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Journal of Entrepreneurial Finance
Number of Followers: 1

This is an Open Access Journal

Open Access journal
ISSN (Print) 2373-1753 - ISSN (Online) 2373-1761
Published by Pepperdine University

[6 journals]

Theme: Explanatory factors of the entrepreneurial intention of university
students in Mali
- Authors: Ousmane Mariko et al.
  Abstract: Graduate unemployment remains a concern for many African countries. However, in recent years there has been a growing interest in entrepreneurship among young people. The objective of this research is to study the entrepreneurial motivation of young graduates. Through primary data collected from students of the FSEG's entrepreneurial bachelor's degree programme and using a multiple linear regression model, it was found that: attitudes associated with behaviours have a positive and significant impact on the decision to become an entrepreneur. Social norms are determining factors in the explanation of entrepreneurial intention and finally, factors associated with perceived control contribute significantly to the explanation of entrepreneurial intention. In the light of these results, it would be wise for authorities to implement actions aimed at reinforcing the attitudes associated with student behaviour through entrepreneurial culture. In this case, a strong political determination is needed through legislation to make entrepreneurship a factor in bringing down unemployment among university graduates.
  PubDate: Wed, 01 Jun 2022 11:49:17 PDT
The impact of entrepreneurship education on the entrepreneurial intention
of students at the International University of Excellence in Mali: an
exploratory study
- Authors: Boubacar Sanogo et al.
  Abstract: This paper is research devoted to the self-employment of students of the International University of Excellence of Bamako through the teaching of entrepreneurship as a factor in the development of entrepreneurial intention among students in training. This choice is explained by several factors: the State's recruitment capacities in the public service are limited; the modern private sector which constitutes the natural outlet for young graduates is not in a position to offer employment for the many promotions of students trained annually who constitute thousands of people who increase the non-working population. It is becoming necessary to put in place systems that allow young graduates, especially those in training, to set up their own account through entrepreneurship. The practical study led us to consider the case of the International University of Excellence of Bamako. To study it, we focused our work on teaching entrepreneurship as a factor in the development of the entrepreneurial intention and self-employment of Students. As the parent population, we have a database of 236 students, from first to third year undergraduate students of the 2019 - 2021 academic years. This population is distributed between the different fields (Finance - accounting, Projects and organizations Management, Money - Finance - Banking and Insurance, Marketing-Communication, International Trade, Logistics - Transport, Business Intelligence). The information collected and processed will allow us to have a series of data on the possibilities offered by the teaching of entrepreneurship in terms of productivity of students of the International University of Excellence of Bamako before obtaining a university degree but also, to have an overview of self-employment and the teaching of entrepreneurship as a factor in the development of entrepreneurial intention and self-employment of the students of the International University of Excellence (IUE).
  PubDate: Wed, 01 Jun 2022 11:49:10 PDT
Youth Entrepreneurship Dynamics in Benin: Was Access to Finance the
Missing Piece for Opportunistic Self-Employment'
- Authors: Modeste Melain SENOU et al.
  Abstract: Young people in developing countries and more especially in Sub-Saharan African countries are seeking employment opportunities in challenging economic and social environments. Entrepreneurship appears then as a key factor in reducing unemployment, grasping for a sustainable job and reducing poverty. Both national and international authorities are taking steps to facilitate youth entrepreneurship. In that context, this study aims at reexamining the effect of access to finance on the dynamics of entrepreneurship of young people in transition from School to work in Benin. Using a SURE Probit procedure on data from the International Labor Organization (ILO) we estimated jointly the predicted probability of entrepreneurship intention and the access to finance. Findings show that effective financial inclusion is very important for the dynamics of youth entrepreneurship in Benin but due to the nature of the youth entrepreneurship in Benin, driven essentially by necessity purpose, there is a need for policies measures towards education and particularly entrepreneurship education that are key in the effectiveness of youth financial prosperity.
  PubDate: Tue, 31 May 2022 10:50:26 PDT
Effects of Access to Credit on the Performance of SMEs in the Congo
- Authors: Fabrice-Gilles Ndombi Avouba
  Abstract: This paper proposes to analyze the effects of access to credit on the performance of SMEs in Congo. To this end, we used the theoretical model developed by Stiglitz and Weiss (1981). From an econometric point of view, we estimated a multiple linear regression model using the ordinary least square technique due to the absence of endogeneity. This application, as well as the statistical and econometric analyses that followed, were carried out using microeconomic data from the survey of very small, small, medium-sized enterprises and artisans in the Congo, which was carried out thanks to the multiple contributions of the managers of the National Institute of Statistics (INS). As a result, it was found that access to credit is neutral with respect to the performance of SMEs. This result led to an economic policy implication.
