Microfinance, entrepreneurship and institutional quality

Nair, Malavika; Njolomole, Martha

doi:10.1108/jepp-07-2019-0061

Cited by 16 publications

(9 citation statements)

References 43 publications

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“…In sum, the quality of governance is a key factor for successful entrepreneurial activity (Nair & Njolomole, 2020). Kaufmann and Kraay (2007) argue that the quality of governance is a kind of “ease of doing business” indicator, which is related to the rule of law, political stability, the absence of violence, and accountability.…”

Section: Institutional Entrepreneurshipmentioning

confidence: 99%

Quality of Governance and Welfare Generosity as Institutional Predictors of Entrepreneurship: European Perspective

Gawel,

Toikko

2023

Sage Open

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The aim of this article is to examine whether the cross-country and gender variations of entrepreneurship can be explained within the institutional framework. The study addresses normative forces to which entrepreneurs are expected to adapt within European welfare states. The normative forces are focused on norm-based factors of governmental quality and value-based factors of governmental generosity, which are both hypothesized to be associated with entrepreneurship at the level of society and furthermore from the gender perspective. To verify our hypotheses, the research was conducted among 28 European countries in the years 2012 to 2018. We adopted the macro-level of analysis and undertook panel data analysis (PDA). We estimated the econometric models with entrepreneurship rates as dependent variables and those with norm-based and value-based factors as independent variables. The results confirm that norm-based factors are associated with entrepreneurship and there are significant differences in the responses of female and male entrepreneurial activities to the quality of government. However, we did not find supporting evidence for the statistically significant impact of governmental generosity on entrepreneurship. The novelty of our research is in implementing institutional theory into the discussion on entrepreneurship from the welfare state perspective, by introducing the concept of norm-based and value-based factors which reflect the quality and generosity of the government. We also distinguish between the impact of governmental quality and generosity on entrepreneurship from the gender perspective to contribute to the discussion on the gender gap in entrepreneurship.

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Section: Institutional Entrepreneurshipmentioning

confidence: 99%

Quality of Governance and Welfare Generosity as Institutional Predictors of Entrepreneurship: European Perspective

Gawel,

Toikko

2023

Sage Open

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“…However, existing studies have not expanded the discussion in this direction. Therefore, future researchers should look into these failures of micro-finance using institutional economics as an analytical framework to gain valuable insights (Nair and Njolomole, 2020). Moreover, future studies could also focus on how new financing options, such as peer-to-peer lending, crowdfunding, private and public venture capital, can alter the nature of entrepreneurship and halt the cycle of poverty. Performance of MFIs is the main concern of the articles in third cluster.…”

Section: Current Research Problems and Proposed Research Directionsmentioning

confidence: 99%

“…Micro-finance is seen as an effective means of reducing poverty in the policy and academic environment through the invention of small-size loans and encouraging entrepreneurship among the poor (Nair and Njolomole, 2020). Furthermore, depending on the notion that capital is the driving factor of growth, micro-finance is developed as a way of transferring funds to underdeveloped nations to promote the growth of small-scale entrepreneurship (Nair and Njolomole, 2020).…”

Section: Introductionmentioning

confidence: 99%

“…Compared to direct financing or subsidies, government support for the MSMEs sector through micro-financing can be significantly more effective (Basto et al, 2020). However, despite the significant expansions in many nations, micro-finance still needs to gain wide success (Nair and Njolomole, 2020). Contracts that call for early repayment deter illiquid risky investment and therefore limit the potential influence of micro-finance on micro-enterprise growth and poverty (Field et al, 2013).…”

Section: Introductionmentioning

confidence: 99%

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A bibliometric study on the role of micro-finance services in micro, small and medium enterprises

Gora,

Dhingra,

Yadav

2023

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Purpose Micro-finance has a significant role in the better performance of micro, small and medium enterprises (MSMEs). This study aims to provide a comprehensive picture of the existing literature on the role of micro-finance and its approaches in MSMEs. Design/methodology/approach This work performs a bibliometric analysis using a data set of 631 articles collected from the Scopus database. The Bibliometrix R package and Vosviewer are used to conduct performance analysis and scientific mapping. Performance analysis shows the publication trend, key authors, journals and top influential articles. Science mapping through a bibliographic coupling network of documents is prepared to discover the intellectual structure of the field. Findings This review has identified the four major themes: access to finance and schemes, women empowerment and poverty alleviation, the performance of micro-finance institutions and recent development in micro-financial institutions. With the help of these research themes, the paper also highlights future research agendas. Originality/value This paper enriches the understanding of the role of micro-finance services in performance of entrepreneurship with the bibliometric review of top contributors.

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“…Hence, it is important to empower women entrepreneurs with access to economic growth and development resources to reduce extreme poverty and the consequences on women (Alshammari & Daud, 2019). The empowerment of women refers to the allocation of capital, generation of income, independence and financially contributing towards family and societal wellbeing (Nair & Njolomole, 2020). Financial empowerment will generate and increase income, increase self-esteem, and the respect shown for women (Prabhu & Elayaraja, 2015).…”

Section: Introductionmentioning

confidence: 99%

The Effect of Microfinance Bank Services on Women Empowerment: The case for Women Entrepreneurs in Irbid, Jordan (SMEs)

Alshammari

Daud

2021

JEB

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Generally, women, entrepreneurs face problems in accessing funding due to factors that stem from cultural values, ??societal needs, family ties, illiteracy, gender discrimination, strict government policies, economic crisis, and the lack of training in entrepreneurship and skills acquisition that hinders entrepreneurial activities. This study was conducted to examine the impact of microfinance bank services in empowering female entrepreneurship in Irbid Governorate. The study used a cross-sectional survey research design consisting of 20,000 registered businesswomen. A total of 392 working women were selected using stratified sampling technique and the data was analysed using Least Square Structural Equation Modelling (PLS-SEM) with the help of SmartPLS3 software. The results showed that microfinance loans, microfinance savings, and financial interventions or donations had a significant, positive impact on empowering women's businesses in Irbid, Jordan. The study concluded that microfinance deposits could elevate women’s income and act as a guarantee to obtain loans and other microfinance services. Consequently, microfinance institutions (MFIs) should empower more women-owned businesses. In addition, the government through the Central Bank of Jordan should reduce the interest rate of microfinance banks to attract more female entrepreneurs and create more microfinance bank plans and financial intervention packages to enhance financial services to ensure donations and funds reach women entrepreneurs.

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Microfinance, entrepreneurship and institutional quality

Cited by 16 publications

References 43 publications

Quality of Governance and Welfare Generosity as Institutional Predictors of Entrepreneurship: European Perspective

Quality of Governance and Welfare Generosity as Institutional Predictors of Entrepreneurship: European Perspective

A bibliometric study on the role of micro-finance services in micro, small and medium enterprises

The Effect of Microfinance Bank Services on Women Empowerment: The case for Women Entrepreneurs in Irbid, Jordan (SMEs)

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