Microfinance Institutions as a Vehicle for Poverty Eradication in Developing Countries: Evidence from the East African Community Member States

Dushime, Joseph; Nakalembe, Immaculate; Makuei, Yar; Kwitonda, Albert; Hakizimana, Samuel; Muathe, Stephen M. A.

doi:10.19044/esj.2022.v18n22p207

Cited by 4 publications

(4 citation statements)

References 14 publications

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“…Secondary data were collected from 168 MFIs in five Asian countries which include Cambodia, Indonesia, Malaysia, Philippines, and Thailand from 2011 to 2017 due to majority of these countries among developing countries with higher access to MFIs (Dushime et al, 2022). The data for all determinants of MFIs used in the efficiency analysis were obtained from the World Bank Open Data Catalogue (https://databank.worldbank.org/source/mixmarket).…”

Section: Methodsmentioning

confidence: 99%

Financial Performance of Microfinance Institutions in ASEAN-5 Countries: An Application of Data Envelopment Analysis (DEA)

Che Bahrun,

Zainal,

Ratul Maknu

et al. 2023

IJARBSS

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Difficulties of commercial banks to serve the poor demonstrates their failure to supply the essential capital to the less fortunate sector in the society. Establishment of microfinance institutions (MFIs) with the distinctive characteristics of outreach to the poor and financial sustainability provides alternative tools for global poverty alleviation. Performance of MFIs is one of the most crucial aspects to assess in the effort to provide continuous financial services to the poor. The original objective of MFIs was to eradicate poverty as a social objective. However, the commercialization of MFIs in the 1990s led to their financial independence, as they had previously been funded by the government. Therefore, it is not appropriate to rely the performance of MFIs exclusively based on their social objective. They must align with the financial objective to ensure the long-term stability of MFIs in delivering financial products. This study seeks to determine the financial efficiency of MFIs in the ASEAN-5 countries. The sample is made up of data from 168 MFIs in Southeast Asia, which span five countries between 2011 and 2017. A nonparametric Data Envelopment Analysis (DEA) method is used to determine financial efficiency score. The study discovered the MFIs in the ASEAN-5 countries are financially efficient thus enable to maintain operations over the long term. The study concluded in order for MFIs in the ASEAN-5 countries to continue offering financial services to the poor over the long term, they must be financially stable.

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Section: Methodsmentioning

confidence: 99%

Financial Performance of Microfinance Institutions in ASEAN-5 Countries: An Application of Data Envelopment Analysis (DEA)

Che Bahrun,

Zainal,

Ratul Maknu

et al. 2023

IJARBSS

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“…Within the Kenyan context, access to finance through traditional banking and microfinance institutions is already difficult for entrepreneurs (Dushime J. et al, 2022). This is doubly difficult for refugees who are already disadvantaged from a documentary position (official identification documents) as well as credit worthiness with no assets to their names that can be offered as guarantee for any access to finance request.…”

Section: The Concept Of Refugee Entrepreneurshipmentioning

confidence: 99%

Refugee Entrepreneurship

Dushime

Muathe

2023

ijebd

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Purpose: This paper sought to examine the multifaceted term refugee entrepreneurship from a global level, to a more focused view of the Kenyan context. As such, the authors of this paper examined the general understanding of refugee entrepreneurship in Kenya, assessed the effect of talent displacement with regards to refugee entrepreneurship in Kenya and analyzed the effect of integration and social economic inclusion in relation to refugee entrepreneurship in Kenya. Design/methodology/approach: The paper utilized qualitative research where available secondary data on refugee entrepreneurship was analyzed. Findings: The study found that there appeared to be no clear-cut understanding of refugee entrepreneurship in the Kenyan context, no systematic approach to tackle talent displacement with regards to refugee entrepreneurship in Kenya, and there continued to be barriers to full integration and social economic inclusion with regards to refugee entrepreneurship in Kenya. Research limitations/implications: This study also noted that there is no current global solution to the issue of the ever-increasing number of internally displaced persons, asylum seekers or refugees. On the contrary, the year 2022 has seen an increase in civil strife around the world including; the Russia-Ukraine conflict, Tigray-Ethiopia war and the more than 20-year-old ongoing conflicts in Eastern Democratic Republic of Congo. Other conflicts of concern on the African continent include; South Sudan, Somalia, Mozambique and other West African nations, while Libya and other North African states have suffered similar civil strife. Despite these ongoing challenges, this study established that there are significant socio-economic contributions of refugee entrepreneurship to host communities. Practical implications: Consequently, the study recommended a more in-depth understanding of refugee entrepreneurship in the context of Kenya, nurture refugee talents and skills while enacting and enabling policies that foster integration and social economic inclusion with regards to refugee entrepreneurship in Kenya. The Government and people of Kenya stand to reap the benefits of refugee entrepreneurship, which in turn reduced refugee talent displacement and continued government handouts that have promoted dependency, rather than self-reliance. Refugee entrepreneurship, if well cultivated, is an avenue for adding to Kenya’s bread basket through taxation, employment and investment. Paper type: Research paper

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“…Most startup entrepreneurs are poor and require financing from other institutions. Microfinance institutions in Kenya require proof of the entrepreneur's credit worthiness before they can lend money to them (Dushime et al, 2022). This is very difficult to achieve.…”

Section: Access To Finance and Cost Of Doing Business For Entrepreneursmentioning

confidence: 99%

Financing Start-ups, the Need, Relevance, Facets and Constraints in Kenya Start-ups Ecosystem

Nakalembe¹,

Dushime²,

Makuei³

et al. 2023

IJARBSS

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On daily basis a number of startups are founded all over the world, including in Kenya. However, a few live to celebrate their first birthday. Therefore, this article delves into the financing need, relevance, facets and the constraints facing startups in Kenya. There is evidence that the global financial situation has adversely affected not only the establishment and continuation of enterprises but also innovative incapability to access finance from conventional financial systems. This study was based on desktop review where secondary data was analyzed to ascertain the misapprehension surrounding financing start-ups in Kenya. The findings indicated that there is need for various stakeholders in the startup space to come up with relevance innovative startup financing options to overcome the constraints they experience from the funds provided for the MSMEs and from other conventual financing systems in the country. With proper financing the government can tap on the start uniqueness and ability to scale within a short time and provide solution to the larger unemployment rate in the county.

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Microfinance Institutions as a Vehicle for Poverty Eradication in Developing Countries: Evidence from the East African Community Member States

Cited by 4 publications

References 14 publications

Financial Performance of Microfinance Institutions in ASEAN-5 Countries: An Application of Data Envelopment Analysis (DEA)

Financial Performance of Microfinance Institutions in ASEAN-5 Countries: An Application of Data Envelopment Analysis (DEA)

Refugee Entrepreneurship

Financing Start-ups, the Need, Relevance, Facets and Constraints in Kenya Start-ups Ecosystem

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