Open Access Minireview Article

Subsidy/Donation and Performance of Microfinance Institutions

Emengini Steve, Emeka, Onyeanu, Edith, Ogoegbunam, Anisiuba Chika, Anastasia, P. Ojiakor, Ijeoma, S. Ugwuegbe, Ugochukwu

Asian Journal of Economics, Business and Accounting, Page 1-12
DOI: 10.9734/ajeba/2019/v13i130165

Subsidies and Donations are veritable tools that are supposed to engender effective performance in Microfinance institutions. On the face value, subsidies seem to be very positive but they can be counterproductive when related to their effects on performance, efficiency and self-sustainability of the Microfinance institutions. This paper therefore focuses on the assessment and review of issues relating to Subsidy/Donation and their effect on Performance of Microfinance Institutions (MFIs) in Nigeria. The methodology adopted is descriptive in nature and secondary source of data were made use of. Our review revealed mix results on the empirical findings of effect of subsidies/donations on performance of Microfinance institutions. This review shows that Subsidies can disincentive workers and managers, thereby creating moral hazard problems (Corruption and Financial impropriety). However, when applied to effect low borrowing costs and Tax incentives/concessions, it affects performance positively. The review also shows that subsidies ought to be used only in the startup phases of the life cycle and to be withdrawn when the Microfinance institution improves. Overall, to achieve the double bottom lines of social and financial sustainability obligations, funding structure in Microfinance should de-emphasise subsidy dependence and encourage market based principles and commercialisation. For effective corporate governance, big Microfinance institutions at the status of Banks and big NGOs should be mandated to disclose their accounts to the public and not just mere annual returns to the Central bank of Nigeria (This may involve quoting them in Nigeria Stock Exchange).

Open Access Original Research Article

Influence of Crediting Strategy on Growth of Small and Micro Enterprises in Kenya: A Case of Women Enterprise Fund

Tom Ongesa Nyamboga, Edwin Odhuno, Walter Okibo Bichanga

Asian Journal of Economics, Business and Accounting, Page 1-17
DOI: 10.9734/ajeba/2019/v13i130160

Effective implementation of crediting strategy is paramount to the growth of Small and Micro Enterprises (SMEs) worldwide. Crediting provides adequate amount of initial capital needed by entrepreneurs to establish and operate their businesses. The government of Kenya having realized this scenario initiated the formation of Women Enterprise Fund (WEF) in 2007 as a micro credit to provide financial credit to women entrepreneurs throughout the country. Despite this, many women micro traders have inadequate access to credit to start and expand their SMEs. The specific objective of this study was to assess the influence crediting strategy on the growth of SMEs in Kenya. This research used a descriptive survey based design. The study’s target population constituted 2032 women group leaders from which a sample size of 335 respondents was selected randomly. Primary data was collected by use of structured researcher administered questionnaires. Data collected was analyzed by use of both descriptive statistics and inferential statistics, by the aid of SPSS version 24. Both Analysis of Variance (ANOVA) and Linear Regression Analysis were computed to correlate the study’s variables. The study established a positive relationship between crediting strategy and the growth of SMEs. The findings of this study will help the government of Kenya in formulating and implementing crediting strategies that would make credit accessible and therefore boost growth of SMEs in the country. The study recommends that the government establishes policies that will necessitate accessibility of credit to SMEs in the country.

Open Access Original Research Article

Determinant Factors of Sustainable Management Accounting System in Increasing Company Performance

Ria ., Yvonne Augustine

Asian Journal of Economics, Business and Accounting, Page 1-6
DOI: 10.9734/ajeba/2019/v13i130163

The aim of writing this paper is to identify determinant factors of Sustainable Management Accounting System (SMCA) in increasing company performance. This paper uses a quantitative research approach while analyzing using Multiple Regression techniques with the help of the SPSS program. A questionnaire was distributed to the employees with simple random sampling. The results have represented that significant influences are Accounting in the scope of Environmental Management, Accounting within the scope of Social Management and Workplace Spirituality moderated by Corporate Governance on Corporate Performance simultaneously. Workplace Spirituality significant positive influence on Corporate Performance moderated by Corporate Governance partially, but there is a significant negative influence of Environmental Management Accounting moderated by Corporate Governance partially on Corporate Performance. This study builds a conceptual model of SMAS that is expected to contribute theoretically and can be used as a support for literature. By implementing the SMAS model, companies can encourage better performance when using Corporate Governance to improve management decisions about the determining factors for implementing SMAS.

