Microfinance institutions' website accessibility

Tadele, Haileslasie; Roberts, Helen; Whiting, Rosalind H.

doi:10.1016/j.pacfin.2016.10.003

Cited by 8 publications

(5 citation statements)

References 28 publications

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“…Raihan et al (2017) show, based on a static computable general equilibrium (CGE) model, that micro nance has had an impact on the gross domestic product (GDP) of Bangladesh through its channels, namely capital accumulation, productivity improvement, and the reallocation of capital and labour between different sectors. Tadele et al (2018) nd that the accessibility of MFIs' websites is closely related to larger MFI sizes, higher nancial leverage, and greater national economic development.…”

Section: The Diffusion Of Nancial Innovation and The Nancing Of Entre...mentioning

confidence: 98%

“…Recent literature focuses on the effects of ICT on informal micro and small businesses. The proliferation of mobile telephony in recent decades and the recent uptake of the Internet via mobile present new opportunities for modernisation in a segmented and unproductive informal sector (Tadele et al, 2018;Mushta & Bruneau, 2019). Aligned with optimistic authors, this article aims to highlight the various micro nance mechanisms through which ICT can enhance the nancing of entrepreneurial innovations in SSA economies.…”

Section: Digitalization and Economic Financingmentioning

confidence: 99%

“…Digitized nancial services do not always ensure increased nancing, particularly for women (Venkatraman & Reddy, 2021) and disadvantaged communities (Ozili, 2021;Kanungo & Gupta, 2021). Despite the existence of previous studies (Tadele et al, 2018;Mushta & Bruneau, 2019), they do not take a stance on the most appropriate funding habits or techniques for the creation of entrepreneurial innovations. They also do not collectively specify the conducive environmental conditions for digital infrastructures that drive these entrepreneurial innovations.…”

Section: Introductionmentioning

confidence: 99%

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Exploring the Impacts of Digitizing Financial Products and Services in Microfinance on Entrepreneurial Innovations in Sub-Saharan Africa

ARSENE

2024

Preprint

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This article seeks to explore the impacts of digitizing financial products and services in microfinance on entrepreneurial innovations. Utilising a recursive bivariate probit regression on panel data from 180 microfinance institutions in Sub-Saharan Africa spanning from 2019 to 2022, the primary findings are as follows: (i) a positive and significant influence of the digitization of microfinance products and services on the establishment and funding of startups; (ii) digitization stimulates the funding of the expansion of already established enterprises; (iii) these advantageous effects of digitization on entrepreneurial activities are more pronounced in urban areas than in rural areas; (iv) these digitization effects are more pronounced among men in comparison to women. Moreover, the digitization of microfinance products and services enhances startup funding by 27.35% more than the funding of the expansion of existing enterprises, by 25.36%. It is essential to augment financial innovations tailored to the needs of the clientele to nurture heightened entrepreneurial creativity. JEL codes : D 23, G19, M13, R51

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Section: The Diffusion Of Nancial Innovation and The Nancing Of Entre...mentioning

confidence: 98%

Section: Digitalization and Economic Financingmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Exploring the Impacts of Digitizing Financial Products and Services in Microfinance on Entrepreneurial Innovations in Sub-Saharan Africa

ARSENE

2024

Preprint

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“…Some studies have also confirmed that the financial sustainability of MFIs is influenced by macro-environmental factors, such as macro-economics, population, institutions, and information technique [2]. These factors, proposed in the recent literature [8,21,22,36,[45][46][47], are briefly listed in Table 3. e 1 − e 9 are accounting ratios, e 10 − e 15 are corporate governance factors.…”

Section: Criteriamentioning

confidence: 99%

Evaluating the Sustainability of Microfinance Institutions Considering Macro-Environmental Factors: A Cross-Country Study

Liu

2019

Sustainability

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Microfinance institutions (MFIs) have attracted great attention, due to their significant role in poverty reduction. Given the features of MFIs, this paper proposes a novel hybrid model of soft set theory, and an improved order preference by similarity to ideal solution (HMSIT) to evaluate the sustainability of MFIs, considering accounting ratios, corporate governance factors, and macro-environmental factors, from a cross-country perspective. This setting enables the examination of the role of macro-environmental factors in the sustainability of MFIs. For this purpose, soft set theory is adopted to select optimal criteria. An improved order preference by similarity to ideal solution method, in which the weight of each criterion is determined by soft set theory, is proposed to rank the sustainability of MFIs. This algorithm enables HMSIT to make full use of various types of information. The case study uses cross-country samples. Results indicate that macro-environmental factors are significant in evaluating the sustainability of MFIs from a cross-country perspective. Particularly, they can play a key role in distinguishing MFIs with low sustainability. The results also indicate that HMSIT has strong robustness. Ranked results, produced from the proposed HMSIT are reliable enough to provide some managerial suggestions for MFIs and help stakeholders make decisions.

