Explore publications.

Policymakers and scholars universally accept and recognize the influence of small, macro, and medium enterprises (SMMEs) on stimulating economic growth and job creation. To succeed and prosper, SMMEs need to establish a sound financial management function; therefore, it is vital to investigate the financial challenges these firms are experiencing. The objective of this paper was, to investigate possible challenges that SMMEs experience when applying for credit from banks. The study sought to answer the main research question - ‘What challenges are encountered by SMMEs when applying for credit from banks? The study adopted a qualitative research methodology. The population used in this research was derived from SMMEs and banking officials in the Vhembe District Municipality area. Stratified random sampling was used to select a sample of 10 research participants. An interview guide was used to gather data from the participants; the data was analyzed using Atlas.ti. The results indicated that most SMMEs in the Vhembe district are not adequately supported, especially in the areas of financial resources, as well as in financial literacy skills and expertise. Specifically, this study identified that the credit application challenges faced by SMMEs are related to - lack of collateral security, lack of financial application education, complex bank credit access regulations, non-satisfaction of banks’ qualifying criteria, as well as stringent credit system, and documentation requirements.

Financial inclusion, especially the adoption of fintech, has emerged as a crucial avenue for removing the financial access divides in developing countries, including Bangladesh. Following the comprehensive analysis, this article intends to outline Bangladesh's recent experiences with fintech-based financial inclusion, identify the short-comings and hence make policy suggestions. Being a descriptive research, cross-sectional and observational research approaches are applied for the explanatory analysis of secondary data. Results suggest an urban-rural gap in the implementation of digital financial services, with urban areas consistently having higher rates of fully online branches and a greater number of financial machines. Despite this, the sharp rise in the issuance of active cards is a positive sign suggesting an expansion of consumer base and an adoption of electronic modes of payment. Moreover, inter-bank electronic fund transfers and online banking have experienced increasing uptake, revealing a progressing trend towards digital transactions within the banking industry. Additionally, the study identifies a speedy growth in the number of mobile financial services accounts in both urban and rural areas. This study adds to the exchange of ideas regarding financial inclusion by carrying out a detailed study of Bangladesh's digital financial transformation, exemplifying the accomplishments, obstacles, and future research directions. It highlights the need for targeted policies and ongoing research efforts to build inclusive financial systems to serve the entire society’s interest. Nevertheless, the observations will have both theoretical and practical significance, contributing towards building capability in harnessing technology for sustainability, community uplifting, and shaping a brighter future.  

This study aims to investigate and identify the current conditions regarding the role of Sharia microfinance institutions in developing MSME businesses. The community needs Microfinance institutions, especially low-income groups and small and micro-entrepreneurs who have yet to be reached by banking financial services, especially public banks. In providing loans to MSMEs, microfinance institutions must effectively educate and equip their clients with relevant entrepreneurial knowledge and skills. This research will use a qualitative approach with a case study method, which does not use statistical generalizations but uses logical generalizations and replication. Three Sharia microfinance institutions and sixteen MSME cases will be selected in this research. The research was conducted at Sharia Microfinance Institutions as providers of microcredit and MSMEs receiving microcredit in the Southern region of the Special Region of Yogyakarta, Gunungkidul, and Kulonprogo. This research will use three data collection methods, namely interviews, observation, and documentation, to maintain the validity and reliability of the data. Data triangulation is used to test the validity of the data. The data analysis process in this research uses two stages: descriptive analysis and case analysis. The findings of this research show hope regarding the promise of easy access to capital or funding sources as an effective tool for improving MSME business development through effectiveness, supervision, and guidance carried out by Sharia microfinance institutions. This change can be realized if the community has economic stability obtained through easy access to capital, increasing business income, and empowering the community to be ready to become entrepreneurs. It supports the development of a creative economy industry based on entrepreneurship and globally competitive ethics.