An Assessment of the Informal Money Lending Practices to the Micro-entrepreneurs

ABSTRACT The research study of An Assessment of the informal money lending practices to the micro-entrepreneurs is applied to determine the ways in understanding the behaviour of micro entrepreneurs. Also to create and recommend long term solution for the problems encountered by the micro entrepreneurs in terms of informal money lending. This study used the descriptive method in gathering the information about the reason of borrowing money, problems encountered and advantages of informal money lending on the part of micro enterprises. The descriptive method describes the real life experience of micro entrepreneurs and how the informal money lending affects the operation of the micro businesses. The researchers used Simple random sampling in choosing the respondents 25 vendor and 25 micro entrepreneurs, with the bracket of 21-30 years old with the total of 50 respondents. The tools used for the analysis of data were percentage and weighted mean average. The informal money lending is now a vital part of life specifically in micro business for it is the easiest way to borrow money. Micro entrepreneurs must know the significance of formal and informal money lending because it plays an important role in the Philippine economy.