Personal Savings Research Articles

Determinants and Constraints of Agro-based SMEs Access to Finance: Evidence from Ghana

This study explored the determinants and constraints of the access to finance of Agro Based SMEs in the Cape Coast Metropolis, Ghana. The research utilized primary data using a structured questionnaire. Sixty (60) SMEs in the Metropolis were selected using the simple random sampling technique. To ensure data reliability and validity, a pilot test was conducted for confirmation. Results show that Agro-based SMEs prefer personal savings as the first means of finance. Also, collateral, owner’s gender, sector of business, availability of audited financial statements, firm’s performance and firm size are the determinants of Agro-based SME’s access to financing. The major challenges faced by Agro-based SMEs in financing their businesses result conclude a lack of the expertise to prepare sophisticated financial statements, less repayment period, unclear financial plans to execute business, non-availability of enough MFIs and bureaucracy. It is recommended that Agro-based SMEs should cultivate the habit of savings personally to serve as the basis for their working capital so as to reduce over-reliance on banks and microfinance institutions. Additionally, Government interventions like MASLOC must be enhanced to allow more SME owners in SME businesses to access financing.

National Economic Conditions May Impact the Financial Barriers to Travel for Cancer Operations.

Better cancer-related outcomes are associated with physicians and hospitals with higher case volume. This serves as an incentive to refer patients requiring complex cancer operations to large referral centers, which may require increased travel for patients. However, barriers exist for patients to travel for cancer care, some of which may be aggravated or alleviated by factors relating to the health of the national economy. This impact may be reflected in variability of travel distances for cancer operations over time particularly for complex operation such as pancreatectomy and esophagectomy compared with less complex resections such as those for breast cancer or melanoma. We obtained the estimated travel distance for patients undergoing operations for cancer of the pancreas, esophagus, skin (melanoma), and breast from the National Cancer Database from 2004 to 2017 and correlated them with economic factors obtained from public sources. We then examined the impact of unemployment rates, gas prices, and inflation on travel distances regarding disadvantaged groups. Correlations were measured by the (rank-based, nonparametric) Spearman's correlation coefficient, and the corresponding P value is obtained by the asymptotic distribution of the coefficient. A P value of 0.05 equates to an absolute correlation value of 0.532. To adjust for multiple tests, a more restrictive P value of 0.01 was also assessed, which equates to correlation coefficients of absolute value greater than 0.661. There were 4,222,380 cases in the dataset, of which 1,781,056 remained after exclusion. The economic factors that were associated most strongly with the distance patients traveled for all cancer operation types were the labor force participation rate, personal savings, consumer price index, and changes in gasoline prices. Inflation and rising gasoline prices were often inversely related with travel distance in lower-income and less well-educated regions and African American patients. Several macroeconomic factors correlate with the travel distance for operations, suggesting that the economic health of the nation may aggravate or alleviate the financial barriers to travel for cancer operations. Financially disadvantaged groups may be particularly vulnerable to changes in gasoline prices and inflation. Organizations serving these populations may need to increase patient support services during times of economic hardship to avoid the exacerbation of health care disparities.

Retirement protection on one’s own: retirement readiness and worries among middle-income earners in Hong Kong

ABSTRACT Even as the world increasingly tends towards pension privatization, Hong Kong’s privatized pension system remains an extreme example. In the former British colony, retirement protection depends heavily on personal savings and investments, a dependency that the Mandatory Provident Fund (MPF) scheme further institutionalized beginning in 2000. Even so, Hong Kong’s government continues to maintain a means-tested zero pillar to assist its population of disadvantaged older adults. Against that background, in our exploratory study we surveyed middle-income earners 50–59 years old who rely on private and MPF-accrued savings for retirement in order to characterize their retirement readiness and anxiety about retirement risks. In the process, we also critically examined the individualization of retirement protection in order to better understand the biopolitics of older adults’ transitions into retirement. The results suggest that because individuals in Hong Kong are responsible for financial planning to protect their own retirement, they have to both proactively prepare for retirement and work as long as possible to manage retirement risks. Such a paradox of biopolitics requires a critical rethinking of individualized and financialized retirement protection.

