The Impact of Consumer Credit Access on Self-Employment and Entrepreneurship

2018 ◽  
Author(s):  
Kyle Herkenhoff ◽  
Gordon M. Phillips ◽  
Ethan Cohen-Cole
Keyword(s):  
Consumer Credit ◽  
Credit Access ◽  
Self Employment ◽  
The Impact

Determinants of diversification by cocoa smallholders in Sulawesi

2020 ◽  
Vol 47 (10) ◽  
pp. 1243-1263
Author(s):  
Iqbal Irfany ◽  
Peter John McMahon ◽  
Jenny-Ann Toribio ◽  
Kim-Yen Phan-Thien ◽  
Muhamad Amin Rifai ◽  
...  
Keyword(s):  
Durable Goods ◽  
Household Wealth ◽  
Content Type ◽  
Credit Access ◽  
Farm Work ◽  
Income Sources ◽  
Self Employment ◽  
Market Town ◽  
Per Capita ◽  
The Impact

PurposeThe aim of this study was to evaluate determinants of four diversification practises by cocoa smallholders in West Sulawesi, Indonesia: (1) growing other crops, (2) keeping livestock, (3) off-farm work for wages (4) off-farm self-employment, and the impact of diversification on welfare of community members.Design/methodology/approachHousehold interviews (n = 116) conducted in two subdistricts (Anreapi and Mapilli) of Polewali-Mandar District, West Sulawesi, provided quantitative data on household characteristics, crop and livestock production, income sources, expenditure and credit access. Two villages per subdistrict were included in the study, each producing cocoa as the main crop but differing in their proximity to a market town. Logistic regression was applied to identify determinants of diversification by households. Multiple linear regression (MLR) models evaluated the impact of diversification practices and other explanatory variables on two proxies of welfare (or household wealth): per capita value of durable assets (household assets other than land or livestock) and per capita expenditure for each household.FindingsMean per capita cocoa production in the sample was low (51 kg dry beans/annum). The mean dependency ratio (proportion of household occupants age <18 and >64) was 35%, with an average of five occupants per household. Household heads were predominantly male (95%), averaging 46 yo and 7 years of formal education. Most households (72%) depended on loans, but only 24% accessed formal loans. Significant determinants of diversification practices were access to formal credit for self-employment and subdistrict for livestock, with Mapilli subdistrict households more likely to keep livestock. Household predictors in the MLR accounted for 28% variation of the dependent, per capita value of durable goods. Off-farm self-employment and raising livestock significantly improved welfare, but growing other crops or off-farm work for wages had little effect. Other household variables demonstrated to have significant positive effects on welfare were education of the household head, proximity to a market town and land area per household.Research limitations/implicationsThe study was restricted to a relatively small sample size (n = 116). Studies including panel data or larger numbers of households could enable the identification of further determinants of diversification.Practical implicationsThe study demonstrates that diversification has the potential to improve rural livelihoods, but that obstacles, especially formal credit access, may deter poorer households from diversifying their income sources.Social implicationsPrograms and policies that facilitate access to formal finance by smallholders could encourage diversification into small business and improve livelihoods in cocoa-dependent communities.Originality/valueIn the light of the decline in cocoa farm productivity in West Sulawesi, the study demonstrates the potential benefits, as well as limitations, of income diversification by smallholders.

scholarly journals The Impact of Consumer Credit Access on Unemployment

2019 ◽  
Vol 86 (6) ◽  
pp. 2605-2642 ◽  
Author(s):  
Kyle F Herkenhoff
Keyword(s):  
Business Cycles ◽  
Consumer Credit ◽  
Quantitative Result ◽  
Credit Access ◽  
Access To Credit ◽  
Employment Dynamics ◽  
Cyclical Fluctuations ◽  
The Business Cycle ◽  
The Impact ◽  
Revolving Credit

