Home⇛Business Research Journal⇛vol. 6 no. 1 (2020)

Effects of Microfinance Institution Products on Financial Performance of Small And Medium Enterprises

Jesusa B. Sunga | Aleighsa Sabyna Siscar | Romeo Mangahas

 

Abstract:

This thesis explores the impact of microfinance institution products on the financial performance of small and medium enterprises (SMEs). Conducted in Caloocan City, Metro Manila, the study focuses on UPLIFT Philippines clients and utilizes a quantitative descriptive research method. The research instrument includes sections on microcredit, microsavings, micro-training, and microinsurance, with a high overall instrument reliability. Data was gathered through Google forms and telecommunication due to the COVID-19 pandemic. Sampling techniques involved simple random and convenience sampling. The findings shed light on the significant role of microfinance services in enhancing the financial sustainability of SMEs. The study contributes valuable insights to the field of financial management, particularly in the context of SMEs and microfinance institutions.



References:

  1. Acquaah, M. (2007). Managerial Social Capital, Strategic Orientation and Organizational Performance in an Emerging Economy. Strategic Management Journal 28(12) pp.1235-1255
  2. Ahmad, Y., Pirzada M.D. and Khan, M.T. (2013). Strategic Orientation of Small to Medium Scale Manufacturing Firms in Developing Country: A Case of Auto parts Manufacturing Small and Medium Enterprises (SMEs) in Pakistan. LifeScience Journal 10(3) pp. 517-527
  3. Ahmad, N.H. and Seet, P. (2009). Dissecting Behaviours Associated with Business Failure: A Qualitative Study of SME Owners in Malaysia and Australia. AsianSocial Science, 5, 98-103.
  4. Asian Development Bank (2011). Microfinance Development Strategy.        www.adb.org/documents/policies/microfinance/microfinance0200.asp?p=policieson28/08/11. 
  5. Atieno, O.P. (2009). An Analysis of the Strengths and Limitations of Qualitative and Quantitative Research Paradigms. Masinde Muliro University of Science andTechnology, Kenya, 13 pp. 13-18
  6. Babajide, A. (2012). Effects of Microfinance on Micro and Small Enterprises (MSEs) Growth in Nigeria, Asian Economic and Financial Review, Asian Economic andSocial Society, vol. 2(3), pages 463-477
  7. Beck, T. and Demirgüç-Kunt, A., 2006. Access to finance: An unfinished agenda. The World bank economic review, 22(3), pp.383-396.
  8. Carpenter, C. (2001). SME finance in Nigeria. A paper presented at a roundtable on Making Small Business Finance Profitable in Nigeria. Retrieved from http://www.ypforum.org/newsCarpente
  9. Cautero, R.M. (2019). Why Microfinancing is Important to Business. Retrieved       from https://www.thebalance.com/what-is-microfinance-and- how-does-it-work-4165939
  10. CIDA, (2001). Analysis of the effects of microfinance on poverty reduction. California:Pearson Ltd.
  11. Chowhury. M, Alam, A. & Arif, M. (2013). Success Factors of Entrepreneurs of Small andMedium Sized Enterprises: Evidence from Bangladesh.
  12. Cooper, N. (2012). The Impact of Microfinance Services on the Growth of Small and Medium Enterprises in Kenya. Unpublished MBA project, University of Nairobi.
  13. Department for Business and Skills (BIS) (2012). SME Access to External Finance, BISEconomics paper no. 16, London. Available
  14. Folefack, A. (2016). Factors influencing loan repayment by credit beneficiaries of microfinance institution in the far north region, Cameroon. Russian Journal of Agricultural and Socio-economic Sciences 51(3):44-51
  15. Global Entrepreneurial Monitor (2012). https://www.gemconsortium.org/report/gem-2012-global-report
  16. Heidhues, F. (2005). Rural Finance Markets-An Important Tool to Fight Poverty. Quarterly Journal of International Agriculture Vol.34 No.2, pp 105-108
  17. Karlan, D. & Jonathan, Z. (2009). Expanding Microenterprise Credit Access: World Bank Economic Development Institute. Washington DC.