The LBJ School Experience

I hope that the future public servants who begin their careers in the School will tomorrow be serving effectively not only in the bureaus and departments of the Federal Government and the Congress but also in city halls and court houses and state capitols—not only in Texas but in every region in the country. Above all, I hope that as they master new techniques and disciplines to improve the machinery of government, they will still build their careers of service around a dedication to one of the most cherished principles of our democracy: the greatest good for the greatest number (Lyndon B. Johnson, May 22, 1971). Given high standards of living and modern medicine, there seems to be no inherent limit to how long humans can live. In the United States, the population is rapidly aging, and life expectancy has reached historical highs. By 2040, 20% of individuals will be 65 or older (The Administration on Aging, 2021). Those who reach 65 could live more than 20 years longer (Kochanek et al., 2020). If current trends continue and existing policies and programs are unchanged, the Social Security Trust Fund will be depleted by 2034 (Social Security Administration, 2022); Medicare’s trust fund will go broke by 2028 (Centers for Medicare and Medicaid Boards of Trustees, 2022); and Medicaid’s funding for long-term care for low-income older adults will consume an ever-increasing portion of state budgets (The Commonwealth Fund, 2020). To make matters worse, a lack of personal savings among working-age Americans means that many will be unable to finance their own retirement (Angel, 2018a). Despite early warning signs, these obligations represent a fiscal freight train that is bearing down on families and the state.

Analisis Going Concern Pada Pelaku Usaha Nelayan Di Kecamatan Nusaniwe Kota Ambon

One of sectors massively contributing in the economy of Ambon city is fishery and marine. However, fishermen as one of the business actors who run this business are still on the poverty line even though they operate business every day. This study aims to analyze the going concern aspects applied by business actors so far. A qualitative approach with source triangulation techniques was used where researchers conducted in-depth interviews and observations to business actors in Dusun Eri, Latuhalat Village, and Seri Village. The results found that the going concern aspects that have been applied tend to adopt traditional methods that have been going on since ancient times, such as only focusing on selling fresh fish as their product characteristic so business actors are reluctant to innovate. The obstacles are the lack of self-motivation and government capital support, as well as the low understanding of technology. In addition, the going concern aspect of this business is also not determined by the accounting process because all business actors do not carry out accounting processes in their business. The financial management process that has been carried out by business actors is limited to allocating sales proceeds for business operations, family economic needs, and personal savings. This allocation process is not recorded in a specific book and only relies on their intuition and verbal calculations.

An empirical assessment of the constraints affecting farmers’ livelihood security in the North-Eastern region of Nigeria

Any government interested in the welfare state of its citizen, the subject of improving livelihood security for the people of the North-Eastern part of Nigeria is an issue of great importance. Food and livelihood security is an important need, as it is indispensable for the maintenance of human life. This research focuses on the empirical assessment of farmers’ livelihood security in the north-eastern region of Nigeria. The objectives of the study were to identify the socio-economic characteristics of farmers and identify the constraints militating against livelihood security among farmers in the study area. Data were collected from 435 randomly selected farmers in three states of the North-Eastern region with the aid of structured questionnaires. Data analyses were carried out using descriptive statistics involving the use of frequency distribution, percentages, mean and standard deviation, and inferential statistics involving the use Garret ranking technique. The results revealed that male farmers constituted the majority (73.17%) of the respondents, married with a mean age of 41 years. Most of them (78%) had formal education. The respondents were mostly small-scale farmers, and they cultivated an average of 3.5 hectares of farmland using personal savings. The results of the garret ranking technique revealed that a wide range of constraints militates against the livelihood security of the farmers in the study area. These include variability of rainfall, shortage of labour, and inadequate farm credit facilities as the first three production constraints. Lack of good roads, poor storage facilities, and lack of mobility were rated the 1st, 2nd, and 3rd as the infrastructural constraints. Inadequate access to credit and high-interest rate charge on the loan and high rate of tax were rated the highest among the financial constraints. The study recommended thatfarmers should be aided with sound irrigation facilities and the formation of cooperative organization that will ease the accessibility of infrastructural, financial and production facilities.

