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on Microfinance |
| By: | Lori Beaman; Dean Karlan; Bram Thuysbaert; Christopher Udry |
| Abstract: | We partnered with a micro‐lender in Mali to randomize credit offers at the village level. Then, in no- loan control villages, we gave cash grants to randomly selected households. These grants led to higher agricultural investments and profits, thus showing that liquidity constraints bind with respect to agricultural investment. In loan-villages, we gave grants to a random subset of farmers who (endogenously) did not borrow. These farmers have lower – in fact zero – marginal returns to the grants. Thus we find important heterogeneity in returns to investment and strong evidence that farmers with higher marginal returns to investment self-select into lending programs. |
| JEL: | D21 D92 O12 O16 Q12 Q14 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:20387&r=mfd |
| By: | Khadra Hassan Siddig; Mohamed Osman Hegazi |
| Abstract: | In this context, there is a need to assess the role of MFIs to the sustainable growth of women microenterprises, the promotion of entrepreneurship activities and reducing poverty in Sudan. These are therefore the objectives of this research, which in addition tries to investigate the level to which MFIs meet the financial needs of microenterprisesand to identify the MFIs’ challenges in serving microenterprises, taking the Khartoum State as a case. The study’s focus is on women with microenterprises or engaged in trading, production, and selling in the informal sector. Hence, the population of the study is the 104 thousand of the self-employed females in KS.350 respondents are selected and random sampling technique is applied considering location of project (market-based, home-based, and street sellers), locality (all KS localities, namely Omdorman, Karrari, Ombada, Khartoum, Jabalawlia, Bahri, Shargalneel) and type of activity (20 different activities are covered). Primary data are collected using a structured questionnaire and individual interviews held with female entrepreneurs in KS as well as by optical observation by visiting the respondents in their locations. Also to assess the performance of MFIs in Sudan,several MFIs are selected including the following: • Saving and Social Development Bank (SSDB) and Farmer Commercial Bank (FCB) as examples of banks providing microfinance; and • Youth Foundation for microfinance and the experience of “Amel” microfinance program, as examples of financial institution providing microfinance; Interviews were conducted with officials in these institutions and additional information was also obtainedfrom their reports.Secondary data are gathered from various sources including national surveys, censuses and previous studies. Both primary and secondary data are analysed using descriptive statistics and cross tabulation imbedded in Microsoft Excel. Major findings of the study show thatThe Central Bank of Sudan adopted the strategy of the microfinance and it opened an important path of social insurance, but the rate of the inflow of finance was less than the proposed rate of 12% of the inflow of finance, which was specified by the bank. It is also revealed thatthe reluctance of commercial banks to microfinance is due to the risks associated with microfinance and low returns. The findings of the survey reported that the lack of funds to finance investment or ongoing business operations is one of the main problems facing female entrepreneurs in Khartoum state. Results show that 63% of the women micro-entrepreneurs indicated that they didn’t take loans from banks or other financial institutions, while only 37% indicated that they took loans from banks or financial institutions. Nonetheless, all interviewees underlined their need for finance as a major constraint. Thosewho sought financial services from banks however are found to be satisfied and the majority confirmed that the funding helped them to succeed.Banks and funding institutions as well confirmed that, female entrepreneurs have succeeded in paying back their loans in due times with a repayment ratio of 74%among female entrepreneurs, which is considered high. |
| Keywords: | Sudan, Finance, Business cycles |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:006356:7133&r=mfd |
| By: | Asongu Simplice (Yaoundé/Cameroun) |
| Abstract: | The goal of this paper is to assess how knowledge economy (KE) plays out in financial sector competition. It suggests a practicable way to disentangle the effects of different components of KE on various financial sectors. The variables identified under the World Bank’s four knowledge economy index (KEI) are employed. An endogeneity robust panel instrumental variable fixed-effects estimation strategy is employed on data from 53 African countries for the period 1996-2010. The following findings are established. First, education and innovation in terms of scientific and technical publications broadly bear an inverse nexus with financial development. Second, the incidence of information and communication technologies is positive on all financial sectors but increases the non-formal sectors to the detriment of the formal sector. Third, economic incentives have positive implications for all sectors though the formal financial sector benefits most. Fourth, institutional regime is positive (negative) for the semi-formal (informal) financial sector. The findings contribute at the same time to the macroeconomic literature on measuring financial development and respond to the growing fields of informal sector importance, microfinance and mobile banking by means of KE promotion. Policy implications and future research directions are discussed. |
