Does Microcredit Contribute to the Profitability of Micro and Small Enterprises (MSEs)? An Empirical Study from Yemen

Osamah Ahmed AL-Maamari; Dr. Vedava.P, Salah Naji Taher Sanad


Purpose: The study aimed to examine the extent to which microcredit contributes to the profitability of micro and small enterprises (MSEs) in Yemen.

Methodology: The current study is descriptive-analytical. The owners of MSEs in Yemen who have access to microfinance services are this study’s population. A total of 90946 active clients were the study population, and the sample size was 398 owners identified via the use of the Yamane formula. Different statistical tools, including descriptive statistics such as frequencies, mean and standard deviation, and inferential statistics such as regression analysis, were employed, and data were analysed using SPSS.

Findings: The regression model results revealed a significant and positive relationship between the profitability of MSEs and Microcredit (B= 0.358, P < 0.05), with an increase in the former resulting in a similar improvement in the latter by a factor of 35.8 %.

Practical Implications: MSEs play essential roles in a country’s development and economic growth.

Originality/Value: The study was conducted in a new setting where fewer empirical studies were done to investigate the connection between the tested variables.

FULL TEXT PDF 1-10] DOI: 10.30566/ijo-bs/2023.02.106


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