Microfinance Market Diagnoses and Beneficiaries Impact - Case of Albania

Loca, Semiha

doi:10.5901/ajis.2014.v3n6p205

Cited by 1 publication

(2 citation statements)

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“…This finding is consistent with the result of the study by Loca and Kola (2013), which used qualitative and quantitative tools to show a positive relationship between entrepreneurial activities and lending practices in snowballing employee salaries, general employment level, and job creation, as well as the profit margin of enterprises in Albania. These are in line with the results of the current study showing that formal and informal credit are substantial determinants of profitability for enterprises in South-East Nigeria.…”

Section: Study Results Findings and Discussionsupporting

confidence: 91%

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Informal Sources of Microfinance and Profitability of Micro and Small Enterprises Clusters in South-East Nigeria

Amakom

Amagwu

2020

Business Perspectives and Research

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Micro and small enterprises (MSEs) have been found to be engines of growth, drivers of production, income generation, job creation, and tools for poverty reduction. The source of microfinance is important because at the center of every enterprise objective is profitability. MSEs in South-East Nigeria have not played these important roles effectively due to the challenges of access to finance and a host of other factors. The main thrust of this article is to evaluate the effectiveness of informal microfinance sources on the profitability of MSEs in Southeast Nigeria. The study employed a multistage sampling technique in cluster selection from three industrial cities and generated relevant data through questionnaires. A sample of 540 enterprises out of 1994 enterprises was selected across different clusters comprising enterprises under production, trade, and services in the three cities. Employing a regression technique, the study found that informal microfinance sources have impact on the profitability of MSEs. The study further found that enterprises patronized the informal source because of quick responses and personal relationship (social capital). The study recommends that microfinance policy framework and interventions should encourage official microfinance providers to have their location closer to the enterprise clusters with the appropriate regulatory guarantee for operators.

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Section: Study Results Findings and Discussionsupporting

confidence: 91%

“…Another study by Loca and Kola (2013) analyzed the extent to which microfinance services in Albania affected the activities of entrepreneurs, and if there are companies that benefited in their clusters. For the study to achieve its objective, it has to focus on impacts to different aspects of microfinance.…”

Section: Literature Reviewmentioning

confidence: 99%