Challenges of 21st Century Micro-Credit Firms: Debt Recovery and Clients Attitude to Repayment (Published)
The dual-faced challenge of micro financing has become worrisome among key players in the sector; while microcredit firms are faced with issues relating to debt recovery resulting from clients’ poor attitude towards repayment, clients are faced with the challenge of managing the credit. This study is however aimed at evaluating how firm skill is and structure can enhance debt recovery as well as establish the extent to which attitudinal disposition affect credit repayment by clients. It employed a survey of 40 credit officers drawn from 10 selected micro credit firms in Abeokuta metropolis who were purposively selected as well as random selection of 300 clients who obtain microcredit from the microcredit firms. The questionnaires were adapted from ASPIC Adjusted debt attitude survey and John Watson Materialism and Debt constructs. The analytical technique is multiple regressions. Research findings reveal that skills and structure have a direct effect on debt recovery and attitude disposition of client has a direct effect on credit repayment. It is therefore recommended that microcredit firms should investigate and monitor what the micro credit is meant for and if possible help the borrower in procuring the items/goods the credit is meant for as well as provide useful guide to borrowers on better ways to turnover proceeds from loan instead of diverting the loan
Citation: Salako, Mudashiru Abiodun; Ogundipe, Kayode Samuel; Oni, Kazeem Adebisi and Babalola, Bola Taiwo (2022) Challenges of 21st Century Micro-Credit Firms: Debt Recovery and Clients Attitude to Repayment, European Journal of Business and Innovation Research, Vol.10, No.5, pp.,25-36
The Role of Micro Insurance on Poverty Reduction: A Study of Insurance Companies in Ghana (Published)
Purpose- The purpose of this paper to investigate, explore and assess the role of Micro-insurance in poverty reduction Design/ methodology/approach- This paper is a qualitative analysis based on three case studies. Non-probability sampling techniques are used for choosing the unit of analysis which resulted in 4 firms (4 managers). Also, data were collected via a questionnaire and an in-depth interview. Findings- The study identified that Micro-insurance provides financial support to the poor in the event of a disaster, social protection against disasters and shocks, savings, employment, and as well as enhances asset accumulation among clients. The study found that the lack of innovative micro-insurance product, inadequate distribution channels, the lack of supportive micro-insurance legal framework, uncompetitive pricing of micro-insurance products, low government support in micro-insurance programs, low-income levels of respondents, the religious or cultural factors influence the demand of insurance products and low public trust are the factors that affect the demand of micro-insurance products. Also, the study found that the development of innovative products, establishing processes that build trust in clients, instituting efficient service delivery channels, documentation should be simplified and the government should support micro-insurance products are the ways to increase patronage of micro-insurance products.Research limitations- the sample size is still limited and in the future, a quantitative analysis should be used. The study is limited in terms of geographical area. The findings of the study are more likely to hold for another Sub-Saharan context. However, the applicability of these findings to other contexts needs further investigation. Originality/value- while interest in micro-insurance is increasing in emerging markets, there is little known and written on micro-insurance. Therefore, the role of micro-insurance has not been explored so far.
Women’s empowerment has become a global affair in the contemporary discourse for the developing countries. This paper examined the impact of microcredit schemes on women’s empowerment in rural Bangladesh. The data was collected from 324 rural women borrowers on a field study from four villages in the district of Tangail, Bangladesh through the administration of questionnaires. This research was conducted during the period of July to December 2016. Data was also collected from women non-borrowers to compare the impact between borrowers and control-group. Data has been analyzed by SPSS software and also Logistic Regression is used to estimate the impact of empowerment of women after participating in microcredit program. A significant outcome of this research showed that microcredit has a positive impact on women’s empowerment and promotes microcredit borrowers women to participate in the household decision-making process through acquiring the self-esteem, business skills and confidence level.
SOCIO-ECONOMIC DETERMINANTS OF ERITREA’S SAVINGS AND MICRO CREDIT PROGRAM LOAN REPAYMENT PERFORMANCE: A CASE OF THE DEKEMHARE SUZ-ZONE (Published)
The Savings and Micro Credit Program of Eritrea was established to provide financial services to the poor and lower income individuals to enhance their business activities and alleviate poverty level. The study analyzed the socio-economic factors that affect the institution’s loan repayment performance and a sample of 140 beneficiaries was fixed from the Dekemhare Sub-Zone using the Stratified Sampling technique. A structured questionnaire was used to collect the primary data and descriptive statistics and the probit model were employed to analyze the data. Results of the regression analysis revealed that the level of education, loan amount and loan category have insignificant effect on the probability of the SMCP loan repayment. On the other hand age, gender, type of business and credit experience are significant determinants where age and type of business have negative relationship and gender and credit experience have positive relationship with the loan repayment probability
Microcredit And Poverty Alleviation: Strategy For Women’s’ Economic Empowerment In Hududullah Microcredit Company Limited, Birnin Kebbi (Review Completed - Accepted)
Considerable concern has emerged on micro credit and poverty alleviation programmes; little has been explored with respect to microcredit and women empowerment. This paper examines the strategy for women’s empowerment by Hududullah Microcredit Company in Birnin Kebbi, with the view to ascertain the level of poverty reduction on women that are participating in the programme. A sample of 100 women were randomly were selected from a population of 500 women. Primary data was collected using interview method in other to avoid dialect and illiteracy problems. Collected data was analysed using frequencies and percentages on a tabular form. The findings reveal among others that loan was accessible to the women productively utilized by them and raised their level of economic self employment and reliance. Also repayments were successful