Participation of Informal Credit Schemes to Finance Generation among Market Players in Gonzaga Cagayan

Abstract

Introduction: This study explores the contributions that informal credit provides to the financial needs of market vendors in Gonzaga, Cagayan Philippines. The study examines preferences, financial behaviors, and demographic characteristics through an analysis of 53 market sellers which offers comprehensive insights into the participation and effects of informal credit

Methodology: In examining market participants' financial decisions, educational backgrounds, and diversity of demographics, with a particular emphasis on how informal credit contributes to their financing activities, surveys and correlation analyses were used.

Results and Discussion: Based on data gathered and analysis, informal credit is a major contributor to financial generation and stability. It provides working capital and startup financing, which is especially important for businesses that have been in start-up operation. It also highlights how flexible informal credit mechanisms are which enabling market vendors to react quickly to changing consumer demands. Finally, informal credit is community-centric, building trust and strengthening social networks.

Conclusion: The study stresses the special significance of informal credit in financing generation among market vendors, in addition to its function in financial stability. It draws emphasis to how essential informal lending is for supporting entrepreneurship especially in creating jobs, and maintaining the health of the small-scale economy. This study establishes a foundation for a comprehensive knowledge of the function of informal credit in financial ecosystems, that is, offering a factual understanding of the multifaceted connections between market sellers, microbusinesses, and informal credit.