This study examines the impact of firm size and age on the performance of microfinance institutions in Tanzania. The study analyzes panel data from 30 microfinance institutions over 5 years. The findings show that larger total asset size and number of borrowers positively impact performance, while larger staff size negatively impacts performance. Institution age positively impacts efficiency, sustainability and revenue but negatively impacts profitability. The study concludes that both size and age impact microfinance performance and recommends that policies facilitate institution growth to improve outreach and performance monitoring as institutions grow in size and age.
Credit Cooperatives Development Strategy through Partnership with Financial I...inventionjournals
This study aims to understand and construct partnership model between cooperatives and financial institutions in Papua Province. This research used a qualitative method design which utilizes phenomenological approach. The informants involved in this research are 8 informants who have a background as cooperatives management (caretakers) and employees of financial institutions. This result is the strategy of credit cooperative in Papua to arrange partnership with financial institution is based on mutual principle. Cooperative should improve its management to meet feasibility and bankability criteria, including (a) capital resource, legal aspect, and collateral which should be highly considered by the cooperative management and (b) human resource practice like good administrative affairs, good governance, and trust that must be the priorities to improve cooperative business. These matters can encourage financial institution to arrange partnership with cooperatives in Papua Province which then can make those cooperatives grow and develop.
This study examines the role of microfinance institutions (MFIs) in strengthening micro enterprises in the context of India's "Make in India" initiative. It finds that MFIs can fill financing gaps of 40-50% for micro enterprises, which formal institutions often do not serve well due to low average loan sizes. The study also analyzes how MFIs and micro enterprise clusters could better align through strategies like self-help groups and the MUDRA Bank to improve access to credit. The conclusion is that strengthening MFI support for micro units can help them access more formal financing to grow stronger and better contribute to the goals of Make in India.
Determinants of relevancy of micro financial services to sm es and clients’ r...Alexander Decker
This document summarizes a research study that investigated factors influencing the relevance of microfinancial services to small and medium enterprises (SMEs) in Tanzania. The study analyzed five factors: the terms and conditions of lending, product development and innovation, responsiveness to client requests, problem handling for clients, and quality of services. Survey data was collected from microfinance institution clients and staff. Correlation analysis found weak relationships between the factors and service relevance. Client responsiveness to relevance was also questionable. The study aims to help improve microfinance strategies and policies to better support SME development in Tanzania.
This document summarizes a research paper that examines the role of customer satisfaction in retaining customer loyalty at Sabadou Transfer Agency in Kankan, Guinea. The study uses the SERVQUAL model to evaluate the impact of service quality on customer satisfaction and loyalty. Data was collected through questionnaires from 120 Sabadou customers. The findings show that service quality and customer satisfaction are significantly correlated with customer loyalty. Maintaining high quality services provides customer satisfaction and loyalty, while low quality leads to dissatisfaction and potential disloyalty. The conclusion is that a customer's likelihood to switch companies depends on service quality levels and satisfaction.
Abstract: Marketing of crops in Tanzania has been undergoing change. Direct sales from farmers to traders
and delivery to the Primary Cooperative Societies (PCS) were in practice at different points of time. Since 2007,
the warehouse receipt system was introduced in Tanzania. The warehouse operators accept the deposit of crops
in the warehouses and provide a receipt to the farmers through PCS and the farmers receive a part of the
payments through bank financing based on these receipts. This study was conducted to assess whether
Warehouse Receipt System has made any contribution in improving smallholder farmers ‘access to financial
services. The study used cross sectional design where 100 smallholder farmers in Singida Rural district in
Singida region were covered. Quantitative and qualitative techniques were used to analyze the data. The results
showed that the motives that were used to influence smallholder farmers to join WRS included price, access to
credit and access to market, although, most of the farmers participate into WRS to access credit for agricultural
activities. Moreover, level of farming technologies adopted found to have increased significantly after joining
the WRS. Based on these findings, it is recommended to increase sensitization efforts among the smallholder
farmers in order to enable the larger spectrum of the community members becoming aware of the WRS practice.
Also, policy maker should deliberately intervene to strengthen the capacity of WRS.
The banking sector is seen as an important link between different stakeholders in the country by
taking funds from surplus units and channelling them to units that have deficits. Despite this important role, it is
observed that engagement in certain unethical practices has made the efforts of the firms in the sector to seem
useless.
This document discusses a study that investigated the role of the Bank of Industry (BOI) in financing small-scale entrepreneurial development in Nigeria. It finds that BOI financing affects the problems faced by small and medium enterprises and that measures taken by BOI impact its contribution to financing these enterprises. However, BOI's role in supporting small business growth remains unclear due to their small economic output. The study aims to better understand BOI's contributions, the challenges small businesses face in obtaining BOI financing, and the impact of BOI's initiatives on small business development in Nigeria.
The document discusses trends in the microfinance industry globally and in India. Key points:
- Microfinance institutions (MFIs) have played a large role in addressing financial inclusion, though 2 billion people still lack access to financial services.
- Growth has been uneven globally, with some regions slowing down due to economic factors while Asia/Africa are growing. However, significant potential remains as financial exclusion is still widespread.
- In India, while inclusion has increased, banks have traditionally not focused on lower income groups. MFIs emerged to address this need, though their role in the ecosystem has changed over time.
Credit Cooperatives Development Strategy through Partnership with Financial I...inventionjournals
This study aims to understand and construct partnership model between cooperatives and financial institutions in Papua Province. This research used a qualitative method design which utilizes phenomenological approach. The informants involved in this research are 8 informants who have a background as cooperatives management (caretakers) and employees of financial institutions. This result is the strategy of credit cooperative in Papua to arrange partnership with financial institution is based on mutual principle. Cooperative should improve its management to meet feasibility and bankability criteria, including (a) capital resource, legal aspect, and collateral which should be highly considered by the cooperative management and (b) human resource practice like good administrative affairs, good governance, and trust that must be the priorities to improve cooperative business. These matters can encourage financial institution to arrange partnership with cooperatives in Papua Province which then can make those cooperatives grow and develop.
This study examines the role of microfinance institutions (MFIs) in strengthening micro enterprises in the context of India's "Make in India" initiative. It finds that MFIs can fill financing gaps of 40-50% for micro enterprises, which formal institutions often do not serve well due to low average loan sizes. The study also analyzes how MFIs and micro enterprise clusters could better align through strategies like self-help groups and the MUDRA Bank to improve access to credit. The conclusion is that strengthening MFI support for micro units can help them access more formal financing to grow stronger and better contribute to the goals of Make in India.
Determinants of relevancy of micro financial services to sm es and clients’ r...Alexander Decker
This document summarizes a research study that investigated factors influencing the relevance of microfinancial services to small and medium enterprises (SMEs) in Tanzania. The study analyzed five factors: the terms and conditions of lending, product development and innovation, responsiveness to client requests, problem handling for clients, and quality of services. Survey data was collected from microfinance institution clients and staff. Correlation analysis found weak relationships between the factors and service relevance. Client responsiveness to relevance was also questionable. The study aims to help improve microfinance strategies and policies to better support SME development in Tanzania.
This document summarizes a research paper that examines the role of customer satisfaction in retaining customer loyalty at Sabadou Transfer Agency in Kankan, Guinea. The study uses the SERVQUAL model to evaluate the impact of service quality on customer satisfaction and loyalty. Data was collected through questionnaires from 120 Sabadou customers. The findings show that service quality and customer satisfaction are significantly correlated with customer loyalty. Maintaining high quality services provides customer satisfaction and loyalty, while low quality leads to dissatisfaction and potential disloyalty. The conclusion is that a customer's likelihood to switch companies depends on service quality levels and satisfaction.
Abstract: Marketing of crops in Tanzania has been undergoing change. Direct sales from farmers to traders
and delivery to the Primary Cooperative Societies (PCS) were in practice at different points of time. Since 2007,
the warehouse receipt system was introduced in Tanzania. The warehouse operators accept the deposit of crops
in the warehouses and provide a receipt to the farmers through PCS and the farmers receive a part of the
payments through bank financing based on these receipts. This study was conducted to assess whether
Warehouse Receipt System has made any contribution in improving smallholder farmers ‘access to financial
services. The study used cross sectional design where 100 smallholder farmers in Singida Rural district in
Singida region were covered. Quantitative and qualitative techniques were used to analyze the data. The results
showed that the motives that were used to influence smallholder farmers to join WRS included price, access to
credit and access to market, although, most of the farmers participate into WRS to access credit for agricultural
activities. Moreover, level of farming technologies adopted found to have increased significantly after joining
the WRS. Based on these findings, it is recommended to increase sensitization efforts among the smallholder
farmers in order to enable the larger spectrum of the community members becoming aware of the WRS practice.
Also, policy maker should deliberately intervene to strengthen the capacity of WRS.
The banking sector is seen as an important link between different stakeholders in the country by
taking funds from surplus units and channelling them to units that have deficits. Despite this important role, it is
observed that engagement in certain unethical practices has made the efforts of the firms in the sector to seem
useless.
This document discusses a study that investigated the role of the Bank of Industry (BOI) in financing small-scale entrepreneurial development in Nigeria. It finds that BOI financing affects the problems faced by small and medium enterprises and that measures taken by BOI impact its contribution to financing these enterprises. However, BOI's role in supporting small business growth remains unclear due to their small economic output. The study aims to better understand BOI's contributions, the challenges small businesses face in obtaining BOI financing, and the impact of BOI's initiatives on small business development in Nigeria.
The document discusses trends in the microfinance industry globally and in India. Key points:
- Microfinance institutions (MFIs) have played a large role in addressing financial inclusion, though 2 billion people still lack access to financial services.
- Growth has been uneven globally, with some regions slowing down due to economic factors while Asia/Africa are growing. However, significant potential remains as financial exclusion is still widespread.
- In India, while inclusion has increased, banks have traditionally not focused on lower income groups. MFIs emerged to address this need, though their role in the ecosystem has changed over time.
Problems and Prospects of SMES Loan Management: Case of Lesothopaperpublications3
Abstract: Small and medium enterprises play a fundamental role in economic growth and developments. The economies of all market-oriented nations depend on the efficient operation of complex and delicately balanced indispensable element in these systems - systems of money and credit However, historically SMEs financing remains as major challenge to the growth of SME. This paper therefore tries to identify some underlying problems from the banks perspective. This study is based on primary data which is collected through personal interview with structured questionnaire and direct observations. Findings indicate that banks appear to be facing serious challenges of high cost of gathering information and collateral. Both high costs to gather reliable information on SMEs and high administration costs on loans made to SMEs were found to have fundamental impact on SME lending. Though lack of finance appears to be a major challenge hindering SMEs growth, this hindrance may be mostly enhanced by constraints that are within SMEs themselves.
This document summarizes a study that examines the relationship between board diversity and earnings quality of firms listed on the Amman Stock Exchange from 2010 to 2019. The study measures board diversity based on gender, experience, age, and religion of board members. It finds that gender, experience, and age of board members significantly affect earnings quality, but religion does not. This suggests that more diverse boards in terms of these characteristics can enhance earnings quality. The study provides implications for Jordanian policymakers to promote more diverse boards to improve corporate governance of listed firms.
This document summarizes a research study that assessed the effect of client appraisal on the efficiency of microfinance banks in Adamawa State, Nigeria. The study found that client appraisal, which involves evaluating customers based on factors like character, capacity, collateral, capital, and condition, has a positive effect on the efficiency and productivity of microfinance banks. Specifically, effective client appraisal allows microfinance banks to better understand customer creditworthiness, minimize loan defaults and losses, and improve overall financial performance. The study concluded that client appraisal is an important part of effective credit management that can help microfinance banks operate efficiently and profitably.
Mobile Banking for Empowerment Muslim Women Entrepreneur: Evidence from Asia ...Mercu Buana University
Women entrepreneurs have positive contribution to the household economy in particular, and the sustainable economic development in general. Nevertheless, there are limitations in mobility for women entrepreneurs, especially in Muslim countries to conduct their business activities outside the home, which was due to concern, to take care of their children, and the values or customs, which is embraced by the local community, so that limited mobility of women entrepreneurs, not because of the Islamic religiosity.Therefore, is requires form of technology solutions for women entrepreneurs, which can reduce, the limitations
The Impact of Cashless Policy on Small Scale Businesses in Ogoni Land of Rive...iosrjce
The purpose of this paper is to examine the impact of cashless policy on small scale businesses. The
study carried out in Ogoni of Rivers state, using the purposive sampling technique, 250 owners and operators of
small scale businesses were selected and administered questionnaire. The data collected were coded and
analyzed using frequency table and percentage, while regression analysis was used to test the formulated
hypotheses using SPSS (Statistical Package for Social Sciences). The results indicate that: small scale
businesses in Ogoni land are predominately occupied by sole proprietorship with meager income with a
significant numbers of them having a very poor banking habit; it was also found out that small scale businesses
statistically do not rely on heavy capital outlay; couple with the fact that provision of services is their main
business activity makes bank transaction, ATMs usage and online banking of less or no significance since their
transaction is grossly hinged on “cash and carry basis”; the findings from the study also suggest that operators
of small scale business have zero tolerance to ICT usage in both the operations and transactions of their
businesses; and this constitute a major challenge to the adoption of cashless policy in the study area and
generally, there was a negative significant influence of the introduction of cashless policy on the operations and
growth of small scale businesses in Ogoni land. Based on the findings some recommendations among others
made are: the need for government to harness efforts which should be directed at improving the activities of
small scale businesses through concerted policies, regulations and actions that will encourage and empower
small scale businesses financially thereby making the sector vibrant and productively ready to withstand a
cashless economy.
Improving Sales in SME Using Internet MarketingIOSR Journals
Abstract : In Indonesia, SMEs are the backbone of the Indonesian economy. Number of SMEs until 2011 to
reach around 52 million. SMEs in Indonesia is very important for the economy because it accounts for 60% of
GDP and 97% of the workforce holds. But access is limited to financial institutions only 25% or 13 million
SMEs who have access to financial institutions. Indonesian government, SMEs, through the Department of
Cooperatives and SMEs, in each province or regency / city.
Although Small and Medium Enterprises (SMEs) is driving the nation's economy, but in reality many of
the problems SMEs are still entangled. The main thing to note is the ability of SMEs to access a wider market.
Because of the ability to change and adapt to a changing environment will determine the existence of small
businesses in the nation's economy. In the end, the existence of small businesses that have high competitiveness
will strengthen the nation's economy as a whole. Thus, in this study will use an appropriate technology tools
that can provide assistance in introducing products through internet and increase sales in each SME
This study uses a sample of students at the State University of Malang that can make a significant
contribution in the small and medium businesses that are being initiated by students.
Keywords: Small Medium Enterprise, Internet Marketing, Sales Improvement
Micro Financing Of Small and Medium Enterprises (Smes) In Zambiainventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Assessment Of Factors Affecting The Performance Of Microfinance Institutions ...Karen Gomez
The document discusses factors affecting the performance of microfinance institutions in Hawassa City, Ethiopia. It assessed factors related to MFI clients, such as problems with loan repayment and diversion of loans to non-income generating activities. It also identified institutional factors like shortage of human resources, lack of cost-effective technologies, and shortage of loan capital. Political factors were also recognized as influencing MFI performance. Based on its analysis, the study recommended improving women's participation in microcredit and savings, using cost-effective technologies to minimize costs, and hiring adequate staff to improve MFI performance in Hawassa City.
