MICROFINANCE INSTITUTIONS’ SUPPORT AND GROWTH OF SMALL AND MEDIUM ENTERPRISES

Abio Morris Geoffrey, Kalu Onwukwe Emenike

Abstract


This paper investigates the relationship between microfinance institutions’ (MFIs’) support and growth of small and medium size enterprises (SMEs) in Nimule, South Sudan. We use descriptive analysis, Pearson’s linear correlation coefficient (PLCC) analysis, and ordinary least square regression analysis to evaluate the responses obtained through questionnaires and interviews. The estimates of descriptive analysis show that majority of the respondents were females (53.7%); majority (33.7%) of the respondents had secondary education; and that the majority of respondents (46.3 %) have between 6-8 years experience. Results of the quantitative analysis using PLCC revealed that positive linear relationship exists between loan provision, savings account provision, managerial skills provision and growth of SMEs in Nimule, South Sudan. Similarly, results of the regression analysis indicate that loan provision, savings account provision, and managerial skills provision have positive and significant effect on SMEs growth in Nimule. These findings indicate, amongst others, that MFIs support contributes significantly to growth of SMEs in Nimule, South Sudan. The study recommends, among others, that MFIs should adopt Microfinance-group model as well as increase provision of non-financial services, such as managerial skills trainings, for SMEs.

Keywords: microfinance institutions, SMEs growth, correlation, South Sudan.


Full Text:

PDF

References


Amin, E.M., 2005. Social science research: Conception, methodology and analysis. Kampala: Makerere University of Printery

Awuah, S. B. and Addaney, M., 2016. The interactions between microfinance institutions and small and medium scale enterprises in the Sunyani municipality of Ghana. Asian Development Policy Review, 4(2). pp. 51-64.

Bank of South Sudan., 2013. Financial sector. South Sudan investment conference.

Clement, L. K., 2010. Socio-economic impact of microfinance in post conflict situation: A case of SUMI in Juba County Sudan. Unpublished Master Thesis submitted to University of Khartoum.

Drost, E. A., 2011. Validity and reliability in social science research. Education. Research and Perspective. 38(1), pp.105-123.

Duvendack, M., Palmer-Jones, R., Copestake, J.G., Hooper, L., Loke, Y. & Rao, N., 2011. What is the evidence of the impact of microfinance on the well-being of poor people? EPPI-Centre, Social Science Research Unit, Institute of Education, University of London, August.

Eissa, G. S., 2013. Microcredit as a strategy for poverty reduction: A case study of the Sudan. Journal of Modern Accounting and Auditing, 9(4), pp. 557-570.

International Finance Corporation, 2011. South Sudan. Telling Our Story, 5(1), pp.12-13.

Laetitia, M., Shukla, A. and Luvanda, A., 2015. Microfinance and business growth of women small and medium enterprises in Rwanda: A case of selected women small and medium enterprises in Kicukiro district. European Journal of Accounting, Auditing and Finance Research, 3(11), pp. 26-39.

Mohamed, H. A. and Al-Shaigi, R. S. M., 2017. The role of microfinance in reducing poverty rate in Sudan: A case study of saving & social development bank. International Journal of Science, Environment and Technology, 6(2), pp.1460 – 1475.

Mugenda, O.M. and Mugenda, A.G., 2003. Research methods: Quantitative and qualitative approaches. Nairobi Kenya: African Centre for Technology Studies

Mulungi, R. and Kwagala, M., 2015. Accessibility of microfinance savings services and its effect on business growth of small enterprises in Uganda: A case of pride microfinance branches and their small scale enterprise clients in Kampala. Research journali’s journal of management, 3(5), pp. 1-20.

Mungai, D. W., 2015. The effect of micro-finance services on the growth of small and medium enterprises in Kajiado County Nairobi. Unpublished Dissertation, School of Business, University of Nairobi

Mustafa, A. K.A. and Saat, M. M., 2012. Assessing performance and intervention of microfinance institutions: a case study in Sudan. Interdisciplinary Journal of Contemporary Research in Business, 4(5), pp. 401-418

Mutua, F.N., 2017. Effect of microfinance services on poverty reduction in Makueni County. Unpublished Master of Business Administration Thesis, South Eastern Kenya University.

Nahamya, K. W., Max, A., Omeke, M., Norman, T. and Moses, N., 2015. The impact of microfinance service delivery on the growth of SMEs in Uganda. International Journal of Economics, Commerce and Management, III(5), pp. 229-237.

Prah, S., 2016. Microfinance credit facilities and the growth of the small and medium scale enterprises in Cape Coast Metropolis of Ghana. International Journal of Economics, Commerce and Management, IV(12), pp. 719-745.

Yunus, M., 1999. Banker to the poor: microlending and the battle against world poverty. New York: Public Affairs.




DOI: https://doi.org/10.24002/kinerja.v22i1.1568

Refbacks

  • There are currently no refbacks.