Determinants of Income Generating Pluriactivity among Rural Women in Lere, Kaduna State, Nigeria

An estimated 54 million of Nigeria’s 78 million women are based in the rural areas and make a living from the land. Apart from farming, the women are also engage in other income generating activities (IGAs) – defined as any activity that generates income for the family. This research was carried out to analyse the determinants of income generating pluraactivity among rural women in Lere, Kaduna state. A two stage sampling technique (multi stage) was used to select the women that were involved in some form of income generating activity in the Local Government Area (LGA). In the first stage, four districts were selected out of the 14 districts in the LGA. In the second stage, 5% of the 3,600 women that were involved in different IGAs spread across the study area were randomly taken. These women were selected from a list obtained from the LGA women farmers and marketers empowerment program. Primary data were generated from 180 respondents using structured questionnaire and the data were analysed using descriptive statistics, profit function and multiple regression. The result revealed that rural women in the study area engaged in an average of five economic activities at a time and they were able to make profit in the various businesses. The result of the determinants of profitability showed that variables of age, average distance to market, farm size, number of income generating activities and startup capital were significant and these influence overall profit generated by the rural women. The study further showed that because of lack of capital and inaccessibility to credit, the women had to fund the businesses through personal savings and loans obtained from family and friends. This was too meager in most cases. Despite the established fact that women provide over 60% of the food for household consumption in sub Saharan Africa, traditional constraints, market failures and lack of institutions to support them are issues besetting their efforts. Governmental and non-governmental organizations should ensure that financial institutions by law, reach out to women up to a certain threshold. The NGOs should build the capacity of these women through organized trainings.

CONTRIBUTION OF NIRDHAN UTTHAN MICROFINANCE INSTITUTION TO SAVING MOBILIZATION AND MANAGEMENT AT MICROENTERPRISES: A CASE STUDY OF RAMKOT BRANCH IN KATHMANDU OF NEPAL

The objectives of this study were to assess the contribution of Nirdhan Utthan Microfinance Institution, Ramkot branch in Kathmandu on saving mobilization and investment in different types of businesses or enterprises and to determine the roles of the microfinance to the economic status of its borrowers and entrepreneurs. The study applied both quantitative and qualitative data using a descriptive research design and case study method. It has employed both primary and secondary sources of data. Thematic analysis was used for primary data. Secondary data was analyzed using simple statistical tools such as tabulation and percentage. The finding has shown that microfinance has been successful to mobilize and manage saving in different business and economic sectors such as agriculture and forestry, cottage industries, services, trading, social and consumption, and other sectors. The finding of the study has also indicated that about 98.70 percent of the borrowers were successful to receive a collateral-free loan from microfinance. Likewise, the analysis reveals that microfinance has been successful to motivate household members to deposit in different saving accounts such as Personal Savings, Central Fund savings, Sambridhi Savings, and Nari savings and to create entrepreneurs. The study has found that microfinance was an important tool to improve the economic status of borrowers and entrepreneurs. Nirdhan Utthan Microfinance Institution should increase its number of borrowers and entrepreneurs and try to collect savings and mobilize them efficiently and effectively to enhance the economic status of the borrowers and stakeholders.

Analysis of Vegetable Marketing Determinants and Performance in Taraba State, Nigeria

The study analyzed vegetable marketing determinants and performance in Taraba State, Nigeria. The specific objectives of the study were to describe the socio economic characteristics; determine the performance; examine the factors influencing the marketing margin; determine the structure of vegetable markets in the study area and identify the constraints associated with it. Multistage and random sampling procedures were employed in selecting 110 vegetable marketers for the study. The analytical tools employed were descriptive statistics, marketing margin, marketing efficiency index analysis, multiple regression and Gini coefficient analysis. Results revealed that 60% of the vegetable marketers were female with about 66.36% married and within the active age. The mean marketing experience was estimated at 8 years and majority, 89.09% of the marketers had access to market information with 85.45% using personal savings as their initial marketing capital. Marketing efficiency index of 114.40% indicated high efficiency with marketing margin of 24.48%. This implies that marketing of vegetable is profitable. The value of the coefficient of determination, (R2) of 0.8864 indicates that 88.64% of the variation in the marketing margin of the marketers was explained by the variables used in the model. The Gini coefficient value of 0.6858 indicated high level of inequality in earnings among the marketers hence high concentration. The major constraints identified were price fluctuation, 89.09% and perish ability, 72.73%. It was recommended that high level of sensitization on good storage systems, all season production and provision of infrastructural facilities be made to curtail the menace identified in the study area.

