Impact of microcredit on the performance of micro and small enterprises (MSEs) in Yemen
This study examines the impact of microcredit on the performance of Micro and Small Enterprises (MSEs) in Yemen, focusing on the mediating role of beneficiary satisfaction. Data was collected using a structured questionnaire from 398 MSE proprietors in Yemen who have accessed microcredit from Microf...
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2025-12-01
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| Series: | Cogent Economics & Finance |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2025.2460083 |
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| _version_ | 1825206694278332416 |
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| author | Osamah Ahmed AL-Maamari Nadeem Aljonaid Noufal Alrefaei |
| author_facet | Osamah Ahmed AL-Maamari Nadeem Aljonaid Noufal Alrefaei |
| author_sort | Osamah Ahmed AL-Maamari |
| collection | DOAJ |
| description | This study examines the impact of microcredit on the performance of Micro and Small Enterprises (MSEs) in Yemen, focusing on the mediating role of beneficiary satisfaction. Data was collected using a structured questionnaire from 398 MSE proprietors in Yemen who have accessed microcredit from Microfinance Institutions (MFIs). The study implemented a proportionate stratified random sampling technique to determine the sample size, and based on the sample size determination formula. The study employed descriptive analysis using SPSS and Partial Least Squares Structural Equation Modeling (PLS-SEM) with Smart PLS 3.2.9 software to analyze the relationships between microcredit, beneficiary satisfaction, and MSE performance. Findings indicate that microcredit significantly affects profitability, sales growth, and employment expansion among MSEs in Yemen. However, microcredit does not show a significant association with asset growth. Furthermore, beneficiary satisfaction mediates the relationship between microcredit and profitability, sales growth, and asset growth, highlighting its crucial role in maximizing the benefits of microfinance services. The study suggests policy recommendations to enhance microcredit effectiveness, including reducing interest rates, simplifying loan processes, enhancing beneficiary satisfaction, and integrating technology into MFI services. |
| format | Article |
| id | doaj-art-1e2fc60f50584f8d91887fb90aa182fb |
| institution | Kabale University |
| issn | 2332-2039 |
| language | English |
| publishDate | 2025-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj-art-1e2fc60f50584f8d91887fb90aa182fb2025-02-07T07:03:10ZengTaylor & Francis GroupCogent Economics & Finance2332-20392025-12-0113110.1080/23322039.2025.2460083Impact of microcredit on the performance of micro and small enterprises (MSEs) in YemenOsamah Ahmed AL-Maamari0Nadeem Aljonaid1Noufal Alrefaei2International Business Administration, Al-Razi University, Sanaa, YemenSchool of Business, Qilu Institute of Technology, Jinan, ChinaDepartment of Social Work, Mangalore University, Mangalagangotri, IndiaThis study examines the impact of microcredit on the performance of Micro and Small Enterprises (MSEs) in Yemen, focusing on the mediating role of beneficiary satisfaction. Data was collected using a structured questionnaire from 398 MSE proprietors in Yemen who have accessed microcredit from Microfinance Institutions (MFIs). The study implemented a proportionate stratified random sampling technique to determine the sample size, and based on the sample size determination formula. The study employed descriptive analysis using SPSS and Partial Least Squares Structural Equation Modeling (PLS-SEM) with Smart PLS 3.2.9 software to analyze the relationships between microcredit, beneficiary satisfaction, and MSE performance. Findings indicate that microcredit significantly affects profitability, sales growth, and employment expansion among MSEs in Yemen. However, microcredit does not show a significant association with asset growth. Furthermore, beneficiary satisfaction mediates the relationship between microcredit and profitability, sales growth, and asset growth, highlighting its crucial role in maximizing the benefits of microfinance services. The study suggests policy recommendations to enhance microcredit effectiveness, including reducing interest rates, simplifying loan processes, enhancing beneficiary satisfaction, and integrating technology into MFI services.https://www.tandfonline.com/doi/10.1080/23322039.2025.2460083Microfinance institutions (MFIs)microcreditperformancemicro and small enterprises (MSEs)beneficiaries’ satisfactionBusiness |
| spellingShingle | Osamah Ahmed AL-Maamari Nadeem Aljonaid Noufal Alrefaei Impact of microcredit on the performance of micro and small enterprises (MSEs) in Yemen Cogent Economics & Finance Microfinance institutions (MFIs) microcredit performance micro and small enterprises (MSEs) beneficiaries’ satisfaction Business |
| title | Impact of microcredit on the performance of micro and small enterprises (MSEs) in Yemen |
| title_full | Impact of microcredit on the performance of micro and small enterprises (MSEs) in Yemen |
| title_fullStr | Impact of microcredit on the performance of micro and small enterprises (MSEs) in Yemen |
| title_full_unstemmed | Impact of microcredit on the performance of micro and small enterprises (MSEs) in Yemen |
| title_short | Impact of microcredit on the performance of micro and small enterprises (MSEs) in Yemen |
| title_sort | impact of microcredit on the performance of micro and small enterprises mses in yemen |
| topic | Microfinance institutions (MFIs) microcredit performance micro and small enterprises (MSEs) beneficiaries’ satisfaction Business |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2025.2460083 |
| work_keys_str_mv | AT osamahahmedalmaamari impactofmicrocreditontheperformanceofmicroandsmallenterprisesmsesinyemen AT nadeemaljonaid impactofmicrocreditontheperformanceofmicroandsmallenterprisesmsesinyemen AT noufalalrefaei impactofmicrocreditontheperformanceofmicroandsmallenterprisesmsesinyemen |