Microenterprise

Examines the causes and consequences of the 2010 microfinance crisis in Andhra Pradesh, India. Emphasises the need to situate the crisis within an agrarian setting marked by chronic indebtedness and vulnerability. Talks about the limits of microfinance as a solution to agrarian distress.

Par ailleurs, le fonctionnement en réseau fédéré insi, la mise en commun des ressources, la standardisation des opérations, la solidarité contractuelle, les stratégies des règles internes de En conclusion, des recommandations touchant les performances sociale et financière etla gouvernance ont logique de pérennisation institutionnelle.

This case has been written in order to provide a basis for class discussion. It is presented in three parts and could be run over several class meetings. In keeping with the OER [Open Educational Resources] approach, it could easily be re-versioned – for example, to provide the basis for an assignment.

The study investigated the challenges faced by Zimbabwean youth entrepreneurs in the multicurrency era. The objectives of the research were to: Determine what motivates youth entrepreneurship in Zimbabwe; identify the unique challenges faced by youth entrepreneurs across Zimbabwe’s provinces that are starting and running small businesses; recognize the contribution of the presently available Youth Development Funds and consider the specific financial service requirements and entrepreneurial support services required for youth-run enterprises to succeed. Focus groups of 15 respondents were conducted to gather data from 90 respondents in total. Cluster sampling alongside simple random technique was used for selection of candidates in each of six provinces. Data was also collected through interviewing the fund managers and analysed using descriptive statistics. Findings of the study showed that youth required a customized microfinance product offering for youth in business as a possible solution, as well as other ongoing enterprise support initiatives in the form of business and technical training, workspace, market linkages and a youth-friendly business operating environment.

Key words: Microfinance, entrepreneurship, youth, challenges, capacity building, support.

Suggesting a new socio-commercial approach for microfinance to increase social impact.

This paper analyzes the relationship between commercialization of MFIs, their decreasing portfolio quality, and the effect commercialization has had on borrowers, in the context of the microfinance crisis. It empirically tests ten developed hypotheses, using the Mix Market database.

The paper states that MFI focus on profitability has led to the return of moral hazard. MFIs have decreased their spending on personnel, increased the workload of loan officers, and loosened their relationship with clients. Strategic default has become more attractive as MFIs have increased their higher interest rates. Increasing competition has driven the spread of individual contracts and multiple borrowing. Conclusions include:

    Microfinance needs a new socio-commercial approach which focuses on clients, while retaining efficiency;
    This approach should include a culture of responsibility among MFI managers, staff, and investors;
    They will need to focus on client needs, design suitable products, and constantly evaluate social impact;
    MFIs will have to increase their spending on personnel to strengthen the client-lender relationship;
    Interest rates should be lowered to reduce moral hazard and to increase impact;
    This will help to decrease volatility, increase social performance, and make microfinance more attractive for social investors.

Formal micro enterprises (MEs) can be rationed by formal financial sector because of asymmetric information problems and informal MEs, because lacking registration, are excluded at its grassroots. Thus, formal and informal MEs may rely to informal intermediaries for financing. In this paper we analyze whether MEs, according to their size and registration, rely to informal financial sources because informal lenders could not suit larger MEs financial needs but those for the small ones only.
Through a sample of 400 MEs drawn in the city of Puebla (Mexico) during 2006, we found that informal MEs local size has a quadratic relationship with the likelihood of applying for a credit from relatives or friends, and moneylenders. Nonetheless, formal MEs size is weakly related to applying for informal loans resort but suggesting that credit for MEs may be scarce.

A survey in Kigali, Rwanda, suggests that mobiles are allowing microentrepreneurs to develop new business contacts. The results detail the impact of mobile ownership on the social networks of microentrepreneurs in lowteledensity areas, focusing on the evolving mix of business and personal calls made by users. The study differentiates between the contacts amplified through mobile ownership (friends and family ties) and those enabled by mobile ownership (new business ties). The article discusses applicability of the results to settings beyond Rwanda.