  PubDate: Thu, 26 May 2022 14:39:31 PDT
Financial inclusion and gender income inequalities in informal
entrepreneurship: the case of Cameroon
- Authors: Faustine Kede Ndouna et al.
  Abstract: The purpose of this study is to analyze the effect of access to different financial products in reducing income inequalities between men and women working in the informal sector in Cameroon. To this end, we use the World Bank database World Bank Global Financial Inclusion (Global Findex) dataset 2018 to assess the evolution of access to financial services through a descriptive analysis and the fourth Cameroonian survey conducted by the National Institute of Statistics in 2014 to estimate a probit model and a Fairlie decomposition model. Empirical results suggest that indeed, income inequality between the sexes continues to increase in Cameroon, regardless of the indicator used to measure it. In particular, women working in the informal sector use services such as bank accounts and credit cards more than men, but women also use non-formal financial services the most. Among the inclusion factors of the actors involved, obtaining credit to start a business is a key element for an individual working in the informal sector, yet there are significant gaps in accessing credit between men and women in informal activities and gender inequalities explain 13.96% of this gap. This means that when it comes to accessing credit, men are more financially included than women. These results lead us to make recommendations on economic policies to improve access to credit and expand the use of mobile financial services among women working in the informal sector to reduce income inequality between the sexes in Cameroon.
  PubDate: Thu, 26 May 2022 14:04:08 PDT
Determinants of the adoption of Islamic Finance by Cameroonian SMEs: case
study from a psycho-sociological characteristics of Managers
- Authors: Jérôme Gonne et al.
  Abstract: Small and Medium-Sized Enterprises (SMEs) today form the backbone of the African economy in general and Cameroon in particular. However, Cameroonian SMEs encounter many difficulties, one of the most important is the access to so-called conventional financing. Faced with this situation, some of them will seek alternative means such as Islamic finance. Despite its development over the past two decades, Islamic finance is struggling to find a place in the financial decisions of Cameroonian SMEs’ Managers. This study aims at highlighting the psycho-sociological characteristics of policymakers in directing their decision towards the Islamic finance product. Data collected from a sample of 57 Cameroonian SMEs, reveals that the degree of adherence to the sharia precepts, the subjective norms, and the perceived relative advantage influence the decision to adopt Islamic finance. These results enrich the literature on SMEs financing and provide financial institutions with tools to lift up this financing circuit.
  PubDate: Thu, 26 May 2022 14:04:03 PDT
Psychological Profile of the Leader and Investment Decision Practice of
the Small and Medium-Sized Enterprise (SME) in the Context of the COVID-19
Crisis in Ivory Coast
- Authors: Bassife Ouattara
  Abstract: This article examines the different investment decision practices of the leader of small and medium-sized enterprises (SMEs) during the COVID-19 health crisis and highlights the influence of the leader's psychological profile on these practices. Thus, primary data was collected from the interview guide and questionnaires submitted to 112 executives. The results obtained through the tests indicate the existence of a direct link (significant influence) between certain psychological profiles of the leader and investment decision-making practices in times of crisis.
  PubDate: Thu, 26 May 2022 14:03:57 PDT
The determinants of banking regulation in the MENA region
- Authors: Hanene ksiaa Dr et al.
  Abstract: Theoretical foundations in banks' response to capital settlement suggest that the systems proposed by Basel are not sound. It is conceivable that regulators will consider alternative approaches to enhance the safety and soundness of the banking system. The regulation includes several decrees and ratios; the areas of interest encompassing the areas are subject to principal component analysis (PCA).The paper aims to present a regulatory framework based on balance sheet ratios, such as Capital requirements (equity ratio; Tier 1 ratio; Total Equity/Net Loans; Total Equity/Deposits); for liquidity needs (liquidity/deposits; liquidity/total assets; liquidity/deposits and loans, and net loans/total assets); for leverage requirements (total liabilities/total assets; total assets/equity; and total liabilities/equity); also banking restriction index; Official supervision index; Private surveillance index, finally global index of regulations and supervision. Besides, it performs a PCA analysis on a set of 13 financial ratios to exploit and compare the financial characteristics of 239 banks (175 Conventional and 64 Islamic commercial banks) in the MENA region over a 2004-2015 period. This gives the main indices EXIGCP, EXIGLIQ, LEVCP, and LEVP.
  PubDate: Wed, 04 May 2022 09:58:18 PDT
Employee-Friendly Practices and Innovation
- Authors: Saeyoung Chang et al.
