Journal articles on the topic 'Microfinance, Poverty, Microcredit'
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1
Acheampong, I. K., and S. E. Alnaa. "Impact of microcredit on poverty reduction among rural women in Ghana: The case of Upper East Region." Oguaa Journal of Social Sciences 7, no. 1 (October 1, 2013): 136–53. http://dx.doi.org/10.47963/joss.v7i1.588.
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The literature on microfinance reveals that microcredit is a powerful tool in reducing poverty. In consonance with this, the main objective of this study was to verify the impact of microcredit on poverty reduction among rural women in the Upper East Region of Ghana, using the Heckman method of estimation. In pursuance of this, data was collected from 500 women engaged in agro-processing of whom 250 were beneficiaries of microcredit and 250 non-beneficiaries. The results showed the existence of spatial differences in the levels of poverty in the Region. Respondents from Builsa, Kasena-Nankana, Bongo and Bawku West Districts had higher levels of weekly consumption expenditures and for that matter are better off than their counterparts from the Talensi/Nabdan District. Also the number of income generating activities and the number of sources of borrowing have a positive impact on poverty. The predicted weekly mean consumption expenditure indicated that respondents who received microcred: > are better off than those who did not receive microcredit as the.beneficiaries spend more per week than the non-beneficiaries. By implication, microcredit has a positive impact on poverty reduction among rural women engaged in agroprocessing in the Upper East Region. In the light of this, microcredit intervention should be strengthened in the Upper East Region since it has a positive impact on poverty reduction.
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Bahadur BK, Dr Man, and Medani P. Bhandari. "Microfinance Institutions: Instrumental for Promoting Financial Inclusion." Financial Markets, Institutions and Risks 5, no. 2 (2021): 72–85. http://dx.doi.org/10.21272/fmir.5(2).72-85.2021.
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This opinion paper provides a general overview of microfinance / microcredit which is considered one the major program to minimize the poverty, women empowerment and to socioeconomically inclusive society. There are number of success and failure stories mostly from Africa, Asia, and Latin America; however, the microfinance is global agenda of contemporary world. Based secondary sources, and own experience, the paper provides the general overview of microcredit, its success, the obstacles of microfinance and outlines very brief cases of Nepal and Bangladesh. And finally, paper provides a brief recommendation on how microcredit can be successful especially to the developing world.
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Ukanwa, Irene, Lin Xiong, and Alistair Anderson. "Experiencing microfinance." Journal of Small Business and Enterprise Development 25, no. 3 (June 18, 2018): 428–46. http://dx.doi.org/10.1108/jsbed-02-2017-0043.
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Purpose The purpose of this paper is to address the problem of why the poorest, most disadvantaged groups such as rural African women, benefit less from microfinance. The authors focus on the perception and experiences of ordinary rural entrepreneurial women on microfinance in a context of extreme poverty and where family responsibility and economic activities are closely intertwined. Design/methodology/approach The authors purposefully sampled 15 poor females with small businesses in two Nigerian villages. The key characteristic guiding the sampling was that the respondents had to be poor. The authors held two focus groups and ten interviews to capture their experience and understanding of microfinance. The authors used thematic analysis to establish patterns in the data. Findings For poor entrepreneurial women, a livelihood for survival, putting food on the table and paying school fees are priorities, not business growth. They see microcredit as debt and a great risk that could lead to irreversible losses. Family responsibilities for basic consumption needs of the household can affect their ability to repay loans; perceived dangers of microcredit may outweigh potential benefits. Research limitations/implications The theories, especially functionalist economic theory, do not take account of microfinance users’ experiences. Practical implications Microfinance should be aware that the poorest perceive microcredit differently and should eliminate the intimidating barriers raised to them. Instead of providing a means for the poor to alleviate poverty or coping strategies for them to manage cash flows and risks, microfinance causes fear and anxiety by demanding high rate of return in a very short period of time. Social implications The very poorest, who should be the beneficiaries of microfinance, are less likely to be able to benefit. The condition of poverty creates different realities for those at the base of the pyramid. Originality/value This research questions the neoliberal rationality assumptions that microfinance rest on; the paper fills a gap in the literature, i.e. how the potential borrowers themselves living in deep-rooted poverty perceive and experience microfinance.
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Popoola, M. Ak, Am N. Brimah, and A. R. Gbadeyan. "Financial Institutions Micro Loans: A Strategy for Reducing Poverty in Nigeria." Financial Markets, Institutions and Risks 3, no. 3 (2019): 13–17. http://dx.doi.org/10.21272/fmir.3(3).13-17.2019.
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This article summarizes the arguments and counter-arguments in the scientific debate on the use of microcredit by financial institutions as a strategic direction for poverty reduction in Nigeria. This study is aimed at studying the impact of microcredit operations provided by commercial banks to business entities, poverty indicators of the country. Five commercial and five microfinance banks of the state of Nigeria were selected as the object of the study. Methodological support of this work includes a survey method (for accumulating primary information on obtaining correct data of respondents on the dynamics of poverty indicators, reducing unemployment, training, skills, expanding income opportunities, etc.). The article presents the results of empirical analysis, showed a significant impact of microcredit processes of financial institutions to reduce poverty indicators in Nigeria.The author notes the need for banks in Nigeria to introduce less aggressive mechanisms for profit, that is, formed on a socialist basis. Based on the results of the study, the author proposed the following recommendations: financial and institutional promotion of major microfinance banks in Nigeria; the increase in government spending on the organization of seminars to prepare and expand business opportunities for community representatives to establish their own business, simplification of mechanisms for the provision of microcredit (on the principles of gender sensitivity, in particular for women entrepreneurs) and reduction of interest rates for entrepreneurs, which will improve both the indicators of financial and economic development of the country, and will contribute to the well-being of society as a whole. Keywords: financial institutions, microfinance banks, microcredit, poverty reduction.
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Haase, Dwight. "Revolution, Interrupted: Gender and Microfinance in Nicaragua." Critical Sociology 38, no. 2 (September 9, 2011): 221–40. http://dx.doi.org/10.1177/0896920511404443.
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Now reaching over 100 million families, the burgeoning microcredit movement has come to play a dominant role in the international development agenda. This is especially true in Nicaragua, where microcredit has supplanted the Sandinistas’ more radical approaches to poverty alleviation and women’s empowerment. Survey and focus group data from borrowers with seven prominent Nicaraguan microfinance institutions show that women benefit less than men from microcredit because they get smaller loans and they invest those loans in less lucrative businesses. Also, these women are constrained by household responsibilities. These findings call into question neoliberal notions that market forces can solve societal problems such as gender inequality.
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Attanasio, Orazio, Britta Augsburg, Ralph De Haas, Emla Fitzsimons, and Heike Harmgart. "The Impacts of Microfinance: Evidence from Joint-Liability Lending in Mongolia." American Economic Journal: Applied Economics 7, no. 1 (January 1, 2015): 90–122. http://dx.doi.org/10.1257/app.20130489.
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We present evidence from a randomized field experiment in rural Mongolia to assess the poverty impacts of a joint-liability microcredit program targeted at women. We find a positive impact of access to group loans on female entrepreneurship and household food consumption but not on total working hours or income in the household. A simultaneously introduced individual-liability microcredit program delivers no significant poverty impacts. Additional results on informal transfers to families and friends suggest that joint liability may deter borrowers from using loans for noninvestment purposes with stronger impacts as a result. We find no difference in repayment rates between both types of microcredit. (JEL G21, I32, I38, J16, L26, O15, O16)
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Razzaq, Shazma, Nadeem Maqbool, and Waseem Ul Hameed. "Factors Effecting The Elasticity Of Micro Credit Demand In Southern Punjab, Pakistan." International Journal of social Sciences and Economic Review 1, no. 2 (October 18, 2019): 46–53. http://dx.doi.org/10.36923/ijsser.v1i2.34.
