Funding of Micro Scale Enterprises: Is Cooperative Financing Helpful?

Ogunmuyiwa, Michael Segun; Aladegoroye, Oluwakemi; Abosede, Adebiyi Julius

doi:10.36997/ijuev2020.64.4.430

Cited by 3 publications

(3 citation statements)

References 1 publication

Supporting

Mentioning

Contrasting

Order By: Relevance

“…As the borrower increased loans from other sources the more the rate of defaulting the AFC loan. This finding conformed to observation by Oluwasanya [64] who reported logit results that showed that multiple borrowing, was statistically significant and had a marginal of 0.1092 meaning that with increase in the number of loan borrowings, default rate also increased.…”

Section: Description Of the Econometric Models On The Effect Of Borro...supporting

confidence: 91%

Effect of Borrower's Socio-Economic Profile on Agribusiness Loans Default Rate in Agricultural Finance Corporation, Mount Kenya Region

Miriti

Kingori

Mwirigi

2023

JEMT

View full text Add to dashboard Cite

Background: Agribusiness loans advanced by Agricultural Finance Corporation (AFC) in Mount Kenya Region have high default rate of 20.33% which compares unfavourably with 10% benchmark for all types of loans in Kenya. This is a challenge, given the strategic importance of agribusiness credit in mainstreaming livelihoods to alleviate poverty by offering occupational and professional opportunities. This study aimed at analysing effect of borrower’s socio-economic profile on AFC loan default rate in agricultural finance corporation, Mount Kenya Region. Methods: According to AFC records Mount Kenya region represents a branch network of 11 branches and a population of 3,002 agribusiness borrowers. Using a descriptive research design a sample of 300 borrowers was drawn from a combined list through systematic random sampling technique with an interval of ten. Primary data on borrower’s socio-economic profile was collected using a structured questionnaire. The data was analysed using Statistical Packages for Social Sciences (SPSS V.27) and Stata version. Using regression analysis, the effect of independent and dependent variable to predict default rate was estimated. ANOVA was performed to get the F-statistic so as to test for the adequacy of the regression model. The logit econometric model was used to specify the statistical relationship between the independent variable and AFC loan default. Results: Results of the study revealed that multiple borrowing and borrower-lender distance were significant at 5%. Farming experience, borrowing experience and off-farm income were significant at 10%, 5% and 1% levels of significance. Multiple borrowing and borrower-lender distance were found to have 5.5% and 0.8% associations with default rate, respectively. Conclusion: The findings show that to mitigate default, the borrower should avoid multiple borrowing and manage the friction of distance. The study is significant since it enlightens the credit stakeholders on collective efforts that are effective in addressing the problem of default. The study recommends government interventionist policy by facilitating uptake of agricultural insurance and subsidizing input costs. Borrowers are encouraged to embrace technology, team up as farming communities to look for markets and affordable inputs, adopt agricultural insurances and adhere to lending directives.

show abstract

Section: Description Of the Econometric Models On The Effect Of Borro...supporting

confidence: 91%

Effect of Borrower's Socio-Economic Profile on Agribusiness Loans Default Rate in Agricultural Finance Corporation, Mount Kenya Region

Miriti

Kingori

Mwirigi

2023

JEMT

View full text Add to dashboard Cite

show abstract

“…In emerging economies, SMEs have generated about 45% of total employment (OECD, 2017). Reinforcing the above statement, Ogunmuyiwa and Okunleye (2019) corroborated that small enterprises contributed about 70% of industrial employment and 50% of manufacturing output in Nigeria. This justifies the necessity for the exploration of SMEs in employment generation in particular and the development of the economy as a whole.…”

Section: Introductionmentioning

confidence: 68%

An econometric analysis of small‐ and medium‐scale enterprises and employment creation in Nigeria

et al. 2022

View full text Add to dashboard Cite

This study examined the relationship between small-medium enterprises and employment in Nigeria. Annual data extracted from the ILO, WDI and CBN databases from 1991 to 2019 was subjected to various econometric techniques. The summary of findings that erupted in this work is as follows. Commercial banks loans to SMEs stimulate a significant employment creation in Nigeria. SMEs jobs have a significant positive contribution to employment creation in the country. Steaming from the findings of this study, whenever these policymakers want to create employment, policy and programmes that drive the expansion of SMEs oriented jobs should be

show abstract

“…The number of micro-scale businesses in Batu City is greater than small-scale businesses, around 85% of businesses are small-scale. Micro-scale businesses are more dominant [48] due to lower capital, limited human resources, local economic environment, ease of licensing, and limited education and skills [49][50][51]. Therefore, the micro-scale business sector can support the global economy [52][53].…”

Section: Potato Chips Industry Profilementioning

confidence: 99%

Analysis of the Institutional Risk of The Halal Supply Chain in The Potato Chips Micro Scale using The SCOR Methods

Pujiastuti,

Asmaul Mustaniroh,

Sucipto

2024

IOP Conf. Ser.: Earth Environ. Sci.

View full text Add to dashboard Cite

The agropolitan city of Batu is ready to boost the number of Micro, Small, and Medium Enterprises (MSMEs) each year through its flagship product, potato chips. Throughout the supply chain, potato chips can change from halal to non-halal due to contamination by non-halal materials, production processes that do not comply with halal criteria (SJPH), and no separation of halal and non-halal products during storage and distribution. This research aims to illustrate institutional risks in the halal supply chain for the potato chip MSME cluster using the SCOR method. SSOP and GMP are added to strengthen the analysis. Key actors in the halal supply chain institution include suppliers, manufacturers, and retailers. The study identifies several risky activities that threaten the halal integrity of potato chip products. Using the SCOR method for risk mapping in the halal supply chain institution resulted in 69 risk events and 70 risk agents. The potential risks in the halal supply chain for potato chips occur mainly at the manufacturer level (70% of the total risk events). They are most prevalent in the production process variable. The majority of risk agents in micro-scale businesses are related to the implementation of PPH, SJPH, SSOP, and food safety.

show abstract

Funding of Micro Scale Enterprises: Is Cooperative Financing Helpful?

Cited by 3 publications

References 1 publication

Effect of Borrower's Socio-Economic Profile on Agribusiness Loans Default Rate in Agricultural Finance Corporation, Mount Kenya Region

Effect of Borrower's Socio-Economic Profile on Agribusiness Loans Default Rate in Agricultural Finance Corporation, Mount Kenya Region

An econometric analysis of small‐ and medium‐scale enterprises and employment creation in Nigeria

Analysis of the Institutional Risk of The Halal Supply Chain in The Potato Chips Micro Scale using The SCOR Methods

Contact Info

Product

Resources

About