  Abstract: We examine the inter-relationships among employee-friendly policies (EFP), innovation through R&D investment, and firm value. We hypothesize that firms with higher levels of innovation and entrepreneurial spirit are more likely to utilize EFP. Furthermore, we speculate that the value-EFP association is more pronounced in firms with high R&D intensity. Consistent with these assertions, we find that EFP is significantly and positively related to R&D investment and the number of patents. EFP is also associated with increased firm value at high levels of R&D investment and high numbers of patents. Furthermore, we find that firms investing more in R&D are more likely to treat their workers favorably and that markets react positively when such firms are recognized for their favorable treatment of employees. Our analysis, based on a large sample of U.S.-based firms and two different measures of employee-friendly policies, supports the assertion that EFP based on sustainable innovation and entrepreneurial mindsets contributes to value creation.
  PubDate: Mon, 02 May 2022 11:25:27 PDT
Undoing Performance in Micro Finance Institutions: Reflections on
Regulatory Framework in Kenya
- Authors: VICTOR MUITHYA
  Abstract: The performance of Micro Finance Institutions (MFIs) has been affected negatively by the current hypercompetitive economic environment which has beencharacterised by as unfair competition. Huge losses have been reported among MFIs in Kenya, this has forced MFIs to innovate differently; product, financial, organisational or market innovation. This has not yielded better results. The study sought to establish the moderating effect of the regulatory framework on the relationship between strategic innovation orientation and performance of MFIs using the case of Kenya. The indicators for the regulatory framework were; prudential guidelines, non-prudential guidelines, and government laws. A descriptive and explanatory research design was adopted as the research design with a target population of 13 MFIs from which a sample of 352 respondents was obtained using a proportionate stratified and simple random sampling technique. Both financial and non-financial measures of performance were collected and analysed using mutiple regression. The regulatory framework was found to have a moderating effect on the relationship between strategic innovation orientation and performance. The findings established that regulatory framework had a moderating effect on the relationship between strategic innovation orientation and performance of MFIs. This informs the importance of regulation and control by regulatory bodies and the government.
  PubDate: Fri, 29 Apr 2022 15:43:00 PDT
FINANCIAL LITERACY AND CONSUMER PROTECTION: A ROAD MAP TO DIGITAL
FINANCIAL ACCESS BY SMEs IN KENYA
- Authors: salome M. Musau Dr. et al.
  Abstract: This paper seeks to ascertain the influence of financial literacy and financial consumer protection on digital financial access. The objectives of the study were to find out the effect of financial literacy on digital monetary access, and to find out the effect of f consumer financial protection on digital access of finances of SMEs in Sub County of Ruiru in County government of Kiambu, Kenya. Financial Literacy Theory, Information Asymmetry Theory and Social Learning Theory are the theories that guided formulation of study’s objectives. Descriptive research design was used with the population of interest comprising of all SMEs owners in Ruiru Sub County in Kiambu County. The sample size for the study was 384 respondents derived byFisher (1998) formula. Primary data as collected by use of questionnaires. Descriptive statistics of mean, frequency, percentages and standard deviation were used combined with inferential analysis of correlation as well as multiple regression to analyse the data. Findings of the study indicated that financial literacy and financial consumer protection significantly and positively influence on digital financial access of SMEs. The paper concluded that an improvement in the knowledge of financial products, developing a financial attitude towards the long term, debt management literacy of SME owner, financial product choice knowledge and having the ability to make informed decisions regarding finances generally improves digital financial access of SMEs.
  PubDate: Fri, 29 Apr 2022 15:04:37 PDT
The Impact of Financial Crisis on MFIs Performance in Zimbabwe
- Authors: Patience Hlupo Ms et al.
  Abstract: Our study explores the impact financial crisis has on performance of microfinance institutions in Zimbabwe employing the Vector Autoregression using annual time series data from 1990 to 2018. The findings from our study revealed a positive impact of financial crisis on performance of Microfinance Institutions. We also found a positive effect of gross domestic product, money supply, the first lag of inflation and exchange rates on microfinance institutions performance while the second lag of inflation has a negative effect. Variance decomposition results reveal an increasing long run positive effect of financial crisis on performance is increasing. From impulse response analysis, one standard deviation shock to financial crisis causes microfinance institutions performance to significantly fluctuate up to period 10 where the graph of performance becomes negative. The study recommended policy makers to enforce clearness in all MFIs so as to uncover any form of disfigurement in the financial sector’s balance sheets. Tightening regulation of MFIs will also go a long way in ensuring their success. For MFIs to benefit from the positive impact of the exchange rate and inflation on their performance, the government needs to work on reviving the value of the Zimbabwean dollar and make it more competitive internationally.
