nep-mfd 2019-10-28 papers

on Microfinance

Issue of 2019–10–28
two papers chosen by
Guadalupe Acra Ticona and Olivier Dagnelie, Université de Caen

THE EFFECT OF MICROFINANCE SERVICES ON THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES (SMEs) IN DAR-ES-SALAAM REGION, TANZANIA By Aniceth Kato Mpanju
The Effect of Personalized Feedback on Small Enterprises’ Finances in Uganda By Antonia Grohmann; Lukas Menkhoff; Helke Seitz

THE EFFECT OF MICROFINANCE SERVICES ON THE PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES (SMEs) IN DAR-ES-SALAAM REGION, TANZANIA

By:	Aniceth Kato Mpanju (Tanzania Institute of Accountancy)
Abstract:	The major purpose of this paper is to analyze the impact of microfinance services on SME?s performance in Dar-es-Salaam region, Tanzania. Using a sample of 350 SMEs, the study adopted a descriptive-correlation research design an econometric analysis using statistical package for social sciences (SPSS) version 24. The results show that microfinance services in the form of financial intermediation and enterprise development had to a large extent adequate to small and medium-sized entrepreneurs. Then from above analysis we may conclude that there existed a strong relationship between the extent of microfinance services and the performance of SMEs and that microfinance services influenced the performance of the SMEs in the Dar-es-Salaam region.
Keywords:	Microfinance services, SMEs, Microfinance institutions, Financial literacy and enterprise development
JEL:	G29
Date:	2019–10
URL:	https://d.repec.org/n?u=RePEc:sek:iacpro:9412214

The Effect of Personalized Feedback on Small Enterprises’ Finances in Uganda

By:	Antonia Grohmann; Lukas Menkhoff; Helke Seitz
Abstract:	This RCT examines the effect of a new style finance training during which participants are given personalized feedback on their financial business outcomes in addition to a “rules-of-thumb” training approach. We compare this to the effects of a “rules-of-thumb” training by itself and to a control group. Targeting about 500 small and micro entrepreneurs in Kampala, Uganda, we find that the personalized feedback training significantly improves outcomes at the six-months horizon. The index of primary outcomes increases by 0.258 SD units and overall savings improve by 0.257 SD units. Analyzing the feedbacks provided we find evidence that feedback works by increasing motivation, in line with “feedback-intervention-theory.”
Keywords:	Financial Training, Feedback, Small Business Growth, Economic Development
JEL:	O12 D22 O16 L26
Date:	2019
URL:	https://d.repec.org/n?u=RePEc:diw:diwwpp:dp1823

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