  18. Kevane, M and Wydick, B. (2001). Microenterprise Lending to Female Entrepreneurs:Sacrifing Economic Growth for Poverty Alleviation. World Development 29(3)pp. 1225- 1236
  19. Ledgerwood, J. (1999). Microfinance Handbook. Sustainable Banking with the poor. Institutional and Financial Perspective: Published in USA, World Bank (IBRD). Manning, A. (2004). Strategic Management of Crises in Small and Medium Businesses. PhD thesis, Victoria University, Australia.
  20. Mukoma, K. & Masini, O. (2015). Effects of Microfinance Institutions’ Products on Financial Performance of Small and Medium Enterprises; A Case of Machakos Town, Kenya. Journal of Business and Management 17(4), 50- 57
  21. Mungai, E.S. (2006) A Management Research Project Report Submitted in Partial Fulfillment for the Requirements of the Degree of Masters of Business Administration (MBA), School Of Business, University Of Nairobi
  22. Murray, U. & Borros, R. (2002) A guide to gender sensitive microfinance. SEAGA, Socio-Economic and Gender Analysis Programme.
  23. Navajas, S. (2000). Microcredit and poorest of the poor: Theory and Evidence from Bolivia. World Development, Vol 28 No.2, pp 333-346
  24. Naz, F., Ijaz, F. and Naqvi, F. (2016). Financial Performance of Firms: Evidence fromPakistan Cement Industry.
  25. Journal of Teaching and Education, 5(1) pp. 81-94 Olukoha, A. and Reg, N. (2012). The Impact of Microfinance on EntrepreneurialDevelopment: A Case Study of Umuhaia Abia State
  26. Richard, P., Devinney, T., Yip, G. and Johnson, G. (2008). Measuring Organizational Performance: Towards Methodological Best Practice. Journal of Management 35(3) pp. 718-804
  27. Robinson, M. (2003).The microfinance revolution: Sustainable finance for the poor vol 1.Washington, D.C.: World Bank
  28. Rowley,T. D. Behrens and D. Krackhardt (2000). “Redundant governance structures: An analysis of structural and relational embeddedness in the steel and semiconductor industries”, Strategic Management Journal, 21, 369-386
  29. Spinelli, S. and Adams, R. (2012). The Entrepreneurial Mind: Crafting a Personal Entrepreneurial Strategy. New Venture Creation Entrepreneurship for the 21stCentury 10 Edition
  30. Schreiner, M. and Colombet, H.H. (2001). From Urban to Rural: Lessons for Microfinance from Argentina. Development Policy Review, 19(3) pp. 339-354
  31. Sanya, O. and Polly M. (2017). The impact of   microfinance on microenterprises. Investment and financial innovations. 14 (3), 82
  32. Sooryamoorthy, R. “Microfinance and Women in Kerala: Is Marital Status a Determinant in Savings and Credit-Use?” Sociological Bulletin, vol. 54, no. 1, 2005, pp. 59–76. JSTOR, www.jstor.org/stable/23620585. Accessed 5 Oct. 2020.
  33. Vallabh, D. & Mhlanga, O. (2014). Influence of demographic factors on business performance in small to medium tourism enterprise. African Journal of Hospitality and Leisure 4(42)
  34. Venkatraman, N. and Ramanujam, V. (1986). Measurement of Business Performance in Strategy Research: A Comparison of Approaches. Academy of Management Review, 11, 801-814.
  35. Westover, J. (2008). The Record of Microfinance: The Effectiveness/Ineffectiveness of Microfinance Programs as a Means of Alleviating Poverty. Electronic Journal ofSociology
  36. World Bank (2015). Small and Medium Enterprises (SMEs) Finance: The World BankKey Messages Bulletin, The World Bank, Washington, DC.
  37. Yogendrarajah, Rathiranee and Semasinghe, Dissanayake, Women Empowerment Through Micro-Credit — A Special Reference to Jaffna District (March 2013).
  38. Yunus, M. (1997). The Grameen Bank.in Reasons for Hope Kumarian Press, WestHartfordZahra, S. A., & Garvis, D.M. (2000). International corporate entrepreneurship and firm performance: The moderating effect of international environmentalhostility. Journal of Business Venturing, 15(5), 469-492. https://doi.org/10.1016/S0883-9026(99)00036-1

Tools


Copyright © 2025  KITE Digital Educational Solutions |  Exclusively distributed by CE-Logic