One of the main issues arising from our discussions is the challenge of developing learning experiences that are capable of meeting the needs of smaller enterprises. How can educational programmes help to address challenges such as translating informal sector enterprises on to a more formal basis, making smaller low-growth enterprises in the formal sector more resilient (i.e., encouraging innovation and diversification to pursue new opportunities or counter downturns), and creating new growth-oriented ventures? We drew on a wide-ranging supporting literature that included Bernard Obeng’s doctoral and post-doctoral research on business support in Ghana; Ahmed Ayapong’s recent (Paris) conference paper on resource-based perspectives on SME
development; research conducted by colleagues from the University of Ghana at Legon; Richard Blundel’s work on the growth of firms and networks; and recent work by entrepreneurial learning specialists. We also took into account Mamadou Dia’s (1996) examples of African enterprises that have successfully managed the growth process without abandoning traditional values:

'To varying degrees, these cases attest to the possibility of coming of age in the formal sector while resolutely clinging to, and indeed capitalizing on, hardy traditional values that have, through the years, been the vital cement holding together indigenous society.'

(Dia, 1996, p. 156, emphasis added)

In this project, we are acknowledging this insight as we consider the potential for combining traditional practices and more innovative learning approaches.

Abstract The paper describes a collection of initiatives delivering support via mobile phones to small enterprises, small farms, and the self-employed. Using a review of 26 examples of such services currently operational in Africa, the analysis identifies five functions of mobile livelihood services: Mediated Agricultural Extension, Market Information, Virtual Marketplaces, Financial Services, and Direct Livelihood Support.

Microcredit can be an effective tool for tackling the global poverty problem. Making microcredit work better for the poor necessitates a framework that integrates the principles of good governance in the design and implementation of a microcredit program.

In Jonathan Donner's study of Rwandan users, the mobile phone is an expensive and treasured item, used in the main by small individual businessmen and women, where it has the power to expand the horizons of their business and open up their workplace and work schedule, allowing them to organise their work effectively in a way previously unthinkable. In one case documented by Donner, a small restaurateur is able to develop, via the mobile phone, the kind of simple 'just-in-time' stock control management and delivery techniques that large corporations spend millions on IT systems and consultancy to replicate at their scale. At either end of the scale, the business impact of the technology is simple, and is experienced by both Donner's Rwandan restaurateur and large multinational corporations alike. The technology provides a freedom to move through time and space and stay connected to the business, to make decisions for the business, and to run the business according to an ever-changing micro-schedule.

This research is a “snapshot” of the people’s economic problems especially of the socio-economic and cultural institutions in the villages in Kecamatan Ambarawa. The research has identified institutions and the so-called micro-finance institutions in the villages as initiated by both the people in the villages and by the village government. The government policies to mobilize the micro-finance institutions through top-down planning were carried out by various government institutions with limited success. It is now realized that it will be more effective and successful if it is implemented by the village people themselves in the form of self-reliance movement on micro finance.

Despite a worldwide boom in mobile phone ownership, studies of the social and economic implications of mobile telephone use in the developing world are rare. Approaching mobile phone usage from the individual level, the study uses Q methodology to ask 31 owners of urban micro and small enterprises (MSEs) in Kigali, Rwanda to articulate what using the mobile means to them. The exercise identified four distinct perspectives on mobile use among the participants. One perspective sees it as a device for the pursuit of instrumental business goals. A second perspective uses mobiles to satisfy emotional or intrinsic needs. Two other perspectives mix instrumental and intrinsic elements, seeing mobiles as productivity enhancers, or as simply indispensable. Taken together, these distinct perspectives illustrate a range of intended uses and gratifications among MSE owners, and suggest numerous paths for future research. Q methodology is discussed in some detail so that researchers can consider its utility as a way to understand users of information and communication technologies.

Resumen:
La finalidad de la presente investigación fue identificar si las MiPyMES aplican las Tecnologías de Información y Comunicación para realizar presupuestos y controles financieros como herramientas básicas de planeación financiera en la microempresa comercial. Para ello se realizó una investigación de campo con un enfoque descriptivo y cualitativo en la microempresa “MEC” (nombre hipotético para respetar la confidencialidad). Para realizar la obtención de información,  se utilizaron las técnicas de: observación, entrevista y análisis documental. Se implementaron los  presupuestos en hojas de cálculo de Excel y los controles financieros mediante el software libre  FactuSOL. Se otorgó una capacitación a las dueñas de la empresa y al hijo de una de ellas sobre cómo utilizar el software seleccionado. Al utilizar herramientas financieras automatizadas para obtener presupuestos y mantener un buen control financiero, el proceso directivo de la empresa se hizo más rápido, seguro y eficiente.


Abstract:
The purpose of this research was to identify whether MSMEs apply Information and Communication Technologies for budgeting and financial controls as basic tools of financial  planning business microenterprise. The field research was conducted with a descriptive and qualitative approach on micro “MEC” (hypothetical name to maintain confidentiality). To obtain information, techniques were used: observation, interview and documentary analysis. Budgets were implemented in Excel spreadsheets and financial controls through FactuSOL free software. Training was given to the owners of the company and son of one of them on how to use the selected software.  By using automated financial tools for budgeting and maintaining good financial control, business management process became faster, more secure and efficient.