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Purpose of the study: Microfinance institutions (MFIs) are delivering various services of microcredit, savings as well as insurance. The key objective of microcredit is to decrease the poverty level and for empowering the women as well as other poor people under various developing countries. There is the various factor which effects on the demand of microcredit. Therefore, the objective of the current study is to explore the factors which affect the demand for microcredit.
Methodology: In this conceptual study, the qualitative research technique was used. The data were collected from previous research studies and companies’ websites.
Main Findings: It is concluded that numerous factors may influence the demand for microcredit by the various borrowers. These comprise the interest rate, the relationship between lenders as well as borrowers, different government policies, gender differences, prospective beneficiaries, the creditworthiness of the borrower, transaction cost, limited access to credit, economic condition and the availability of information.
Applications: This helps analyze the barriers which the borrower and lender must face in operating the microcredit. In this way, microfinance institutions can take help from this study by considering these factors during the distribution of credit.
Novelty/Originality: The findings of this research study fulfilled the theoretical gaps in the literature by identifying the different fact which may help to revise the poverty level. Future research studies may focus on these factors, which may help to increase the economy and reduce poverty in southern Punjab, Pakistan.
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Gurses, Didem. "Microfinance and Poverty Reduction in Turkey." Perspectives on Global Development and Technology 8, no. 1 (2009): 90–110. http://dx.doi.org/10.1163/156914909x403207.
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AbstractEconomic vulnerability in Turkey is quite high for a middle-income country. About one fifth of the population still have no sufficient means to food, clothes, and shelter; furthermore they have very limited or no access to financial services. This paper, first, aims to provide a general overview of the country's poverty profile and to analyze its microfinance sector. The second objective is to assess the impact of the existing microcredit programs to combat poverty. The programs' effectiveness will be examined in terms of two issues: the success of microfinance programs in reaching the “core poor” and in pulling large segments of the poor population out of poverty.
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Almas, Hina, and Mubashir Mukhtar. "Measuring the Performance and Achievement of Microfinance Institutions Incorporating Subsidy Dependence Index and Outreach Index in Pakistan’s Case." Pakistan Development Review 54, no. 4I-II (December 1, 2015): 353–69. http://dx.doi.org/10.30541/v54i4i-iipp.353-369.
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The curse of poverty had remained a significant problem throughout the history of civilisations. Even in this era of development at least one third of the world population is suffering from the problem of poverty. With such a huge number of human beings living in such a deprived situation, it becomes very crucial to target this issue and search out feasible ways to overcome it. Microfinance has come one of the important tools for reducing poverty. It offers a solution by stimulating economic growth and development. Established microfinance institutions use many instruments to fulfill their promise of poverty reduction. One of those instruments is microcredit. Through this instrument microfinance institutions provide small-scale loans to individuals or groups so that the borrowers could initiate their business and break out of poverty cycle.
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Susila, Ihwan. "ANALISIS EFISIENSI LEMBAGA KEUANGAN MIKRO." Jurnal Ekonomi Pembangunan: Kajian Masalah Ekonomi dan Pembangunan 8, no. 2 (December 1, 2007): 223. http://dx.doi.org/10.23917/jep.v8i2.1043.
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This article discuss about microfinance organizations. The research based on analysis of efficiency of Badan Kredit Desa (BKD) in Sukoharjo district in Central of Java Province. In the earlier, paper discuss about microfinance and its role in the economics development. Analysis data use Data Envelopment Analysis with three inputs and two outputs to analysis of financial performance and eight inputs and four outputs to analysis of general efficiency. This research found that from 169 BKD used as setting in this research, only 21 BKD have efficiency in finance performance and 73 BKD in general performance. In the future, microfinance organizations (BKD) need innovation especially in the system which originated in developing countries where it has successfully enabled extremely impoverished people to engage in self-employment projects that allow them to generate an income and, in many cases, begin to build wealth and exit poverty. Due to the success of microcredit, many in the traditional banking industry have begun to realize that these microcredit borrowers should more correctly be categorized as pre-bankable; thus, microcredit is increasingly gaining credibility in the mainstream finance industry and many traditional large finance organizations are contemplating microcredit projects as a source of future growth.
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Bheemaraya, Malappa. "MICRO FINANCE DEVELOPMENTAL STRATEGIES TO REDUCING POVERTY NUXES: AN OVERVIEW." International Journal of Research -GRANTHAALAYAH 4, no. 5 (May 31, 2016): 7–18. http://dx.doi.org/10.29121/granthaalayah.v4.i5.2016.2669.
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Microcredit is a financial innovation which originated in developing countries where it has successfully enabled extremely impoverished people to engage in self-employment projects that allow them to generate income, begin to built wealth and exit from poverty. Microfinance is the extension of very small loans to the entrepreneurs and to others living in poverty that are not considered bankable. These peoples lack collateral, steady employment and a verifiable credit history and therefore cannot meet even the most minimal qualifications to gain access to traditional credit. Microcredit is a tool for socioeconomic development. This paper describes different strategies such as demand service and supply side service to reducing the poverty nuxes in India and also tells challenging and achievement of using this strategies to reducing the poverty.
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Ayayi, Ayi Gavriel, and Maty Sene. "RECENT DEVELOPMENTS IN MICROFINANCE AND BEYOND." Australian Journal of Business and Management Research 04, no. 08 (December 14, 2014): 10–26. http://dx.doi.org/10.52283/nswrca.ajbmr.20140408a02.
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This paper surveys recent research on microfinance and suggests directions for future research. New empirical evidence has emerged, and new theoretical models have resolved some issues. The paper selectively examines recent findings, particularly theoretical and empirical works that deal with the financial and social goals that microcredit must fulfill to provide long-term sustainable poverty reduction. Finally, some issues for which new research is needed are identified.
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Dhungana, Bharat Ram, Arjun Timlasina, Bandana Thapa, and Devi Raman Tiwari Tiwari. "Effects of Microfinance Services on Economic Status Improvement: A Case of SKBBL, Pokhara, Nepal." Quest Journal of Management and Social Sciences 4, no. 2 (December 21, 2022): 200–209. http://dx.doi.org/10.3126/qjmss.v4i2.50315.
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Background: Microfinance is an effective tool for financial inclusion and poverty reduction in developing countries like Nepal. It delivers financial and non-financial services to unbanked people from formal financial services. Microfinance services support people from weaker sections of society with a view of socio-economic transformation. Low access to finance is a problem for poor and marginalized people. Microfinance institutions provide microcredit to unbanked people without physical collateral. Thus they help people from lower-income groups improve their livelihood through productive investment.
Objectives: This paper aims to examine the effects of microfinance services on the economic status of clients' status with references to Sana Kisan Bikas Laghubitta Bittiya Sanstha Limited (SKBBL), Pokhara, Nepal.
Methods: The research presents the findings of data collected through a survey research design in the Kaski district of Nepal. The researchers administered the survey questionnaire to 235 clients of SKBBL microfinance institutions involved in the programme for the last five or more years. We used a stratified random sampling technique to collect the data. The sample population comprised 70 from a scheduled caste (Dalit), 75 from ethnic groups, and 90 from upper castes. Both descriptive and inferential statistics have been used to analyze the data. The paired sample t-test has been used to examine the effects of microfinance intervention on occupational status, income level, consumption expenditure, capital expenditure, and monthly savings of the clients.
Results: The results show that microfinance has contributed a significant role. It has enabled people from lower income groups to access microcredit and encourage productive investment that facilitates productive investment and economic transformation. -The result derived from paired sample t-test finds the positive effects of microfinance intervention on occupational status, income level, consumption, capital expenditure, and saving habits.
