Effects of Membership Homogeneity on the Performance of Agricultural Micro-Credit Groups in Rural Credit Markets, Nigeria

Mkpado, M.; Idu, M.A.; Arene, C.J.

doi:10.3923/pjssci.2010.304.317

Cited by 8 publications

(8 citation statements)

References 6 publications

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“…The provision of microcredit services improves the latent capacity of the poor for entrepreneurship thus enabling their increased selfreliance, increasing their capacity to create more employment opportunities and ultimately enhancing household income and creating wealth (Allen, Demirguc-Kunt, Klapper and Martinez-Peria, 2012). However, several authors (Ghatak, 1999;Soren, 2002;Campbell, 2006;Eyo, Otu and Sampson, 2008;Mkpado, Idu and Arene, 2010; indicate that financial institutions in recent years have preferred to disburse credit to micro entrepreneurs in groups to solve the menace of low repayments rates and high transaction costs. This is particularly true of the Nigerian financial market and micro entrepreneurs in the agricultural sector.…”

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confidence: 99%

Determinants of loan repayment among agricultural microcredit finance group members in Delta state, Nigeria

Solomon

Eyo

Ajah³

2017

Financ Innov

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Background: This study examined the determinants of loan repayment among microcredit finance group members in Delta State, Nigeria. Methods: To capture the determinants of loan repayment in the study area, a total of 48 microcredit groups and 300 microcredit group members were randomly selected through a multi-stage random sampling technique. The study data was collected by questionnaire. Statistical tools such as simple descriptive statistics (table, frequency, percentage and mean) and a multiple regression analysis were used to examine the data. Results: The results indicate that females form a greater proportion of the study area microcredit group members at 70%, moreover 73% of the respondents have a household size of between 6 to 10 persons. These findings revealed that the groups had a mean 8 years of existence with a mean membership size of 13 persons. Further, an average interest rate of 40 percent per annum was charged on loans, with mean loan duration of 6 months. The regression's result demonstrated that the determinants of the group member's loan repayment included the group member's age, household size, house income, and educational level, the amount of credit received, length of stay in their locality, distance to the credit source, supervision and disbursement lag. Conclusion: Therefore it was suggested that the various agricultural microcredit finance groups should carefully examine the significant determinants of loan repayment for the approach's viability and sustainability and for optimum repayment performance.

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confidence: 99%

Determinants of loan repayment among agricultural microcredit finance group members in Delta state, Nigeria

Solomon

Eyo

Ajah³

2017

Financ Innov

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“…The financial service includes small business loans to low-income clients, savings, insurance, mortgages, and retirement plans for those denied such services by traditional banking and financial institutions. Hence, saving is an integral part of development since it is responsible for securing the income that can also be pumped back into the business or it can be used to secure a loan Mkpado and Arene (2007) stated the need for savings for the protection of income and at the same time to use for securing loans and re-investment in the business. A study by Minniti and Naude (2010) wanted to understand why many women-owned SMEs had failed to reduce reliance on external sources despite receiving financial and other assistance from various donors.…”

Section: Influence Of Savings On the Growth Of Women Entrepreneurial ...mentioning

confidence: 99%

“…Moreover, the study found that the majority of the respondents (58.3%) revealed that poor management is a strong challenge for microfinance services in providing loans to micro-entrepreneurs. Further, Mkpado and Arene (2007) indicated that savings as a microfinance factor enable people with few assets to save because they can make weekly savings and contribute to group savings. Microfinance institutions mobilize such savings for further lending to other clients.…”

Section: Influence Of Savings On the Growth Of Women Entrepreneurial ...mentioning

confidence: 99%

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The role of microfinance institutions on women’s entrepreneurship development

Abebe

Kegne

2023

J Innov Entrep

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This study investigates the role of microfinance services on women's entrepreneurship development in Assosa town. The study employed both descriptive and explanatory designs and a quantitative research approach. The study targeted 352 women clients of Assosa Woreda Microfinance Institution, and 165 samples were selected using a simple random sampling technique. The data were collected through a questionnaire and analyzed through the statistical package for social science (SPSS) 26 software. The findings from the descriptive mean analysis indicate that the microfinance institution financial and non-financial services offered were found unable to significantly empower disadvantaged and poor women by improving their livelihood and development of their business. The correlation result also indicated a positive and significant association between saving practice, access to credit, skill development training, and the development of women entrepreneurs. Finally, the regression result saving and the credit or loan services of the microfinance institution service have the most decisive influence on women's entrepreneurship development.

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“…Regarding the factors behind the hindrance of rural economic growth Shah (2001) and Michael (2000) have highlighted unemployment, scarcity of portable and needful agricultural water, wasteful man-hours during search of needful water. Mkpado, Arene and Idu (2010), had highlighted the importance of education in growth of rural community. Konyebagu (2010), discussed that the Federal Government of Nigeria has had a framework for water and water sector development but problems arise because of continuity.…”

Section: Water Poverty and Rural -Urban Migration In Nigeria: An Overmentioning

confidence: 99%

How Local Empowerment and Environmental Management Project Impacted Control on Rural – Urban Migration in South-East Nigeria with Rural Agricultural Water Delivery Support

N¹,

O²,

Arene³

2020

ijird

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In the orientation of rural-urban migration (drift), Nigerian policy on rural-urban migration shows that integration of natural resource management in rural development has significant contribution to make. Removal of dryseason water stress with water micro-project support for a greater number of rural communities and their young people who eke their living from agricultural productivity can solve the problem of rural-urban migration to a great extent. Water delivery support of Local Empowerment and Employment Management Project (LEEMP) was chosen by many communities in Southeastern Nigeria as their public good project. Rural man-hours/-days, in water stressed communities, are usually heavily affected by the dry season water stress significantly (Okwor, 2001). Even poultry and fishery also suffer a lot due to seasonal water scarcity. Many youths had shifted to urban from rural setting due to this unhealthy, unproductive environmental challenge due to the associated off-season employment opportunities with its poverty threat. If proper investments can be done in water delivery it can improve rural credit worthiness, rural credit facilities, education enhancement, communication facility, health facilities. LEEMP initially started with 3 local government areas in each LEEMP participating state of Nigerian federation but increased to 18 in 2006, and with only participating southeastern states as Enugu and Imo. The basic mechanism of Community Driven Development (CDD) strategy was adopted by LEEMP (Afatyo, 2005). Community and Social Development Project (CSDP) is the current operational name for LEEMP from March,2009. As an objective LEEMP uses IDA funds to finance micro-project supports for rural communities that chose investments in water delivery. It is predictable that a communal borehole venture would obtain N6.5 million worth of support from LEEMP (Eze, 2005). On entry activities, LEEMP started intervening with micro-project support in states such as Adamawa,

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Effects of Membership Homogeneity on the Performance of Agricultural Micro-Credit Groups in Rural Credit Markets, Nigeria

Cited by 8 publications

References 6 publications

Determinants of loan repayment among agricultural microcredit finance group members in Delta state, Nigeria

Determinants of loan repayment among agricultural microcredit finance group members in Delta state, Nigeria

The role of microfinance institutions on women’s entrepreneurship development

How Local Empowerment and Environmental Management Project Impacted Control on Rural – Urban Migration in South-East Nigeria with Rural Agricultural Water Delivery Support

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