Throughout credit union history, there has been a debate on the role that these community banking organisations hold in the local community in which they reside. This research is embedded in the core concept of community development (NOS-CD 2009; CDRG 1991; Ledwith 2005; Ife 2002) and the role played by “community” credit unions in Northern Ireland. Through being embedded in this way, this research explores the “substantive” links credit unions hold on a practical level in the local community through “bilateral” and “mutual support” partnerships (Drakeford and Gregory 2007; 2008; 2011), and social finance provision.

Due to restrictive legislation through Article 24 of the 1985 Credit Union (Northern Ireland) Order preventing credit unions from non-personal banking, the outreach of credit unions in the local community is limited compared to the Republic of Ireland and Great Britain. Previous research data looking at the impact of “community” credit unions in their local community in Northern Ireland is limited and is on a small scale (Hong 1997; Heenan and McLaughlin 2002; McLaughlin 2003). Despite the rhetoric of “community”, and the strong community base of credit unions in Northern Ireland compared to the rest of the UK (Donnelly 2001; Goth et al 2006; McKillop et al 2007), most research identified only provides a limited and cursory account of Northern Irish credit unions vis-à-vis the Republic of Ireland and Great Britain.

As a result of a predominantly qualitative case-study approach of three credit unions in Northern Ireland through semi-structured interviews, and interviews with a representative of the Charity Bank and an academic scholar in the field, this research came to some conclusions. Despite restrictive legislation limiting credit unions’ wider activities in the community, there is a substantial level of community involvement of each credit union regardless of size. Identified, for example, is the use of Article 36(3)(c) of the 1985 Credit Union (Northern Ireland) Order permitting donations for “social, cultural or charitable purposes”, a substantive level of involvement in two credit unions with the social finance intermediary the Charity Bank; and bilateral and mutual support partnerships with organisations in the local community.

However, the research is not able to generalise on the community development aspect of credit unions although some key conclusions are made on this point and new knowledge is gained. In this exploratory study the intention is to highlight further areas of research in light of future developments in the regulatory framework of credit unions in Northern Ireland due to come into place in March 2012. Overall regulatory authority for credit unions in Northern Ireland will be transferred from the Department for Enterprise, Trade and Investment (DETI) to the Financial Services Authority (FSA). A key conclusion is that at a time of transferring regulatory authority to another body, there is a window of opportunity for the embedded concept of community development in credit unions to be debated to ensure it is not only rhetoric, but is also action.

The objective of this research is to analyze and determine the factors and strategies
that can be implemented within the D-Ksa Microenterprise in order to expand its
capabilities, from the perspective of market expansion. It is intended to answer the
research question, why, even with the participation in different events to position
the brand in the market, do not specify more points of sale in the state of Jalisco ?,
through the hypothesis that by means of alliances strategic alliances will increase
participation in the market, the aforementioned alliances will give the guidelines
to carry out this analytical research based on the point of view of resources and
capacities, implementing the value, rarity, imitability and organization model
(VRIO).

The paper offers a systematic review of 14 studies of the use of mobile telephony by micro and small enterprises (MSEs) in the developing world, detailing findings about changes to enterprises' internal processes and external relationships, and findings about mobile use vs. traditional landline use. Results suggest that there is currently more evidence for the benefits of mobile use accruing mostly (but not exclusively) to existing MSEs rather than new MSEs, in ways that amplify existing material and informational flows rather than transform them. The review presents a more complete picture of mobile use by MSEs than was previously available, and identifies priorities for future research, including comparisons of the impact of mobile use across subsectors of MSEs and extensions beyond studies of existing enterprises.

Micro enterprise forms an integral part of the structure of Indian economy. In a country like ours, with chronic mass poverty, widely prevalent unemployment, subsistence production, nqrrow markets and absence of large-scale application of scientffic ond technological advancement, the scope for great importance. In our setting, with an over crowded agriculture sector and plenty of monpoer, the development of an effective decentralised sector in micro enterprise unit in rural oreos with a close relationship to agriculture and large-scale industry, is absolutely essential. The importance of this sector lies in the fact that it provides large scale employment with immedicate effect and brings about o more equitable income distribution, and thereby ffictively helps in combating the twin problems of proverty and unemployment. The scope of the study is.limited to southern districts of Orissa, i.e. Ganjam, Gajapati, Koraput, Malkangiri, Rayagada, Nawqrangpur, Boudh and Kandhma. Two hundred number of micro enterprise were taken for in-depth study which give a holistic picture of NGOS and Govt. role in establish micro enterprise.