Conclusion: This study concludes that role of microcredit is significant in enhancing the clients' economic status. Microfinance positively affects clients' earnings, savings, spending, asset accumulation, and occupational status. However, utilizing microcredit in productive sectors is necessary to empower the clients' economic status. The findings indicate that microfinance institutions must focus on effective microcredit applications to help create micro-businesses and improve the clients' livelihood status.
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Okon Jacob, Augustine. "POVERTY ALLEVIATION IN DEVELOPING COUNTRIES: A SUCCESSFUL APPROACH." Socio Economy And Policy Studies 2, no. 1 (2022): 53–56. http://dx.doi.org/10.26480/seps.02.2022.53.56.
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Microcredit has shown to be an effective tool for fighting poverty in underdeveloped countries. Microcredit may be traced back to the middle of the 1800s, thanks to the great achievements of the Grameen bank, which was created in Bangladesh in 1983. In poor nations, microfinance success stories have a big influence. This study endeavour looks at whether microcredit is an effective technique for poverty alleviation in emerging nations. Microcredit has a favourable link with poverty reduction, according to the study, and is thus an essential instrument for alleviating poverty in several nations, notably Bangladesh, Bolivia, and others. Nevertheless, there really are concerns about its potential to have a large-scale impact. The research also reveals that the impacts of microcredit on poverty reduction are a hotly discussed topic, with the broad consensus being that it is not a panacea. In general, it has fallen short of expectations. When microcredit is skillfully implemented and maintained, and services are tailored to fit the requirements of customers, it has a significant influence not just on clients, but also on their families and the wider society. It is important to stress that greater efforts should be directed toward institutional development, including adequate group strengthening, particularly for self-help groups (SHGs). The development of an efficient managerial improvement system (MIS) to support the stabilization of long-term functional delivery of services via high-performing self-help groups should be prioritised. It will also be significant. Microcredit programmes in underdeveloped nations will benefit from proper monitoring, oversight, and counselling.
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O. Nwanna, Ifeanyi, and Ijeoma Chinwe Okeke. "Microfinance Credit and Poverty Alleviation in Nigeria (2008 to 2019)." IIARD INTERNATIONAL JOURNAL OF BANKING AND FINANCE RESEARCH 8, no. 1 (July 2, 2022): 49–60. http://dx.doi.org/10.56201/ijbfr.v8.no1.2022.pg49.60.
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The study examined the relationship between microfinance credit and alleviation of poverty in Nigeria, Poverty can be regarded as the denial of choices and opportunities, a defiance of human dignity. Despite all the policies and measures, taken to reduce poverty , no noticeable success has been achieved in this direction. The key issue is to find out the relationship between microfinance credit and poverty alleviation in Nigeria. using unemployment rate, fixed capital formation and per capita income as proxy for poverty alleviation, while micro finance credit was used as the independent variable of the study. The study covered a period of eleven years from 2008 to 2019. Ordinary least square regression analysis was used in testing the hypotheses of the study. The regression result found that there is a significant relationship between microfinance bank and unemployment rate in Nigeria, there is a significant relationship between microfinance bank and capital formation in Nigeria and there is a significant relationship between microfinance bank and per capita income in Nigeria. The study therefore concluded that microfinance credit has the ability of reducing rate of poverty in the country. The study therefore recommends that the Central Bank of Nigeria should regulate and monitor the activities of Microfinance and also administer specialized funds set aside to improve microcredit access at affordable cost, especially SME Credit Guarantee Schemes.
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Prathap, Sangeetha K., and C. C. Sreelakshmi. "Entrepreneurial Learning and Microcredit as Triggers of Micro-entrepreneurship in India." SEDME (Small Enterprises Development, Management & Extension Journal): A worldwide window on MSME Studies 47, no. 3 (September 2020): 194–212. http://dx.doi.org/10.1177/09708464211037533.
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This article evaluates whether contextual triggers lead to entrepreneurial behaviour among microfinance clients in India. The study identifies entrepreneurial training and microcredit as the contextual triggers that can be effective in creating entrepreneurial intentions and behaviour, respectively. Acquired learning helps to develop capability in an individual to identify the business opportunities around him, which help in creating entrepreneurial intention that can promote action. Microenterprises among low-income clients are usually formed by the support mechanism of triggering events. Shapero’s entrepreneurial event (SEE) model is used to capture the effects of microenterprise trainings that create entrepreneurial learning, leading to entrepreneurial intention and behaviour. The study also extends to capture the effect of microcredit as a moderator in effecting entrepreneurial behaviour among microfinance clients. The study finds that learning outcomes are capable of generating entrepreneurial intentions in a microenterprise context through the construct of desirability. Further, access to microcredit results in entrepreneurial behaviour. The findings provide direction to the effectiveness of entrepreneurial learning derived from entrepreneurial training in creating entrepreneurial intention. It also reveals the significance of moderating role of microcredit that leads to entrepreneurship behaviour. Therefore, findings are useful for policymakers in promoting microenterprises among the microfinance clients to address the problem of poverty.
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Mackenzie, Catherine, and Jonathon Louth. "The Neoliberal Production of Deserving and Undeserving Poor: A Critique of the Australian Experience of Microfinance." Social Policy and Society 19, no. 1 (April 5, 2019): 19–35. http://dx.doi.org/10.1017/s1474746419000125.
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Neoliberalism as economic orthodoxy has facilitated the onset of social and public policy that is required to ‘fit’ with the common sense of our times. This article critiques the growth of government-supported financial capability programs in Australia. We explore the experiences of a sample of rural South Australians who have accessed microcredit. We found that microcredit provides an avenue for poverty survival by reducing the stresses associated with financial shocks through consumption smoothing, yet that the extent to which microcredit contributes to addressing poverty and inequality is questionable. We critique how the discourse of financial resilience aims to produce deserving neoliberal citizens who are moving toward self-reliance. We conclude that effort should be directed at developing a structural, proportionate universal approach that does not rely on financially vulnerable individuals navigating a regulatory environment that rewards and punishes in accordance to a market logic.
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Hudon, Marek, and Camille Meyer. "A Case Study of Microfinance and Community Development Banks in Brazil." Nonprofit and Voluntary Sector Quarterly 45, no. 4_suppl (July 9, 2016): 116S—133S. http://dx.doi.org/10.1177/0899764016643609.
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Inclusive financial sectors are essential to poverty alleviation. While microcredit can be governed as a private good, self-managed civil society organizations propose an alternative way of managing financial services. Brazil’s Community Development Banks (CDBs) are growing and dynamic manifestations of these nonprofit organizations. Based on field research in Brazil, this article uses Elinor Ostrom’s design principles of successful self-governing common-pool resource organizations to analyze CDBs’ microcredit system. Our results suggest that private goods could be altered when they are governed by community self-managed enterprises. They become hybrid goods as they mix the characteristics of private and common goods. This change is facilitated by specific organizational arrangements such as self-governance that emerge from grassroots dynamics and the creation of collective-choice arenas. These arrangements help strengthen the inclusion properties of nonprofit microcredit services.
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Doçi, Esmeralda. "Microfinance, the Role and Impact on Macroeconomic Indicators of the Country. Case study: Albania." Mediterranean Journal of Social Sciences 8, no. 1 (January 26, 2017): 161–68. http://dx.doi.org/10.5901/mjss.2017.v8n1p161.
