The influence of microcredit financing conditions on the financial performance of microenterprises in Burkina Faso

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Résumé

This article examines the influence of microcredit financing conditions on the financial performance ofmicroenterprises in Burkina Faso. To this end, an analysis was carried out using a linear model for asample of 129 microenterprises based on panel data from 2017 to 2019. The results obtained using theFeasible Generalized Least Squares (FGLS) method show that the amount of microcredit and therepayment period have a positive impact on the financial performance of microenterprises. In contrast,the interest rate, proximity to microfinance institutions (MFIs) and the gender of the business ownernegatively affect this performance. These results emphasize that in the Burkinabe context, proximity toMFIs does not guarantee the profitability of microenterprises, but rather benefits MFIs in repaying loansand expanding their portfolio. They also indicate that women-led micro-enterprises are less profitablebecause they have difficulties accessing credit, particularly due to a lack of collateral. Conversely,businesses run by educated owners have better financial performance. The influence of microcredit financing conditions on the financial performance of microenterprises in Burkina Faso.

Mots-clés

Financing conditions, microcredit, microenterprise, financial performance