Abstract Unemployed households’ access to unsecured revolving credit more than tripled over the last three decades. This article analyses how both cyclical fluctuations and trend increases in credit access impact the business cycle. The main quantitative result is that credit expansions and contractions have contributed to moderately deeper and more protracted recessions over the last 40 years. As more individuals obtained credit from 1977 to 2010, cyclical credit fluctuations affected a larger share of the population and became more important determinants of employment dynamics. Even though business cycles are more volatile, newborns strictly prefer to live in the economy with growing, but fluctuating, access to credit markets.

scholarly journals The Impact of Consumer Credit Access on Employment, Earnings and Entrepreneurship

2016 ◽  
Author(s):  
Kyle Herkenhoff ◽  
Gordon Phillips ◽  
Ethan Cohen-Cole
Keyword(s):  
Consumer Credit ◽  
Credit Access ◽  
The Impact

Impact of training on entrepreneurial intention: an interactive cognitive perspective

2015 ◽  
Vol 27 (6) ◽  
pp. 593-616 ◽  
Author(s):  
Fayçal Boukamcha
Keyword(s):  
Training Program ◽  
Case Studies ◽  
Entrepreneurial Intention ◽  
Equation Modeling ◽  
Cognitive Perspective ◽  
Content Type ◽  
Success Stories ◽  
Self Employment ◽  
Entrepreneurial Training ◽  
The Impact

Purpose – This paper aims to clarify the impact of the entrepreneurial training on a Tunisian trainee’s entrepreneurial cognitions and intention. An interactive cognitive perspective was adopted to test the interaction effect between the entrepreneurial cognitions: the perceived entrepreneurial self-efficacy, the perceived entrepreneurial feasibility and entrepreneurial desirability. A research model was built showing several relationships between entrepreneurial training, cognitions and intention. Design/methodology/approach – A survey was conducted on a convenience sample of 240 participants in four business incubators. The maximum-likelihood test was used as a structural equation modeling method to test the model. Findings – The results show the importance of the entrepreneurial training in the development of entrepreneurial cognitions. Further, the findings, to some extent, validate the interaction between the entrepreneurial cognitive patterns. However, entrepreneurial intention was only predicted through the entrepreneurial desirability. Several implications are discussed at the end of this paper. Practical implications – The findings seem interesting insofar, as they show the importance of entrepreneurial trainings in the entrepreneurial intention development through the enhancement of desirability. This process can be triggered by a training program that contains case studies, success stories and conferences to make the youth enthusiastic about self-employment. Originality/value – The significant impact of the entrepreneurial training on trainees’ cognitions should encourage governments and incubators to promote entrepreneurial training programs to enhance the youths’ willingness to create their own businesses. The findings in this paper seem interesting insofar as they show the importance of entrepreneurial trainings in the entrepreneurial intention development through the enhancement of desirability. This process can be triggered by a training program that contains case studies, success stories and conferences to make the youth enthusiastic about self-employment.

scholarly journals KHF Entrepreneurship Support and the Impact of COVID-19 on Jordanian Entrepreneurs

2021 ◽  
Author(s):  
Lami Raei
Keyword(s):  
Young People ◽  
Financial Support ◽  
Youth Participation ◽  
Community Based ◽  
Community Based Organizations ◽  
Self Employment ◽  
Start Ups ◽  
The Impact

The King Hussein Foundation (KHF) partners with Oxfam in the Youth Participation and Employment programme (YPE) to promote entrepreneurship through supporting youth to engage in business start-ups and scale-ups. KHF projects support community-based organizations (CBOs) in establishing revolving funds, training CBOs in microfinance management and building the capacity of potential entrepreneurs. Apprenticeships and shadowing are two examples of popular approaches to facilitating entrepreneurship and self-employment. During the COVID-19 crisis, KHF has continued the implementation of activities virtually. This case study presents examples of young people utilizing financial support, reaching out to new clients using ICT, and eventually exploring ways to mitigate the impacts of COVID-19.

scholarly journals Funding Self-Employment: The Role of Consumer Credit

2011 ◽  
Author(s):  
Christoph Kneiding ◽  
Alexander S. Kritikos
Keyword(s):  
Consumer Credit ◽  
Self Employment
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