Effects of micro- finance institutions' services on sustainability of small e...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
This study analyzed the factors affecting loan repayment performances in Microfinance Institutions (MFIs) with
a case study of (Promotion of Rural Initiatives and Development Enterprises) PRIDE Arusha, Tanzania. The
study used both quantitative and qualitative techniques to investigate factors affecting loan repayment
performances. The findings show that clients’ characteristics (age, household size, gender and level of
education), nature of business (business type, business stability and income level) and loan characteristics
(repayment period, repayment mode, and repayment amount) were among the factors that influenced borrowers
in repaying their loans. Lack of business knowledge was another factor mentioned by clients which leads to low
productivity hence failure to have enough fund to repay their loans.
The study further revealed that there was a significant relationship between loan repayment performances with
clients’ businesses challenges, loan diversification to other non-income activities, and other outside factors such
market imperfections, higher interest charges, drought, among others.
Effective sources and uses of finance is one of the primary activities for the success of a
business, where imprudent financing practices have been identified as a key constraint for the development
of the SME sector. For instance, the empirical evidence suggests that uncertainties of the SMEs due tolack
of skills and knowledgeable workers, economic fluctuations and financingcosts at firm level constitutes to het
ride from proper access to formal financing
Management of savings and credit cooperatives from the perspective of outreac...Alexander Decker
This document summarizes a research study on the management of Savings and Credit Cooperatives (SACCOs) in Southern Tigrai, Ethiopia from the perspectives of outreach and sustainability. The study analyzed data from SACCO members and documentation to examine relationships between growth measures like membership, loan portfolio size, and financial performance indicators. It found a positive correlation between asset utilization and financial performance, as well as between operational efficiency and asset size. However, operational efficiency was negatively correlated with financial performance. Factors like lack of awareness, weak governance, policy issues, and competition negatively impacted outreach and sustainability. The study concluded rural SACCOs can effectively link urban liquidity to rural credit needs if well-managed for
11.management of savings and credit cooperatives from the perspective of outr...Alexander Decker
This document summarizes a research study on the management of savings and credit cooperatives (SACCOs) in Southern Tigrai, Ethiopia from 2007 to 2010. The study assessed the growth and performance of 10 SACCOs in terms of outreach to members and financial sustainability. Key findings include:
1) Membership in the SACCOs increased over the study period, with an average growth rate of 25.08% from 2007 to 2010. Total membership across the 10 SACCOs rose from 860 in 2007 to 1,037 in 2010.
2) Total deposits and credits disbursed by the SACCOs also increased substantially over the study period, with average annual
11.management of savings and credit cooperatives from the perspective of outr...Alexander Decker
This document summarizes a research study on the management of savings and credit cooperatives (SACCOs) in Southern Tigrai, Ethiopia from 2007 to 2010. The study assessed the growth and performance of 10 SACCOs in terms of outreach to members and financial sustainability. Key findings include:
1) Membership in the SACCOs increased over the study period, with an average growth rate of 25.08% from 2007 to 2010, indicating growing outreach.
2) Total deposits and credits disbursed by the SACCOs also increased substantially over the study period, with growth rates ranging from 41.43% to 185.80% for deposits and 48.58
Impact of Company Strategy on Microfinance Institution Performance in IndonesiaIJASRD Journal
The development of industrial microfinance in Indonesia gained the appreciation and attention of various experts in the field of microfinance. Microfinance in Indonesia is considered to be one of the greatest in the world, and has undergone a shift in the service paradigm undertaken by Micro Finance Institutions in Indonesia. This paper seeks to uncover the role of management strategies in improving the performance of MFIs in Indonesia, in addition to internal and external factors of the MFI itself as an aspect that significantly affects performance. The literature review shows that management strategy plays a significant role in improving the performance of MFIs, in addition to internal factors of MFIs and the external conditions of MFIs in Indonesia.
This document summarizes a research journal article that analyzes performance indicators related to the financial sustainability of microfinance institutions (MFIs) in East Asia and Pacific and South Asian countries. The article finds that while outreach increases for MFIs, average loan size decreases, and this effect is smaller for South Asian MFIs compared to East Asian MFIs. Financial sustainability is similar between regions but operational sustainability differs. The factors influencing financial and operational sustainability also differ by region. The results identify important region-specific variables that can be improved to increase MFI sustainability.
A SERVICE QUALITY OF ISLAMIC MICROFINANCE IN INDONESIA: AN IMPORTANCE-PERFORM...Iwan Kurniawan Subagja
The rapid growth of financial system in Indonesia creates an intensive competition between Conventional and Islamic financial institutions. The study aims to evaluate the service quality of Islamic Microfinance Institution in Indonesia. The survey was carried out to acquire data from 136 respondents. Descriptive statistics and importance performance analysis (IPA) was used to analyze the data. The finding show that attributes plotted in quadrant “keep up the good work” are providing prompt service, and helpful response to customer requests, Ability in providing services to the customer as needed, prompt service on financial counselling, Ability of staff in giving proper explanation to the customer, Ability to keep the transaction process secure, and Shariah compliance banking products. Meanwhile, the attributes plotted in quadrant “concentrate here” are accessible of location of ATM, easy to access the location, ability to navigate customer to find what they intend, ability to maintain accuracy of bank statement, and ability in providing after sale services. To the best of author’s knowledge, it is the first study that measuring the service quality of Islamic microfinance from customer perspective using importance-performance approach.
The role of microfinance institutions in the development of small and medium ...Alexander Decker
- The document discusses the role of microfinance institutions (MFIs) in developing small and medium enterprises (SMEs) in Ethiopia, using the Amhara Credit and Savings Institution (ACSI) as a case study.
- It aims to investigate whether ACSI helps its members develop their businesses and if members have reasonable access to microfinancing.
- The literature review covers concepts like microfinance, SME growth and development, types of microenterprises, how MFIs supply services, and factors that influence business capital structures.
Challenges of Small Scale Entrepreneurs in Dodoma Tanzaniainventionjournals
Small businesses irrefutably remain critical to the development of any nation’s economy as they are an excellent, source of employment creation, help in improvement of local skill, and extend aboriginal entrepreneurs. The small scale entrepreneurs who (either registered, unregistered, service or manufacturing or any other type) and have more than three years experience of entrepreneurship comprised the populace of the study. The method of convenience sampling was employed in arriving at the 100 Small firms. The major challenge could be lack of financial (Capital) resources. In the event funding institutions become flexible in their requirements for loan applications, respondents registered their willing to increase the number of their employees; the number of branches and willingness to accept specialized recommendation. In other ways, the only best way to help Small firm’s right of entry economic resources lies in the hands of funding institutions as acceptable and suggested by the best part of undersized entrepreneurs who submitted that the key determinants for seed resources attainment are: fair and low interest rates.
Influence of environmental and governance factors on sustainability of microf...Alexander Decker
This document summarizes a research study that examined how environmental and governance factors influence the sustainability of microfinance institutions in Ghana. The study analyzed survey data from 114 microfinance institutions. It found that sustainability had a positive relationship with improved regulatory frameworks, high loan recovery rates, quality staff, and job creation for clients. However, the existence of boards of directors and increased competition did not impact sustainability. The document provides background on microfinance in Ghana and reviews literature on factors like governance, competition, and government interventions that can influence the sustainability of microfinance institutions.
An examination of the effect of funds provided by cooperative thrift and cred...Alexander Decker
This study examined how funding from Cooperative Thrift and Credit Societies (CTCS) has affected the
performance of small-scale businesses in Nigeria. The results showed that CTCS funding had a positive impact on
key performance indicators of small businesses including current liabilities, fixed assets, and current assets. The
study concluded that membership in CTCS by entrepreneurs positively impacted the performance of small-scale
businesses in Nigeria.
This study examines the financial performance of microfinance institutions (MFIs) in Ethiopia from 2008-2016. Thirteen MFIs were selected from the total population of 31 operating in Ethiopia. Financial performance was measured using return on assets as the dependent variable. Independent variables included capital asset ratio, operational efficiency, portfolio quality, size, age and macroeconomic factors like GDP. Secondary data was obtained from reports and primary data collected through manager surveys. Multiple regression analysis was used to determine the effect of internal and external factors on financial performance. The study found operational efficiency, GDP and size of MFIs significantly affected financial performance, while age had a positive but insignificant effect. The results suggest MFIs focus on credit risk
Problems and Prospects of SMES Loan Management: Case of Lesothopaperpublications3
Abstract: Small and medium enterprises play a fundamental role in economic growth and developments. The economies of all market-oriented nations depend on the efficient operation of complex and delicately balanced indispensable element in these systems - systems of money and credit However, historically SMEs financing remains as major challenge to the growth of SME. This paper therefore tries to identify some underlying problems from the banks perspective. This study is based on primary data which is collected through personal interview with structured questionnaire and direct observations. Findings indicate that banks appear to be facing serious challenges of high cost of gathering information and collateral. Both high costs to gather reliable information on SMEs and high administration costs on loans made to SMEs were found to have fundamental impact on SME lending. Though lack of finance appears to be a major challenge hindering SMEs growth, this hindrance may be mostly enhanced by constraints that are within SMEs themselves.
This document summarizes a study that examines the relationship between board diversity and earnings quality of firms listed on the Amman Stock Exchange from 2010 to 2019. The study measures board diversity based on gender, experience, age, and religion of board members. It finds that gender, experience, and age of board members significantly affect earnings quality, but religion does not. This suggests that more diverse boards in terms of these characteristics can enhance earnings quality. The study provides implications for Jordanian policymakers to promote more diverse boards to improve corporate governance of listed firms.
This document summarizes a research study that assessed the effect of client appraisal on the efficiency of microfinance banks in Adamawa State, Nigeria. The study found that client appraisal, which involves evaluating customers based on factors like character, capacity, collateral, capital, and condition, has a positive effect on the efficiency and productivity of microfinance banks. Specifically, effective client appraisal allows microfinance banks to better understand customer creditworthiness, minimize loan defaults and losses, and improve overall financial performance. The study concluded that client appraisal is an important part of effective credit management that can help microfinance banks operate efficiently and profitably.
Mobile Banking for Empowerment Muslim Women Entrepreneur: Evidence from Asia ...Mercu Buana University
Women entrepreneurs have positive contribution to the household economy in particular, and the sustainable economic development in general. Nevertheless, there are limitations in mobility for women entrepreneurs, especially in Muslim countries to conduct their business activities outside the home, which was due to concern, to take care of their children, and the values or customs, which is embraced by the local community, so that limited mobility of women entrepreneurs, not because of the Islamic religiosity.Therefore, is requires form of technology solutions for women entrepreneurs, which can reduce, the limitations
The Impact of Cashless Policy on Small Scale Businesses in Ogoni Land of Rive...iosrjce
The purpose of this paper is to examine the impact of cashless policy on small scale businesses. The
study carried out in Ogoni of Rivers state, using the purposive sampling technique, 250 owners and operators of
small scale businesses were selected and administered questionnaire. The data collected were coded and
analyzed using frequency table and percentage, while regression analysis was used to test the formulated
hypotheses using SPSS (Statistical Package for Social Sciences). The results indicate that: small scale
businesses in Ogoni land are predominately occupied by sole proprietorship with meager income with a
significant numbers of them having a very poor banking habit; it was also found out that small scale businesses
statistically do not rely on heavy capital outlay; couple with the fact that provision of services is their main
business activity makes bank transaction, ATMs usage and online banking of less or no significance since their
transaction is grossly hinged on “cash and carry basis”; the findings from the study also suggest that operators
of small scale business have zero tolerance to ICT usage in both the operations and transactions of their
businesses; and this constitute a major challenge to the adoption of cashless policy in the study area and
generally, there was a negative significant influence of the introduction of cashless policy on the operations and
growth of small scale businesses in Ogoni land. Based on the findings some recommendations among others
made are: the need for government to harness efforts which should be directed at improving the activities of
small scale businesses through concerted policies, regulations and actions that will encourage and empower
small scale businesses financially thereby making the sector vibrant and productively ready to withstand a
cashless economy.
Improving Sales in SME Using Internet MarketingIOSR Journals
Abstract : In Indonesia, SMEs are the backbone of the Indonesian economy. Number of SMEs until 2011 to
reach around 52 million. SMEs in Indonesia is very important for the economy because it accounts for 60% of
GDP and 97% of the workforce holds. But access is limited to financial institutions only 25% or 13 million
SMEs who have access to financial institutions. Indonesian government, SMEs, through the Department of
Cooperatives and SMEs, in each province or regency / city.
Although Small and Medium Enterprises (SMEs) is driving the nation's economy, but in reality many of
the problems SMEs are still entangled. The main thing to note is the ability of SMEs to access a wider market.
Because of the ability to change and adapt to a changing environment will determine the existence of small
businesses in the nation's economy. In the end, the existence of small businesses that have high competitiveness
will strengthen the nation's economy as a whole. Thus, in this study will use an appropriate technology tools
that can provide assistance in introducing products through internet and increase sales in each SME
This study uses a sample of students at the State University of Malang that can make a significant
contribution in the small and medium businesses that are being initiated by students.
Keywords: Small Medium Enterprise, Internet Marketing, Sales Improvement
Micro Financing Of Small and Medium Enterprises (Smes) In Zambiainventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
Assessment Of Factors Affecting The Performance Of Microfinance Institutions ...Karen Gomez
The document discusses factors affecting the performance of microfinance institutions in Hawassa City, Ethiopia. It assessed factors related to MFI clients, such as problems with loan repayment and diversion of loans to non-income generating activities. It also identified institutional factors like shortage of human resources, lack of cost-effective technologies, and shortage of loan capital. Political factors were also recognized as influencing MFI performance. Based on its analysis, the study recommended improving women's participation in microcredit and savings, using cost-effective technologies to minimize costs, and hiring adequate staff to improve MFI performance in Hawassa City.
Effects of micro- finance institutions' services on sustainability of small e...inventionjournals
International Journal of Business and Management Invention (IJBMI) is an international journal intended for professionals and researchers in all fields of Business and Management. IJBMI publishes research articles and reviews within the whole field Business and Management, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online
This study analyzed the factors affecting loan repayment performances in Microfinance Institutions (MFIs) with
a case study of (Promotion of Rural Initiatives and Development Enterprises) PRIDE Arusha, Tanzania. The
study used both quantitative and qualitative techniques to investigate factors affecting loan repayment
performances. The findings show that clients’ characteristics (age, household size, gender and level of
education), nature of business (business type, business stability and income level) and loan characteristics
(repayment period, repayment mode, and repayment amount) were among the factors that influenced borrowers
in repaying their loans. Lack of business knowledge was another factor mentioned by clients which leads to low
productivity hence failure to have enough fund to repay their loans.
The study further revealed that there was a significant relationship between loan repayment performances with
clients’ businesses challenges, loan diversification to other non-income activities, and other outside factors such
market imperfections, higher interest charges, drought, among others.
