Abstract

The study analyzed the influence of Village Savings and Loans Associations (VSLAS) on Small and Medium Enterprises (SMEs) outcomes in Malawi, using a case study of the Malingunde area in TA Masumbankhunda, Lilongwe District. The study had three main specific objectives: to identify components of SMEs that are influenced by VSLAs in T/A Masumbankhunda, Lilongwe District; to explain the influence of VSLAs savings on SMEs outcomes in T/A Masumbankhunda, Lilongwe District; and to examine the impact of VSLAs loans on SMEs outcomes in T/A Masumbankhunda, Lilongwe District. Multistage cluster sampling technique was employed in selecting 102 respondents. Structured questionnaire was used to collect data. Descriptive and inferential statistics involved simple percentage, paired independent T-test and logit regression were applied analysis using Statistical Package for Social Scientist (SPSS) as a tool. Focus Group Discussions and key informant interviews were employed to collect qualitative data. Thematic analysis involved formulating codes to determine the presence and meaning of certain themes and concepts. Results showed that three SMEs outcomes were found to be statistically significant, namely: market value (p = .003); business network (p = .009) and monthly cash flow (p = .045). Further analysis to determine the significance of each of the ten VSLAS independent variables used in the regression model, results indicated that loan knowledge (p = .028); loan amount (p = .011); loan frequency (p = .006); loan repayment period (p = .006); loan interest rate (p = .008); savings amount (p = .028); savings frequency rate (p = .036) and dividend amount (p = .002) contributed significantly to SMEs outcome. Given these results, the study accepted the alternative hypothesis that VSLAs significantly influenced SMEs outcome. The study recommends that VSLAs should be up scaled to enhance financial inclusion and attain financial inclusion and attain SMEs outcomes.

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School	: School of Law, Economics and Government
Issued Date	: 2023

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