The study aims to assess the commercial viability of a potential crop insurance market in Bangladesh. In a large scale household survey, agricultural farm households were asked for their preferences for a hypothetical crop insurance scheme using double bounded (DB) contingent valuation (CV) method. Both revenue and production cost based indemnity payment approaches were applied to assess the commercial viability of a crop insurance program assuming a partner-agent (PA) model of insurance supply. Crop insurance is found marginally commercially viable in riverine flood plain areas. The expected indemnity payable consistently exceeds the expected insurance premium receivable by the insurer for the households living in wetland basin and coastal floodplain. We conclude that a uniform structure of crop insurance market does not exist in Bangladesh. The nature of the disaster risks faced by the farm households and the socio-economic characteristics of the rural farm communities need to be taken into careful consideration while designing such an insurance scheme.

This study explores the impact of microcredits on the economic, educational, and empowerment levels of women from the Bolivian high plains who had acquired microcredits for over three years. Primary research was carried out with the help of a major NGO dedicated solely to microcredits. One hundred in-depth personal interviews were conducted by the author in La Paz and El Alto from February to May 2007. This region was chosen because of the wide extent to which microcredits have been implemented there since the 1980s. The author also created a control group of women who had never taken out a microcredit loan. The study employs the use of an established poverty scorecard to measure poverty levels over time. Using a comparative approach that allows a comparison between the independent control group and the loan group, the study found that while the ownership of goods increased in the loan group, the benefits of microcredits on family educational attainment levels and empowerment were questionable. It is important to note that the vast majority of microcredit research does not use this type of independent control group.

Abstract: Most of the rural households in Bangladesh deal with economic hardships using both informal and formal insurance mechanisms. Informal insurance mechanism such as draw on household savings or sell off assets is often weak in nature. Microfinance Institutions (MFIs) help reducing vulnerability of poor households encouraging formal coping mechanisms while discouraging less effective informal strategies. They provide safe saving opportunities, access to credit, health insurance, and social security services. This paper focuses on the crisis management capacity of the rural households and facilities provided by MFIs for combating such crises.

There has been a significant increase in scholarly literature about female entrepreneurship in Africa. In order to take stock of the state of female entrepreneurship on that continent, this paper examines articles published in peer-reviewed journals over the period 1987 to 2019. Using a mixed embeddedness approach, the analysis of these articles shows how cultural, institutional, economic, political, and social contexts shape the resources and strategies used by female entrepreneurs, and in turn, the interactions between the contexts, resources, and strategies determine the outcomes of female entrepreneurship in Africa. We argue that the environments in which female entrepreneurs are embedded lead to the development of innovative strategies and ways of gaining access to diverse resources. More papers on female entrepreneurship in Africa were published between 2015 and 2019 than in the previous 27 years. A comprehensive analysis of the articles sampled for this systematic literature ...

Los resultados acerca de la relacion entre la gestion de emprendimientos informales y sus posibilidades de expansion son aun escasos. Con base en datos de la ENIGH y a traves de regresiones logisticas, se exploran las caracteristicas asociadas al crecimiento de este tipo de emprendimientos en Mexico. Se corroboro que el establecer el primer local o evolucionar hacia un segundo son problemas estructuralmente distintos y no siempre asociados al nivel de los indicadores economico-financieros. Aunque fundamentales para cumplir con sus objetivos, las utilidades no parecen ser el principal detonador del crecimiento en este sector. Lo anterior podria deberse a la falta de orientacion a la maximizacion intertemporal de beneficios y a la restriccion que impone el crecimiento en el nivel de utilidades de corto plazo. Asi, otras caracteristicas asociadas al emprendedor y la naturaleza de su proyecto deben ser tomadas en cuenta para entender el potencial de crecimiento de este.

The Intergovernmental Panel on Climate Change (IPCC) identifies Bangladesh as one of the countries that will be hardest hit by the anticipated effects of climate change. The poorest people are the most vulnerable, as they do not have sufficient means to cope with environmental risks. In the absence of effective safety nets, poor people become trapped in chronic poverty due

Resumen
Con el propósito de conocer mejor a los clientes y desarrollar acciones que beneficien la relación entre las entidades financieras operadoras de microcrédito y los clientes, se plantea alternativas metodológicas de análisis de las variables de comportamiento que puedan influir en las decisiones financieras de los microempresarios. Se utilizó modelos psicoeconómicos validados en mercados de consumidores finales y adaptados a las condiciones de los microempresarios para evaluarlos y caracterizarlos en: actitud hacia el endeudamiento, estilo de vida y actitud hacia las entidades financieras, y hábitos y conductas de consumo.