Analysis of Financial Literacy and Its Effect on the Sustainability of MSME in Covid-19 Pandemic Era (Case Study on MSME in Pesawaran District)

MSME has an important role in economic development and growth as well as reducing unemployment in Indonesia, therefore it is very important to save MSME from the impact of the current COVID-19 pandemic. According to the Head of the MSME and Cooperatives Office of Pesawaran District, he stated that the main problem for business principals is a decline of income, means that more than fifty percent and the stagnation of business activities carried out. The purpose of this study is to produce the ability of business principals Pesawaran District to manage finances in order to maintain their business during the current covid-19 pandemic. This study uses the theory of financial literacy which is based on five aspects, namely basic personal finance, savings and loans, insurance, investment and risk management. The survey results in this study found that MSME business principals in Pesawaran District had carried out well the established aspects of financial literacy, so the business principals in Pesawaran District were able to survive the COVID-19 pandemic and could be an example for other business principals.

How Mortgage Rates Affect Personal Savings Rates in the U.S.

Currently in the United States, we are experiencing a significant increase in mortgage interest rates. While there are various factors that influence mortgage rates, high mortgage rates have an effect on the economy. Specifically, how mortgage rates affect one’s ability to save money. In this study, I asked how mortgage rates affect the personal savings, while accounting for the NASDAQ 100 and the participation of women in the labor force. The results of the regression suggest that when mortgage rates increase, savings rates will also increase.

Effective transformation of household savings in the context of a systemic economic crisis

The modern world is characterized by a high degree of digitalization, so citizens have access to an increasing variety of savings options. In just a few clicks, people can purchase shares of the largest companies, invest in real estate rental funds, open deposits in almost any bank, and purchase digital assets. However, financial literacy has not yet reached the level needed to use all financial instruments consciously. Since confidence in the banking and financial system is low, people save in cash, which slows economic growth. The study of various forms of savings and their reliability and availability can increase cashflow from individuals, triggering growth, especially in the current crisis conditions of 2020–2022, with unprecedented sanctions. The purpose of the study is to develop recommendations for the development of modern forms of effective savings for the population under the conditions of a systemic economic crisis. The study uses publicly available data on personal savings rates and relevant scholarly literature and uses the methods of analysis and synthesis, comparison, deduction, and statistical generalizations. In the course of the study, key savings trends and urgent income issues were identified, allowing for the formulation of several recommendations to improve the efficiency of modern savings methods.

Profitability Analysis of Catfish (Clarias gariepinus) Production in Edo State, Nigeria

The continuous importation of fish portends a colossal loss of foreign exchange reserved to Nigeria which requires urgent attention to boost fish production. It is against this backdrop that this study analyzed the profitability analysis of catfish production in Edo State, Nigeria. It specifically describe the production characteristics of the catfish farmers, estimate the input and output quantities of catfish, determine the profitability and identify the constraints associated with catfish production in the study area. Multi-stage sampling procedure was employed to select a total of 468 catfish farmers from the study area. Data collection was achieved through the administration of structured questionnaire. Data analysis was done using descriptive statistics, budgetary techniques and 4-Point Likert-type scale. The results revealed that the farmers in the study area used more of personal savings (58.12%), family land (59.40%) and local feed (82.48%). Stocked more at juvenile stage (70.30%) and produced average output of 4859.51kg per production cycle. The results also showed the average total cost incurred and revenue realized were N 543.67 and N 752.56 per kg fish respectively. The catfish production was profitable with average gross margin, net profit and return per naira invested of N224.35, N208.90 and N1.38 per production cycle respectively. The major constraints faced by catfish farmers were high cost of food (3.96), lack of capital (3.65) and lack of inadequate power supply (3.51) are very serious constraints among others. Since the catfish production was profitable, the farmers should be encouraged to combat these constraints and expand their holdings to boost production.

