Effectiveness of door-to-door deposit collection on saving and borrowing behavior of small business in urban Nepal
Date
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Department of Economics
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.