  PubDate: Fri, 29 Apr 2022 15:04:36 PDT
Determinants of Loan Repayment Performance of Micro and Small Enterprises:
Empirical Evidence from Somali Regional State, Ethiopia
- Authors: Yitbarek Weldegerima Kiros Mr.
  Abstract: Microfinance Institutions (MFIs) were introduced to reach a large number of active poor people who are excluded from the formal financial institutions due to rigorous collateral requirements. As an instrument of MFIs, Microfinance was introduced to address the financial need of the active poor people. To operate successfully MFIs have to unquestionable ensure that the loan expended to the Micro and Small Enterprises (MSEs) have to be repaid back so as he MFIs can have a financially sustainable and viable operation. In light of this, this research study was conducted to analyze the factors affecting loan repayment of MSEs financed by Somali Microfinance institution by taking lender characteristics in to consideration. Both primary and secondary data was employed. The primary data was collected by distributing questionnaire and through interview. A total of 175 MSEs were selected using purposive sampling technique. The secondary data was acquired from various issues of annual reports of Somali microfinance institution and other concerned institutions. Both descriptive analysis and econometric model, which is, binary logistic regression was employed to analyze the effect of the literature driven variables on loan repayment by MSEs. The econometric model used revealed that among the variables hypothesized to affect loan repayment are loan repayment period, grace period, and timeliness of loan release have statistically significant effect on loan repayment by the MSEs Whereas loan size have statistically insignificant effect on loan repayment by the MSEs.
  PubDate: Wed, 16 Feb 2022 11:13:35 PST
Entrepreneurial Investment Evaluation Decision-Making: A Focus on Venture
Capitalists, Business Angels and Early-Stage Entrepreneurs in South Africa
- Authors: boris urban et al.
  Abstract: Business angels (BAs) and venture capitalists (VCs) are important sources of finance for entrepreneurs in emerging markets for raising start-up and growth capital. Recognising that entrepreneurial investment evaluation decision-making is a highly complex process, and that there are limited studies focused on evaluation criteria used by both BAs and VCs’, this article undertakes an empirical investigation by identifying, classifying and statistically testing the rank importance of investment criteria in South Africa from an early-stage entrepreneurial perspective. Results indicate that the rank importance for the different investment criteria is relatively similar for VCs and BAs, and the only ranking difference observed was on the team preparedness and team attributes, relevant for early-stage entrepreneurs. An empirical study of this nature is important as unique insights emerge from testing multiple investment evaluation criteria used by VCs, BAs and early-stage entrepreneurs in an African emerging country context.
  PubDate: Wed, 16 Feb 2022 11:13:29 PST
SME’s Cost of Debt: A Meta-Analysis of Borrower, Creditor and Financial
Statement Verification Attributes
- Authors: Thomas R. Loy et al.
  Abstract: Private firm financing, given the far-reaching importance of non-publicly traded companies for global output and employment, is still a relatively underexplored area. Since the seminal work of Petersen and Rajan (1994), only a small branch of research into private firms’ cost of debt has been established. We aggregate the full body of this research that has empirically investigated antecedents of private firms’ cost of debt in a meta-analysis. The foremost antecedents can be categorized into either borrower, creditor or financial statement verification attributes. Our results reveal a set of 11 highly significant and robust determinants.
  PubDate: Wed, 16 Feb 2022 11:13:22 PST
The Covid-19 Pandemic and the Importance of Financing the Biotechnology
Industry in South Africa
- Authors: Ramazan Uctu et al.
  Abstract: Whether it is a government research institution, a public-private partnership, or a private enterprise, the South African biotechnology industry requires funding for the biotechnology industry. Our goal with this research is to look into the role of venture capital (VC) in financing biotech enterprises and demonstrate how VC finance could aid in the development of diagnostic kits and vaccines for Covid-19 or future pandemics in South Africa.The study aims to provide policymakers with a clear image of the importance of funding the biotechnology sector, notably during the Covid-19 period, as recognized by the industry's key players. We employed a questionnaire and an interview survey with the key agencies in biotechnology eco-system to understand the role of biotechnology funding, notably during the Covid-19 pandemic.Overall, participants believe that South Africa's biotechnology lags behind that of other developing countries, but that it has the potential to grow greatly with enablers. It is also regarded immature, fragmented, and fractured due to a lack of financing and a committed organization to organize operations. The South African biotechnology venture capital business is in its infancy stage, risk-averse, conservative in its investment power. In addition, the response time to the pandemic, financial coordination for Covid-19 research, a lack of communication between authorities, and several labs out of operation owing to full-lockdowns have all been noted as problems.
