SME Operators Research Articles

ROLE OF ENTREPRENEUR’S COMPETENCE ON GROWTH OF SMALL AND MEDIUM ENTERPRISES

The study endeavored to determine the role of entrepreneur’s competence on growth of small and medium enterprises. The specific objectives of the study were to; establish entrepreneur’s competence small and medium enterprises in Bungoma County, examine the growth of small and medium enterprises in Bungoma county and to determine the relationship between entrepreneur’s competence and growth of small and medium enterprises. The study used a combination of descriptive, cross-sectional and correlation research designs and data was gathered using a self-administered questionnaire on 201 SMEs. Data was analyzed using descriptive and inferential statistics. The resource-based theory was used to guide this research. The study findings indicated that the grand mean for entrepreneur’s competence was low with a mean of 2.23 with a SD of 0.50. The implications of the findings is that SMEs operators in Bungoma county lack the prerequisite entrepreneurial skills and knowledge affecting their growth save for resource mobilization. It was also found that the grand mean for growth of SMEs was low with a mean of 1.96 and SD of 0.58. The implication of the findings was that SMEs were performing dismally affecting their graduation/transition to the next higher level. The study results also found that there was a significant relationship between entrepreneur’s competence and growth of SMEs with p. value 0.000. The study concluded that SMEs should embrace relevant competence skills to enable them operated growth oriented enterprises which can graduate to higher levels thereby contributing to improved social and economic life of the operators and the nation at large. The study recommended that owner managers of SMEs to attend trainings on resource mobilization and innovation so as to acquire adequate resource mobilization and innovation skills and differentiate themselves in the market place to grow their enterprises. The study further recommended that government to put in place entrepreneurship policy to nurture business startups through mentorship, motivation and attitude change as they walk through entrepreneurship journey.
 Keywords: Entrepreneur’s Competence, Growth, Small and Medium Enterprises

Operating SMEs in the Face of the Covid-19 Pandemic in Calabar

This study examines the impact of the covid-19 pandemic on small and medium scale enterprise Operation in Calabar, Cross River State, Nigeria. The cross-sectional survey method was used in collecting data from 474 SMEs in Calabar, Cross River State using the stratified and purposive sampling technique. The instrument of data collection was a self-developed semi-structured questionnaire. Data collected from the field was coded, analyzed using descriptive statistics such as tables and graphs and correlation analysis at 0.05 level of significance. Out of the 474-instrument distributed only 422 was returned and used for analysis. From the analysis, the result revealed that 88.6 per cent of the SMEs reported being negatively affected by the pandemic, 71.3 per cent reported laying off employees during this period. Also result from the correlation analysis revealed that there is a significant relationship between covid-19 pandemic and the operations of SMEs in Calabar, Cross River State, Nigeria. Based on these findings, there is a need for policy adjustment toward SMEs operations in Calabar

Nexus of Digital Organizational Culture, Capabilities, Organizational Readiness, and Innovation: Investigation of SMEs Operating in the Digital Economy

This current study was conducted in order to develop a digital innovation model based on the digital organizational culture, digital capability, and organizational readiness. This study explores how the organizational readiness plays a mediating role between the digital capabilities and digital innovation and between the digital organizational culture and digital innovation. For data collection, the survey instrument was used to collect data from 227 SMEs of ICT industry in Pakistan. The findings have revealed a significant connection of the digital organizational culture and digital capabilities with the digital innovation. Second, the organizational readiness mediates between the digital capabilities, digital organizational culture, and digital innovation. The study has empirically confirmed how to flourish a mechanism of the digital innovation in the SMEs. Moreover, the findings suggest some substantial implications for the management by focusing on the digital capabilities and digital organizational culture as a fundamental predictor for the digital innovation via organizational readiness.