Abstract
With the purpose of getting to know the clients better and develop actions that benefit the relationship between the microcredit operating financial entities and the clients, methodological alternatives of analysis of the behavioral variables that may influence the financial decisions of the micro-entrepreneurs are considered. Psycho-economic models validated in final consumer markets and adapted to the conditions of micro-entrepreneurs were used to evaluate and characterize them in: attitude towards indebtedness, lifestyle and attitude towards financial entities, and consumption habits and behaviors.

Microenterprise development is underpinned by an ideology that the solution to poverty is the integration of the poor into market relations. This article addresses the paradox that its “beneficiaries” may be dispossessed industrial workers who already have a long history of participation in the capitalist economy. Exploring the transformation of garment workers in Trinidad from factory employees to home-based “micro-entrepreneurs,” I argue that working conditions and labour rights have deteriorated under the protective cover of seemingly laudable policies to promote economic empowerment via self-employment. Showing how microenterprise initiatives contribute to women workers’ “adverse incorporation” (Phillips 2011) into global production networks, this article calls for renewed attention to the labour politics of microenterprise development.

Purpose-This study aims to investigate the relevance of the theory of planned behaviour (TPB) in predicting the intentional behaviour of refugee entrepreneurs. This paper uses key components of the theory on attitude, subjective norms and perceived control to explore the willingness of refugees to participate in microenterprise support programmes (MESP) in refugee camps. Design/methodology/approach-This study used a positivist research approach, comprising a quantitative basis of enquiry and gathered data via survey questionnaires. In total, 400 usable questionnaires were completed and used for analysis. This study uses descriptive and inferential analysis with SPSS and confirmatory factor analysis with AMOS to test three key TPB hypotheses. Findings-The structured model revealed acceptable high goodness-of-fit indices. Also, the findings indicated that out of three hypotheses, two hypotheses (attitude and perceived control) were substantial, positive and significant. However, the relationship between subjective norms of refugees and their intention to participate in MESP was insignificant. The findings of this study indicate the low-profile refugees give to the views and opinions of the surrounding communities when it comes to determining their intentional behaviour. As such, some poignant implications may relate to microfinance and microcredit programmes targeting refugees. Practical implications-The present study illustrates the interrelationships between the proposed variables. Also, by understanding the relationships between the selected variables, the findings would be useful for the concerned authorities to ameliorate and upgrade the well-being of refugees along with empowering their environment, which would facilitate their engagement in business and entrepreneurship. Originality/value-This study explores the relevance of TPB and its components in the context of the intentional behaviour of refugee entrepreneurs. It further illuminates the distinction of refugee behaviour towards entrepreneurship and MESP.

This paper aims to explore the viability of Qard al-Hasan and Mudarabah as crowdfunding instruments to support microenterprise. It is learned that microenterprises have experienced challenges in terms of funding their project as well as to expand their operations, due to strict procedures from traditional financial institutions. Also, the current practices of crowdfunding are not fully Shari’ah compliant, thus an alternative is needed. However, the study utilizes secondary data with descriptive and comparative approaches. The findings indicate that both models could be an alternative Shari’ah financing for entrepreneurs. While Qard al-Hasan can focus on business start-up, Mudarabah can play a more significant in expanding the current business to be more competitive. Though both models are associating with several risks including the risk of non-payment, risk of mismanagement, and inflation risk, these risks can be mitigated through proper reviewing of the proposal by crowdfunding platforms before the campaign is launched as well as closely monitoring the project.

This study further explores the use of information and communication technologies (ICTs) in small and informal businesses in the developing world by focusing on the role of ICTs in customer acquisition and retention. Data is drawn from a survey of 317 sole proprietors and operators of small businesses with five or fewer employees in and around urban Hyderabad in Southern India. Respondents describe how various customers were acquired—via walk-in, referral, family connections, landline telephone, mobile phone, internet/email, etc. Results suggest that face-to-face interactions dominate customer interactions, even among those with access to ICTs. Four tests explore whether telephony enables more specialized, hands-off, numerous or distant relationships with customers; a significant relationship between landline ownership and total number of customers is found.