Effectiveness of door-to-door deposit collection on saving and borrowing behavior of small business in urban Nepal

Abstract

This study holds significant importance as it offers a comprehensive examination of doorto-door collection services for small business enterprises in urban Nepal. It also provides

valuable insights into the potential of door-to-door collection services to promote smallscale savings in a diverse urban context. Furthermore, study presents an in-depth analysis

of

door-to-door collection services for small business enterprises, examining the characteristics, behaviors, and perceptions of 121 individuals participating in such services. The main objective of the study is to examine the nature of the door-to door services and its effectiveness in promoting small scale savings in urban Nepal. The study encompasses a diverse range of respondents, exploring factors such as age distribution, ethnicity, education, gender, family type, industry/business type, annual turnover, trust in service providers, motivations for engagement, and the subsequent impact on saving and borrowing behavior. The study shows a diverse age distribution, with a significant portion of participants falling within the 36-45 age range. Ethnic diversity is highlighted, indicating a representation of various groups, with Janjati being the largest followed by Madheshi, Brahmin/Chhetri, Dalits, and Muslims. Educational attainment predominantly features individuals with a bachelor's degree. Gender distribution shows a male predominance among the respondents. The study examines the industry/business type distribution, revealing that the retail sector dominates with varying annual turnovers. Respondents' satisfaction levels with the trust and reliability of door-to-door collection service providers are assessed, along with motivations for engagement. Engagement patterns reflect a preference for daily involvement in door-to-door collection, driven by the benefits of increased access to capital, business expansion opportunities, and financial stability. The practice has notably impacted saving behavior, with a significant majority reporting increased savings, and borrowing behavior, as a majority experienced decreased borrowing. Negative incidents or risks associated with door-to-door collection are acknowledged, though the majority of respondents express satisfaction with the services and willingness to recommend them to fellow small business owners.