BANKRUPTCY PREDICTION: SMES IN THE HOSPITALITY INDUSTRY

The objectives of this study are to predict bankruptcy risk among SMEs in the hospitality industry for a three-year horizon period and to investigate the factors that are significant in determining bankruptcy. The contribution of SMEs in the hospitality industry is essential as businesses in the hospitality industry are dominated by SME operators. However, the failure rate among SMEs is relatively high and almost 50 percent of hospitality establishments do not survive beyond five years of operation. The Stepwise logistic model was employed to determine significant predictors that could predict bankruptcy for the period of one year, two years and three years before bankruptcy. Return on assets and firm age were found to be significant in all periods while other variables were identified to be important at a specific period prior to bankruptcy. In addition to return on assets and firm age, debt ratio and total assets turnover were found to be significant predictors of bankruptcy one-year prior to bankruptcy. However, in the two years prior to bankruptcy, debt ratio and total assets turnover were no longer important but current ratio, ownership concentration and gender diversity were found to be significant. As for the three years prior to bankruptcy, additional variables namely debt-to-equity ratio and board size were found to be significant, but ownership concentration and gender diversity ceased to be important. The findings of this study contribute to the limited literature in predicting the bankruptcy risk of small firms for a three-year horizon period by providing empirical evidence from SMEs in the hospitality industry of Malaysia.

Effect of Financial Factors on the Performance of Small Medium Enterprises in Abuja Nigeria

Finance in any organization plays an important role to the up-liftment of the organization. Accordingly, SMEs sector has been attracting enough attention based on its potentials in the economic transformation of the country. The study therefore investigates financial factors on the performance of SMEs in Abuja, Nigeria. Statistically, for every five new SMEs, there is a record of three failed SMEs within the first year of existence because of inadequate of accessible finance, collateral and insufficient finances to acquire technological capability for business performance and growth. The research design employed was survey and the population of the SMEs in Abuja was 2690. Using the Taro Yamane formula of 1967, the population was reduced to 348, which formed the sample size of the study. The tools of analysis employed was descriptive statistics and the OLS method of regression was used to analyse the data giving to the respondents. With this, findings revealed that financial factors (proxy: access to finance, insufficient financing and collateral) has no positive significant effect on the performance (efficiency) of SMEs in Abuja, Nigeria. Based on this finding, the study therefore recommends that SMEs in Abuja should put together healthy practice of financial management, which include usage and planning of financial facts in SMEs operations. Furthermore, Government of Nigeria should do more to complete remove the gap in financing encountered by SMEs by being directly involved such as interventions from the government, which include credit guarantee schemes, support financing through public banks among others.

SMALL BUSINESSES-ECONOMIC GROWTH NEXUS IN POVERTY REDUCTION IN NORTH-WESTERN NIGERIA

This study examines the role of SME in economic growth and poverty reduction in north-western Nigeria from 1987-2017 by employing time series data for Kano state, Nigeria and using ARDL method. All the variables are significant determinants of economic growth (GDP). Turnover of SME return is significant and negative, turnover on SME employment is significant and negative whereas the turnover of SME loan is positive and significant. In overall, the study’s findings are in line with the views of prior studies, therefore, we conclude that the results of the estimates of our ARDL are valid and reliable. Outcomes of the empirical test found link between SME, economic growth and poverty reduction, from our results, the turnover of SME loan is positive and significantly contributes to GDP and reduce poverty. This study recommends: a) The government should stress on promotion of SME because they assist in poverty reduction. b) Government should protect SMEs through tariff increase or banning the goods and services produced by SMEs so as to protect them because they are still infants. c) There is the need to maintain and sustain reasonable family size by SME operators because large family could have negative effect on income.

Operations of small and medium enterprises and the legal system in Nigeria

This research explored the effects of the legal system on SMEs operations in the Nigerian economy. The study aimed to address the gap in literature discussing the legal system and SMEs’ operations in Nigeria. It focused on learning about the current level of support of the legal system for SME operations and as well as suggesting an approach to enhance effective SMEs’ operations in Nigeria further. The current study applied a conceptual review, relying on extant literature relating to the antecedence of the Nigeria legal system, focusing on the critical factors affecting SME practices in Nigeria. A key finding is the importance of the legal system functions to SMEs practice in Nigeria. It also highlighted the weaknesses of the legal system in providing the needed backing and conducive business environment for SMEs in Nigeria. A model was proposed, depicting the need for restructuring of the legal system, improvised support of other government functionaries and other relevant stakeholders, to facilitate SMEs’ operations and enhance their contributions to the Nigerian economy. The research ends with the suggestion for further research to consider other research methodological approaches, the development of alternative dispute revolutionary measures, as well as a comparative study involving two or more economies in order to project further learning on the legal system and SMEs’ operations.

