Impact of Microfinance Advisory Services on the Performance of Micro and Small Enterprises (MSEs) in Yemen

Abstract

Purpose: This study examined the Impact of Microfinance Advisory Services on the Performance of Micro and Small Enterprises (MSEs) in Yemen.

Approach/Methodology/Design: The study focused on micro and small business owners in Yemen who have access to microfinance services. To accomplish this goal, descriptive and analytical research methods are adopted for this study. The number of their active clients was 90,946 active clients, and the sample size was 398. Data are examined using the SPSS to provide quantitative descriptive statistics measures. To evaluate the theoretical model of this research, PLS-SEM route modelling using Smart PLS 3.2.9 software was employed. Because it replicates the standard regression approach, PLS path modelling was judged the most acceptable technique in this study.

Findings: Microfinance institutions' (MFIs') advising services for MSEs were found to have a highly significant correlation with the performance of MSEs. This study's findings add to the growing body of evidence demonstrating the importance of MFIs' advisory services to the development and success of their client businesses.

Implications: As previously stated in the present literature, further research into the significance of advisory services in the performance of Micro and Small Enterprises is required. This study aimed to determine the effect of microfinance institutions' advising services on the performance of micro and small firms in Yemen.