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    Effects of Loan-Sharking on Philippines’ Microenterprises

     
     
         
    ISSN: 2195-1381

    Publisher: author   

Effects of Loan-Sharking on Philippines’ Microenterprises

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Abstract This study has investigated the effects of loan-sharking on microenterprises in the Province of Capiz, focusing on the sustainability of the business, profitability of the business, and standard of living when taken as a whole and grouped into entrepreneur and business. It was administered to 850 respondents on a quota sampling method where all microenterprises have existing businesses and have knowledge of loan-sharking. Since microenterprises continue to grow, loan sharks attract these business owners. Loan-sharking has been able to coexist with formal loaning systems, and microenterprises kept dealing business with them for it provides easy access to capital, easy payment method, and hope in a time of emergencies. Using statistical tools, findings show that respondents using their demographics are favorable with the effects of loan-sharking on the sustainability of the business and standard of living. On the other hand, the profita...

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