Microfinancing and Its Benefits to WomenOwned Micro-enterprises in Chad: A Case Study of the City of N’Djamena
Date
2021-07-15
Authors
Simael, Mbairassem
Honoré, Mbaiobedo
Journal Title
Journal ISSN
Volume Title
Publisher
African Economic Research Consortium
Abstract
This study aims to examine the impact of finance on the profits derived by womenowned micro-enterprises in Chad, through undertaking a case study of the city of
N’Djamena. In order to achieve this objective, the study uses both the two-step
Generalized Least Squares estimation method, and the Maximum Likelihood method,
which are adopted in order to correct the problem of heteroscedasticity associated
with the survey data. The data used is derived from a survey on the economic
empowerment of women in the city of N’Djamena, which was carried out in 2016 by
the Research Institute of Applied Economics and Management of the University of
N’Djamena (LAEREAG). The results show that financing is significantly and positively
correlated to profits in women-owned micro-enterprises in Chad. This suggests that
an improvement in microfinance lending conditions could improve women-run
businesses. Financing that is derived from private microfinance institutions and the
support in terms of training and management consultancy services (accounting and
marketing) has a positive effect on profits. Finally, an endogeneity test allowed us to
highlight the absence of a correlation between the residue and the profit variable. In
light of these results, it becomes necessary to improve lending conditions and intensify
the support in training and management consultancy services in favour of women.