| Keywords: | Financial development; Knowledge Economy; Africa |
| JEL: | G21 O10 O34 P00 P48 |
| Date: | 2014–08 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:14/006&r=mfd |
| By: | Khadra Hassan Siddig; Mohamed Osman Hegazi |
| Abstract: | This study highlights the role of Sudanese women entrepreneur in changing their life style by running small-micro business activities; also the study investigates how small-micro business activities affect women’s empowerment. And what are the strategies can be stated to empower women and minimize the obstacles that face their business The study adopted the descriptive and analytical approaches making use of both secondary and primary data. The study’s focus is on women with microenterprises or engaged in trading, production, and selling in the informal sector. Hence, the population of the study is the 104 thousand of the self-employed females in KS.350 respondents are selected and random sampling technique is applied considering location of project (market-based, home-based, and street sellers), locality (all KS localities, namely Oumdorman, Karrari, Oumbada, Khartoum, Jabalawlia, Bahri, Shargalneel) and type of activity (20 different activities are covered). Primary data are collected using a structured questionnaire and individual interviewsheld with female entrepreneurs in KS as well as by optical observation by visiting the respondents in their locations. Collected data include (1) socioeconomic characteristics including age, marital status, education,family size and housing and place of residence; (2) project related data covering projecttype, activityandlocation; (3) entrepreneurial motivations, opinions, attitudes, perceptions and viewpoints; (4) information on familyincomeand assetsbeforeandafter the establishment of the project; (5) sources of funding; (6) marketing, competition and overall performance; and (7) problems and constrains. Secondary data are gathered from various sources including national surveys, censuses and previous studies. Both primary and secondary data are analysed using descriptive statistics and cross tabulation imbedded in Microsoft Excel software package. The main findings of this study revealed that participation of women in small-micro business activities helps in promoting women’s empowerment in both economic and social dimensions. Economic impact and economic empowerment on businesswomen evident in their ability to benefit from their small businesses and increased domestic income level, and creates independence in terms of having theirown income and control of income and ability to use their income contributing to householdpurchases and financingthe education of their children. This is confirmed as well by the findings that before the project only (16%) of the female entrepreneurs indicated that their Income covers the requirement of the family, while after the project (57%) of the respondent gave this response. And this confirms that the family income was increased and thus family conditions had improved due to the project. Also the female entrepreneurs own and manage their small businesses themselves,90% of the respondent reported that they have the ownership of the project, and they haven’t difficulties in the management of the project and it is a high percentage, and this mean that the female entrepreneurs is stronger enough to control over her resources. Economic empowerment also reveals in terms of taking loans from financial institutions and payment of the loan. The study result indicate that social impact on the female entrepreneurs was reflected in their ability to share with their husbands decisions and became more influence in the decision-making matters relating their household, their ability to make their decisions to contribute to children's education, health, the housing improvement, food consumption and savings, the majority of respondents reported that they are spending their own money on school fees and payments for health care expenses. Also the majority of the female entrepreneurs reported that they relied on themselves and became more self-esteem and confidence and became more participation through community and developing social networks, also most of the female entrepreneurs reported that they gained new skills and training and access to knowledge. |
| Keywords: | Sudan, Developing countries, Business cycles |
| Date: | 2014–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:ekd:006356:7147&r=mfd |