Effective sources and uses of finance is one of the primary activities for the success of a
business, where imprudent financing practices have been identified as a key constraint for the development
of the SME sector. For instance, the empirical evidence suggests that uncertainties of the SMEs due tolack
of skills and knowledgeable workers, economic fluctuations and financingcosts at firm level constitutes to het
ride from proper access to formal financing
Management of savings and credit cooperatives from the perspective of outreac...Alexander Decker
This document summarizes a research study on the management of Savings and Credit Cooperatives (SACCOs) in Southern Tigrai, Ethiopia from the perspectives of outreach and sustainability. The study analyzed data from SACCO members and documentation to examine relationships between growth measures like membership, loan portfolio size, and financial performance indicators. It found a positive correlation between asset utilization and financial performance, as well as between operational efficiency and asset size. However, operational efficiency was negatively correlated with financial performance. Factors like lack of awareness, weak governance, policy issues, and competition negatively impacted outreach and sustainability. The study concluded rural SACCOs can effectively link urban liquidity to rural credit needs if well-managed for
11.management of savings and credit cooperatives from the perspective of outr...Alexander Decker
This document summarizes a research study on the management of savings and credit cooperatives (SACCOs) in Southern Tigrai, Ethiopia from 2007 to 2010. The study assessed the growth and performance of 10 SACCOs in terms of outreach to members and financial sustainability. Key findings include:
1) Membership in the SACCOs increased over the study period, with an average growth rate of 25.08% from 2007 to 2010. Total membership across the 10 SACCOs rose from 860 in 2007 to 1,037 in 2010.
2) Total deposits and credits disbursed by the SACCOs also increased substantially over the study period, with average annual
11.management of savings and credit cooperatives from the perspective of outr...Alexander Decker
This document summarizes a research study on the management of savings and credit cooperatives (SACCOs) in Southern Tigrai, Ethiopia from 2007 to 2010. The study assessed the growth and performance of 10 SACCOs in terms of outreach to members and financial sustainability. Key findings include:
1) Membership in the SACCOs increased over the study period, with an average growth rate of 25.08% from 2007 to 2010, indicating growing outreach.
2) Total deposits and credits disbursed by the SACCOs also increased substantially over the study period, with growth rates ranging from 41.43% to 185.80% for deposits and 48.58
Impact of Company Strategy on Microfinance Institution Performance in IndonesiaIJASRD Journal
The development of industrial microfinance in Indonesia gained the appreciation and attention of various experts in the field of microfinance. Microfinance in Indonesia is considered to be one of the greatest in the world, and has undergone a shift in the service paradigm undertaken by Micro Finance Institutions in Indonesia. This paper seeks to uncover the role of management strategies in improving the performance of MFIs in Indonesia, in addition to internal and external factors of the MFI itself as an aspect that significantly affects performance. The literature review shows that management strategy plays a significant role in improving the performance of MFIs, in addition to internal factors of MFIs and the external conditions of MFIs in Indonesia.
This document summarizes a research journal article that analyzes performance indicators related to the financial sustainability of microfinance institutions (MFIs) in East Asia and Pacific and South Asian countries. The article finds that while outreach increases for MFIs, average loan size decreases, and this effect is smaller for South Asian MFIs compared to East Asian MFIs. Financial sustainability is similar between regions but operational sustainability differs. The factors influencing financial and operational sustainability also differ by region. The results identify important region-specific variables that can be improved to increase MFI sustainability.
A SERVICE QUALITY OF ISLAMIC MICROFINANCE IN INDONESIA: AN IMPORTANCE-PERFORM...Iwan Kurniawan Subagja
The rapid growth of financial system in Indonesia creates an intensive competition between Conventional and Islamic financial institutions. The study aims to evaluate the service quality of Islamic Microfinance Institution in Indonesia. The survey was carried out to acquire data from 136 respondents. Descriptive statistics and importance performance analysis (IPA) was used to analyze the data. The finding show that attributes plotted in quadrant “keep up the good work” are providing prompt service, and helpful response to customer requests, Ability in providing services to the customer as needed, prompt service on financial counselling, Ability of staff in giving proper explanation to the customer, Ability to keep the transaction process secure, and Shariah compliance banking products. Meanwhile, the attributes plotted in quadrant “concentrate here” are accessible of location of ATM, easy to access the location, ability to navigate customer to find what they intend, ability to maintain accuracy of bank statement, and ability in providing after sale services. To the best of author’s knowledge, it is the first study that measuring the service quality of Islamic microfinance from customer perspective using importance-performance approach.
The role of microfinance institutions in the development of small and medium ...Alexander Decker
- The document discusses the role of microfinance institutions (MFIs) in developing small and medium enterprises (SMEs) in Ethiopia, using the Amhara Credit and Savings Institution (ACSI) as a case study.
- It aims to investigate whether ACSI helps its members develop their businesses and if members have reasonable access to microfinancing.
- The literature review covers concepts like microfinance, SME growth and development, types of microenterprises, how MFIs supply services, and factors that influence business capital structures.
Challenges of Small Scale Entrepreneurs in Dodoma Tanzaniainventionjournals
Small businesses irrefutably remain critical to the development of any nation’s economy as they are an excellent, source of employment creation, help in improvement of local skill, and extend aboriginal entrepreneurs. The small scale entrepreneurs who (either registered, unregistered, service or manufacturing or any other type) and have more than three years experience of entrepreneurship comprised the populace of the study. The method of convenience sampling was employed in arriving at the 100 Small firms. The major challenge could be lack of financial (Capital) resources. In the event funding institutions become flexible in their requirements for loan applications, respondents registered their willing to increase the number of their employees; the number of branches and willingness to accept specialized recommendation. In other ways, the only best way to help Small firm’s right of entry economic resources lies in the hands of funding institutions as acceptable and suggested by the best part of undersized entrepreneurs who submitted that the key determinants for seed resources attainment are: fair and low interest rates.
Influence of environmental and governance factors on sustainability of microf...Alexander Decker
This document summarizes a research study that examined how environmental and governance factors influence the sustainability of microfinance institutions in Ghana. The study analyzed survey data from 114 microfinance institutions. It found that sustainability had a positive relationship with improved regulatory frameworks, high loan recovery rates, quality staff, and job creation for clients. However, the existence of boards of directors and increased competition did not impact sustainability. The document provides background on microfinance in Ghana and reviews literature on factors like governance, competition, and government interventions that can influence the sustainability of microfinance institutions.
An examination of the effect of funds provided by cooperative thrift and cred...Alexander Decker
This study examined how funding from Cooperative Thrift and Credit Societies (CTCS) has affected the
performance of small-scale businesses in Nigeria. The results showed that CTCS funding had a positive impact on
key performance indicators of small businesses including current liabilities, fixed assets, and current assets. The
study concluded that membership in CTCS by entrepreneurs positively impacted the performance of small-scale
businesses in Nigeria.
This study examines the financial performance of microfinance institutions (MFIs) in Ethiopia from 2008-2016. Thirteen MFIs were selected from the total population of 31 operating in Ethiopia. Financial performance was measured using return on assets as the dependent variable. Independent variables included capital asset ratio, operational efficiency, portfolio quality, size, age and macroeconomic factors like GDP. Secondary data was obtained from reports and primary data collected through manager surveys. Multiple regression analysis was used to determine the effect of internal and external factors on financial performance. The study found operational efficiency, GDP and size of MFIs significantly affected financial performance, while age had a positive but insignificant effect. The results suggest MFIs focus on credit risk
Influence of Debt Equity Financing on Growth of Craft Micro Enterprises in Kenyapaperpublications3
Abstract: Craft industry contributes greatly to the economy of a country for it provides income for not only micro enterprises but also small and medium enterprises. The main objective of the study was to determine the influence of debt financing on growth of craft micro enterprises in Kenya, to determine the influence of retained earnings on growth of craft micro enterprises in Kenya. The study covered the soapstone micro enterprises registered by Tabaka Town Council and the woodcarving micro enterprises registered by Wote Town Council. This study adopted descriptive research designs. The target population for the study constituted all the soapstone micro enterprises in Tabaka Town which are registered by Tabaka Town Council, Kisii County, and all the woodcarving micro enterprises of Wamunyu Location, Machakos County, which are registered by Wote Town Council. From this population of 2334 respondents, a sample of 330 respondents was divided proportionately between the two regions according to the proportion of their craft micro enterprises under study, using stratified random sampling. The study gathered data using a semi-structured questionnaire, and the data collected were analyzed by use of descriptive and inferential type of statistics using the Statistical Package for Social Science (SPSS) version 21.The results were then summarized in tables, charts and graphs. The findings of the study revealed that debt financing has a significant influence on the growth of craft microenterprises.
Keywords: Debt, Craft, Equity, Financing, Growth, Microenterprise.
Title: Influence of Debt Equity Financing on Growth of Craft Micro Enterprises in Kenya
Author: Steve Ondieki Nyanamba, Dr. Florence Sigara Memba, Dr. Willy Mwangi Muturi, Electrin Teresa Maswari
ISSN 2349-7807
International Journal of Recent Research in Commerce Economics and Management (IJRRCEM)
Paper Publications
Dynamic capabilities and performance in the context of microfinance instituti...hunypink
This document summarizes a research study that will examine how dynamic capabilities affect the performance of microfinance institutions in Kenya. It will focus on 13 licensed microfinance institutions from 2017 to 2018. The study will assess how absorptive capability, adaptive capability, innovative capability, and networking capability impact various performance measures. It will also analyze whether strategic choice and business regulatory environment moderate the relationship between dynamic capabilities and performance. The research will use theories on dynamic capabilities, strategic choice, and institutions to guide the study. It will employ a quantitative research design using surveys and secondary data to collect information on the variables.
Wealth creation through micro financing evidence from small scale enterprises...Alexander Decker
The document discusses research on the effect of microfinancing on small scale enterprises in Ghana. It notes that while microfinancing was initially viewed optimistically as a tool for poverty reduction, more recent research has questioned these assumptions and found limited evidence that it consistently improves clients' lives. The study aims to further examine how microfinancing can support small businesses in Ghana and help create wealth.
A Study On The Performance Of Microfinance Institutions In IndiaAudrey Britton
This document summarizes a study on the performance of microfinance institutions (MFIs) in India. It finds that the number of MFIs borrowing from banks increased substantially from 2015-2016 to 2016-2017, but total bank loans to MFIs decreased slightly over that period. Loan amounts outstanding to MFIs increased each year. The study also found MFI business models are becoming more urban-centric, as rural client bases declined in most states except a few. The proportion of income generation loans increased from 2015 to 2017. Financial indicators for MFIs like returns on assets and equity increased over this period, while total assets sharply declined.
Effect of micro finance on performance of women owned enterprisesfredrickaila
The document discusses a study on the effect of microfinance on the performance of women-owned enterprises in Kisumu City, Kenya. The study surveyed 341 women business owners who received microloans. The results showed that microfinancing had a positive effect on the productivity, profitability, and growth of the women-owned enterprises. Specifically, access to credit and training services through microfinance was found to increase business performance. However, the study also noted that the size of loans provided needed to be larger to have a more meaningful impact. Overall, the findings indicated that microfinancing can improve the success of women entrepreneurs when adequate financial and support services are provided.
Similar to Impact of size and age on firm performance evidences from microfinance institutions in tanzania (20)
Abnormalities of hormones and inflammatory cytokines in women affected with p...Alexander Decker
Women with polycystic ovary syndrome (PCOS) have elevated levels of hormones like luteinizing hormone and testosterone, as well as higher levels of insulin and insulin resistance compared to healthy women. They also have increased levels of inflammatory markers like C-reactive protein, interleukin-6, and leptin. This study found these abnormalities in the hormones and inflammatory cytokines of women with PCOS ages 23-40, indicating that hormone imbalances associated with insulin resistance and elevated inflammatory markers may worsen infertility in women with PCOS.
A usability evaluation framework for b2 c e commerce websitesAlexander Decker
This document presents a framework for evaluating the usability of B2C e-commerce websites. It involves user testing methods like usability testing and interviews to identify usability problems in areas like navigation, design, purchasing processes, and customer service. The framework specifies goals for the evaluation, determines which website aspects to evaluate, and identifies target users. It then describes collecting data through user testing and analyzing the results to identify usability problems and suggest improvements.
A universal model for managing the marketing executives in nigerian banksAlexander Decker
This document discusses a study that aimed to synthesize motivation theories into a universal model for managing marketing executives in Nigerian banks. The study was guided by Maslow and McGregor's theories. A sample of 303 marketing executives was used. The results showed that managers will be most effective at motivating marketing executives if they consider individual needs and create challenging but attainable goals. The emerged model suggests managers should provide job satisfaction by tailoring assignments to abilities and monitoring performance with feedback. This addresses confusion faced by Nigerian bank managers in determining effective motivation strategies.
A unique common fixed point theorems in generalized dAlexander Decker
This document presents definitions and properties related to generalized D*-metric spaces and establishes some common fixed point theorems for contractive type mappings in these spaces. It begins by introducing D*-metric spaces and generalized D*-metric spaces, defines concepts like convergence and Cauchy sequences. It presents lemmas showing the uniqueness of limits in these spaces and the equivalence of different definitions of convergence. The goal of the paper is then stated as obtaining a unique common fixed point theorem for generalized D*-metric spaces.
A trends of salmonella and antibiotic resistanceAlexander Decker
This document provides a review of trends in Salmonella and antibiotic resistance. It begins with an introduction to Salmonella as a facultative anaerobe that causes nontyphoidal salmonellosis. The emergence of antimicrobial-resistant Salmonella is then discussed. The document proceeds to cover the historical perspective and classification of Salmonella, definitions of antimicrobials and antibiotic resistance, and mechanisms of antibiotic resistance in Salmonella including modification or destruction of antimicrobial agents, efflux pumps, modification of antibiotic targets, and decreased membrane permeability. Specific resistance mechanisms are discussed for several classes of antimicrobials.
A transformational generative approach towards understanding al-istifhamAlexander Decker
This document discusses a transformational-generative approach to understanding Al-Istifham, which refers to interrogative sentences in Arabic. It begins with an introduction to the origin and development of Arabic grammar. The paper then explains the theoretical framework of transformational-generative grammar that is used. Basic linguistic concepts and terms related to Arabic grammar are defined. The document analyzes how interrogative sentences in Arabic can be derived and transformed via tools from transformational-generative grammar, categorizing Al-Istifham into linguistic and literary questions.
A time series analysis of the determinants of savings in namibiaAlexander Decker
This document summarizes a study on the determinants of savings in Namibia from 1991 to 2012. It reviews previous literature on savings determinants in developing countries. The study uses time series analysis including unit root tests, cointegration, and error correction models to analyze the relationship between savings and variables like income, inflation, population growth, deposit rates, and financial deepening in Namibia. The results found inflation and income have a positive impact on savings, while population growth negatively impacts savings. Deposit rates and financial deepening were found to have no significant impact. The study reinforces previous work and emphasizes the importance of improving income levels to achieve higher savings rates in Namibia.