Microfinance Banks and Performance of Small and Medium Scale Enterprises in Nigeria

The relevance of small and medium enterprises to growth and development of any nation’s economy cannot be over-emphasized. Small and medium enterprises development through effective means of bank financing have brought about debate and increase in interest among researches, policy makers and entrepreneurs, which have led to issues being raised in identifying the large impact of the sub-sectors to economic growth. Small and medium scale enterprises make up the basis of industrial growth and development. The issues of microfinance bank financing are an issue that has to be treated with much importance as previous evidence shows that finance contributes to about to 25% of the success of small and medium enterprises. In order to evaluate the impact of microfinance banks on the performance banks on the performance of small and medium scale enterprises in Nigeria, questionnaires were administered to SMEs operators and microfinance bank officials. This research project had certain objectives which was achieved through the two hypotheses that were tested and questions that will be asked after which conclusion were be drawn and recommendation given. This research project made use of primary data. The conclusion has drawn at the end of this research shows that there is a significant relationship between microfinance bank and SMEs. To foster economic development, microfinance should effectively and efficiently fund small and medium scale enterprises in Nigeria an economy.

Faktor-Faktor yang Memengaruhi Instrumen Pengendalian Akuntansi Manajemen dan Dampaknya terhadap Perkembangan Batik di Kabupaten Pamekasan

This study aims to determine what factors influence the use of management accounting in Batik SMEs in Pamekasan Regency and how it influences the use of management accounting applications related to control instruments. This research method uses a quantitative approach. The population in this study is the owner of batik SMEs in Pamekasan Regency. The sample was determined using a purposive sampling method with a total of 44 respondents. Data collection was done byinterview techniques and questionnaire distribution. Analysis of the data used in this study is SEM-PLS using the SMARTPLS 3.0 application. The results showed that education and financing did not affect the use of management accounting related to control instruments, whereas accounting training and business scale influenced the use of management accounting related to control instruments. The effect of the use of management accounting on batik SMEs in Pamekasan Regency has a positive effect on business development. After applying management accounting, SME owners can carry out planning and supervision in the operations of SMEs, in other words management accounting strongly supports business success.

Marketing Intelligence And Sustainable Competitive Advantage Of Selected Small And Medium Scale Businesses In Ekiti: An Overview Babatunde

The study examined the effect of marketing intelligence on the sustainance of competitive advantage among Small and Medium Scale businesses in Ekiti State. Specific objectives investigated in this study are competitors’ threat; and competitive risk and their influences on sustainable competitive advantage in Small and Medium Scale businesses. The target population of the study comprised of 84 SMEs operators in Oye-Ekiti Local Government Area of Ekiti State, Nigeria as registered with Ministry of Commerce, Industries and Cooperatives, Ekiti State. The sample size of the study is 69 respondents. Frequency and percentages were used for descriptive statistics respondents to view questions of research instrument. Inferential statistics were also used to achieve objectives I, II and multiple regression analyses were employed to test the hypotheses. It was found that Competitor’s threat: potential competitor (p= 0.013). Competitive risk: Marketplace Change (p= 0.000), Intelligence-based assessment (p= 0.000) are determinants of sustainable competitive advantage as far as SMEs are concerned in Ekiti State. .The study concluded and revealed that salesmen do share information about competitors in the market and recommended that there should be rapid response to competitive action to achieve their goals.

Competencies and Quantitative Techniques Possessed by Owners and Managers of SMEs in Uganda

This study was carried out with an intention of establishing the competencies that managers and owners of SMEs possess in Uganda. Alongside that, the researchers also established the quantitative methods that are used in operations of SMEs in Uganda. The motivation of this study was to establish the extent to which owners and managers of SMEs act professionally even when the businesses they operate may not necessarily be formal. This was based on a review of literature indicating that about 90% of SMEs operating in Uganda are informal in nature facing similar challenges of short life span and unprofessional operational activities. Data was collected from 366 SMEs to be able to establish the two key aspects of focus of this study. This represented 95% response rate out of 385 target sample expected to be covered at the beginning of the study. The unit of analysis was a single respondent who was either a manager or owner of a business while the sampling unit was an SME (entity). Findings indicated that despite the informal nature of SMEs in Uganda, they practice some level of professionalism in their operations as judged from the competencies identified and quantitative methods established as possessed and used in SMEs in Uganda.