Economic and demographic views of Yakut thinker A.E. Kulakovsky

Subject. The article considers economic and demographic problems of the Republic of Sakha (Yakutia). Objectives. The focus is on the analysis of views of A.E. Kulakovskii, Yakut thinker of the early 20th century, on personal savings. Methods. The study employs methods of systems, historical, textual analysis. Results. The paper presents a brief history of the settlement of the Yakut Territory, demonstrates the nature of the main demographic processes and living conditions of the local population. It establishes that the works of A.E. Kulakovskii provide a comprehensive assessment of the causes of demographic crisis in Yakutia, and the main one is extreme poverty. Conclusions. The ideas of A.E. Kulakovskii were ahead of his time and meet the modern criteria of the National Security Strategy of the Russian Federation.

Exploring adaptive capacity: Observations from the vulnerable human-coastal environmental system of the Bay of Bengal in India

This article presents the factors that help build the adaptive capacity of individuals to reduce vulnerability from natural threats. The findings are based on primary data on individuals engaged in various livelihood practices in the Digha-Sankarpur- Mandarmoni region along the eastern coastline of the Bay of Bengal in India. Coastal communities have their individual perceptions about their vulnerability to natural threats and associated risks to various assets. Based on perception survey responses, “adaptive capacity” is measured and the determining factors are analyzed with an aim to provide policy guidelines for strengthening the adaptive capacity of people dependent on coastal ecosystem-based livelihoods. Findings show that income security for individuals in coastal systems can be achieved through a livelihood diversification strategy. The scope for individuals to build personal savings, have access to financial institutions, and engage in collaborative actions with immediate neighbors in the community help to prevent multiple losses at the individual level aids in their adaptive capacity. Government actions to provide institutional and governance support and incentives to promote livelihood diversification and personal savings would enhance adaptive capacity through institutional actions. Public investment in public goods and services, including protection and monitoring of natural coastal ecosystems, infrastructure development, technological intervention, providing access to information, and community empowerment, have important roles to play in enhancing adaptive capacity.

Technological Capabilities in Informal Sectors: A case of the Bakery Industry in Southwestern Nigeria

The informal sector employs the largest share of labour in developing countries and it is considered to be a fertile ground for growing the technological capabilities needed for economic development. This study examined technological capabilities in the bread baking industry in Nigeria with a view to inform policy formulation. Data were collected on three constructs of technological capability namely; investment, production and linkage capabilities of the industry through questionnaire administration on 200 bakers. The results reveal strong production capabilities in the sector, albeit in using traditional production technologies. Investment and linkage capabilities were however shown to be weak. The former was due to the restriction of source of funding to personal savings, family members and cooperatives. Linkages with knowledge institutions such as universities, polytechnics and R&D institutions were also found to be very weak. These weaknesses may be the leading cause of being unable to purchase and use modern technologies in the sector effectively. The study concluded that the sector may be caught in the trap of being restricted to low-tech based production equipment. Recommendations include availing the industry access to innovative financial instruments to enhance access to funds and professional help in conducting feasibility studies to identify and acquire relevant modern technologies. In addition, setting up platforms for linkages with knowledge intensive institutions may enhance production capabilities in using new production processes and ease transition to utilizing modern technologies.

Income Shock and Coping Strategies of Government Workers in Southwest Nigeria: Evidence from the Survey Data