A therapy for physical and mental fitness of school childrenAlexander Decker
This document summarizes a study on the importance of exercise in maintaining physical and mental fitness for school children. It discusses how physical and mental fitness are developed through participation in regular physical exercises and cannot be achieved solely through classroom learning. The document outlines different types and components of fitness and argues that developing fitness should be a key objective of education systems. It recommends that schools ensure pupils engage in graded physical activities and exercises to support their overall development.
A theory of efficiency for managing the marketing executives in nigerian banksAlexander Decker
This document summarizes a study examining efficiency in managing marketing executives in Nigerian banks. The study was examined through the lenses of Kaizen theory (continuous improvement) and efficiency theory. A survey of 303 marketing executives from Nigerian banks found that management plays a key role in identifying and implementing efficiency improvements. The document recommends adopting a "3H grand strategy" to improve the heads, hearts, and hands of management and marketing executives by enhancing their knowledge, attitudes, and tools.
This document discusses evaluating the link budget for effective 900MHz GSM communication. It describes the basic parameters needed for a high-level link budget calculation, including transmitter power, antenna gains, path loss, and propagation models. Common propagation models for 900MHz that are described include Okumura model for urban areas and Hata model for urban, suburban, and open areas. Rain attenuation is also incorporated using the updated ITU model to improve communication during rainfall.
A synthetic review of contraceptive supplies in punjabAlexander Decker
This document discusses contraceptive use in Punjab, Pakistan. It begins by providing background on the benefits of family planning and contraceptive use for maternal and child health. It then analyzes contraceptive commodity data from Punjab, finding that use is still low despite efforts to improve access. The document concludes by emphasizing the need for strategies to bridge gaps and meet the unmet need for effective and affordable contraceptive methods and supplies in Punjab in order to improve health outcomes.
A synthesis of taylor’s and fayol’s management approaches for managing market...Alexander Decker
1) The document discusses synthesizing Taylor's scientific management approach and Fayol's process management approach to identify an effective way to manage marketing executives in Nigerian banks.
2) It reviews Taylor's emphasis on efficiency and breaking tasks into small parts, and Fayol's focus on developing general management principles.
3) The study administered a survey to 303 marketing executives in Nigerian banks to test if combining elements of Taylor and Fayol's approaches would help manage their performance through clear roles, accountability, and motivation. Statistical analysis supported combining the two approaches.
A survey paper on sequence pattern mining with incrementalAlexander Decker
This document summarizes four algorithms for sequential pattern mining: GSP, ISM, FreeSpan, and PrefixSpan. GSP is an Apriori-based algorithm that incorporates time constraints. ISM extends SPADE to incrementally update patterns after database changes. FreeSpan uses frequent items to recursively project databases and grow subsequences. PrefixSpan also uses projection but claims to not require candidate generation. It recursively projects databases based on short prefix patterns. The document concludes by stating the goal was to find an efficient scheme for extracting sequential patterns from transactional datasets.
A survey on live virtual machine migrations and its techniquesAlexander Decker
This document summarizes several techniques for live virtual machine migration in cloud computing. It discusses works that have proposed affinity-aware migration models to improve resource utilization, energy efficient migration approaches using storage migration and live VM migration, and a dynamic consolidation technique using migration control to avoid unnecessary migrations. The document also summarizes works that have designed methods to minimize migration downtime and network traffic, proposed a resource reservation framework for efficient migration of multiple VMs, and addressed real-time issues in live migration. Finally, it provides a table summarizing the techniques, tools used, and potential future work or gaps identified for each discussed work.
A survey on data mining and analysis in hadoop and mongo dbAlexander Decker
This document discusses data mining of big data using Hadoop and MongoDB. It provides an overview of Hadoop and MongoDB and their uses in big data analysis. Specifically, it proposes using Hadoop for distributed processing and MongoDB for data storage and input. The document reviews several related works that discuss big data analysis using these tools, as well as their capabilities for scalable data storage and mining. It aims to improve computational time and fault tolerance for big data analysis by mining data stored in Hadoop using MongoDB and MapReduce.
1. The document discusses several challenges for integrating media with cloud computing including media content convergence, scalability and expandability, finding appropriate applications, and reliability.
2. Media content convergence challenges include dealing with the heterogeneity of media types, services, networks, devices, and quality of service requirements as well as integrating technologies used by media providers and consumers.
3. Scalability and expandability challenges involve adapting to the increasing volume of media content and being able to support new media formats and outlets over time.
This document surveys trust architectures that leverage provenance in wireless sensor networks. It begins with background on provenance, which refers to the documented history or derivation of data. Provenance can be used to assess trust by providing metadata about how data was processed. The document then discusses challenges for using provenance to establish trust in wireless sensor networks, which have constraints on energy and computation. Finally, it provides background on trust, which is the subjective probability that a node will behave dependably. Trust architectures need to be lightweight to account for the constraints of wireless sensor networks.
This document discusses private equity investments in Kenya. It provides background on private equity and discusses trends in various regions. The objectives of the study discussed are to establish the extent of private equity adoption in Kenya, identify common forms of private equity utilized, and determine typical exit strategies. Private equity can involve venture capital, leveraged buyouts, or mezzanine financing. Exits allow recycling of capital into new opportunities. The document provides context on private equity globally and in developing markets like Africa to frame the goals of the study.
This document discusses a study that analyzes the financial health of the Indian logistics industry from 2005-2012 using Altman's Z-score model. The study finds that the average Z-score for selected logistics firms was in the healthy to very healthy range during the study period. The average Z-score increased from 2006 to 2010 when the Indian economy was hit by the global recession, indicating the overall performance of the Indian logistics industry was good. The document reviews previous literature on measuring financial performance and distress using ratios and Z-scores, and outlines the objectives and methodology used in the current study.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the what'sapp contact of my personal pi merchant to trade with
+12349014282
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the what'sapp number.
+12349014282
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the what'sapp contact of my personal pi vendor
+12349014282
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
Impact of size and age on firm performance evidences from microfinance institutions in tanzania
1. Research Journal of Finance and Accounting
ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online
Vol.4, No.5, 2013
Impact of Size and Age on Firm Performance: Evidences from
Microfinance Institutions in Tanzania
Accounting School, Dongbei University of Finance and Economics, 116025, Dalian, China.
Abstract
The aim of the study was to examine the impact of firm size and age on performance of Microfinance institutions in
Tanzania. The study uses panel data of five years and 30 Microfinance institutions operating in the country.
The findings of the study show the presence of the positive impact of firm size measured by total asset and number of
borrowers on the performance of Microfinance institutions in the country. On the other hand, the study found out that
firm size measured by the number of staff was negatively related to the efficiency sustainability and profitability of
Microfinance institutions reviewed. The findings of the study also show that the age of the firms which indicates firm
experience have a positive impact on
on the profitability of Microfinance institutions reviewed. From these findings, the study concludes that both firm size
and age have an impact on Microfinance performance i
and revenue generation capacity.
The study recommends that, due to the fast growth of the Microfinance sector in Tanzania, with increases in small and
medium Microfinance institutions, the go
of these institutions. Better policies should be create which to facilitate growth and hence the performance of
Microfinance institutions in the country. To the managers of Microfin
should monitor the institution's growth to ensure that both size and age increase with firm performance.
Keywords: Size, Age, Firm Performance, Microfinance Institutions
1. Introduction
Microfinance institutions in Tanzania are important sources of finance for the poor and low income households
especially in rural areas. These institutions were the result of the financial sector reform which led to the liberalization
of the financial sector to allow the est
1992). Since the reforms, they have been a tremendous growth in the microfinance sector in terms of the number of
institutions, clients reached and service area covered. The gro
the increased need and importance of Microfinance institutions in the country. The sector has become the main source
of finance not only to the poor and low income households but also to entrepreneurs a
in both rural and urban areas. This has led to the recognition of the sector by the government and policy makers as an
important segment of the financial system for saving unbaked people in the country.
The growth of the Microfinance sector in Tanzania has enabled the establishment of different types of Microfinance
institutions such NGOs, NBFIs, Microfinance companies, SACCOs and ROSCA. It has also resulted into involvement
of more commercial banks, cooperative banks and co
Facet, 2011). The institutions involved in Microfinance services vary in terms of their size, which reflects the amount
of resources they possess and the level of their growth. The largest shar
involves SACCOs which are small in size in terms of the number of people saved, the geographical area covered as
well as the size of assets owned. The large and medium Microfinance institutions in the country i
NBFIs, Microfinance companies and microfinance banks. The large and medium Microfinance institutions also vary in
terms of their size, experience, coverage and product varieties offered, with commercial banks involved in
Microfinance institutions being the largest than others.
Studies conducted on the performance of Microfinance institutions in the country have reported poor performance of
most of the institutions as a result of higher operating costs, low revenue generation ability and hig
Research Journal of Finance and Accounting
2847 (Online)
105
Impact of Size and Age on Firm Performance: Evidences from
Microfinance Institutions in Tanzania
Erasmus Fabian Kipesha
Accounting School, Dongbei University of Finance and Economics, 116025, Dalian, China.
E-mail: ekipesha@yahoo.co.uk
The aim of the study was to examine the impact of firm size and age on performance of Microfinance institutions in
Tanzania. The study uses panel data of five years and 30 Microfinance institutions operating in the country.
The findings of the study show the presence of the positive impact of firm size measured by total asset and number of
borrowers on the performance of Microfinance institutions in the country. On the other hand, the study found out that
by the number of staff was negatively related to the efficiency sustainability and profitability of
Microfinance institutions reviewed. The findings of the study also show that the age of the firms which indicates firm
experience have a positive impact on efficiency, sustainability and financial revenue levels but have a negative impact
on the profitability of Microfinance institutions reviewed. From these findings, the study concludes that both firm size
and age have an impact on Microfinance performance in Tanzania in terms of efficiency, sustainability, profitability
The study recommends that, due to the fast growth of the Microfinance sector in Tanzania, with increases in small and
medium Microfinance institutions, the government and policy makers should create a good environment for the growth
of these institutions. Better policies should be create which to facilitate growth and hence the performance of
Microfinance institutions in the country. To the managers of Microfinance institutions, the study recommend that, they
should monitor the institution's growth to ensure that both size and age increase with firm performance.
Size, Age, Firm Performance, Microfinance Institutions
utions in Tanzania are important sources of finance for the poor and low income households
especially in rural areas. These institutions were the result of the financial sector reform which led to the liberalization
of the financial sector to allow the establishment of private banks and other forms of financial institutions (Kavura,
1992). Since the reforms, they have been a tremendous growth in the microfinance sector in terms of the number of
institutions, clients reached and service area covered. The growth of Microfinance sector has been also supported by
the increased need and importance of Microfinance institutions in the country. The sector has become the main source
of finance not only to the poor and low income households but also to entrepreneurs and small and medium enterprises,
in both rural and urban areas. This has led to the recognition of the sector by the government and policy makers as an
important segment of the financial system for saving unbaked people in the country.
crofinance sector in Tanzania has enabled the establishment of different types of Microfinance
institutions such NGOs, NBFIs, Microfinance companies, SACCOs and ROSCA. It has also resulted into involvement
of more commercial banks, cooperative banks and community banks in the microfinance services (BOT, 2010, Triodos
Facet, 2011). The institutions involved in Microfinance services vary in terms of their size, which reflects the amount
of resources they possess and the level of their growth. The largest share of Microfinance institutions in the country
involves SACCOs which are small in size in terms of the number of people saved, the geographical area covered as
well as the size of assets owned. The large and medium Microfinance institutions in the country i
NBFIs, Microfinance companies and microfinance banks. The large and medium Microfinance institutions also vary in
terms of their size, experience, coverage and product varieties offered, with commercial banks involved in
tutions being the largest than others.
Studies conducted on the performance of Microfinance institutions in the country have reported poor performance of
most of the institutions as a result of higher operating costs, low revenue generation ability and hig
www.iiste.org
Impact of Size and Age on Firm Performance: Evidences from
Microfinance Institutions in Tanzania
Accounting School, Dongbei University of Finance and Economics, 116025, Dalian, China.
The aim of the study was to examine the impact of firm size and age on performance of Microfinance institutions in
Tanzania. The study uses panel data of five years and 30 Microfinance institutions operating in the country.
The findings of the study show the presence of the positive impact of firm size measured by total asset and number of
borrowers on the performance of Microfinance institutions in the country. On the other hand, the study found out that
by the number of staff was negatively related to the efficiency sustainability and profitability of
Microfinance institutions reviewed. The findings of the study also show that the age of the firms which indicates firm
efficiency, sustainability and financial revenue levels but have a negative impact
on the profitability of Microfinance institutions reviewed. From these findings, the study concludes that both firm size
n Tanzania in terms of efficiency, sustainability, profitability
The study recommends that, due to the fast growth of the Microfinance sector in Tanzania, with increases in small and
vernment and policy makers should create a good environment for the growth
of these institutions. Better policies should be create which to facilitate growth and hence the performance of
ance institutions, the study recommend that, they
should monitor the institution's growth to ensure that both size and age increase with firm performance.
utions in Tanzania are important sources of finance for the poor and low income households
especially in rural areas. These institutions were the result of the financial sector reform which led to the liberalization
ablishment of private banks and other forms of financial institutions (Kavura,
1992). Since the reforms, they have been a tremendous growth in the microfinance sector in terms of the number of
wth of Microfinance sector has been also supported by
the increased need and importance of Microfinance institutions in the country. The sector has become the main source
nd small and medium enterprises,
in both rural and urban areas. This has led to the recognition of the sector by the government and policy makers as an
crofinance sector in Tanzania has enabled the establishment of different types of Microfinance
institutions such NGOs, NBFIs, Microfinance companies, SACCOs and ROSCA. It has also resulted into involvement
mmunity banks in the microfinance services (BOT, 2010, Triodos
Facet, 2011). The institutions involved in Microfinance services vary in terms of their size, which reflects the amount
e of Microfinance institutions in the country
involves SACCOs which are small in size in terms of the number of people saved, the geographical area covered as
well as the size of assets owned. The large and medium Microfinance institutions in the country include the NGOs,
NBFIs, Microfinance companies and microfinance banks. The large and medium Microfinance institutions also vary in
terms of their size, experience, coverage and product varieties offered, with commercial banks involved in
Studies conducted on the performance of Microfinance institutions in the country have reported poor performance of
most of the institutions as a result of higher operating costs, low revenue generation ability and highly dependence in
2. Research Journal of Finance and Accounting
ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online
Vol.4, No.5, 2013
subsidies (Marr & Tobarro, 2011, Kipesha, 2013b). Empirical evidences on sustainability of Microfinance institutions
have also reported that more of the institutions are not sustainable in both rural and urban areas (Nyamsogoro, 2010;
Kipesha, 2012). Studies have also reported low efficiency level among the institution especially in their in their ability
to intermediate funds from surplus units to the deficit units which are the poor and low income households (Kipesha,
2013a). Does the growth of the microfinance sector in the country imply reaching more poor and excluded population?