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Abstract Microcredit or microfinance are one of the most important novelties on development policy in the last 25 years. Most of the recent studies are based on the impact that microfinance has on poverty reduction or on the income on macroeconomic level. Due to lack of data on microfinance on a macro level, studies of their impact on poverty are limited. However, they have recently analysed the link between microeconomics and microfinance activity, which has shown significant connectivity between the operations of Micro Financial Institutions and Macroeconomic indicators.Microfinance in Albania has developed and this is demonstrated by the presence of Micro Financial Institutions which have contributed to poverty reduction and to economic development in general, and to agricultural development in particular. The purpose of the study is to analyse the importance and the relationship between microfinance and macroeconomic indicators, the impact that microfinance has on macroeconomic indicators. Based on previous literature researchers and empirical studies, this study aims to analyse empirically the relationship between the gross portofolio of MFIs and macroeconomic factors. Specifically, to analyse whether a country with high level of credit portfolio provided by Micro Financial Institutions has low poverty and macroeconomic factors taken into analysis, considering the endogeneity of the gross portfolio of Micro Fianancial Institutions. The empirical evaluation and analysis is carried out through econometric evaluation using the EViews program.
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Ahmed, Jashim Uddin, and Wahida Shahan Tinne. "ASA: Cost-effective and Sustainable Microfinance Model NGO in Bangladesh." South Asian Journal of Business and Management Cases 6, no. 2 (November 30, 2017): 167–75. http://dx.doi.org/10.1177/2277977917730445.
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Microfinance institutions (MFIs) focus on understanding the needs of the poor and assisting them to improve their livelihoods by developing the most efficient and effective mechanisms to deliver finance. This case study concentrates on how the Association for Social Advancement, or ASA, approaches working with non-governmental organizations (NGOs) on microfinance using its diversified service portfolios and operational structures in Bangladesh. The achievements and threats of NGOs have been discussed in terms of current changes and challenges for a microcredit concept to alleviate poverty in Bangladesh.
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Saiz-Alvarez, José Manuel, Jorge Colvin-Díez, and Jorge Hernando Cuñado. "Digital Entrepreneurial Charity, Solidarity, and Social Change." International Journal of E-Entrepreneurship and Innovation 7, no. 1 (January 2017): 29–48. http://dx.doi.org/10.4018/ijeei.2017010103.
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Microcredit has been studied from many perspectives. In this work, the authors analyze KIVA, the most important Person-to-Person microfinance organization from the viewpoint of social change, and they consider how it has impacted on the nascent of a new wave of entrepreneurs known as digital entrepreneurial charity. Applied to KIVA, the authors analyze the impact of the digital space and its Internet-based Peer-to-Peer Lending to create social change in the poor, while alleviating the poverty thanks to solidarity and charity. This work concludes affirming that banking the poor and education, with the intensive use of Internet-based devices, is the best way to alleviate poverty in the digital and globalized economic world. Finally, after their last research, the authors found some critics about Kiva and microcredits which might be interesting to be considered and these have been analyzed at the end of this work.
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Parmanand, Sharmila. "regulating motherhood through markets: Filipino women’s engagement with microcredit." Feminist Review 129, no. 1 (November 2021): 32–47. http://dx.doi.org/10.1177/01417789211040506.
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The Philippines is a global leader in deploying microcredit to address poverty. These programmes are usually directed at women. Research on these programmes focuses on traditional economic indicators such as loan repayment rates but neglects impacts on women’s agency and well-being, or their position in the household and relationships with their partners and children. It is taken for granted that access to microcredit leads to enhanced gender freedoms. In line with the growing body of work in feminist scholarship that critiques the instrumentalist logic of microfinance institutions (MFIs) in relation to women, this research foregrounds stories from interviews with female borrowers in Zamboanga City in Southern Philippines to provide grounded illustrations of how microcredit is reshaping relationships between women and their families, women and poverty and women and the state. Borrowers used loans to meet their family’s needs even at the cost of harassment from creditors, indebtedness, increased workloads and conflict with partners. These narratives challenge the dominant neoliberal discourse of female empowerment through access to credit by exposing how microcredit is part of a complex set of regulations around ‘good motherhood’ and consumption, where women’s moral worth is based on their willingness and ability to lift their families out of poverty.
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Mandrawal, Mangal Singh. "A Theoretical Evaluation of the Microfinance and its impact on Living Standards and Poverty Reduction in India." International Journal for Global Academic & Scientific Research 1, no. 3 (October 13, 2022): 36–46. http://dx.doi.org/10.55938/ijgasr.v1i3.21.
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One definition of microfinance is "any activity that includes the provision of economic services like loans, saving, and coverage to low-wage earners who are slightly over the nationally defined shortfall line and to poor people who are below that shortage line with the aim of fostering public value." Microfinance can also be defined as "any activity that includes the provision of economic services like loans, saving, and coverage to low-wage earners who are slightly over the nationally defined short In this study, an attempt is made to conduct a theoretical evaluation of the impact that microfinance has had on living standards and the reduction of poverty in India. In order to produce an assessment of the influence of microfinance on living standards and the reduction of poverty in India, secondary reports are analysed and evaluated. Research in the natural world is qualitative and descriptive. According to a recently published study, microcredit and microfinance have gained widespread acceptance as a strategy for reducing poverty and increasing economic autonomy. Microfinance is a strategy that may be used to combat poverty, particularly in rural regions, which are home to the majority of the world's poorest people. Give individuals with low incomes the opportunity to start their own small businesses by extending them modest sums of financing at reasonable interest rates. Numerous studies show that despite their socioeconomic status, impoverished individuals have greater rates of loan payback than other types of borrowers.
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Kartika, Dwi Indah. "WOMEN EMPOWERMENT THROUGH MICRO CREDIT USING GRAMEEN BANK SYSTEM." International Journal of Kybernology 3, no. 1 (July 22, 2019): 56–68. http://dx.doi.org/10.33701/ijok.v3i1.583.
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This paper discussed the process of women empowerment through micro credit using Grameen Bank System. Poverty is not only in the sense of the condition of low income or economic inability, but furthermore is welfare resources exclusion which resulted in a group of people who unable to reach facilities of health, educational, are not able to obtain basic rights, have no pride, confidence, and so on. Women are mostly experience poverty and powerless to decide their own life’s choices. Women often have difficulty in getting facilities and a decent living as a man. This condition marginalizes women’s rights in case of social and economy. In addition to its economy background, women are also limited in gaining access to information, education and political participation. Microfinance is a tool that provides loans in a small amount to poor families in order to assist them doing productive activities and grow their small businesses. During this time, the poor do not have access to credit from conventional banks because they do not have money or goods that can be used as collateral or guarantee. Microcredit are usually offered without collateral to individuals or through group savings and loans. Microfinance clients are people with low incomes who do not have access to formal financial institutions such as conventional banking. Women empowerment through micro credit aimed to open women’s financial access. Women are the target of microfinance because of characteristic and her nature. Microcredit using Grameen Bank System is one form of microfinance institutions that distributes capital to the poor in order to be used as capital asset in running their productive activities where women as the target. Giving training and broaden skills to poor women are one of the stages of this program.
Keywords: poverty, micro finance, women empowerment.
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Sanyal, Paromita. "From Brides to Business Owners: Microfinance and Women’s Entrepreneurship." Journal of Business Anthropology 8, no. 2 (November 14, 2019): 250–72. http://dx.doi.org/10.22439/jba.v8i2.5851.
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Women’s entrepreneurship through microfinance programs has been celebrated as a model for reducing poverty and empowering women. Yet, evidence of the incidence of women’s entrepreneurship has been disappointing, leading to much critique and controversy. This article presents case narratives of women enrolled in microfinance programs in rural India who took the leap onto entrepreneurship and used microcredit loans to expand or start their small-scale livelihoods enterprises. These narratives illustrate the particular economic and social conditions that are found in cases where women have transitioned from being dependent, gender-compliant housewives to sole-earners or main breadwinners. Marital failure, functional absence or retreat of husband, economic distress, living in a nuclear household, and absence of an adult son are consistently evident in all cases of women’s entrepreneurship. This qualitative analysis helps us understand why women’s entrepreneurship is not more widespread despite the availability of microcredit loans.