Abstract Consumers’ response to income shock have been a source of concern over the years. Unexpected negative income shock, such as nonpayment of salaries, or salary reduction may cause an individual to react differently. Coping may be easy if an individual is well-prepared and has fully insured coping strategies prior to the income shock, hence, a negative income loss would have less impact. Otherwise, an income shock could be deleterious and leave an individual vulnerable. Therefore, ability to cope during negative income shock is determined by consumers’ preparedness as well as the effectiveness and appropriateness of available coping strategies. This study, therefore, examines the coping mechanisms of government employees in southwest Nigeria during the unexpected nonpayment of salary between 2015 and 2018. Both quantitative and qualitative methods using a structured questionnaire and FDGs are employed. The data is analyzed using descriptive statistics and OLS methods. The findings suggest that durable and service goods are substituted for food consumption, while the impact of coping strategies varies across the states. Empirical results from the OLS show that workers use personal savings and credit-purchases to smooth-out consumption, borrow and reallocate resources from durables and service for food consumption. Education, spouse occupation and age also have a positive impact on consumption. Evaluation of the coping strategies indicates that they are insufficient to satisfy the needs of the workers during the shock. The study, therefore, recommends that governments should provide a flexible working environment, formulate a policy that will allow workers to diversify into businesses, provide business loans and encourage mandatory saving for uncertainty.

FINANCIAL ROBO-ADVISOR SAVINGS2U FOR SHARIAH-COMPLIANT SAVINGS AND INVESTMENT APPLICATION

The growing usage of artificial intelligence such as Robo-Advisor has become one of the biggest developments in the global economy and reduces the level of poverty in the country with a safe, affordable and frictionless environment. In practice, Malaysians have low awareness and not financial discipline about personal savings and financial management. Most of Malaysian people have problems with their retirement planning because they really rely on their EPF funds as their primary source of income. The purpose of this product is to create awareness about the importance of savings and investment for all generations, reduce future financial issues faced by consumers, and encourage people to build wealth based on customer preference. As a result, customers will be more likely to develop a good habit of saving their money for the future and achieving their financial goals. This study used quantitative and secondary data which is collected from The World Bank website. We develop an application of financial Robo-Advisor known as Savings2u that focus on savings and Shariah compliance investment features based on customer risk preference such as conservative or aggressive then let the money grow digitally. In conclusion, Savings2u will help the customer to create and manage the portfolio automatically using the data provided. On the other hand, an increase in total savings would have a beneficial effect on the economic growth, which includes significant investments and an improvement in GDP of the country. Furthermore, countries with deeper and established financial systems also experienced stronger economic growth.

Effect of agricultural credits on production among smallholder crop farmers in delta state

The study analysed the effect of agricultural credits on production among smallholder crop farmers in Delta State. Multistage random sampling procedure was adopted for the selection of 210 respondents. Data were collected from primary sources through the use of structured questionnaires and analysed through the use of descriptive and inferential statistical tools. The result showed that most of the respondents were in the age range of 41years to 50 years who were married with secondary school education. Majority were engaged in farming as their primary occupation having mean family size of 8 persons and an average annual income of N250,000. Majority obtained their credit from personal savings and cooperative societies. The major determinants of access to credit in the area were interest rate, type of enterprise, and farm size. The major constraints to obtaining credit were lending policies of credit institutions, lack of knowledge of rules and regulations and provision of collateral security. It is recommended that farmers should be encouraged to form farmers’ cooperative societies to improve access to credits.

Economic Crisis and Personal Financing in Nigeria

The study was carried out to find out the relationship between economic crisis and personal financing among Nigerian workers. The research work made use of both primary and secondary data. Primary data were collected through questionnaires and secondary data sourced from the Central Bank Annual Reports and Bureau of Statistics. Multivariate analysis was applied to determine the relationship between Economic crisis (proxied by inflation, exchange rate, unemployment and cost of living) and personal financing (proxied by spending, tax, savings and investment). Results from the analysis showed a significant positive relationship between economic crisis and personal savings of Nigerian workers. The results showed further that both workers' personal spending and taxes have a positive relationship with the economic crisis in Nigeria, and their relationships are statistically significant at a 5% significance level. It means all the proxied economic crisis variables jointly affect Nigerian workers' personal savings, spending and personal taxes. However, economic crisis had no significant effect on the investment of Nigerian workers. Economic crisis does not influence how Nigerian workers invest their meagre income. Therefore, the economic drivers (governments) are advised to pay more attention to tackling the problems of the high exchange rate, inflation rate, and unemployment rate bedeviling the country to reduce the overall cost of living in Nigeria.