Microfinance Credit Services in Eastern Samar Municipalities

Abstract

The study aims to assess the effectiveness of the microfinance credit services to sari-sari store owners/operators in the municipalities of Maydolong and Balangkayan in the province of Eastern Samar. It used the descriptive method using a questionnaire to collect data from the respondent sari-sari store owners/operators in the area of study. The study reveals that most sari-sari store owners were married, college degree holders, the major source of microfinance credit is the CARD, Inc., have been operating for 1-5 years, with store capitalization at P5,000.00 and below, have no employees/assistants, and have only availed of microfinance credit services 1-3 times. The respondents’ assessed that microfinance credit services were “Somewhat Effective” in terms of operating expenses of the sari-sari store, buying of new products to sell, income generation, personal reasons or using loaned amounts for personal expenses. In terms of store equipment acquisition, respondents’ assessment was verbally interpreted as “Less Effective.” Microfinance institutions in the area should provide interventions that will develop the entrepreneurial abilities of its beneficiaries. They should implement a more aggressive monitoring program that will ensure that the loaned amounts will be solely used for its intended purpose. They should continue to provide focus on their loan offerings to female sari-sari store owners/operators. There is a need to conduct a parallel research to determine the effectiveness of microfinance on sari-sari stores who have been in the business for a much longer period of time and have been able to able to avail of microfinance credit services more times than the current respondents of this study. There is also a need to conduct another research on the impact of microcredit services of MFIs on the household of sari-sari store owners/operators.