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Enisan, AKINLO Anthony, and ONI Isaac Oluwafemi. "IMPACT OF MICROFINANCE ON POVERTY ALLEVIATION IN ONDO STATE, NIGERIA." Australian Journal of Business and Management Research 02, no. 09 (October 13, 2012): 31–37. http://dx.doi.org/10.52283/nswrca.ajbmr.20120209a04.
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The paper examines the impact of microfinance on poverty alleviation in Ondo State, Nigeria. The paper is based on a survey of 240 beneficiaries of microcredit loans in Ondo State. The results of the analysis show that most beneficiaries of micro credit loans are educated youth between the age brackets of 18 and 40 years. Many of the beneficiaries utilized their loans to procure durable equipment needed in their small scale enterprises. The results show that loan empowerment has a significant positive effect on beneficiaries’ welfare. Access to credit allowed the beneficiaries take advantage of economic opportunities by providing a fundamental basis for planning and expanding business activities.
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Wangsa, Khugang Moses, and Dr Amrendra Kumar. "Microfinance as a Measure of Poverty Alleviation- A Survey of Longding District of Arunachal Pradesh." International Journal of Management Research and Social Science 09, no. 01 (2022): 13–20. http://dx.doi.org/10.30726/ijmrss/v9.i1.2022.91003.
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The supremacy of microfinance services emerges from the fact that the various financial services and its other allied complementary non-financial activities that the micro financial institutions deliver are friendly and reliable for the poor individuals. Similarly, another significant essence of microfinance institution is that, in the process of delivering microcredit services it is generally the micro finance institutions that reach out towards the door steps of the poor clients, instead of the poor individuals arriving at the gateway of the financial institutions seeking for assistance. The outcome of microfinance services on poverty alleviation has been measured on the basis of multiple dimensions such as increased in income of the family, improvement in the living standards, increase in family expenditures, rise in socio economic status, advancement in children’s education etc. Hence, though many studies supported that role of microfinance in achieving the long term goal of poverty alleviation, the main challenge in order to draw a proper conclusion is to obtain reliable data for better analysis and understanding
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Vallejo Ramírez, Jorge Baltazar, and Johanna Maribel Ochoa Herrera. "Evolución del microcredito del sector popular y solidario frente a la banca pública-privada del Ecuador." ECA Sinergia 10, no. 2 (May 15, 2019): 140. http://dx.doi.org/10.33936/eca_sinergia.v10i2.1550.
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El presente artículo presenta la evolución del microcrédito en Ecuador, las microfinanzas son una herramienta efectiva en la lucha contra la pobreza; estos están dirigidos especialmente a mujeres que tratan de promover su participación en la economía global; por ello se estudia las tasas de interés, la participación que tiene la banca pública-privada y el sector popular y solidario en el mercado sobre los microcréditos, se utilizó varios métodos, técnicas y procedimientos, se realizó una revisión de aspectos teóricos, el uso de análisis históricos de hechos y fenómenos con la presente área de estudio. Fue necesaria la información estadística que proviene del Estado y sus instituciones como el Banco Central, ministerios entre otras. Se concluye que los microcréditos han evolucionado en estos grupos, fortaleciendo la economía de las pequeñas empresas y emprendedores con un enfoque principal a las mujeres, quienes también aportan económicamente a su hogar.
Palabras clave: evolución, microcrédito, microfinanzas, público.
ABSTRACT
This article presents the evolution of microcredit in Ecuador, microfinance is an effective tool in the fight against poverty, these are aimed especially at women who seek to promote their participation in the global economy, therefore we study interest rates, the participation of public-private banking and the popular and solidarity sector in the market on microcredit, used various methods, techniques and procedures, conducted a review of theoretical aspects, the use of historical analysis of facts and phenomena with this area of study. Statistical information was needed from the State and its institutions such as the Central Bank, ministries, among others. It is concluded that microcredits have evolved in these groups, strengthening the economy of small businesses and entrepreneurs with a main focus on women, who also contribute economically to their homes.
Key words: evolution, microcredit, microfinance, public.
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Al-shami, Samer Ali, Abdullah Al Mamun, Nurulizwa Rashid, and Mohammed Al-shami. "Microcredit Impact on Socio-Economic Development and Women Empowerment in Low-Income Countries: Evidence from Yemen." Sustainability 13, no. 16 (August 19, 2021): 9326. http://dx.doi.org/10.3390/su13169326.
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Microcredit financing is extensively considered as an effective development method for poverty mitigation and women empowerment. Nevertheless, relevant studies reflected opposing outcomes on microfinance effects consisting of positive, zero, and negative impacts. Thus, this research investigated Al-Amal Bank’s microcredit impacts on women empowerment in Yemen, one of the poorest Middle Eastern nations. A panel dataset and primary and secondary data were gathered through household surveys and propensity score matching to restrict intangible variables’ possible effects. The empirical results revealed that microcredit had a significant positive effect on monthly household incomes and accumulated asset values. Although microcredit facilitated female entrepreneurship and income generation for improved household incomes and expenditure, no influence was found on female household decisions and mobility following the patriarchal system practised in many Arabian nations, including Yemen. Hence, the study finding has theoretically and practically contributed to the body of knowledge in three ways. First, a novel proof of how microcredit interactions affected several Yemeni women empowerment elements was identified. This study also provides new insight into the empowerment theory by explaining how access to microcredit influences numerous features of women’s economic and social empowerment. Lastly, social and family traditions significantly influenced female attributes and lifestyles by reflecting how communal and family rituals affected microcredit impacts on women empowerment and vice versa. Conversely, this study guides Yemeni policymakers and those from other nations on extending financial services for self-development to reduce poverty and drive women empowerment rather than relying on government and international agencies.
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Kanga, Mahazarin, Juhi Bansal, Siddharth Verma, and Ishani Bandaranayake. "The Equity and Efficiency of Microfinance." Deakin Papers on International Business Economics 3, no. 1 (July 1, 2010): 11–17. http://dx.doi.org/10.21153/dpibe2010vol3no1art188.
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Banks are for people with money rather than for people without money. However, microfinance is banking for the unbankables. It brings credit, loan, savings and other essential financial services within the reach of millions of people who are too poor to be served by regular banks, i.e. almost 60-90% of the global population. It is one of the most intriguing features of financial economics today. In the aftermath of the 2006 Nobel Peace Prize being awarded to the Bangladeshi, Mohammed Yunus, who is a champion of the cause for microcredit, the common presumption has been that microfinance create s undeniable social benefits such as poverty alleviation and more equal social opportunities. Indeed, this is true to a large extent; however, less acknowledged are the problems that lurk behind this facade of ‘social service’. Donning the caps of economists, this pa per discusses the economic rationality of microfinance as an effective tool for achieving poverty alleviation. We ask the question on whether the theoretical objective of microfinance for ‘helping the poor’ is sullied in practice by rent seeking, profit seeking and corruption. We assess the fundamental economic model for the basis on which Microfinance Institutions (MFIs) provide loans to the poor and as whether the poor people eventually benefited from this financial innovation.
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Lamrani Alaoui, Youssef, and Mohamed Tkiouat. "Modeling customer satisfaction in microfinance sector: A fuzzy Bayesian networks approach." International Journal of Engineering Business Management 11 (January 1, 2019): 184797901986953. http://dx.doi.org/10.1177/1847979019869533.
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Microfinance refers to the provision of financial services like saving, microcredit, and insurance to the poor who have limited access to traditional banking services with the aim of reducing their poverty. However, in the last decade, the literature stresses that the microfinance institutions focus more on their profit rather than the customer. Numerous methods have been used to model customer satisfaction in microfinance. However, a large majority of these methods is unable to take into account complex interactions and dependencies between variables. They may also find difficulties in handling limited and uncertain knowledge. The objective of this article is to model the effect of microfinance-lending process operations on overall customer satisfaction. We managed to develop a fuzzy Bayesian networks model; such an approach is widely required for modeling complex systems characterized by sparse or uncertain information as well as for conducting the cause and effect analysis.
