Performance evaluation of agricultural micro-enterprise borrowers of Sikap Bidani Development Foundation, Inc. Group Lending Program, Santa Cruz, Laguna, 2012.

Date

10-2012

Degree

Bachelor of Science in Agricultural Economics

College

College of Economics and Management (CEM)

Adviser/Committee Chair

Catelo, Salvaddor P.

Abstract

The study was conducted to evaluate the performance of agricultural micro- enterprise borrowers of SIKAP BIDANI Development Foundation, Inc. group lending program. Specifically, it aimed to: 1) provide an overview of the SIKAP BIDANI group lending program; 2) determine the needs of the borrowers for credit; 3) examine the credit utilization and repayment performance of member-borrowers; 4) identify the effect of loan on the income of member-borrowers; and 5) determine the problems and recommend possible solutions. To fulfill these objectives, cross-tabulation, t-test of paired two samples for means and cash flow analysis were employed to secondary and primary data from 48 respondents in Sta. Cruz, Laguna. The Kalinga sa Pamilya Fund, Loan Insurance, and Movement fund for voluntary savings were introduced to members for easy access of money in case of emergency. The “Tingi-tingi” recruitment or one-by-one addition to the group was also introduced. It was found out that 40% of the member-borrowers still needed credit for continuing their enterprise while the other 60% chose to stay due to additional benefits such as Life and Accident Insurance Program, Permanent Disability Program, etc. For every Php10 of loan received, Php8 was utilized properly. The Php8 for every Php10 of the total loan received was used solely in their agricultural enterprise. The other 17% improperly utilized credit for house repairs due to the damage caused by the typhoon in 2011. On the average, the percentage change in enterprise net income of member- borrowers after loan acquisition was 36%. Moreover, t-test of paired two samples for means showed that the increase in net income before and after the loan acquisition of member-borrowers engaged in agricultural enterprises was significantly different. The results also showed that the net income of member-borrowers was not directly affected by the amount of loan received. Accordingly, the net income was higher if the credit was utilized for its intended purpose, agricultural enterprise. There was 100% repayment performance by the member-borrowers and they attributed this to the alternative schemes adopted by SIKAP BIDANI and the attitude of their Account Officer (AO). In particular, the group’s responsibility if a group member defaults on her loan and use of Movement Fund during cash withdrawals has improved repayment performance. The problems encountered by SIKAP BIDANI were the poor targeting of low- income women of the Group Lending Program and having unprofessional member- borrowers that led to: 1) lack of cooperation within the group; 2) diversion of credit availed of; and 3) disobedience to the schemes and policies imposed by SIKAP BIDANI. vii The study recommends the following: 1) the certification of membership of the borrowers that will focus on refreshing the schemes, operations, and services of the Group Lending Program; 2) the beneficial assistance of members with outstanding performance to their less effective groupmates; 3) the back-track of SIKAP BIDANI to their objectives that focuses on accepting rural poor women; and 4) the replication of SIKAP BIDANI that will help rural poor women in other places.

Language

English

Location

UPLB College of Economics and Management

Call Number

Thesis

Document Type

Thesis

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