This is among the key challenges to the government of Tanzania, policy makers and development partners. According
to the FinScope survey on the demand for, and
people excluded from financial services rose from 53.7% in 2006 to 56% in 2009 (FinScope, 2009). This implies that
the growth of microfinance sector has not resulted in the growth of
services. What constrains microfinance institutions in the country from reaching most of the unbaked people is still not
yet documented. In order for Microfinance institutions, to reach more people they nee
in term of asset, staff as well as the geographical area covered. The growth of such institutions is also expected to
increase with the age of the institutions as results of experience, innovations, technology as well econ
This study seeks to find evidence whether the size and age of Microfinance institutions in the country have an impact
on the firm performance, which constrains them from reaching the most of the poor and excluded people in the country.
The findings of this study are important to government, policy makers, managers and other stakeholders of
Microfinance institutions in the country. The findings of the study provide information to policy makers on the
relationship of size and firm performance,
Microfinance institutions in the country. The study is also beneficial to the owner of Microfinance institutions as it
provides an understanding of the effect of size and age
control and monitoring of the performance as firms grow in terms of size and age. To study adds to the literature on
the impact of size and age on firm performance from the evidences of Microfinance i
2. Literature Review
The performance of a firm is a function of many different factors from both internal and external of the firm operations.
Among the important factors are the size and age of the firm, which indicate the amount
experience possessed by the firm. The size of the firm has shown to have an impact on performance due to the
advantages and disadvantages faced by the firms with a particular level of growth. According to Chandler (1962), the
size of the firms has advantages in their performance. Large firms can operate at low costs due to scale and scope of
economies advantages. Due to their size of operations, large firms have the advantage of getting access to credit
finance for investment, possess a larger pool of qualified human capital and have a greater chance for strategic
diversification compared to small firms (Yang & Chen, 2009). Large firms also have superior capabilities in product
development, marketing and commercialization which m
(Teece, 1986). According to Ramsay et al (2005) firm size allows for incremental advantages as the size enables the
firm to raise the barriers of entry to potential entrants as well as gain leverage on
productivity. Among the key advantages of larger firms as compared to smaller firms includes, higher negotiation
power with clients and suppliers, easy access to finance and broader pool of qualified human capital (Yang &
2009; Serrasqueiro & Nunes, 2008). The size of the firm is not always of advantages as it can also result in declining
performance due to some operational behavior of large firms. According to Tripsas & Gavetti (2000) firm size in not
always of advantages, in some cases large firms are slow to introduce and adopt new technologies due to the
bureaucracy and operational rigidities. Large firms also have a tendency to focus only on existing market unlike small
firms, which seek to capture new and potenti
Firm age is also an important attribute on the firm’s performance as it tells about the experience possessed by the firm
in the operations. According to Ericson & Pakes (1995), firms are learning and over time they discover
good at and learn how to be more efficient. Through learning, firms specialize and find ways to standardize coordinate
and speed up their production processes as well as reduce costs and improve the quality. The relationship between firm
age and organizational performance can be explained from different dimensions. According to Jovanovic (1982), firms
are born with fixed productivity levels which increase with time. This is so called selection effects which arise when
competitive and other operational pressure eliminates the weakest firm in the market. As results of the decreased
number of firms, the remaining firms are faced with high market demand which facilitate increased average
productivity level (Coad et al, 2011). The age and performan
Research Journal of Finance and Accounting
2847 (Online)
106
subsidies (Marr & Tobarro, 2011, Kipesha, 2013b). Empirical evidences on sustainability of Microfinance institutions
have also reported that more of the institutions are not sustainable in both rural and urban areas (Nyamsogoro, 2010;
esha, 2012). Studies have also reported low efficiency level among the institution especially in their in their ability
to intermediate funds from surplus units to the deficit units which are the poor and low income households (Kipesha,
owth of the microfinance sector in the country imply reaching more poor and excluded population?
This is among the key challenges to the government of Tanzania, policy makers and development partners. According
to the FinScope survey on the demand for, and barriers to accessing financial services in Tanzania, the percentage of
people excluded from financial services rose from 53.7% in 2006 to 56% in 2009 (FinScope, 2009). This implies that
the growth of microfinance sector has not resulted in the growth of the number of people who have access to financial
services. What constrains microfinance institutions in the country from reaching most of the unbaked people is still not
yet documented. In order for Microfinance institutions, to reach more people they need to grow and increase their size
in term of asset, staff as well as the geographical area covered. The growth of such institutions is also expected to
increase with the age of the institutions as results of experience, innovations, technology as well econ
This study seeks to find evidence whether the size and age of Microfinance institutions in the country have an impact
on the firm performance, which constrains them from reaching the most of the poor and excluded people in the country.
findings of this study are important to government, policy makers, managers and other stakeholders of
Microfinance institutions in the country. The findings of the study provide information to policy makers on the
relationship of size and firm performance, to enable the creation of better policies, which would facilitate the growth of
Microfinance institutions in the country. The study is also beneficial to the owner of Microfinance institutions as it
provides an understanding of the effect of size and age on their firm performance. This enables them to improve
control and monitoring of the performance as firms grow in terms of size and age. To study adds to the literature on
the impact of size and age on firm performance from the evidences of Microfinance institutions in Tanzania.
The performance of a firm is a function of many different factors from both internal and external of the firm operations.
Among the important factors are the size and age of the firm, which indicate the amount
experience possessed by the firm. The size of the firm has shown to have an impact on performance due to the
advantages and disadvantages faced by the firms with a particular level of growth. According to Chandler (1962), the
ize of the firms has advantages in their performance. Large firms can operate at low costs due to scale and scope of
economies advantages. Due to their size of operations, large firms have the advantage of getting access to credit
ossess a larger pool of qualified human capital and have a greater chance for strategic
diversification compared to small firms (Yang & Chen, 2009). Large firms also have superior capabilities in product
development, marketing and commercialization which make them better performers compared to the small firms
(Teece, 1986). According to Ramsay et al (2005) firm size allows for incremental advantages as the size enables the
firm to raise the barriers of entry to potential entrants as well as gain leverage on the economies of scale to attain
productivity. Among the key advantages of larger firms as compared to smaller firms includes, higher negotiation
power with clients and suppliers, easy access to finance and broader pool of qualified human capital (Yang &
2009; Serrasqueiro & Nunes, 2008). The size of the firm is not always of advantages as it can also result in declining
performance due to some operational behavior of large firms. According to Tripsas & Gavetti (2000) firm size in not
tages, in some cases large firms are slow to introduce and adopt new technologies due to the
bureaucracy and operational rigidities. Large firms also have a tendency to focus only on existing market unlike small
firms, which seek to capture new and potential markets (Christensen, 1997).
Firm age is also an important attribute on the firm’s performance as it tells about the experience possessed by the firm
in the operations. According to Ericson & Pakes (1995), firms are learning and over time they discover
good at and learn how to be more efficient. Through learning, firms specialize and find ways to standardize coordinate
and speed up their production processes as well as reduce costs and improve the quality. The relationship between firm
and organizational performance can be explained from different dimensions. According to Jovanovic (1982), firms
are born with fixed productivity levels which increase with time. This is so called selection effects which arise when
erational pressure eliminates the weakest firm in the market. As results of the decreased
number of firms, the remaining firms are faced with high market demand which facilitate increased average
productivity level (Coad et al, 2011). The age and performance can also be explained through learning by doing effects
www.iiste.org
subsidies (Marr & Tobarro, 2011, Kipesha, 2013b). Empirical evidences on sustainability of Microfinance institutions
have also reported that more of the institutions are not sustainable in both rural and urban areas (Nyamsogoro, 2010;
esha, 2012). Studies have also reported low efficiency level among the institution especially in their in their ability
to intermediate funds from surplus units to the deficit units which are the poor and low income households (Kipesha,
owth of the microfinance sector in the country imply reaching more poor and excluded population?
This is among the key challenges to the government of Tanzania, policy makers and development partners. According
barriers to accessing financial services in Tanzania, the percentage of
people excluded from financial services rose from 53.7% in 2006 to 56% in 2009 (FinScope, 2009). This implies that
the number of people who have access to financial
services. What constrains microfinance institutions in the country from reaching most of the unbaked people is still not
d to grow and increase their size
in term of asset, staff as well as the geographical area covered. The growth of such institutions is also expected to
increase with the age of the institutions as results of experience, innovations, technology as well economies of scale.
This study seeks to find evidence whether the size and age of Microfinance institutions in the country have an impact
on the firm performance, which constrains them from reaching the most of the poor and excluded people in the country.
findings of this study are important to government, policy makers, managers and other stakeholders of
Microfinance institutions in the country. The findings of the study provide information to policy makers on the
to enable the creation of better policies, which would facilitate the growth of
Microfinance institutions in the country. The study is also beneficial to the owner of Microfinance institutions as it
on their firm performance. This enables them to improve
control and monitoring of the performance as firms grow in terms of size and age. To study adds to the literature on
nstitutions in Tanzania.
The performance of a firm is a function of many different factors from both internal and external of the firm operations.
of resources available, and
experience possessed by the firm. The size of the firm has shown to have an impact on performance due to the
advantages and disadvantages faced by the firms with a particular level of growth. According to Chandler (1962), the
ize of the firms has advantages in their performance. Large firms can operate at low costs due to scale and scope of
economies advantages. Due to their size of operations, large firms have the advantage of getting access to credit
ossess a larger pool of qualified human capital and have a greater chance for strategic
diversification compared to small firms (Yang & Chen, 2009). Large firms also have superior capabilities in product
ake them better performers compared to the small firms
(Teece, 1986). According to Ramsay et al (2005) firm size allows for incremental advantages as the size enables the
the economies of scale to attain
productivity. Among the key advantages of larger firms as compared to smaller firms includes, higher negotiation
power with clients and suppliers, easy access to finance and broader pool of qualified human capital (Yang & Chen,
2009; Serrasqueiro & Nunes, 2008). The size of the firm is not always of advantages as it can also result in declining
performance due to some operational behavior of large firms. According to Tripsas & Gavetti (2000) firm size in not
tages, in some cases large firms are slow to introduce and adopt new technologies due to the
bureaucracy and operational rigidities. Large firms also have a tendency to focus only on existing market unlike small
Firm age is also an important attribute on the firm’s performance as it tells about the experience possessed by the firm
in the operations. According to Ericson & Pakes (1995), firms are learning and over time they discover what they are
good at and learn how to be more efficient. Through learning, firms specialize and find ways to standardize coordinate
and speed up their production processes as well as reduce costs and improve the quality. The relationship between firm
and organizational performance can be explained from different dimensions. According to Jovanovic (1982), firms
are born with fixed productivity levels which increase with time. This is so called selection effects which arise when
erational pressure eliminates the weakest firm in the market. As results of the decreased
number of firms, the remaining firms are faced with high market demand which facilitate increased average
ce can also be explained through learning by doing effects
3. Research Journal of Finance and Accounting
ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online
Vol.4, No.5, 2013
concept. Learning by doing take place when organizations increase their level of productivity as they learn more about
the production techniques and use them to innovate their production routines (
(1998) learning by doing effect is very important and relevant to young firms, which need to, grow, expand and
improve their performance with time. He argues that young firms make search of new processes to solve for
the problems they encounter as the learning occurs with time, the benefits of learning results into reduced labor and
time to current problems hence contributing to the performance of the institutions. The impact of firm age is also
explained by the inertia effect concept; inertia effect explains the ability of the firm to change as fast as their
environment changes. When the firms are very young, they have the ability to change according to environmental
changes by creating and applying new strate
With age, the old firms lose their inertia and cannot change as fast as changes in the environment giving chance for the
new entrants to capture the market. According to Barron et al (199
from liability of obsolescence and senescence. Obsolescence occurs due to their inability to fit well in the changing
business environment while senescence occurs due to their inflexible rules, routines and
(Coad et al, 2011).
The relationship between firm size and age is also of great importance in Microfinance institutions. Due to outreach to
the poor focus, most of the Microfinance institutions depend much on grants, donations an
especially at start up phase. As the Microfinance institutions grow in term of their size and experience, they are
expected to operate more efficiently and sustainable with less dependence on subsidies from donors (Armendariz
&Morduch, 2004). The size of Microfinance institution implies possession of more resources, which are used to reach
more poor people as well as enable the institution to be self dependent. The size also indicates the growth of
Microfinance institutions in terms of client base, geographical area covered as well as assets owned. As in other
business firms the size of Microfinance institutions is very important for acquiring commercial financing, use of
modern technology and innovations. The size also influences
different operations and growth strategies such as internal control, revenue enhancement, geographical coverage as
well as internal decision regarding the use resources of Microfinance institutions. Acc
size of Microfinance institutions tells about its ability to formalize procedures and structures which are important to
ensure the performance of the firms especially in the repayment perspective. The age of Microfinance instit
the other hand, tells about the experiences acquired by the institution with operations, resource mobilization as well as
market experience. The age of Microfinance institution has influence to their financing needs; the older institutions are
at an advantage of acquiring commercial financing as compared to new established Microfinance institutions. The age
of Microfinance institutions is also associated with low failure rates due to the resources they possess, goodwill created
in the market over time as well as legitimacy created in the market place. The older Microfinance institutions have
acquired knowledge and experience about the market, better operational strategies, financing sources, customer needs
and have learned ways to overcome competi
Evidences from empirical findings have reported mixed findings about the impact of size and age on firm performance
not only in the Microfinance industry but also in other industries. The evidences from manufacturing indust
by Wing & Yiu (1997) reported that firm size increases with efficiency of the firm. This was contrary to the findings
obtained by Storey et al (1987), which indicated size and age were negatively correlated with performance and growth
in manufacturing companies, in Northern England. Similar results were reported in the study by Lun & Quaddus (2011)
which examined the relationship between firm size and performance in container transport operators in Hong Kong.
Ramsay et al (2005) provided evidence
that firm size was negatively related to performance. Studies of Small and medium firms (SMEs) have also reported
mixed results on the impact of size and age on firm performance.
size of institutions is related positively to performance in Portuguese, the evidences from Spain indicated that SMEs
were more efficient that large firm. This implies that the size of the firm is negatively
Sanchez, 2008). The mixed results from the empirical evidences suggest that the relationship between size and age of
the firm with performance is not linear. Firm growth beyond the optimal levels can experience negative effec
performance (Barett et al, 2010, Yoon, 2004).
Studies from Microfinance institutions operation around the World have also provided mixed evidences on the impact
of size and age on firm performance. According to the studies by Bogan et al (2008), Cull
(2010) and Abayie et al (2011) the age of Microfinance institutions have a positive effect on their performance in
terms of efficiency, sustainability and profitability. Contrary to the above findings, the findings by Nieto & Mol
Research Journal of Finance and Accounting
2847 (Online)
107
concept. Learning by doing take place when organizations increase their level of productivity as they learn more about
the production techniques and use them to innovate their production routines (Vassilakis, 2008). According to Garnsey
(1998) learning by doing effect is very important and relevant to young firms, which need to, grow, expand and
improve their performance with time. He argues that young firms make search of new processes to solve for
the problems they encounter as the learning occurs with time, the benefits of learning results into reduced labor and
time to current problems hence contributing to the performance of the institutions. The impact of firm age is also
he inertia effect concept; inertia effect explains the ability of the firm to change as fast as their
environment changes. When the firms are very young, they have the ability to change according to environmental
changes by creating and applying new strategies, creation of new products, new markets and product innovations.