An Influence of Group Purchasing Organizations on Financial Security of SMEs Operating in the Renewable Energy Sector—Case for Poland

European countries are increasingly using renewable energy. Poland is an outsider of such solutions. The Polish energy sector is primarily based on energy produced from coal. However, environmental changes and regulations of the European Union are forcing the increased use of energy from renewable sources. Renewable energy is an industry that is still developing in Poland. At the same time, Poland is a country where the political decisions of the government over the last few years have resulted in a significant limitation of the possibilities of renewable energy development. These actions have also resulted in lowering the profitability of the currently operating renewable energy enterprises, especially those from the sector of small and medium-sized enterprises. An opportunity for SMEs operating in the renewable energy sector is to merge into industry purchasing groups. The aim of the article—and at the same time the research question—is: Is it financially safer for renewable energy companies to operate within purchasing groups compared to companies operating independently in this industry? Traditional ways of purchasing can be transferred to integrated purchasing systems, which will be created by purchasing groups associating renewable energy companies. For this purpose, the financial effects of the implementation and functioning of the purchasing groups in the renewable energy sector in relation to entities operating independently were examined. In the research of renewable energy SMEs, a comparative analysis of key indicators determining the possibility of continuing the activity of these entities was made. The following indicators were examined: current financial liquidity ratio, return on sales, operating cycle, cash conversion cycle, share of receivables in current assets, share of inventory in current assets, turnover ratios, level of receivables, liabilities and profitability. The scientific literature is dominated by studies on purchasing groups in the pharmaceutical and construction industries. Thanks to the research conducted, it has been indicated that the renewable energy industry can also improve its profitability, and thus the possibility of safe continuation of operations by extending the business model to inter-entity cooperation within purchasing groups. Increasing the efficiency of individual entities of the renewable energy industry within purchasing groups becomes particularly important during the COVID-19 pandemic. Statistical analyses and their graphic presentation present the significant impact on the safety and profitability of renewable energy entities in the form of purchasing groups.

Influence of Resilience on Survival of Small and Medium Enterprises

The study assessed the influence of resilience skill for the survival of SMEs in Edo State. Two research questions guided the study, while research question two was hypothesized and tested. 236 respondents were used using a proportionate sampling technique from a population of 1117 business owners. This is 23.63% of the population. A descriptive survey was used. A reliability coefficient of 0.77 was obtained with the use of Cronbach alpha formula. Data were obtained with the aid of a questionnaire. The research question was answered with mean, while t-test for the hypothesis. From the result, it was discovered that resilience skill influences SMEs survival. The two groups of entrepreneurs used for the study did not show any significant difference in possession of resilience skill for SMEs survival. It was concluded that resilience skill is needed by entrepreneurs to a high extent. It was also concluded that males do not differ significantly from female entrepreneurs in possessing resilience skill for SMEs survival. Consequently, it was recommended that appraisal of SMEs operations should be on a consistent basis to check for lapses, make improvement and increase customers’ goodwill, among others.

ENTREPRENEURSHIP EDUCATION AND MANAGERIAL COMPETENCE AMONG SMES IN ANAMBRA STATE, NIGERIA

Business activities among traders in Anambra State seem to be changing from what it was formerly known for especially the Small Scale businesses. This is because of globalization, inadequate financial resources, poor business connections, paucity of experience, inability to cope with competition, poor sales and high stock of inventory, high operating costs as a result of poor infrastructure, inefficient management, poor business education. This study set out to ascertain the extent to which entrepreneurship education affects managerial competence among traders in Anambra State; to ascertain the effect of participating in business workshop on performance of SMES in Anambra State; and to determine the effect of acquired technical know-how on the turnover of SMES in Anambra State. Research questions and hypotheses were set in line with the objectives of the study. The study adopted a survey research design and a sample size of 196 respondents were drawn from a total population of 386 SMEs of the two selected cities in Anambra State. Although 180 copies of the questionnaire were correctly filled, returned and used for the analysis. Descriptive statistics was used for the analysis. Findings showed that there is a significant positive relationship between performance of SMES and entrepreneurship education as indicated by r- value of = 0.79 at 0.05 level of significance. Also, acquired technical know-how has improved traders’ business turnover showing a value of r = 0.75 at 0.05 level of significance. The study concluded that entrepreneurship education is the major ingredient that traders in Anambra State need in order to improve their business, technical know-how, mindset, turnover and other aspects of their businesses to achieve maximum profit. The study recommended that government of Anambra State need to create a conducive entrepreneurship centers within the business eco-systems to enable SMEs operators attend workshops when slated. Government agencies in charge of Trade and Commerce in Anambra State need to guide and assist traders by offering them financial aid, infrastructure as required and less taxation.

