.

THE IMPACT OF MICROFINANCE SUPPORT ON THE DEVELOPMENT OF MANUFACTURING SMEs OPERATING IN WINDHOEK, NAMIBIA

Over the years, the superlative contribution of SMEs on economic growth predominantly in emerging states such as Namibia has been gaining considerable prestige at a rapid rate. However, deficient access to cost-effective financial adequacy remains a leading stumbling block that denies them the opportunity to survive in a competitive market, grow and develop above the average. That being true, the rate of SMEs’ failure continues to escalate precisely among those that are in their early stage of operation. To curb that specific issue, microfinance institutions (MFIs) intervene to provide dual supports through the delivery of financial and non-financial services. Access to such support helps SMEs to reduce their financial constraints, resulting in sound and viable development for businesses. In this respect, the central objective of this study was to investigate the impact of microfinance acquisition on SMEs’ development with reference to the manufacturing firms in Windhoek, Namibia. Evenly relevant, the study sought to further assess the effect of acquired microfinance support on competitiveness and finally devise suitable strategies that MFIs could adopt or adapt to improve the provision of microfinance services to penurious SMEs. The study employed a pragmatistic paradigm. Therefore, mixed research methods constituting both quantitative and qualitative approaches were utilised to successfully attain the threefold objectives of the study. 60 questionnaires were disseminated through emails to the sampled SMEs for data collection where only 44, accounted for 73% were considered for further analysis. Regarding financial support, the study assessed the matter based on technology enhancement, assets capital accumulation, job creation, business’ branches extension, and product development and expansion. Similarly, assessment on non-financial support was focused on managerial and leadership skills, as well as unblemished financial management. To test the nexus between microfinance support and SMEs’ development, multiple regression analysis was employed at 5% level of significance. Findings presented by the study revealed a positive strong relationship between the variables. More to that, the correlation between microfinance support and SMEs’ competitiveness was tested using correlation coefficient analysis and results found the variable to be statistically correlated. To this end, the study affirms that there exists a significant positive impact of microfinance support on SMEs’ development and competitiveness, implying that healthy and ample microfinance institutions are immensely essential to provide the required support lucratively, using the most satisfying strategies for a mutual benefit of the involved parties. Therefore, three strategies for improving the provision of microfinance support, constituting Public Credit Guarantee Schemes (PCGS); compensation of interest rate with the repayment period; and the provision of tools and equipment were designed. Also, the study recommended government intervention in formulating policies necessary for easing collateral requirements. More, MFIs are also advised to find ways for fastening their evaluation processes and give feedback on approval or disapproval of the application soon. They should also allow potential SMEs to borrow multiple times in a year or increase the principal amount. Finally, the study suggested future studies to focus on the role of the government in addressing SMEs’ financial constraints and use a longitudinal approach with a predominant focus on other sectors.

Analysis of the Performance of Microfinance Institutions in Sub-Saharan Africa

This chapter examines the performance of microfinance institutions in Sub-Saharan Africa through observations from different perspectives. It examined the effects of microfinance institutions in Sub-Saharan Africa. Relevant literature on the sustainability and outreach of microfinance institutions are also analysed in this chapter. Sub-Saharan Africa's future achievement of necessary economic growth is very likely to depend partly on its ability to develop its economic and financial sectors to be more inclusive of small and medium enterprises in a more comprehensive way. Currently, microfinance directly promotes the development of the intermediate financial sector in Africa, which is positively correlated with economic growth. Despite the worsening of the current industrial crisis, microfinance is seen as an essential developmental tool and continues to grow in Sub-Saharan Africa.

Making Women Pay

In Making Women Pay, Smitha Radhakrishnan explores India's microfinance industry, which in the past two decades has come to saturate the everyday lives of women in the name of state-led efforts to promote financial inclusion and women's empowerment. Despite this favorable language, Radhakrishnan argues, microfinance in India does not provide a market-oriented development intervention, even though it may appear to help women borrowers. Rather, this commercial industry seeks to extract the maximum value from its customers through exploitative relationships that benefit especially class-privileged men. Through ethnography, interviews, and historical analysis, Radhakrishnan demonstrates how the unpaid and underpaid labor of marginalized women borrowers ensures both profitability and symbolic legitimacy for microfinance institutions, their employees, and their leaders. In doing so, she centralizes gender in the study of microfinance, reveals why most microfinance programs target women, and explores the exploitative implications of this targeting.

Human Resource Management in Indian Microfinance Institutions

Over the years, microfinance has assumed a great importance all over the world. The reason behind the increasing importance of microfinance in poverty alleviation is considered a prime objective in all developing and underdeveloped countries. Traditionally, MFIs did not have a defined HR policy or structure, since the size of the organization was always very small. The last few years have seen an upswing in the size of the organizations and also in the margins generated by MFIs. The purpose of this chapter is to analyze the human resource management issues and challenges faced in microfinance industry in India.