4.3.3.5. The impact of the
bank loan on the employment
The research wanted to know if the bank loan had positive
impact on the employment in recruiting the new workers or in increasing the
wages and salaries for the existing workers. The respondents supplied the
information summarized in the table below.
Table 4. 13: Impact on the bank
loan on the employment
|
Impact
|
Number of respondents
|
Percentage
|
|
Recruitment of new employees
|
13
|
27.1
|
|
Augmentation of wages and salaries for the existing employees
|
17
|
35.4
|
|
All above
|
11
|
22.9
|
|
None above
|
7
|
14.6
|
|
Total
|
48
|
100.0
|
Source: Primary data
It is revealed in the above table that after getting the loan
35.4% of the respondents increased the wages for its employees, 27.1% recruited
new workers, 22.9% recruited new workers and augmented the wages and salaries
for the existing workers while 14.6% were not able to do any of the above
mentioned activities.
With the extension, improvement and increase of the businesses
after the traders obtained the bank loan, the traders engaged new workers and
increased the wages and salaries of the existing employees on account of the
augmentation of working hours. For the respondents who did none of above
activities, either their businesses stagnated or the increase of the services
and activities was not at the level of employing more workers.
From this information, the researcher can conclude that the
loan given to traders is favorable to the employment in the area; there is
availability of more jobs and increase of money supply from the increase of
salaries. The loan helps to reduce the rate of unemployment.
4.3.3.6. The bank loan
towards the standards of living for the traders
Normally when there is improvement and expansion in the
business, it would be the same for the living standards of the people who
implement this activity. The researcher sought to know if really after getting
loan the traders improved their ways of living in terms of health, food,
education for their children, infrastructure and so on. The answers that they
gave are exposed in the following table.
Table 4.14: The bank loan and
the improvement of standards of living
|
Did the bank loan allow you to improve the standards of
living
|
Number of respondents
|
Percentage
|
|
Yes
|
43
|
89.6
|
|
No
|
5
|
10.4
|
|
Total
|
48
|
100.0
|
Source: Primary data
The majority of respondents (89.6%) said that their standards
of living have ameliorated, 10.4% held that their ways of living remained
unchanged.
From this information, the researcher agrees that the bank
loan given to the traders is positive towards their standards of living.
4.3.3.7. Respondents views on
the future loan application
Asking if after the loan repayment, the applicants could
request for another loan, 36 over 48 (75%) answered positively, while 12 (25%)
said that they would not request for another loan. The researcher discovered
that those who would request for another loan want further to expand their
business whereas for the others either the business was not profitable after
getting the loan or they have got the sufficient capital to run their
commercial activities without being helped by other external funds.
Finally, for those who would solicit the further loan in the
future, the researcher was interested to know which amount comparatively to the
previous one. They gave the answers summarized in the table below:
Table 4. 15: The amount that
the customers could request for after the loan repayment
|
Amount
|
Number of respondents
|
Percentage
|
|
Greater than the previous amount
|
33
|
91.7
|
|
Equal to the previous amount
|
3
|
8.3
|
|
Less than the previous amount
|
0
|
0.0
|
|
Total
|
36
|
100.0
|
Source: Primary data
As shown in the table above, 91.7% of the respondents wish to
request from the bank the amount which is greater than one requested previously
and 8.3% would request the same amount. This means that the traders have known
the role of bank loan in promoting their trading activities.
| 