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Jenkins, Hatice, and Bibiana Koglinuu Batinge. "Microcredit and the Socio-cultural Obstacles to Women’s Empowerment in Northern Territories of Ghana." Kadın/Woman 2000, Journal for Women's Studies 19, no. 2 (October 10, 2017): 31–49. http://dx.doi.org/10.33831/jws.v19i2.276.
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This study investigates the impact of microfinance programmes on women’s empowerment in the northern territory of Ghana, which is known as the poorest part of the country. A survey methodology is used to collect data from a sample of 247 female entrepreneurs and their husbands (189 women and 58 men) in rural areas. The majority of the sample are aged 40 or below, and many are illiterate. The research findings indicate that although microfinance appears to have some positive effects on women’s income, it is insufficient to ease the hardships in the lives of women in northern Ghana. Most female respondents indicated that women are largely forbidden by men to own productive assets such as land and livestock. The traditional domineering behaviour of men remains a significant obstacle. Despite the increase in access to credit, microfinance itself may not be sufficient to eliminate barriers to women’s empowerment and to the reduction of poverty.
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Bhusare, Shital Prakash, and Ruby Chanda. "Micro-Finance & Micro-Credit for Sustainable Development." IRA-International Journal of Management & Social Sciences (ISSN 2455-2267) 6, no. 3 (March 27, 2017): 365. http://dx.doi.org/10.21013/jmss.v6.n3.p4.
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<div><p><em>Poverty is one of the biggest challenges to the development of a developing country like India where a major population is living in rural and semi-urban areas. Institutional credit is considered as a powerful tool for alleviating poverty. Microfinance is the supply of loans, savings, and other basic financial services to the poor. As the financial services of microfinance usually involve small amounts of money – small loans, small savings etc. the term "Microfinance" helps to differentiate these services from those of commercial banks. Microfinance in India has been through two channels of credit delivery to poor and low-income households–Self Help Group Bank Linkage Programme (SBLP) and the Microfinance institutions lending through groups as well as directly to individuals. This study was with the overall objective of conducting a detailed analysis of interest rates, costs and margins of microfinance institutions. </em></p><p><em>This study highlights the reach and the impact on the customers and the channels used by these firms for the effectiveness of Micro Finance and Microcredit schemes. For the purpose of analysis the statistical tools like Mean, Standard deviation, coefficient of co-relation and regression have been used. </em></p><p><em>Microfinance is playing a very important role in decrease poverty. Microfinance to the rural SHGs is a way to raise the income level and improve the living standards of the rural peoples. Thus, it can be concluded that the self-help groups contribute substantially in pushing the conditions of the rural population up.</em></p></div>
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Babangida, Bashir Kurfi, and Barjoyai Bardai. "Determining Factors That Improve Youths’ Economic Empowerment in Katsina State, Nigeria." International Journal of Research and Innovation in Social Science 06, no. 06 (2022): 798–808. http://dx.doi.org/10.47772/ijriss.2022.6626.
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Suffice it to say, that the government poverty alleviation and empowerment programmes are unsustainable, and formal financial institutions such as commercial banks are incapable of combating and reducing poverty, particularly among the Youths, as evidenced by the failure of several programmes and schemes to produce the expected results, despite government efforts to improve the standard of living of its citizens. Notwithstanding, Katsina state remains among the states with higher poverty rate, with the highest underemployment/unemployment rate. Which stemmed the incidences of violent crimes in the area. This serves as the motivation of the study to identify other factors that may be effective in empowering the Youths economically. To achieve the goals, the study employs a quantitative approach through structured questionnaire. The study samples were selected using a multistage sampling technique from microfinance services Youths’ beneficiaries in Katsina state, Nigeria. The result revealed that the variables that represented the main determinant of economic empowerment in the study; microcredit, micro-savings, financial training, and advisory services interacted positively which implies positive linear relationship with economic empowerment. The study suggests that MFBs should make microcredit more attainable to their youth clients to effectively fulfil their mission of empowering youth economically. Microfinance banks should be recognised as poor people’s banks, with one-digit loan rates. The Nigerian Central Bank should provide MFIs with adequate policy guidance in order to deliver Youths-friendly financial services. The outcomes of this research would be relevant to policy issues specifically the regulators such as the Central Bank of Nigeria.
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Muharremi, Oltiana, Filloreta Madani, and Erald Pelari. "Evaluating the Impact of Microfinance for Women in Albania." Journal of Business Theory and Practice 4, no. 2 (October 20, 2016): 233. http://dx.doi.org/10.22158/jbtp.v4n2p233.
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<p class="Default"><em>Microfinance is defined as any activity involving the offering of financial services such as loans, savings and insurance to individuals with low income.</em><em> </em><em>Creating social value includes reducing poverty and having a better impact to improve living conditions through capital for micro-enterprises; insurance and savings deposits for reducing risk and boosting consumption. Worldwide microfinance actors promote access to basic financial services by developing new tools, a variety of products and the adoption of an integrated banking access.</em></p><p class="Default"><em>Initially, microfinance was largely gender neutral: it sought to provide credit to the poor who had no assets to pledge as collateral. It quickly emerged, however, that women invested their business profits in ways that would have a longer-lasting impact on their families and communities. Consequently women became fundamental to the success of the microfinance model as a poverty alleviation tool. The purpose of this article is to examine the impact of microfinance loans in improving the lives of women borrowers, as well as in strengthening their social influence and the microcredit impact in promoting savings. This study is based on an empirical investigation of 384 structured questionnaires and surveys directed at microfinance institutions and their clients in the regions of Vlore and Fier, Albania.</em></p>
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Kandie, Daniel, and Khan Jahirul Islam. "A new era of microfinance: The digital microcredit and its impact on poverty." Journal of International Development 34, no. 3 (December 30, 2021): 469–92. http://dx.doi.org/10.1002/jid.3607.
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Adhikari, Dipak Bahadur. "Role of Micro-Finance in Socio-Economic Development of Kathmandu, Nepal." Patan Pragya 5, no. 1 (September 30, 2019): 1–10. http://dx.doi.org/10.3126/pragya.v5i1.30431.
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The focus of this paper is to analyze the role of micro-finance in socio-economic development of Kathmandu. Microfinance is a simple but effective credit tool that enables the most poor to pull themselves out of poverty. The socio-economic status of loanees has improved consequently than when they started small business with loan in the earlier days. Moreover, it was found that their socio-economic status was higher than that of non-loanees. Microcredit is an effective tool for raising the socio-economic status of the poor people, particularly the women.
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Srnec, K., and B. Havrland. "Microfinancing: challenges and prospects. Appropriate conditions for changes from informal to formal microfinancing institutions ." Agricultural Economics (Zemědělská ekonomika) 52, No. 10 (February 17, 2012): 489–96. http://dx.doi.org/10.17221/5055-agricecon.
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“The International Year of Microcredit 2005 underscores the importance of microfinance as an integral part of our collective effort to meet the Millennium Development Goals. Sustainable access to microfinance helps to alleviate poverty by generating income…” (Kofi Anan). One of the important factors which influence disbursement of public debts in the LDCs are Microfinancing institutions. The article characterizes the progress of discharge of bankrupt from the macroeconomic point of view, and in the situation for microfinancing industry. One of the main question is when and under what conditions it is the suitable to accelerate the transformation of informal MFIs to formal institutions. In the conclusion, the basic conditions and hypothesis, which are necessary for functioning of formal MFIs, are mentioned.
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Marku, Egerta. "Rural Microcredit: Evidences From Albania." European Scientific Journal, ESJ 12, no. 10 (April 29, 2016): 104. http://dx.doi.org/10.19044/esj.2016.v12n10p104.