With age, the old firms lose their inertia and cannot change as fast as changes in the environment giving chance for the
new entrants to capture the market. According to Barron et al (1994), matured firms have a high chance of suffering
from liability of obsolescence and senescence. Obsolescence occurs due to their inability to fit well in the changing
business environment while senescence occurs due to their inflexible rules, routines and
The relationship between firm size and age is also of great importance in Microfinance institutions. Due to outreach to
the poor focus, most of the Microfinance institutions depend much on grants, donations an
especially at start up phase. As the Microfinance institutions grow in term of their size and experience, they are
expected to operate more efficiently and sustainable with less dependence on subsidies from donors (Armendariz
rduch, 2004). The size of Microfinance institution implies possession of more resources, which are used to reach
more poor people as well as enable the institution to be self dependent. The size also indicates the growth of
ms of client base, geographical area covered as well as assets owned. As in other
business firms the size of Microfinance institutions is very important for acquiring commercial financing, use of
modern technology and innovations. The size also influences managers of Microfinance institutions in implementing
different operations and growth strategies such as internal control, revenue enhancement, geographical coverage as
well as internal decision regarding the use resources of Microfinance institutions. According to Coleman (2007) the
size of Microfinance institutions tells about its ability to formalize procedures and structures which are important to
ensure the performance of the firms especially in the repayment perspective. The age of Microfinance instit
the other hand, tells about the experiences acquired by the institution with operations, resource mobilization as well as
market experience. The age of Microfinance institution has influence to their financing needs; the older institutions are
t an advantage of acquiring commercial financing as compared to new established Microfinance institutions. The age
of Microfinance institutions is also associated with low failure rates due to the resources they possess, goodwill created
time as well as legitimacy created in the market place. The older Microfinance institutions have
acquired knowledge and experience about the market, better operational strategies, financing sources, customer needs
and have learned ways to overcome competition constraints in the market.
Evidences from empirical findings have reported mixed findings about the impact of size and age on firm performance
not only in the Microfinance industry but also in other industries. The evidences from manufacturing indust
by Wing & Yiu (1997) reported that firm size increases with efficiency of the firm. This was contrary to the findings
obtained by Storey et al (1987), which indicated size and age were negatively correlated with performance and growth
turing companies, in Northern England. Similar results were reported in the study by Lun & Quaddus (2011)
which examined the relationship between firm size and performance in container transport operators in Hong Kong.
Ramsay et al (2005) provided evidence of impact of firm size from Malaysian Palm oil industry. The study reported
that firm size was negatively related to performance. Studies of Small and medium firms (SMEs) have also reported
mixed results on the impact of size and age on firm performance. While Serrasqueiro & Nunes (2008) reported that
size of institutions is related positively to performance in Portuguese, the evidences from Spain indicated that SMEs
were more efficient that large firm. This implies that the size of the firm is negatively related to performance (Diaz &
Sanchez, 2008). The mixed results from the empirical evidences suggest that the relationship between size and age of
the firm with performance is not linear. Firm growth beyond the optimal levels can experience negative effec
performance (Barett et al, 2010, Yoon, 2004).
Studies from Microfinance institutions operation around the World have also provided mixed evidences on the impact
of size and age on firm performance. According to the studies by Bogan et al (2008), Cull
(2010) and Abayie et al (2011) the age of Microfinance institutions have a positive effect on their performance in
terms of efficiency, sustainability and profitability. Contrary to the above findings, the findings by Nieto & Mol
www.iiste.org
concept. Learning by doing take place when organizations increase their level of productivity as they learn more about
Vassilakis, 2008). According to Garnsey
(1998) learning by doing effect is very important and relevant to young firms, which need to, grow, expand and
improve their performance with time. He argues that young firms make search of new processes to solve for each of
the problems they encounter as the learning occurs with time, the benefits of learning results into reduced labor and
time to current problems hence contributing to the performance of the institutions. The impact of firm age is also
he inertia effect concept; inertia effect explains the ability of the firm to change as fast as their
environment changes. When the firms are very young, they have the ability to change according to environmental
gies, creation of new products, new markets and product innovations.
With age, the old firms lose their inertia and cannot change as fast as changes in the environment giving chance for the
4), matured firms have a high chance of suffering
from liability of obsolescence and senescence. Obsolescence occurs due to their inability to fit well in the changing
business environment while senescence occurs due to their inflexible rules, routines and organizational structures
The relationship between firm size and age is also of great importance in Microfinance institutions. Due to outreach to
the poor focus, most of the Microfinance institutions depend much on grants, donations and other forms of subsidies
especially at start up phase. As the Microfinance institutions grow in term of their size and experience, they are
expected to operate more efficiently and sustainable with less dependence on subsidies from donors (Armendariz
rduch, 2004). The size of Microfinance institution implies possession of more resources, which are used to reach
more poor people as well as enable the institution to be self dependent. The size also indicates the growth of
ms of client base, geographical area covered as well as assets owned. As in other
business firms the size of Microfinance institutions is very important for acquiring commercial financing, use of
managers of Microfinance institutions in implementing
different operations and growth strategies such as internal control, revenue enhancement, geographical coverage as
ording to Coleman (2007) the
size of Microfinance institutions tells about its ability to formalize procedures and structures which are important to
ensure the performance of the firms especially in the repayment perspective. The age of Microfinance institutions, on
the other hand, tells about the experiences acquired by the institution with operations, resource mobilization as well as
market experience. The age of Microfinance institution has influence to their financing needs; the older institutions are
t an advantage of acquiring commercial financing as compared to new established Microfinance institutions. The age
of Microfinance institutions is also associated with low failure rates due to the resources they possess, goodwill created
time as well as legitimacy created in the market place. The older Microfinance institutions have
acquired knowledge and experience about the market, better operational strategies, financing sources, customer needs
Evidences from empirical findings have reported mixed findings about the impact of size and age on firm performance
not only in the Microfinance industry but also in other industries. The evidences from manufacturing industry provide
by Wing & Yiu (1997) reported that firm size increases with efficiency of the firm. This was contrary to the findings
obtained by Storey et al (1987), which indicated size and age were negatively correlated with performance and growth
turing companies, in Northern England. Similar results were reported in the study by Lun & Quaddus (2011)
which examined the relationship between firm size and performance in container transport operators in Hong Kong.
of impact of firm size from Malaysian Palm oil industry. The study reported
that firm size was negatively related to performance. Studies of Small and medium firms (SMEs) have also reported
While Serrasqueiro & Nunes (2008) reported that
size of institutions is related positively to performance in Portuguese, the evidences from Spain indicated that SMEs
related to performance (Diaz &
Sanchez, 2008). The mixed results from the empirical evidences suggest that the relationship between size and age of
the firm with performance is not linear. Firm growth beyond the optimal levels can experience negative effect on
Studies from Microfinance institutions operation around the World have also provided mixed evidences on the impact
of size and age on firm performance. According to the studies by Bogan et al (2008), Cull et al (2007), Masood et al
(2010) and Abayie et al (2011) the age of Microfinance institutions have a positive effect on their performance in
terms of efficiency, sustainability and profitability. Contrary to the above findings, the findings by Nieto & Molinero
4. Research Journal of Finance and Accounting
ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online
Vol.4, No.5, 2013
(2006) did not find any relationship between the number age of Microfinance institution with profitability. The
evidences provided by Coleman (2007) also were contrary to most of the empirical findings on the impact of age on
Microfinance performance. The study reported a positive impact between age and default rate in Microfinance
institutions. The study supported the findings on the ground that as the age increases the institutions expands and
reaches more poor clients. The increase in the poor clie
higher default rates. Empirical evidences have also shown the presence of positive impact on the size of Microfinance
institutions in firm performance measured in different aspects. The study by
size on the profitability and sustainability of Microfinance institutions in Ethiopia. These results were in line with
results by Coleman (2007) which indicated that firm size has a positive impact on yield on gro
institutions. Contrary to these findings, Bassem (2008) reported a negative relationship between size and Microfinance
institution's efficiency while Crawford et al (2011) found that smaller Microfinance institutions were more profitab
than larger ones indicating negative impact of size on performance
3. Methodology and Data
This study seeks to examine the impact of firm size and age on performance of Microfinance institutions operating in
Tanzania. The study uses a panel data of 30
used were the mix market database www.mixmarket.org
Microfinance institutions.
The study uses four variables as the measurement of Performance of Microfinance institutions, the variables include
relative efficiency score, operating self sufficiency (OSS), adjusted return on asset (AROA) and financial revenue
generated. Operating self sufficiency indicator was used as a proxy measure of the sustainability of microfinance
institutions as it indicates the ability of the firm to cover operating costs using operating revenue. Adjusted return on
asset is a subsidy adjusted return which was used
study also uses financial revenue generated as the measure of the capacity of institutions to generate revenue, as it
grows in terms of size and age. The study uses three variables as t
institutions in Tanzania. The variables include total asset, number of staffs and number of borrowers. The choice of the
variables followed from other empirical studies which have used one or more these variabl
size of institutions (Ali, 2004, Onyeiwu, 2003, Strorey et al, 1987, Cull et al, 2007, Abaiye, 2011, Ahlin et al, 2011).
On the other hand, the study uses the number of years since the commencement as the proxy of age and exper
Microfinance institutions. This proxy measure has also been used in most of previous studies as the measure of firm
age and experience.
All the data used in this study were obtained from the three sources of data mentioned above except for the rel
efficiency data which was computed using the CCR model as specified by Coelli, (1998) and Shiu (2002).
∑
∑
=
=
= n
j
jkj
m
i
isi
k
y
MinTE
1
1
χυ
µ
+−∑ wyySubjectTo iFiriµ
0,,........1
0
≥=
≥− ∑
ji
jkjjr
Kr νµ
χµχ
Where: K is the number of Microfinance institutions which use N inputs material
quantity of
th
j inputs used by the
th
k
the output and input weights respectively, j=1…..n, i=1…..m.
operating expenses and total staffs and two output variables gross loan portfolio and financial reve
Research Journal of Finance and Accounting
2847 (Online)
108
(2006) did not find any relationship between the number age of Microfinance institution with profitability. The
evidences provided by Coleman (2007) also were contrary to most of the empirical findings on the impact of age on
. The study reported a positive impact between age and default rate in Microfinance
institutions. The study supported the findings on the ground that as the age increases the institutions expands and
reaches more poor clients. The increase in the poor clients raises the repayment problems which in turn results into
higher default rates. Empirical evidences have also shown the presence of positive impact on the size of Microfinance
institutions in firm performance measured in different aspects. The study by Ejigu (2009) reported a positive impact of
size on the profitability and sustainability of Microfinance institutions in Ethiopia. These results were in line with
results by Coleman (2007) which indicated that firm size has a positive impact on yield on gro
institutions. Contrary to these findings, Bassem (2008) reported a negative relationship between size and Microfinance
institution's efficiency while Crawford et al (2011) found that smaller Microfinance institutions were more profitab
than larger ones indicating negative impact of size on performance
This study seeks to examine the impact of firm size and age on performance of Microfinance institutions operating in
Tanzania. The study uses a panel data of 30 Microfinance institutions and a period of 5 years. The sources of the data
www.mixmarket.org, Central bank of Tanzania and annual reports of individual
study uses four variables as the measurement of Performance of Microfinance institutions, the variables include
relative efficiency score, operating self sufficiency (OSS), adjusted return on asset (AROA) and financial revenue
ficiency indicator was used as a proxy measure of the sustainability of microfinance
institutions as it indicates the ability of the firm to cover operating costs using operating revenue. Adjusted return on
asset is a subsidy adjusted return which was used as a proxy measure of profitability of Microfinance institutions. The
study also uses financial revenue generated as the measure of the capacity of institutions to generate revenue, as it
grows in terms of size and age. The study uses three variables as the proxy measures of the size of Microfinance
institutions in Tanzania. The variables include total asset, number of staffs and number of borrowers. The choice of the
variables followed from other empirical studies which have used one or more these variables as a proxy measure of the
size of institutions (Ali, 2004, Onyeiwu, 2003, Strorey et al, 1987, Cull et al, 2007, Abaiye, 2011, Ahlin et al, 2011).
On the other hand, the study uses the number of years since the commencement as the proxy of age and exper
Microfinance institutions. This proxy measure has also been used in most of previous studies as the measure of firm
All the data used in this study were obtained from the three sources of data mentioned above except for the rel
efficiency data which was computed using the CCR model as specified by Coelli, (1998) and Shiu (2002).
0 −−−−−−−−−−−−−−−−−−−≥w
Where: K is the number of Microfinance institutions which use N inputs material to produce M outputs.
th
firm, iky is the quantity of
th
i output produced by the
the output and input weights respectively, j=1…..n, i=1…..m. The study uses three input variables total asset,
operating expenses and total staffs and two output variables gross loan portfolio and financial reve
www.iiste.org
(2006) did not find any relationship between the number age of Microfinance institution with profitability. The
evidences provided by Coleman (2007) also were contrary to most of the empirical findings on the impact of age on
. The study reported a positive impact between age and default rate in Microfinance
institutions. The study supported the findings on the ground that as the age increases the institutions expands and
nts raises the repayment problems which in turn results into
higher default rates. Empirical evidences have also shown the presence of positive impact on the size of Microfinance
Ejigu (2009) reported a positive impact of
size on the profitability and sustainability of Microfinance institutions in Ethiopia. These results were in line with
results by Coleman (2007) which indicated that firm size has a positive impact on yield on gross loan Microfinance
institutions. Contrary to these findings, Bassem (2008) reported a negative relationship between size and Microfinance
institution's efficiency while Crawford et al (2011) found that smaller Microfinance institutions were more profitable
This study seeks to examine the impact of firm size and age on performance of Microfinance institutions operating in
Microfinance institutions and a period of 5 years. The sources of the data
, Central bank of Tanzania and annual reports of individual
study uses four variables as the measurement of Performance of Microfinance institutions, the variables include
relative efficiency score, operating self sufficiency (OSS), adjusted return on asset (AROA) and financial revenue
ficiency indicator was used as a proxy measure of the sustainability of microfinance
institutions as it indicates the ability of the firm to cover operating costs using operating revenue. Adjusted return on
as a proxy measure of profitability of Microfinance institutions. The
study also uses financial revenue generated as the measure of the capacity of institutions to generate revenue, as it
he proxy measures of the size of Microfinance
institutions in Tanzania. The variables include total asset, number of staffs and number of borrowers. The choice of the
es as a proxy measure of the
size of institutions (Ali, 2004, Onyeiwu, 2003, Strorey et al, 1987, Cull et al, 2007, Abaiye, 2011, Ahlin et al, 2011).
On the other hand, the study uses the number of years since the commencement as the proxy of age and experience of
Microfinance institutions. This proxy measure has also been used in most of previous studies as the measure of firm
All the data used in this study were obtained from the three sources of data mentioned above except for the relative
efficiency data which was computed using the CCR model as specified by Coelli, (1998) and Shiu (2002).
)1(−−−−−
to produce M outputs. jkχ is the
output produced by the
th
k firm, iµ and jν are
The study uses three input variables total asset,
operating expenses and total staffs and two output variables gross loan portfolio and financial revenues.
