Conceptual Framework: The Role of Microfinance on the Wellbeing of Poor People Cases Studies from Malaysia and Yemen

Al-Shami, Sayed Samer Ali; Majid, Izaidin Abdul; Rashid, Nurulizwa; Hamid, Mohd Syaiful Rizal Bin Abdul

doi:10.5539/ass.v10n1p230

Cited by 51 publications

(57 citation statements)

References 38 publications

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“…One key informant had this to say out of the 5 total defaulters on my desk, only two are men. My findings contradicts to the findings of Mokhtar(2011), which found out that loan repayment problem was higher for males than for females, but it confirms Seyed, Majid, Nurulizwa, Mohd&Hamid (2013)and Krithie(2015 who also found that women were more likely to default on loan repayments thanmen.This default by women was associated with family responsibilities, family crisis and sickness of a family member. It comes out clearly from the key informants and the SME owners' responses that various reasons can lead to defaulting loans.…”

Section: Factors Influencing Loaned Linquencycontrasting

confidence: 90%

Dynamics of loan delinquency by SME owners in Uganda

Busingye¹

2019

ASSRJ

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The study mainly set out to investigate the factors that influence loan delinquency bySME owners in Uganda. SME ownersin Mbarara Municipality, South West Uganda provided conceptual setting of the study. This paper contributes to the body of knowledge by determining the local business context influencing loan delinquency among SME owners. The study fixated on thefactors that influence loan delinquency by SME owners in Uganda with focus on what SACCOs put into consideration in order to categorize an SME as suitable for micro-lending. The study engaged descriptive research design, where 20 questionnaires were administered to SME owners and detailed discussions of the questions conducted with 6 key informants in the SME sector. The study was grounded on David McClelland’s Acquired Needs theory and the Rational Choice theory in helping to understand the subject under investigation. The study further adopted Krejcie and Morgan's (1970) sample size determination methodology to select the respondents. Data was analysed using SPSS version 20, thematic and content analysis. The study findings show that majority of the respondents were male with secondary level of education, majority of the SME entities had been in operation for six years and above and their ability to manage loans was boosted by education, skills and experience. While the majority of the SME owners are accessing and utilizing loan services from the SACCOs, more than half of them have ever been in delinquency over their loan contract. The study recommends that the SME owners learn how to plough back their profits into their business, conduct sound business research so as to increase their operational capital and skills in order to expand and grow their projects. The study concluded that the SME industry is a fertile ground for investment for Uganda, SME owners, and SACCOs.

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Section: Factors Influencing Loaned Linquencycontrasting

confidence: 90%

Dynamics of loan delinquency by SME owners in Uganda

Busingye¹

2019

ASSRJ

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“…Robinson (2001) has stated that welfare enhancement is not only through credit but also includes corresponding services such as skills training. Past studies have recommended that microfinance services (training) can improve the socio-economic welfare (Karlan & Valdivia 2011;Al-Mamun & Mazumder 2015;Al-Shami et al 2014). Therefore, we hypothesise the following.…”

Section: Human Capital Theorymentioning

confidence: 91%

The Effects of Services by Microfinance Institutions on the Welfare of Urban Households in Malaysia

Loke¹,

Adebola²,

Ramasamy³

et al. 2020

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The primary aim of this paper is to investigate the impact of financial (microcredit and microinsurance) and nonfinancial services (training), services by microfinance on the welfare of their urban clients in Malaysia. We contribute to the existing literature by using income as a mediating variable in the analysis. Questionnaires were distributed to 400 respondents across three different urban areas in Malaysia in order to collect the relevant data for this study. We have adopted the quota sampling to collect the data. The results show that most of the services provided by the microfinance institutions including microcredit, micro insurance and training have assisted the urban households to earn more income and enhance their socioeconomic welfare. The recommendations arising from the results of this study are: 1) an environment that promotes cooperation between microfinance institutions and households should be enhanced and 2) well-diversified and dynamic microfinance programs and specific skills-building training programs should be created.

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“…As reported by recent works, the performance of Malaysian MFIs are significantly and positively linked to their clients' well-being, and better customer networks would lead to higher performing micro and small enterprises. Having such a positive relationship maximises clients' acquisition of assets and household income generation (Al-Shami, Majid, Rashid & Hamid, 2013). Hence, it is hypothesised that: H2: Customer capital (CC) is positively related to MFIs performance…”

Section: Customer Capitalmentioning

confidence: 99%

Does Intellectual Capital Explain the Financial Performance of Malaysia MFIs?

Hashim¹,

Alhabshi²,

Ishar³

2018

Soc. & Manage. Res. J.

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The performance of microfinance institutions (MFIs) is crucial for ensuringthe efficient utilisation of funds deposited into the microfinance programmeby donors, as well as for assisting regulators in monitoring the institutions.Assessing the performance of MFIs involves examining its developmenttowards accomplishing its goals. Therefore, MFIs need to ascertain thechallenges to maintain their sustainability and sustain their operations.Additionally, MFIs should focus on aspects such as intellectual capital(IC) to ensure future sustainability. The aim of this research is to examinehow IC dimensions, specifically, customers, structure, human, and socialcapital, influence MFIs performance. A cross-sectional survey design wasused to gather data from 145 managers (48% response rate) from MFIs inMalaysia. In order to determine the sample size of the study, a purposivesampling method was employed. The research model was analysed byusing Partial least square-structural equation (PLS-SEM). Subsequently,the research model was validated using Smart PLS 3.2.5 and the proposedstudy hypothesis. The findings confirm that structural capital and customercapital positively influence the performance of MFIs, except for social andhuman capital. The research model explains 67.6% of the substantial amountof variance in MFIs performance. This research theoretically contributesto the extension of resource-based view (RBV) and social capital theory inDoes Intellectual Capital Explain the FinancialPerformance of Malaysia MFIs?Maryam Jameelah Hashim1, Syed Musa Alhabshi1, Nor Irvoni Mohd Ishar21Islamic Banking and Finance, International Islamic University Malaysia2Faculty of Business & Management, Universiti Teknologi MARA, Puncak Alam,Selangor, MalaysiaE-mail: jamieniz@yahoo.com, syedmusa@iium.edu.my, irvoni@salam.uitm.edu.myReceived: 5 June 2018Accepted: 18 September 20182Social and Management Research Journalpredicting the sustainability of MFIs. All the factors of IC were confirmed toimprove the performance of MFIs. This study proposed several remarkablerecommendations for microfinance institutions which suggested that MFIs’managers should resolve their organisational issues promptly. Furthermore,they should portray sensible consideration for their institutions by takingcare of IC and encouraging the practice of recognising intangible assets,especially their employees’ expertise and capabilities.

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Conceptual Framework: The Role of Microfinance on the Wellbeing of Poor People Cases Studies from Malaysia and Yemen

Cited by 51 publications

References 38 publications

Dynamics of loan delinquency by SME owners in Uganda

Dynamics of loan delinquency by SME owners in Uganda

The Effects of Services by Microfinance Institutions on the Welfare of Urban Households in Malaysia

Does Intellectual Capital Explain the Financial Performance of Malaysia MFIs?

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