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The purpose of this paper is to analyse the issues and concerns of Albanian rural credit, which is a powerful tool for enhancing production and productivity and for poverty alleviation. Further it highlights some of the strategies adopted by the Albanian government to increase the rural credit facilities in the rural area of Albania. The various problems faced by the farmers in applying for loans are analysed in detail. Rural credits serve as a tool for providing a sustainable livelihood for people who lives in these areas. Several organisations and Microfinance Institutions,. are playing a major role in providing rural credit facilities to rural Albania. to make the rural credit facilities available to most of the needy. In spite of several efforts put up by various organisations to increase the rural credit facilities, several challenges will prevail in the years to come.These aspects of the financial sector remain undervalued in mainstream literature on rural credit. With Albania being a nation in which more than 40 percent of people live in rural areas and rural credit being a powerful, and the only, tool for rural people in providing a means of livelihood, its importance and potential should be known to each individual.
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Wu, Benjian, Yi Cui, and Yushuo Jiang. "The Role of Microfinance in China’s Rural Public Health: Evidence from the Anti-Poverty Microcredit Program." International Journal of Environmental Research and Public Health 19, no. 17 (August 31, 2022): 10872. http://dx.doi.org/10.3390/ijerph191710872.
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This study presents nonlinear evidence of the effects of a microcredit program implemented in poverty-stricken villages in China on rural public health using multivariate-ordered Probit and IV-ordered Probit models. The results, which were based on a unique set of data gathered from two rounds of official tracking statistics obtained through investigation (2015 and 2018) at a household level, suggest that rural residents’ health levels and health insurance demands are related to the formal credit amount that they receive from the microcredit program. Further, the amount of debt that remains to be paid is a negative mediator and the poverty reduction degree is a positive mediator for the health impact of credit. After dividing the sample into subgroups according to income, credit rating and social network, the results show heterogeneity: the health outcomes of groups with a low income, a high credit rating and a strong social network are more significantly improved by loans. The estimations are still robust after using network and village clan numbers as instrumental variables to address endogeneity. Although most of the existing literature demonstrates that credit and indebtedness have negative impacts on health, our results supplement previous findings of the positive causality between access to formal credit and rural public health by showing that the former can exert positive effects by relaxing individuals’ external constraints and increasing health spending.
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Farrer, Rebecca. "Exploring the Human Rights Implications of Microfinance Initiatives." International Journal of Legal Information 36, no. 3 (2008): 447–89. http://dx.doi.org/10.1017/s0731126500003255.
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This Article explores Microfinance and microcredit (“MFI”) programs from several perspectives, with particular emphasis on human rights issues. These programs involve making small loans to people who would otherwise be unable to borrow money to facilitate them starting their own businesses: frequently, the programs focus on women borrowers in developing countries. The emphasis of MFI programs on women in developing countries makes it important to consider these programs in terms of both women's and indigenous rights, while MFI as an approach to poverty merits a discussion of economic rights. Part I of the article will explore the concept and scope of current MFI programs, describing key components of these programs and assessing comments from both fans and critics. The Grameen Bank, which has been studied extensively and has acted as a model for several other programs, will be examined in detail. Part II of this Article considers MFI in the context of human rights considerations, including economic, indigenous, and women's rights. One particular aspect of Grameen's program, namely the use of Sixteen Decisions, is also critiqued, applying organizational behavior theory. Part III will compare MFI with other approaches to poverty, inclu property rights initiatives, women's cooperatives and social enterprise approaches.
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Bennis, Laila. "Les Institutions De La Microfinance Entre La Responsabilité Sociale Et La Performance Financière: Cas Des Associations De Micro-Crédits." European Scientific Journal, ESJ 12, no. 1 (January 29, 2016): 372. http://dx.doi.org/10.19044/esj.2016.v12n1p372.
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In recent years, microfinance becomes an engine of social and solidarity economy. The success of the microfinance sector and the media attention it generated as a tool to fight against poverty. It has increased the interest in the sector and attracted a number of private players (banks and investment funds) for which the financial profitability is crucial. This trend has enabled the sector to continue to grow and be more professional. Yet today this sector is subject to severe criticism on the risk of drifts of its institutions as over-indebtedness of clients and academic questions about the real impact of microcredit. The maturity of microfinance calls for growth and mastered firmly based on core principles (financial inclusion, customer protection, appropriate services etc.) in order to guard against the excesses of excessive commercialization which would be driven solely by the profit motive (financial profitability). Currently, microfinance institutions must demonstrate not only their reliability, cost efficient, their corporate and social responsibility. So complementarily between financial return and social performance is necessary for the sustainability of MFIs. Thus, a strong financial performance allows MFIs to have the capacity to pursue social objectives, and conversely, achieving social goals also improves profitability.
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Aladejebi, Olufemi. "The Impact of Microfinance Banks on the Growth of Small and Medium Enterprises in Lagos Metropolis." European Journal of Sustainable Development 8, no. 3 (October 1, 2019): 261. http://dx.doi.org/10.14207/ejsd.2019.v8n3p261.
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Small and Medium Enterprises (SMEs) play a major role in the Nigerian economy, especially in terms of Employment, growth, productivity, and poverty alleviation. The purpose of this study was to examine the impact of Microfinance Banks (MFB) on the growth of SMEs in Lagos metropolis The data for this study was collected via questionnaires given to the owners of SMEs that had accounts with microfinance banks in Lagos metropolis. Out of 209 questionnaires distributed, 205 were viable and analyzed using the SPSS package. The questionnaire contained 2 sections. Section 1 for general information while section 2 contains questions on effects of micro-savings on financial performance, effects of microcredit on the financial performance of the SMEs, effects of training on the financial performance of the SMEs and financial performance. The outcome revealed that the savings among SMEs are encouraging because of higher interest rates compared to deposit banks, faster loan disbursement, failure of MFBs to conduct training for SMEs, while the majority of SMEs experienced financial growth using MFB products. Keywords: Small business, Microfinance banks, SME growth, Lagos metropolis
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Мехмет, Шүкрү. "КЫРГЫЗ РЕСПУБЛИКАСЫНДА МИКРОКРЕДИТТИК МАМИЛЕЛЕРДИ ЖӨНГӨ САЛУУ ҮЧҮН КАБЫЛ АЛЫНГАН УКУКТУК-ЧЕНЕМДИК АКТЫЛАР." Vestnik Bishkek Humanities University, no. 56-57 (June 15, 2021): 26–29. http://dx.doi.org/10.35254/bhu.2021.56.57.26.