5. Research Journal of Finance and Accounting
ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online
Vol.4, No.5, 2013
To examine the impact of firm size and age on performance of Microfinance institutions in Tanzania, the study used
panel data estimation in order to control for the effect of omitted variables (Gujarati, 2003). The study uses four
dependent variables and four independent variables. The four dependent variables which makes four regression models
were efficiency score (EFF), sustainability (OSS), profitability (AROA) and financial revenue (FinRev). The
independent variables, which were tested for each o
borrowers and the number of staff as measures of firm size and number years from the commencement as a measure of
firm age and experience. The basic panel data estimation model can be presented as
−−−−−++= ititit uxY βλ
Where: itY is the dependent variable,
explanatory variables, itχ is the 1 x k vector of observations on the explanatory variables, t denote time period
1 ,t T= L , i denote cross section i N=
To decide which panel data estimation model should be used in this study, we first conducted the Hausman test for all
four dependent variables. The Hausman
effect model, the probability values were all less that 5% significance level (Appendix 1). The use of fixed effect
model was also compared with a pooled regression model using t
method given the study data set. The F test results supported the use of fixed effects regression model as the
probability values were all less than 5% significance level, hence rejecting the null hypothe
zero (Table 3). The study uses fixed effect (within effect), which assumes, the presence of common slopes, but each of
cross section unit has its own intercept which may not be correlated with independent variables (Greene, 2003
2008, Baltagi, 2005). The four regression models used for estimation of relationships were as follows;
ln1 ++= itiit AssetEFF βλ
ln1 ++= itiit AssetOSS βλ
ln1+= itiit AssetAROA βλ
lnRe 1+= iit AssetvFin βλ
Where: itEFF is the efficiency of
Microfinance
th
i at time t, itAROA
financial revenue generated by Microfinance
t, i=1….N, t=1…..,T, itµ is the error term.
Before conducting the regression tests, several tests on regression assumptions were conducted to ensure that it was
appropriate to use regression analysis for examining the relationship. The tests for multicollinearity, autocorrelation
and heteroskedasticity were all conducted in all four regression models. The test for multicollinearity using variance
inflation factor (VIF) did not show the presence of multicollinearity problems in the independent variables of the
regression model. The tolerance values obtained were all higher than the cutoff point of 0.1 below which the
multicollinearity is considered to be a problem (Gujarati, 2003). The autocorrelation test also did not show the
presence of serial or autocorrelation between the error terms while
presence of constant variance in the error terms (Appendix 1).
4. Results and Discussion
Descriptive statistics show low average performance in Microfinance institutions reviewed in operating self
sufficiency (OSS) and adjusted return on asset (AROA), and high performance in efficiency scores (EFF). The mean
performance results were 0.955, (0.11), and 0.81 for OSS, AROA and efficiency respectively. The performance results
show that on average institutions revi
their operations. The mean profitability result was negative, indicating that most of the institutions were operating at
loss hence were not generating any return on assets owned
average, only 81% of the average input used was only required to produce the output levels. This indicates that on
average, the institutions reviewed were wasting 19% of inputs in the production of o
were a little high in all performance variables indicating higher deviation in performance among the institutions
reviewed. The maximum and minimum performance values also show high difference in performance levels between
the highest and the lowest performers in Microfinance institutions reviewed. The mean value of financial revenues
Research Journal of Finance and Accounting
2847 (Online)
109
To examine the impact of firm size and age on performance of Microfinance institutions in Tanzania, the study used
panel data estimation in order to control for the effect of omitted variables (Gujarati, 2003). The study uses four
and four independent variables. The four dependent variables which makes four regression models
were efficiency score (EFF), sustainability (OSS), profitability (AROA) and financial revenue (FinRev). The
independent variables, which were tested for each of the four dependent variables, were total asset, number of
borrowers and the number of staff as measures of firm size and number years from the commencement as a measure of
firm age and experience. The basic panel data estimation model can be presented as
−−−−−−−−−−−−−−−−−−−−−−
is the intercept term,β is a k x 1 vector of parameters to be estimated on the
is the 1 x k vector of observations on the explanatory variables, t denote time period
1 .i N= L , itµ is the error term.
To decide which panel data estimation model should be used in this study, we first conducted the Hausman test for all
four dependent variables. The Hausman test results all favored the use of the fixed effect model as against random
effect model, the probability values were all less that 5% significance level (Appendix 1). The use of fixed effect
model was also compared with a pooled regression model using the F test in order to ascertain the best estimation
method given the study data set. The F test results supported the use of fixed effects regression model as the
probability values were all less than 5% significance level, hence rejecting the null hypothe
zero (Table 3). The study uses fixed effect (within effect), which assumes, the presence of common slopes, but each of
cross section unit has its own intercept which may not be correlated with independent variables (Greene, 2003
2008, Baltagi, 2005). The four regression models used for estimation of relationships were as follows;
lnln 432 +++ ititit uAgeBorwStaff βββ
lnln 432 +++ ititit uAgeBorwStaff βββ
lnln 432 ++++ ititit AgeBorwStaff βββ
lnln 432 +++ itititit AgeBorwStaff βββ
is the efficiency of
th
i Microfinance institution at time t, itOSS is financial sustainability of
is adjusted return on asset of Microfinance
th
i at time t
financial revenue generated by Microfinance
th
i at time t. itBorw is the number of borrowers of institutions
r term.
Before conducting the regression tests, several tests on regression assumptions were conducted to ensure that it was
appropriate to use regression analysis for examining the relationship. The tests for multicollinearity, autocorrelation
kedasticity were all conducted in all four regression models. The test for multicollinearity using variance
inflation factor (VIF) did not show the presence of multicollinearity problems in the independent variables of the
alues obtained were all higher than the cutoff point of 0.1 below which the
multicollinearity is considered to be a problem (Gujarati, 2003). The autocorrelation test also did not show the
presence of serial or autocorrelation between the error terms while the test for heteroskedasticity supported the
presence of constant variance in the error terms (Appendix 1).
Descriptive statistics show low average performance in Microfinance institutions reviewed in operating self
(OSS) and adjusted return on asset (AROA), and high performance in efficiency scores (EFF). The mean
performance results were 0.955, (0.11), and 0.81 for OSS, AROA and efficiency respectively. The performance results
show that on average institutions reviewed were not covering their operating costs using the revenue generated from
their operations. The mean profitability result was negative, indicating that most of the institutions were operating at
loss hence were not generating any return on assets owned. The mean average efficiency results indicated that, on
average, only 81% of the average input used was only required to produce the output levels. This indicates that on
average, the institutions reviewed were wasting 19% of inputs in the production of outputs. The standard deviations
were a little high in all performance variables indicating higher deviation in performance among the institutions
reviewed. The maximum and minimum performance values also show high difference in performance levels between
he highest and the lowest performers in Microfinance institutions reviewed. The mean value of financial revenues
www.iiste.org
To examine the impact of firm size and age on performance of Microfinance institutions in Tanzania, the study used
panel data estimation in order to control for the effect of omitted variables (Gujarati, 2003). The study uses four
and four independent variables. The four dependent variables which makes four regression models
were efficiency score (EFF), sustainability (OSS), profitability (AROA) and financial revenue (FinRev). The
f the four dependent variables, were total asset, number of
borrowers and the number of staff as measures of firm size and number years from the commencement as a measure of
)2(−−−−−
is a k x 1 vector of parameters to be estimated on the
is the 1 x k vector of observations on the explanatory variables, t denote time period
To decide which panel data estimation model should be used in this study, we first conducted the Hausman test for all
test results all favored the use of the fixed effect model as against random
effect model, the probability values were all less that 5% significance level (Appendix 1). The use of fixed effect
he F test in order to ascertain the best estimation
method given the study data set. The F test results supported the use of fixed effects regression model as the
probability values were all less than 5% significance level, hence rejecting the null hypothesis that fixed effects were
zero (Table 3). The study uses fixed effect (within effect), which assumes, the presence of common slopes, but each of
cross section unit has its own intercept which may not be correlated with independent variables (Greene, 2003, Brooks,
2008, Baltagi, 2005). The four regression models used for estimation of relationships were as follows;
)3(−−−itu
)4(−−−itu
)5(−−+ itu
)6(−−+ itit u
is financial sustainability of
at time t and itvFinRe is
is the number of borrowers of institutions
th
i at time
Before conducting the regression tests, several tests on regression assumptions were conducted to ensure that it was
appropriate to use regression analysis for examining the relationship. The tests for multicollinearity, autocorrelation
kedasticity were all conducted in all four regression models. The test for multicollinearity using variance
inflation factor (VIF) did not show the presence of multicollinearity problems in the independent variables of the
alues obtained were all higher than the cutoff point of 0.1 below which the
multicollinearity is considered to be a problem (Gujarati, 2003). The autocorrelation test also did not show the
the test for heteroskedasticity supported the
Descriptive statistics show low average performance in Microfinance institutions reviewed in operating self
(OSS) and adjusted return on asset (AROA), and high performance in efficiency scores (EFF). The mean
performance results were 0.955, (0.11), and 0.81 for OSS, AROA and efficiency respectively. The performance results
ewed were not covering their operating costs using the revenue generated from
their operations. The mean profitability result was negative, indicating that most of the institutions were operating at
. The mean average efficiency results indicated that, on
average, only 81% of the average input used was only required to produce the output levels. This indicates that on
utputs. The standard deviations
were a little high in all performance variables indicating higher deviation in performance among the institutions
reviewed. The maximum and minimum performance values also show high difference in performance levels between
he highest and the lowest performers in Microfinance institutions reviewed. The mean value of financial revenues
6. Research Journal of Finance and Accounting
ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online
Vol.4, No.5, 2013
generated was 17,058 (Mil Tshs) which indicate that on average Microfinance institutions reviewed generates high
revenues from operations. The standard deviation was also high as well as the difference between minimum and
maximum value indicating high difference in revenue levels between the highest and lowest institutions (Table 1).
Table1: Variables Descriptive Statistics
Mean
OSS 0.955
AROA (0.11)
EFF 0.81
ASSET* 144,181
STAFF 259
FINREV* 17,058.00
BORRW 23,565
AGE 11
* Figures in Millions of Tshs
The mean values of variables measuring the size of Microfinance institutions were represented by total asset, staffs and
number of borrowers. Descriptive statistics show high deviation in the size of Microfinance institutions in all three
variables. This was mainly due to the inclusion of commercial banks, which are also, involved in offering
microfinance services. The difference in size also reflects the differences between traditional microfinance institutions
in Tanzania such as NGO, NBFIs a
companies, cooperatives, community banks and commercial banks. The average age of Microfinance institutions
reviewed was 11 years; this indicates that on average, the institutions
microfinance operations. The standard deviation was very high showing high dispersion on age among the institutions
which also indicate differences in their experiences.
The partial correlation results of the four regr
association with the dependent variables. The partial correlation test on efficiency regression model shows that only
one variable representing the size of the institution had a sig
results show that the number of the borrower as a proxy of firm size has significant positively association with
efficiency level at 1% level of significance. The test results also show positive co
coefficient for the number of staff which were both insignificant. The age of Microfinance institution was found to
have a significant positive association with firm efficiency. This indicates that firm efficiency increase
the experience of the firm increases the efficiency levels increases. The partial correlation result of the sustainability
model shows that the size of the firm has a significant association with the level of operating self sufficiency. Th
results show that the size of the firm measured by asset level and the number of the borrowers has a significant
association with operating self sufficiency at 5% and 1% level of significance respectively. The result of the firm size
measure by the number of staff indicates a significant negative association with operating self sufficiency at 1%
significance level. The results are consistent with the theory that, increases in asset levels and the number of borrowers
results in increases in revenues while increases in the number of staff attracts more expenses hence worsen the level of
sustainability. On the other hand, the age of Microfinance institution was found to have insignificant positive
association indicating that age has no association with o
Research Journal of Finance and Accounting
2847 (Online)
110
generated was 17,058 (Mil Tshs) which indicate that on average Microfinance institutions reviewed generates high
standard deviation was also high as well as the difference between minimum and
maximum value indicating high difference in revenue levels between the highest and lowest institutions (Table 1).
: Variables Descriptive Statistics
SDV Min Max
0.362 0.009 2.328
0.187 (0.778) 0.074
0.219 0.059 1
477,733 240 2,713,641
525 8 2650
49,505.00 10 275,282.00
35,058 1,000 200,000
9 1 50
The mean values of variables measuring the size of Microfinance institutions were represented by total asset, staffs and
number of borrowers. Descriptive statistics show high deviation in the size of Microfinance institutions in all three
ables. This was mainly due to the inclusion of commercial banks, which are also, involved in offering
microfinance services. The difference in size also reflects the differences between traditional microfinance institutions
in Tanzania such as NGO, NBFIs and commercial oriented microfinance institutions which include microfinance
companies, cooperatives, community banks and commercial banks. The average age of Microfinance institutions
reviewed was 11 years; this indicates that on average, the institutions reviewed had enough experience in the
microfinance operations. The standard deviation was very high showing high dispersion on age among the institutions
which also indicate differences in their experiences.
The partial correlation results of the four regression equations show that not all independent variables had a significant
association with the dependent variables. The partial correlation test on efficiency regression model shows that only
one variable representing the size of the institution had a significant association with the dependent variable. The test
results show that the number of the borrower as a proxy of firm size has significant positively association with
efficiency level at 1% level of significance. The test results also show positive coefficients for asset and negative
coefficient for the number of staff which were both insignificant. The age of Microfinance institution was found to
have a significant positive association with firm efficiency. This indicates that firm efficiency increase
the experience of the firm increases the efficiency levels increases. The partial correlation result of the sustainability
model shows that the size of the firm has a significant association with the level of operating self sufficiency. Th
results show that the size of the firm measured by asset level and the number of the borrowers has a significant
association with operating self sufficiency at 5% and 1% level of significance respectively. The result of the firm size
number of staff indicates a significant negative association with operating self sufficiency at 1%
significance level. The results are consistent with the theory that, increases in asset levels and the number of borrowers
hile increases in the number of staff attracts more expenses hence worsen the level of
sustainability. On the other hand, the age of Microfinance institution was found to have insignificant positive
association indicating that age has no association with operating self sufficiency.
www.iiste.org
generated was 17,058 (Mil Tshs) which indicate that on average Microfinance institutions reviewed generates high
standard deviation was also high as well as the difference between minimum and
maximum value indicating high difference in revenue levels between the highest and lowest institutions (Table 1).