Influence of Entrepreneur’s Personal Characteristics in Entrepreneurial Networking on Growth of SMEs in Trans Nzoia County, Kenya

The growth of SMEs increases their potential of creating jobs, poverty alleviation, creating enterprising culture and economic growth rate. However, the growth of SMEs has been a concern to many stakeholders worldwide including government, scholars, SME operators and employees. In Kenya, majority of SMEs collapse before their third anniversary and those that remain majority collapse after five years. Thus there is a need to address low growth and high failure rate among SMEs. Entrepreneurial networking is one strategy that may influence growth of SMEs. This study was not only informed by low growth among the SMEs in various sectors but also by mixed results and contentious debate on effects of entrepreneur’s personal characteristics in entrepreneurial networking on growth of SMEs. The objective of the study was to determine the influence of entrepreneurs’ personal characteristics in entrepreneurial networking on growth of SMEs. This study was guided by entrepreneurship theory and entrepreneurial networking theory. The study employed a mixed research design: quantitative and qualitative approaches. Stratified and simple sampling techniques were employed to obtain 363 SMEs from 2,354 SMEs registered by Trans Nzoia County in Kenya. The SMEs were distributed in the following subsectors of whole trade, retail trade, manufacturing services, restaurant and agriculture. The data collection instruments were questionnaires. The questionnaires were self-administered to SME operators in Trans Nzoia county Kenya. Statistical Package of Social Science (SPSS) was used to analyze data. Descriptive statistics was used to summarize data. Inferential statistic (regressions) was employed in analysis. The study revealed that entrepreneurs’ characteristics (entrepreneurial orientation, education, age and networking skills)in entrepreneurial networking had positive significant influence on growth of SMEs. The study recommends entrepreneurs should embrace entrepreneurial orientation elements in networking to enhance growth of SMEs.

The Impact of Entrepreneurial Intentions & Actions on Environmental Sustainability: The Case of SMEs in Cameroon.

The importance of corporate social responsibility is shaping investment decisions and entrepreneurial actions in diverse perspectives. The rapid growth of SMEs has tremendous impacts on the environment. Nonetheless, the economic emergence plan of Cameroon has prompted government support of SMEs through diverse projects. This saw economic growth increased to 3.8% and unemployment dropped to 4.3% caused by the expansion of private sector investments. The dilemma that necessitated this study is the response strategy of SMEs operators towards environmental sustainability. This study, thus seeks to examine the effects of entrepreneurial intentions and actions on environmental sustainability. The research is a conclusive case study design supported by the philosophical underpins of objectivism ontology and positivism epistemology. Data was sourced from four hundred (400) SMEs operators purposively sampled from the Centre and Littoral regions of Cameroon using structured questionnaire. Data was analysed using the Structural Equation Modelling technique with the aid of statistical packages including: SPSS 24 and AMOS 23. The study revealed that entrepreneurial action has weak positive statistical significant impacts on environmental sustainability; whereas entrepreneurial intention has strong positive statistical significant effects on environmental sustainability. Entrepreneurial intention comprised of self-efficacy and perceived control whereas, entrepreneurial actions involved entrepreneurial alertness and uncertainty. This study concludes that entrepreneurs in Cameroon have sustainable intentions to protect the environment but; the current actions taken are inadequate. This research recommends that entrepreneurs should enhance efforts toward attaining the state of genuine sustainability.
 Keywords: Entrepreneurial Intention, Entrepreneurial Actions, Cameroon, Genuine sustainability

“A Level Playing Field”? – What an Environmental Justice Lens Can Tell us about Who Gets Leveled in the Forest Law Enforcement, Governance and Trade Action Plan

The European Union introduced Forest Law Enforcement, Governance and Trade (FLEGT) Action Plan, with Voluntary Partnership Agreements (VPA) and the EU Timber Regulation (EUTR) as the key components. The VPA and EUTR have been conceived as complementary tools to establish a “level playing field.” This paper analyses how a level playing field has been conceptualized, approached, and experienced in practice. It focuses on the adoption and implementation of EUTR and VPA in Europe, Indonesia, and Ghana. Our research highlights inequities in the practice of “leveling” and outcomes from a presumed level field. Stakeholder engagement excluded some factions of the private sector, notably SME operators, favoring select NGOs in general. New systems also favor larger operators who possess more capacity to deal with legality requirements. This leads small operators to perceive of a so-called level playing field as one in which they are disadvantaged, indicating multiple injustices against already vulnerable groups.

