Microfinancing and Its Benefits to Women Owned Micro-enterprises in Chad: A Case Study of the City of N’Djamena
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Date
2020-11-15
Authors
Simael, Mbairassem
Journal Title
Journal ISSN
Volume Title
Publisher
African Economic Research consortium
Abstract
This study examined the impact of finance on the profits derived by women
owned micro-enterprises in Chad, through undertaking a case study of the
city of N’Djamena. To achieve this objective, the study uses both the two-step
Generalized Least Squares estimation method, and the Maximum Likelihood
method, which are adopted 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. Considering these results, it becomes necessary to
improve lending conditions and intensify the support in training and management
consultancy services in favour of women.