Financial and Human Capital of Microentrepreneurs and Financing by Microfinance Institutions (MFIs) in Cameroon

J. Fin. Bank. Review 4 (3) 98–107 (2019)

10 Pages Posted: 6 Feb 2020

See all articles by Serge MESSOMO ELLE

Serge MESSOMO ELLE

Department of Banking and Finance University of Buea, Cameroon

Date Written: December 13, 2019

Abstract

Objective - This study determines the nature and the direction of how financial and human capital influence the financing of microentrepreneurs in Cameroon. Compared with past research, this work uses existing microentrepreneurs only, which are considered as the only ones having access to the financing of MFIs.

Methodology/Technique – This study employs an explanatory approach and uses the Five Cs model and primary data to explain the influence of financial capital (capacity, collateral, capital and condition) and human capital (character) on the financing of microentrepreneurs by MFIs.

Findings – On the one hand, the findings show that character, capacity and collateral significantly increase financing of microentrepreneurs by MFIs. On the other hand, the findings reveal that that condition is significant and has an inverse relationship with lending to microentrepreneurs. Collateral was found to be not significant.

Novelty – Compared with past research, this work uses existing microentrepreneurs only, which are considered as the only ones having access to the financing of MFIs. This study examines the relationship between financial and human capital to capacity, collateral capital and condition and character of microentrepreneurs.

Type of Paper - Empirical.

Keywords: Capacity; Character Collateral; Condition; Capital; Financing of Microentrepreneurs; Microfinance Institutions.

JEL Classification: G21, G32, L22, O15.

Suggested Citation

ELLE, Serge MESSOMO, Financial and Human Capital of Microentrepreneurs and Financing by Microfinance Institutions (MFIs) in Cameroon (December 13, 2019). J. Fin. Bank. Review 4 (3) 98–107 (2019). Available at SSRN: https://ssrn.com/abstract=3511528

Serge MESSOMO ELLE (Contact Author)

Department of Banking and Finance University of Buea, Cameroon ( email )

Molyko to Buea town Rd
P.O. Box 63
Buea
Cameroon

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
1
Abstract Views
43
PlumX Metrics