Perceived Barriers Hindering The Jordanian SMEs Operating In The Food And Beverage Industry From Engaging In E-Commerce:, An Empirical Study

Perceived Barriers Hindering The Jordanian SMEs Operating In The Food And Beverage Industry From Engaging In E-Commerce:, An Empirical Study

Determinants of Chinese SMEs’ Entry to ASEAN Renewable Energy Market

ASEAN communities seek such resources as technologies and products from other countries to develop solar energy for sustainable development. In response to that, major renewable-utilization advanced countries including China has introduced funds, technology, and products into ASEAN. Despite the fact that China SMEs have a strong willingness to enter ASEAN solar energy market and ASEAN has demanded to develop the solar energy industry, only a few of them have succeeded in operation in the long-run. Introducing renewable energy technology and products from one place to another or bringing them from laboratory into community is not just a process of capital equipment supply from one firm to another but also includes the transfer of skills and know-how for operating and maintaining technology hardware, and knowledge for understanding this technology so that further independent innovation is possible by recipient. The purpose of this research was to determine the dynamic elements for China SMEs entering into the solar energy market of middle-income ASEAN member states. This participatory research collects data from both primary and secondary sources. Primary data sources include a questionnaire for 408 respondents of whom background across government officials, research personnel and industry, and interviews for 24 of them. Secondary data include reports from the Asian Development Bank, ASEAN Centre for Energy and other related documents from ASEAN governments. Data collected from the questionnaire were firstly analyzed through quantitative way: the value of Mean, Standard Error of Mean, Median, Standard Deviation (Std.) and Variance of each element were calculated. Information collected from interviews were then analyzed through the qualitative way. The results showed that policy environment, level of industrial and economic development, people’s willingness to cooperate, correct policy interpretation, capacity building and the presence of a third-party intermediary agency are the determinants of Chinese SME's successful entry to ASEAN renewable energy market. The mature policy environment of the ASEAN, need of industrial upgrading and sound economic development would facilitate the development of renewable energy industry, meanwhile, the strong willingness to cooperate, correct policy interpretation on preferential policies, well capacity building of both cooperative sides and the presence of a third-party intermediary agency would promote the cooperation between Chinese SMEs and relevant partners of ASEAN and the sustainable operation of Chinese SMEs in ASEAN.

CHOICE OF CREDIT FACILITIES: A STIMULANT FOR FINANCIAL PERFORMANCE OF SMES IN NIGERIA

The study examined the effects of choice of credit facilities on the financial performance of SMEs in Nigeria while the specific objectives are to establish the influence of interest rate on loan and service on performance of registered SMEs in Ekiti State; investigate the influence of trade credits on performance of registered SMEs in Ekiti and examine the effect of asset financing on performance of registered SMEs in Ekiti State.
 The population of the study comprised 1704 SMEs operators from 16 local government areas in Ekiti State Nigeria. The stratified sampling technique was used to select the sample size from the captive population. The total sample size is 324 SMEs. This is the minimum to go to field with. 10% of 324were added to the sample size, summing up to give 356 because of non-response rate.
 To achieve the set objectives and hypotheses, both descriptive and inferential statistics were employed. In the descriptive analysis, the use of percentages comes to bare; more importantly in the areas of frequency of respondents to their views on the questions of research instrument. In specific terms, to achieve the objectives ANCOVA analysis were adopted.
 The results revealed that interest loan and performance between the groups revealed that a statistically significant main effect [f(16.961, 14.244) = 9.207, p < .05], loan and performance between the groups revealed that a statistically significant main effect [f(8, 1) = 2.952, p < .05] and bonds and performance between the groups revealed that a statistically significant main effect [f(16, 1) = 4.998, p < .05].
 The study concluded that there is improvement in businesses of the customers who use Micro-Credit loans, loan repayment is a smooth process and Cash and deposit account at depository institutions, the short term loan, there is no special terms granted, no, special terms occasionally granted and term frequently granted, capital provided by the owners or shareholders of the enterprise are credit worthiness that is your track record of repaying past debts.