Open Access Original Research Article

Influence of Training Strategy on Growth of Small and Micro Enterprises in Kenya: A Case of Women Enterprise Fund

Tom Ongesa Nyamboga, Edwin Odhuno, Walter Okibo Bichanga

Asian Journal of Economics, Business and Accounting, Page 1-13
DOI: 10.9734/ajeba/2019/v13i130162

The government of Kenya established Women Enterprise Fund to enhance the growth of Small and Micro Enterprises in the country through its training strategy. The purpose of this study was to establish the influence of training strategy on growth of SMEs in Kenya. This research used a descriptive survey based design. The study’s target population was composed of group leaders’ beneficiaries of Constituency Women Enterprise Scheme. Both cluster sampling and simple random sampling were used to select a sample size of 335 respondents. Quantitative primary data was collected by use of structured questionnaires. The data collected was analyzed according to research objectives. The study utilized both descriptive statistics and inferential statistics to analyze data. Both ANONA and Regression Analysis were computed to assess the correlation between the variables. The findings of the study established that majority of clients had acquired relevant business skills. The training was given to most clients on a regular basis and enabled them to operate their SMEs more effectively. ANOVA results showed a correlation between training strategy and growth of SMEs since the calculated P value 0.001 was less than the critical value 0.005. The study therefore established a positive relationship between training strategy and growth of SMEs. The findings of this study will help the government of Kenya to formulate training strategies that would boost the growth of SMEs in the whole country. The study recommends the government to provide frequent training to all SMEs in the country to make them more efficient and effective.

Open Access Original Research Article

The Effect of Procurement Practices on Service Delivery: A Case Study of VRA, Ghana

Augustine Anane, Victor Adoma, Gabriel Awuah

Asian Journal of Economics, Business and Accounting, Page 1-23
DOI: 10.9734/ajeba/2019/v13i130164

This study was conducted to determine the effect of procurement policy, procurement planning and sustainable procurement on service delivery. The study employed a quantitative research approach and explanatory design. The target population for the study was staff and management of the Volta River Authority. Structured questionnaire was used to gather primary data. The study used SPSS version 32.0 for the data analyses. The study found that 73.6% variations in service delivery were explained by Procurement Policy, Procurement Planning and Sustainable Procurement. The study found that Procurement Policy (β = 0.623 ρ=0.000< 0.05) are significant determinants of service delivery thus a unit change in procurement policy will result in 62.3% change in service delivery.  Procurement Planning (β = 0.027, ρ=0.080< 0.05) are significant determinants of service delivery thus a unit change in procurement planning will result in 2.7% change in service delivery. Sustainable Procurement (β = 0.39 ρ=0.000 < 0.05) are a significant determinant of service delivery. Thus a unit change in Sustainable Procurement will result in 39% change in service delivery. From the model estimation, procurement policy was the strongest predictor of service delivery followed by sustainable procurement and lastly procurement planning. The study revealed a strong significant positive correlation between procurement policy and service delivery.  Moreover, the result showed a strong significant positive correlation between procurement planning and service delivery. Again the study found a significant positive correlation between sustainable procurement and service delivery. The study concludes that Procurement Policy, Procurement Planning and Sustainable Procurement significantly predict service delivery of VRA. The study recommends that the management of VRA must continuously invest in sustainable procurement, procurement planning and procurement policy to enhance service delivery to the public.