2,713,641
275,282.00
The mean values of variables measuring the size of Microfinance institutions were represented by total asset, staffs and
number of borrowers. Descriptive statistics show high deviation in the size of Microfinance institutions in all three
ables. This was mainly due to the inclusion of commercial banks, which are also, involved in offering
microfinance services. The difference in size also reflects the differences between traditional microfinance institutions
nd commercial oriented microfinance institutions which include microfinance
companies, cooperatives, community banks and commercial banks. The average age of Microfinance institutions
reviewed had enough experience in the
microfinance operations. The standard deviation was very high showing high dispersion on age among the institutions
ession equations show that not all independent variables had a significant
association with the dependent variables. The partial correlation test on efficiency regression model shows that only
nificant association with the dependent variable. The test
results show that the number of the borrower as a proxy of firm size has significant positively association with
efficients for asset and negative
coefficient for the number of staff which were both insignificant. The age of Microfinance institution was found to
have a significant positive association with firm efficiency. This indicates that firm efficiency increases in with age as
the experience of the firm increases the efficiency levels increases. The partial correlation result of the sustainability
model shows that the size of the firm has a significant association with the level of operating self sufficiency. The test
results show that the size of the firm measured by asset level and the number of the borrowers has a significant
association with operating self sufficiency at 5% and 1% level of significance respectively. The result of the firm size
number of staff indicates a significant negative association with operating self sufficiency at 1%
significance level. The results are consistent with the theory that, increases in asset levels and the number of borrowers
hile increases in the number of staff attracts more expenses hence worsen the level of
sustainability. On the other hand, the age of Microfinance institution was found to have insignificant positive
7. Research Journal of Finance and Accounting
ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online
Vol.4, No.5, 2013
The partial correlation results of the profitability regression model show that total assets have a significant positive
association with adjusted return on asset (AROA) and negative significant association with a number of staff
and 10% levels of significance respectively. Firm size measured by the number of borrowers and the age of institutions
were also found to have insignificant coefficients. The association test results on financial revenue model (Finrev)
show that both asset and staff measures of firm size have a significant positive association with financial revenue
levels at 1% level of significance. The age of Microfinance institutions also indicates significant positive association
with revenue levels indicating that experience has a positive impact on the firm's revenue generation ability (Table 2).
Table 2: Partial Correlation Results
Partial Correlation Results
Variable EFF
Asset 0.108
Staff (0.049)
Borrowers 0.242*
Age 0.312*
*Significant at 1%, ** Significant at 5%, *** Significant at 10%
The regression test results were in line with the partial correlation results on the impact of the size and ag
performance of Microfinance institutions. The fixed effect regression results show that firm size measured by total
asset level has a positive significant cause and effect to efficiency, sustainability and financial revenue at 1%, 5 and 1%
levels of significance respectively. This implies that increases in the level of asset results into direct increase in the
efficiency, sustainability and revenues of Microfinance institutions. On the other hand, asset size did not show to have
a causal effect on profitability although it has positive associations from partial correlation results. The size of the firm
measured by the number of staffs was found to have significant causality with profitability (AROA) and financial
revenue at 5% and 1% levels of significa
the profitability of the firms at 5% level of significance. The test results on the impact of age on firm performance
show that Microfinance institutions age has a positive causalit
profitability at 1% and 5% levels of significance. The results indicate that age of institutions which measures the firm
experience has a positive impact on the performance of the firm in efficiency, susta
results on the firm age and the revenue generating capacity show insignificant positive causality. This implies that, the
experience of the firm does not have a cause and effect relationship with revenue generation cap
the same direction as indicated in partial correlation results.
The results on the extent to which the variation observed in the dependent variables are explained by the variation in
the independent variables were not favourable. Th
variables were not explained by variation in the independent variables in the three performance measures of efficiency,
sustainability and profitability. The R squared results for effici
0.3% of the within, between, and overall variation in the dependent variable was explained by variation in the
independent variables. Likewise, less than 2% of overall variations in the sustainability and
explained by variation in the independent variables. This indicates that most of the variation observed in the efficiency,
sustainability and profitability are explained by other factors which were omitted from the study models.
variation could be associated with size and age factors. The results on variation of financial revenue model were high
contrary to the other three models. The R squared results show that 64.2%, 84.2% and 81.7% of the within, between
and overall variations in the dependent variable were explained by variations in the independent variables (Table 3).
Table 3: Regression Analysis Results
Research Journal of Finance and Accounting
2847 (Online)
111
The partial correlation results of the profitability regression model show that total assets have a significant positive
association with adjusted return on asset (AROA) and negative significant association with a number of staff
and 10% levels of significance respectively. Firm size measured by the number of borrowers and the age of institutions
were also found to have insignificant coefficients. The association test results on financial revenue model (Finrev)
h asset and staff measures of firm size have a significant positive association with financial revenue
levels at 1% level of significance. The age of Microfinance institutions also indicates significant positive association
hat experience has a positive impact on the firm's revenue generation ability (Table 2).
OSS AROA FINREV
0.194** 0.355* 0.622*
(0.1498)*** (0.303)* 0.420*
0.331* 0.086 0.104
0.136 (0.134) 0.170**
*Significant at 1%, ** Significant at 5%, *** Significant at 10%
The regression test results were in line with the partial correlation results on the impact of the size and ag
performance of Microfinance institutions. The fixed effect regression results show that firm size measured by total
asset level has a positive significant cause and effect to efficiency, sustainability and financial revenue at 1%, 5 and 1%
ignificance respectively. This implies that increases in the level of asset results into direct increase in the
efficiency, sustainability and revenues of Microfinance institutions. On the other hand, asset size did not show to have
itability although it has positive associations from partial correlation results. The size of the firm
measured by the number of staffs was found to have significant causality with profitability (AROA) and financial
revenue at 5% and 1% levels of significance. The number of borrowers on the other hand, was found to increase with
the profitability of the firms at 5% level of significance. The test results on the impact of age on firm performance
show that Microfinance institutions age has a positive causality relationship with efficiency, sustainability and
profitability at 1% and 5% levels of significance. The results indicate that age of institutions which measures the firm
experience has a positive impact on the performance of the firm in efficiency, sustainability and profitability. The test
results on the firm age and the revenue generating capacity show insignificant positive causality. This implies that, the
experience of the firm does not have a cause and effect relationship with revenue generation cap
the same direction as indicated in partial correlation results.
The results on the extent to which the variation observed in the dependent variables are explained by the variation in
the independent variables were not favourable. The results on R squared; show that most of the variations in dependent
variables were not explained by variation in the independent variables in the three performance measures of efficiency,
sustainability and profitability. The R squared results for efficiency regression model shows that only 20.8%, 2% and
0.3% of the within, between, and overall variation in the dependent variable was explained by variation in the
independent variables. Likewise, less than 2% of overall variations in the sustainability and
explained by variation in the independent variables. This indicates that most of the variation observed in the efficiency,
sustainability and profitability are explained by other factors which were omitted from the study models.
variation could be associated with size and age factors. The results on variation of financial revenue model were high
contrary to the other three models. The R squared results show that 64.2%, 84.2% and 81.7% of the within, between
variations in the dependent variable were explained by variations in the independent variables (Table 3).
www.iiste.org
The partial correlation results of the profitability regression model show that total assets have a significant positive
association with adjusted return on asset (AROA) and negative significant association with a number of staff at 5%
and 10% levels of significance respectively. Firm size measured by the number of borrowers and the age of institutions
were also found to have insignificant coefficients. The association test results on financial revenue model (Finrev)
h asset and staff measures of firm size have a significant positive association with financial revenue
levels at 1% level of significance. The age of Microfinance institutions also indicates significant positive association
hat experience has a positive impact on the firm's revenue generation ability (Table 2).
FINREV
0.622*
0.420*
0.104
0.170**
The regression test results were in line with the partial correlation results on the impact of the size and age on
performance of Microfinance institutions. The fixed effect regression results show that firm size measured by total
asset level has a positive significant cause and effect to efficiency, sustainability and financial revenue at 1%, 5 and 1%
ignificance respectively. This implies that increases in the level of asset results into direct increase in the
efficiency, sustainability and revenues of Microfinance institutions. On the other hand, asset size did not show to have
itability although it has positive associations from partial correlation results. The size of the firm
measured by the number of staffs was found to have significant causality with profitability (AROA) and financial
nce. The number of borrowers on the other hand, was found to increase with
the profitability of the firms at 5% level of significance. The test results on the impact of age on firm performance
y relationship with efficiency, sustainability and
profitability at 1% and 5% levels of significance. The results indicate that age of institutions which measures the firm
inability and profitability. The test
results on the firm age and the revenue generating capacity show insignificant positive causality. This implies that, the
experience of the firm does not have a cause and effect relationship with revenue generation capacity, but they move in
The results on the extent to which the variation observed in the dependent variables are explained by the variation in
e results on R squared; show that most of the variations in dependent
variables were not explained by variation in the independent variables in the three performance measures of efficiency,
ency regression model shows that only 20.8%, 2% and
0.3% of the within, between, and overall variation in the dependent variable was explained by variation in the
independent variables. Likewise, less than 2% of overall variations in the sustainability and profitability models were
explained by variation in the independent variables. This indicates that most of the variation observed in the efficiency,
sustainability and profitability are explained by other factors which were omitted from the study models. Very little
variation could be associated with size and age factors. The results on variation of financial revenue model were high
contrary to the other three models. The R squared results show that 64.2%, 84.2% and 81.7% of the within, between
variations in the dependent variable were explained by variations in the independent variables (Table 3).
8. Research Journal of Finance and Accounting
ISSN 2222-1697 (Paper) ISSN 2222-2847 (Online
Vol.4, No.5, 2013
Fixed Effects (Within) Regression Results
Efficiency (EFF)
Coeff P>|t|
Asset 4.421 0.000
Staff (0.03) 0.738
Borrowers 0.011 0.902
Age 0.022 0.101
R- sq
Within 0.208
Between 0.020
Overall 0.003
F test that all u_i=0
F(29, 107) 7.8
Prob>F 0.000
Combining the results of partial correlation and regression analysis, we find that both firm size and age have an impact
on the performance of Microfinance institution depending on the variables used for estimations. We find statistical
evidences that the size of the firm measured by to
performance of Microfinance institutions in Tanzania. The findings of the study were consistent with some previous
studies such as Punnose (2008), Majumdar (1997), Wing & Yiu (1997) and Serrasq
reported similar findings on the impact of firm size in different industries. The study findings were also consisted with
some previous findings in microfinance sector such as study by Ejigu (2009), Cull et al (2007) and Col
The study also found positive impact of the firm size on firm revenue generation capacity indicating that as firm size
increases its revenue generation capacity also increases. The finding of the study was consistent with some previous
studies such as Lun & Quaddus (2011) and Coleman (2007) which also report that firm size has a positive impact on
sales growth and yield on growth loans. Contrary to the above findings, the results on firm size measured by the
number of staff were found to be neg
institutions. This implies that the relationship between firm size and performance depends on the variables used as a
proxy measure for performance as well as firm size. The ne
some previous studies such as Weerdt et al (2006), Diaz & Sanchez (2008), Ramsey et al (2005) and Crawford et al
(2011).
On the impact of age on performance of Microfinance institutions in Tanza
age on efficiency, sustainability and revenue generation capacity, and negative impact on firm profitability. This
indicates that the experience of the firm increases with Microfinance institution's efficiency, s
generation capacity but results in declining profitability. The findings of this study are consistent with the Majumdar
(1997) which found that older firms were more productive but less efficient. The findings of the study were al
consistent with a number of studies in Microfinance institutions such as Ejigu (2009), Masood et al (2009) and Abayie
Research Journal of Finance and Accounting
2847 (Online)
112
Fixed Effects (Within) Regression Results
Sustainability
(OSS)
Profitability
(AROA) Revenue
Coeff P>|t| Coeff P>|t| Coeff
3.164 0.029 0.637 0.53 1.375
(0.043) 0.748 (0.211) 0.029 0.051
0.152 0.253 0.227 0.017 0.007
6.333 0.004 (0.025) 0.079 0.003
0.081 0.117 0.642
0.006 0.019 0.842
0.015 0.003 0.817
9.14 5.26 5.41
0.000 0.000 0.000
l correlation and regression analysis, we find that both firm size and age have an impact
on the performance of Microfinance institution depending on the variables used for estimations. We find statistical
evidences that the size of the firm measured by total asset and number of borrowers has a positive impact on the
performance of Microfinance institutions in Tanzania. The findings of the study were consistent with some previous
studies such as Punnose (2008), Majumdar (1997), Wing & Yiu (1997) and Serrasqueiro & Nunes (2008) which also
reported similar findings on the impact of firm size in different industries. The study findings were also consisted with
some previous findings in microfinance sector such as study by Ejigu (2009), Cull et al (2007) and Col
The study also found positive impact of the firm size on firm revenue generation capacity indicating that as firm size
increases its revenue generation capacity also increases. The finding of the study was consistent with some previous
such as Lun & Quaddus (2011) and Coleman (2007) which also report that firm size has a positive impact on
sales growth and yield on growth loans. Contrary to the above findings, the results on firm size measured by the
number of staff were found to be negatively related to efficiency, sustainability and profitability of Microfinance
institutions. This implies that the relationship between firm size and performance depends on the variables used as a
proxy measure for performance as well as firm size. The negative effect of firm size on performance is also reported in
some previous studies such as Weerdt et al (2006), Diaz & Sanchez (2008), Ramsey et al (2005) and Crawford et al
On the impact of age on performance of Microfinance institutions in Tanzania, the study finds the positive impact of
age on efficiency, sustainability and revenue generation capacity, and negative impact on firm profitability. This
indicates that the experience of the firm increases with Microfinance institution's efficiency, s
generation capacity but results in declining profitability. The findings of this study are consistent with the Majumdar
(1997) which found that older firms were more productive but less efficient. The findings of the study were al
consistent with a number of studies in Microfinance institutions such as Ejigu (2009), Masood et al (2009) and Abayie
www.iiste.org
Revenue (FinRev)
Coeff P>|t|
1.375 0.000
0.051 0.004
0.007 0.684
0.003 0.308
0.642
0.842
0.817
5.41
0.000
l correlation and regression analysis, we find that both firm size and age have an impact
on the performance of Microfinance institution depending on the variables used for estimations. We find statistical
tal asset and number of borrowers has a positive impact on the
performance of Microfinance institutions in Tanzania. The findings of the study were consistent with some previous
ueiro & Nunes (2008) which also
reported similar findings on the impact of firm size in different industries. The study findings were also consisted with
some previous findings in microfinance sector such as study by Ejigu (2009), Cull et al (2007) and Coleman (2007).
The study also found positive impact of the firm size on firm revenue generation capacity indicating that as firm size
increases its revenue generation capacity also increases. The finding of the study was consistent with some previous
such as Lun & Quaddus (2011) and Coleman (2007) which also report that firm size has a positive impact on
sales growth and yield on growth loans. Contrary to the above findings, the results on firm size measured by the
atively related to efficiency, sustainability and profitability of Microfinance
institutions. This implies that the relationship between firm size and performance depends on the variables used as a
gative effect of firm size on performance is also reported in
some previous studies such as Weerdt et al (2006), Diaz & Sanchez (2008), Ramsey et al (2005) and Crawford et al
nia, the study finds the positive impact of
age on efficiency, sustainability and revenue generation capacity, and negative impact on firm profitability. This
indicates that the experience of the firm increases with Microfinance institution's efficiency, sustainability and revenue
generation capacity but results in declining profitability. The findings of this study are consistent with the Majumdar
(1997) which found that older firms were more productive but less efficient. The findings of the study were also
consistent with a number of studies in Microfinance institutions such as Ejigu (2009), Masood et al (2009) and Abayie