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“…Entrepreneurs need to draw prospective investors' attention to substantive signals, but multiple other signals also compete for their attention (Drover et al, 2017). Larger MFIs and those with bank-type legal status exhibit greater financial service digitalization, such as by hosting websites that enable digital communication and connectivity between lenders and borrowers (Tadele et al, 2018) or mobile financial services (Dorfleitner et al, 2019). Such communication channels should establish stronger relationships with both borrowers and lenders.…”

Section: Mfi Digitalization In Noisy Signalling Environmentsmentioning

confidence: 99%

Third-party signals in crowdfunded microfinance: which microfinance institutions boost crowdfunding among refugee entrepreneurs?

et al. 2023

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Despite the relevance of crowdfunding as a financing tool for underrepresented entrepreneurs, prior research pays scant attention to the funding gap for refugee entrepreneurs. Using a composite framework that integrates both entrepreneurship research and signalling theory, the current study investigates how microfinance institutions (MFIs) and refugee entrepreneurs can deploy signals to pursue entrepreneurial opportunities on digital platforms. The results, based on refugee data pertaining to 5615 loans on Kiva during 2015–2018, reveal that when refugee loan campaigns are affiliated with an MFI that itself features lower default rates, achieves high profitability, adopts an entrepreneurial support orientation, operates transnationally and is digitally focused, the campaign achieves better crowdfunding performance outcomes than refugees campaigns affiliated with an MFI that lacks these features. These findings provide clear evidence that when MFIs offer reputational signals, visible to the crowd of lenders, it can increase entrepreneurial financing and democratize resource acquisition among financially excluded refugee entrepreneurs. Plain English Summary Can microfinance institutions boost crowdfunding among refugee entrepreneurs and their small businesses? Yes, they can. Third-party signals may support growth in alternative finance for #refugees. While research on entrepreneurship has largely targeted immigrant entrepreneurs, the refugee context has been neglected, namely how refugee entrepreneurs fund their economic activities. With signalling literature on new venture financing of entrepreneurship being greatly fragmented, we contribute to the understanding of how crowdfunding microfinance boost venture financing of refugees. We study the gain of legitimacy by refugee entrepreneurs displayed through reputational signals intertwined with the reputation of microfinance institutions (MFI). Our results reveal higher success in funding outcomes when the loan campaign is linked with microfinance institutions with lower loan default rates, higher profitability, driven by entrepreneurial support, operating internationally and with a digital presence, compared with MFI that lacks these features. Our work has relevant implications for underrepresented refugee entrepreneurs, crowdfunding actors, policymakers and scholars. Our findings indicate that the affiliation between refugees-microfinance institutions creates certain reputational signals which enhance entrepreneurial finance and shape conditions for societal integration in the host country. For crowdfunding platforms, we show that to develop an effective, self-perpetuating entrepreneurial ecosystem, they should work to build their reputation among lenders, by capitalizing on and making third-party signals more readily available. At the same time, they must conduct due diligence to assess and monitor MFIs’ behaviour. Policy makers are recommended to build up on this digital microfinance experience to enhance new venturing finance refugee programs. We, thus, extend prior findings about the importance of third-party affiliations by establishing a composite framework of third-party signals in the context of new venture financing for financially excluded communities, and refugees in particular. Accordingly, for scholars, we offer cross-disciplinary insights into which characteristics of intermediaries can facilitate links between the supply (crowd of lenders) and demand (refugee entrepreneurs) sides in prosocial crowdfunding.

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Microfinance institutions' website accessibility

Cited by 8 publications

References 28 publications

Exploring the Impacts of Digitizing Financial Products and Services in Microfinance on Entrepreneurial Innovations in Sub-Saharan Africa

Exploring the Impacts of Digitizing Financial Products and Services in Microfinance on Entrepreneurial Innovations in Sub-Saharan Africa

Evaluating the Sustainability of Microfinance Institutions Considering Macro-Environmental Factors: A Cross-Country Study

Third-party signals in crowdfunded microfinance: which microfinance institutions boost crowdfunding among refugee entrepreneurs?

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