The role of microfinance in funding Small &amp; Medium Enterprises: Harekello Town of Goro Dolla District in Focus, Ethiopia

Hussen, Sufiyan; Wodajo, Mengesha Robso; Tasențe, Tănase

doi:10.47577/tssj.v17i1.2438

Cited by 3 publications

(4 citation statements)

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“…The findings above are agreed with the finding of [12] which examines the role of the Microfinance on funding of the Small and Medium Enterprises (SMEs) in Gorodola Harakallo town and the study found out that SMEs have played positive role in improving income, creation of employment and improving the quality of life of the participants of the enterprises in the study area. In addition, the study of Chukwuma [17] conducted empirical study on the impact of credit on small business financing in Florida.…”

Section: Empirical Findings Of the Studysupporting

confidence: 88%

“…Also, Sufiyan, Mengesha and Tasențe [12] come with empirical study which examines the role of the Microfinance on funding of the Small and Medium Enterprises (SMEs) in town. This study was exploring the role of microfinance institutions on small and medium enterprise as well as the extent to which the small business has benefited from the credits scheme of microfinance institution.…”

Section: Empirical Literature Reviewmentioning

confidence: 99%

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Impact of Loan Provided by BRAC Microfinance on SME’s Improvement in Zanzibar

Khamis¹,

Hamad²

2022

SJBM

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The main concern of this paper is to examine the impact of loan on the improvement of Small medium enterprises (SMEs) in Zanzibar. The study concentrated on amount of loan provided by BRAC and cost of charged by BRAC to SME's in Zanzibar. The study conducted in West "A" District-Unguja. The study has mainly employed quantitative research approach with appropriate method of analysis for this study. The sample size for this study consists of 112 SMEs members supported and registered by BRAC, and survey questionnaire was used as data collection instrument. To achieve a credible result for this study, a standard multiple regression was used to analyze and interprets the collected data from relevant respondents. The results revealed that two predictors (loan amount and cost of loan) had a significant effect or impact on the outcome variable (SME's improvement). In other words, the results of predictor variables show that; loan (β = 0.076, t = 1.977, p < 0.05), cost of loan (β = -0.900, t = -23.322, p < 0.05). The study concluded that the amount of loan received by loan beneficiaries are no affordable and not sufficient to meet the expectations of loan beneficiaries. Also, unfavorable loan fees payment slows down the SMEs operation. Finally, the study recommended that micro finance institutions should prepare the seminar and trainings to be given to the entrepreneurs on the loan management.

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Section: Empirical Findings Of the Studysupporting

confidence: 88%

Section: Empirical Literature Reviewmentioning

confidence: 99%

Impact of Loan Provided by BRAC Microfinance on SME’s Improvement in Zanzibar

Khamis¹,

Hamad²

2022

SJBM

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“…For poor people, these rates indulge them further into unmanageable financial debts. For this reason, Hussen, Wodajo and Tasente and Fanconi and Scheurle indicate that microfinance institutions bridge this capital gap and ensure the smallest unit of society are included in the financial systems [18,26].…”

Section: Helps Entrepreneurshipmentioning

confidence: 99%

Microfinancing and Microeconomics: Influence on Individual Lives

Samuel

2023

Eco Man Inf

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There is a growing concern over the need to ensure equity in the access to resources to promote economic development and well-being. However, scarcity of resources makes it difficult to produce or access products and services that satisfy individual needs. This paper identifies microfinancing and microeconomics as crucial drivers of effective resource allocation and distribution because they help individuals navigate economic challenges. In this regard, microfinancing ensures small businesses and poor entrepreneurs get credit and saving products by removing collateral restrictions. The loans match their business goals and visions. Microeconomics entails improving the production, distribution, and consumption of goods and services among the building blocks of the economy-wide phenomena – individuals or households and businesses. Through a review of various literature, this paper identifies four influences of microfinancing and microeconomics. First, they help individuals break from poverty by improving their access to basic needs. Second, microfinancing and microeconomics create the possibility of income streams by promoting financial inclusion. Third, the strategies encourage innovation by allowing individuals to establish businesses that solve their socio-economic challenges. Last, they cultivate entrepreneurship by providing simple, time-saving startup capital and other credit and saving products. The paper seeks to serve as a point exploring the role of microfinancing and microeconomics in the economic development of nations.

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“…As such, microcredit reduces to a certain extent the incentive for savings by functioning as a sort of consumer insurance, and incentivize urban residents to diverge their savings into consumption. Microcredit will in a sense alter urban resident consumption structure from savings-focused to consumption-focused [19].…”

Section: Analysis On the Increase Of Urban Resident Consumption By Mi...mentioning

confidence: 99%

Analysis of Enhancement of Consumer’s Consumption by Microcredit Regulations from the Perspective of Legal Economics

2021

IJFS

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As the Chinese economy continues its development, so develops the consumption level of its consumers. The expanding consumption demand creates a contradiction to the relatively invariable income level, increasingly leading to Chinese consumers to utilize microcredit to help pay for their short-term consumptions. Microcredit can influence the behavior of urban resident consumption, and by regulating microcredit, authorities can adjust and regulate the consumption habits and patterns. A well-regulated microcredit system that protects consumers can enhance economic growth and provide an overhaul to consumption structure through increased consumption. This Article focuses to analyze the enhancement of urban resident consumption by microcredit regulations from the perspective of legal economics, studies the impact of microcredit on urban resident consumption, the change in consumption patterns in a regulated microcredit system, and theorize the economic necessity of a regulated microcredit system. This Article utilizes Resident Consumption Function Theory to analyze the relationship between consumer's expected future income and current income, the result helps this Article understand the urban resident income status when taking microcredits. The growth of microcredit in China has increased significantly in recent years, from 12.4% a year in 2015 to 63.9% a year in 2020. With the rapid expansion of microcredit, so expands its proportion in the overall financial credit market, from 6.4% in 2015 to 16.3% in 2020, becoming increasingly an important influence of urban residence behavior and consumption pattern. By analyzing the yearly development of microcredit, this Article proposes that the microcredit market is growing in importance in the overall Chinese financial system, and a well-regulated microcredit system which protects urban residence is necessary for the future economic development of China.

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The role of microfinance in funding Small & Medium Enterprises: Harekello Town of Goro Dolla District in Focus, Ethiopia

Cited by 3 publications

References 0 publications

Impact of Loan Provided by BRAC Microfinance on SME’s Improvement in Zanzibar

Impact of Loan Provided by BRAC Microfinance on SME’s Improvement in Zanzibar

Microfinancing and Microeconomics: Influence on Individual Lives

Analysis of Enhancement of Consumer’s Consumption by Microcredit Regulations from the Perspective of Legal Economics

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