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The Impact of Microfinance on Micro and Small Enterprise’s Performance and the Improvement of Their Business Opportunity

Author

Listed:
  • Rahmat Thio

    (Department of Economics, Padjadjaran University)

  • Megananda

    (Department of Economics, Padjadjaran University)

  • Achmad maulana

    (Department of Economics, Padjadjaran University)

Abstract

This study finds that microfinance has positive impact to improvement of MSE’s ferformance indicated by sales; the difference in regional characteristic of MSE is also play role in determining its business scale. Since doubling amount of loan has negative impact to the performance, it’s very important to allocate the loan to the productive activities, such as investment, to improve the business opportunity.

Suggested Citation

  • Rahmat Thio & Megananda & Achmad maulana, 2006. "The Impact of Microfinance on Micro and Small Enterprise’s Performance and the Improvement of Their Business Opportunity," Working Papers in Economics and Development Studies (WoPEDS) 200601, Department of Economics, Padjadjaran University, revised Aug 2006.
    • Handle: RePEc:unp:wpaper:200601
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    File URL: http://ceds.feb.unpad.ac.id/wopeds/200601.pdf
    File Function: First version, 2006
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    Cited by:

    1. Prince Gyimah & Williams Kwasi Boachie, 2018. "Effect of Microfinance Products on Small Business Growth: Emerging Economy Perspective," Journal of Entrepreneurship and Business Innovation, Macrothink Institute, Journal of Entrepreneurship and Business Innovation, vol. 5(1), pages 1-59, December.

    More about this item

    Keywords

    microfinance; small and medium enterprises;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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