  PubDate: Thu, 10 Feb 2022 15:39:29 PST
When the Social Networks and Internet Come to the Rescue of Entrepreneurs:
The Problematic of Crowdfunding in Africa
- Authors: OMENGUELE Rene Guy et al.
  Abstract: Since 2007, crowdfunding platforms have abounded on the web. It is estimated at 2.5 billion dollars the potential of the crowdfunding market in sub-Saharan Africa by 2025. The objective of this paper is to make an inventory of Crowdfunding activities in Africa, region with a most restrictive access to bank loan by SMEs, start-ups and young entrepreneurs. It appears from the economic and socio-cultural realities that Africa is a region with more potential catalyst for crowdfunding industry takeoff. However, there are many factors which are presented in this study as potential inhibitors of African CF market competiveness. This study has identified digital divide as one of the main potential inhibitors of crowdfunding development in Africa. By waiting an empirical test of this proposition, local authorities may act to reduce any further the digital gap in their country in order to enhance crowdfunding industry takeoff in Africa.
  PubDate: Thu, 10 Feb 2022 15:39:22 PST
The Impact of Assets Structure and the Components of Cash Conversion Cycle
on the Egyptian SMEs Financial Failure Predictability
- Authors: DR. Hassan Mounir El-Sady et al.
  Abstract: This study investigates determinants of Egyptian SMEs financial failure predictability based on a sample of 32 failure SMEs and 28 non-failure SMEs for the period 2013 and 2019. The determinants of SMEs financial failure are categorized into four groups; Working Capital, Asset Structure, Liquidity, and Leverage. The factor and logistic regression analysis are employed to identify the most significant independent variables that classify between failure and none-failure Egyptian’s SMEs and determine the driver of SMEs financial failure. Our findings significantly show that failing SMEs suffer from long cash conversion cycles resulting from long inventory holding period, average collection period, and short average payment period, in addition to lower liquidity, excessive use of debt to assets, and lower fixed assets percentage, in contrast to non-failure Egyptian’s SMEs.
  PubDate: Wed, 09 Feb 2022 08:58:11 PST
Microfinance Services and Government Regulations: Reflections on
Performance of Small Holder Coffee Entrepreneurs in Uganda
- Authors: Mary Juliet Nakabugo et al.
  Abstract: Small-scale enterprises are lauded around the world for their contribution to economic development. Resources and capabilities play an important role as accelerators of entrepreneurial activity and also increase enterprise performance. This research strived to understand how Microfinance services affect the performance of smallholder coffee entrepreneurs but also examine government regulations as a moderating variable for the association between microfinance and the performance of smallholder coffee entrepreneurs. The study was guided by the resource-based view supported by dynamic capability and contingency theories. Data on 400 Ugandan coffee entrepreneurs was gathered and statistically tested using a multiple linear regression model. Study scores noted that financial training, microcredit, saving mobilization, and farm inputs positively influence the performance of smallholder coffee entrepreneurs. The findings also established that government regulations negatively moderate the association between microfinance services and the performance of smallholder coffee entrepreneurs. The study contributes to the growing agricultural entrepreneurship literature by demonstrating the performance of coffee entrepreneurs amidst microfinance and strict government regulations.
  PubDate: Mon, 07 Feb 2022 12:48:22 PST
Financial Empowerment and Entrepreneurial Venture Creation among NGOs’
Beneficiaries in Kwara State, Nigeria: An Empirical Investigation
- Authors: Onaopemipo Adetoro Eletta et al.
  Abstract: The NGOs place much emphasis on the provision of diverse relevant training, counseling, mentoring, and financial empowerment in cash and equipment grants, loans, and subsidies that made little or no impact on the lives of beneficiaries and the economy. Hence, this study examined the impact of financial empowerment and entrepreneurial venture creation among NGO beneficiaries in Kwara State, Nigeria. A survey was carried out employing the simple random sampling technique to select 358 respondents from a total of 5,354 sampling frames of NGOs’ beneficiaries in Kwara State. Data analysis was performed using descriptive and inferential statistics. The results indicated that financial empowerment contributes significantly to entrepreneurial venture creation among the NGOs’ beneficiaries. It was further revealed that cash loans and subsidies offered by NGOs have a positive impact on entrepreneurial venture creation, while grants have an inverse impact on entrepreneurial venture creation. The study, therefore, suggests among other things that the management of NGOs should scrutinize business plans properly before giving loans, grants, and subsidies to the beneficiaries so that only viable and innovative ideas will be funded.
  PubDate: Thu, 15 Jul 2021 16:24:39 PDT