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Макалада ХХ кылымдын 90 жылдардагы Дүйнөлүк процесстердин негизинде эгемендүүлүккө ээ болгон Кыргыз Республикасы максаттуу түрдө пландык экономикадан рыноктук экономикага багыт алышы жана анын негизинде жаңы рыноктук мамилелердин калыптанышы жана өнүгүшү бир топ социалдык экономикалык көйгөйлөрдү жаратты. Ошону менен бирге жакырчылыктан чыгуу, ишкердикти жаратуу жана өнүктүрүү масатында, Дүйнөлүк тажрыйбада иштелип чыккан, өзгөчө эң кедей Түштүк Чыгыш жана башка мамлекеттерде пайда болуп натыйжалуу жыйынтыктарга жеткен ыкма катары таанылган микрокредиттик мамилелердин Кыргыз Республикасында пайда болушу, калыптанышы жана өнүгүшү, ал үчүн шарттарды түзүүгө керек болгон укуктук ченемдик актылардын Жогорку Кеңеш тарабынан иштелип чыгышы, кабыл алынышы жана анын негизинде микрофинансылык уюмдардын: микрофинансылык компаниялардын, микрокредиттик компаниялардын жана микрокредиттик агенттикктердин түзүлүшү жана республикананын баардык аймактарында иш алып барышы, ж.б.у.с.маселелер каралды. В статье рассмотрены социально-экономические проблемы, возникшие после обретения независимости Кыргызской Республики в результате формирования и становления рыночных отношений как результат целенаправленного перехода с плановой к рыночной экономике. Вместе с тем необходимость преодоления бедности через активизации бедных слоев населения и поддержка из них предприимчивых в создании активов и развитии предпринимательства, а для этого становления и развития микрокредитных отношений в Кыргызской Республике как результат использования мирового опыта, опыт бедных государств, осбенно Юго-восточнх стран как социальный проект, эффективный инструмент преодоления бедности и поддержки предпринимательства. А для легализации появивишихся микрофинансовых организаций и поддержки их деятельности Жогорку Кенешем Кыргызской Республики своевременно разработаны и приняты нормативно-правовые акты, на основе которых сформированы микрофинансовые организации: микрофинансовые компании, микрокредитные компании и миркокредитные агентства и.т.д. The article examines the socio-economic problems that arose after the independence of the Kyrgyz Republic as a result of the formation and establishment of market relations as a result of a purposeful transition from a planned to a market economy. At the same time, the need to overcome poverty through activating the poor and supporting those who are entrepreneurial in creating assets and developing entrepreneurship, and for this, the formation and development of microcredit relations in the Kyrgyz Republic as a result of the use of world experience, the experience of poor countries, especially the South-Eastern countries as social project, an effective tool for overcoming poverty and supporting entrepreneurship. And to legalize the emerging microfinance organizations and support their activities, the Jogorku Kenesh of the Kyrgyz Republic timely developed and adopted regulatory legal acts, on the basis of which microfinance organizations were formed: microfinance companies, microcredit companies and microcredit agencies, etc.
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Paudel, Narayan Prasad. "Socio-economic impact of microfinance in Nepal." Journal of Management and Development Studies 25, no. 1 (July 25, 2013): 59–81. http://dx.doi.org/10.3126/jmds.v25i1.24937.
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The microfinance institutions (MFIs) in Nepal are constrained in capacity of key technical areas essential to rural finance operations such as accounting, auditing, strategic planning, financial analysis, and portfolio management. This lack significantly limits their potential to expand their client base and outreach to poor households. The number of MFIs with private sector's participation is expanding significantly. The overall impression of microfinance performance indicates that the microfinance clients, the loan portfolio outstanding, and savings are in increasing trend. Despite these efforts, the level of poverty remains unchanged across the rural households. As a measure of effect of microfinance, with the rise in membership duration, cooking fuel status of the clients is yet to be improved. The current monthly income of control group households is in declining trend at present. The rate of increase in monthly income of experimental group is quite high for the majority of the respondents. The household food sufficiency from household production is more pronounced in experimental group than in the control group. The contribution of other incomes in determining the total income of households is more significant in comparison to agricultural and farm related income raise through the microcredit facilities. The status of female child enrollment in private school has significantly increased irrespective of the level of earning of households.
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Bello, Hashim Sabo, Mustapha Isah, and Danlami Mohammed Lame. "Grameen Model and its ethical inclinations to Islamic Microfinance System: A Narrative-Textual Case Study." Financial Markets, Institutions and Risks 4, no. 4 (2020): 75–82. http://dx.doi.org/10.21272/fmir.4(4).75-82.2020.
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This study focuses on an in-depth literature review to understand the Islamic microfinance as a system and grameen model as a concept all embedded in ethical concern for shared values. The concept of Grameen model and its ethical behavior have come to the fore in recent years in both developed and developing countries as a result of growing sense of corporate wrongdoing. The paper addresses the Grameen model and its ethical relevance to the benefits and success of Islamic microfinance in modern economy. the Grameen model has always offered the concept of social microfinance and such a model results in a more fulfilling work life and career. It is a radically different approach to doing business that emphasizes making money as its main goal, but not for the sake of wealth alone. In the same sense, Islamic microfinance aimed to focus on profit/loss sharing by using the funds on economic generating, investing and trading activities to make a profit and share that profit with all the depositors and shareholders, whilst protecting the fabric of our society without engaging in activities prohibited and harmful to the society. With this in mind, the entire money-making process can be sanctified so that it becomes a holy and noble pursuits. To achieve the above, this research paper draw lessons from the activities of an impeccable vision and salvaging activities of illustrious personage and veteran of many years standing from Bangladesh in his quest for promoting economic development and eradication of poverty among rural dwellers. This paper considered Islamic microfinance as a tool that could be used to achieve the necessary economic and social security that a country would need today leading to the overall development of humanity. As the western culture offers classic microfinance as the way to do business and in recent years, postmodernism has nominated a new model-microcredit to supersede the statuesque. This study, in general, recommended for the revitalization of Islamic civilization that would geared towards a paradigm shift to now novel concept of spiritual microfinance as a way to stimulate business and get closer to God simultaneously and as well stimulates social entrepreneurs who must focus on the goal of having a healthy income statement and simultaneously championing some sort of social healing enterprise. Keywords: Ethical finance, Investment, Islamic microfinance, microcredit, Shari’ah.
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Sabo Bello, Hashim, Shamsuddeen Abubakar, and Sunusi Abdulkadir Fateh. "The Islamic Microfinance System And Its Ultimate Impact On The Poor In Bauchi Metropolis In The Context Of Socio-Economic Challenges." SocioEconomic Challenges 5, no. 1 (2021): 95–101. http://dx.doi.org/10.21272/sec.5(1).95-101.2021.
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One of the conditions for providing social services to the population, reducing the differentiation of their incomes, as well as reducing poverty is to provide equal access to financial services for all segments of the population. Despite high unemployment and a significant number of poor people, only about a few thousand Nigerians today use Islamic microfinance services. The main purpose of this study is to study the impact of the Islamic microfinance system on the financial situation of the population. The study is based on the principles of the theory of positivism. Methods of deduction, statistical analysis, and survey served as methodological tools. The authors of the article developed a structured questionnaire, the analysis of which allowed to analyze the attitude of citizens to Islamic microfinance services. A representative sample of citizens of the metropolis Bauchi with different levels of wealth, age and gender was selected for the study. According to the results of the survey, the development of special microcredit programs for low-income people allowed to finance the start of their own business, thus providing their own and household members’ employment. The main factors hindering the development of microfinance in Muslim countries are the high level of non-repayment of borrowed funds, imperfect infrastructure, the presence of Sharia bans on certain types of financial transactions. The results of the study showed the need for an active information campaign aimed at explaining the benefits of using macro-financial services and their accessibility for low-income citizens, as well as expanding the network of microfinance institutions throughout the metropolis. These measures will create conditions for the development of small business in the country, and as a consequence reduce poverty and reduce the number of unemployed in the country.
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Ngo, Trong V. "Microfinance Complementarity and Trade-Off between Financial Performance and Social Impact." International Journal of Economics and Finance 7, no. 11 (October 27, 2015): 128. http://dx.doi.org/10.5539/ijef.v7n11p128.
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There is a widespread belief that providing access to financial services (microfinance) or reaching the poor with microcredit are perfect solutions to establish a sustainable economy or to help kick-start a bottom-up recovery and social development animated by the poor themselves through self-employment and microenterprises. Microfinance has therefore become an important instrument for poverty alleviation and for improving the welfare of the poor in both developing and transition economies. Due to the difficulty of targeting the poor, who have a lack of collateral, microfinance institutions (MFIs) are called on to achieve a balance between social impact (poverty reduction) and positive financial performance. This paper assumes that the financial objectives of MFIs operate in opposition to each other and that a trade-off is inevitable. Unbalanced panel data of MFIs for the period 1995-2013 has been extracted from the MIX Market website. In order to solve the endogeneity problem, this paper employed the dynamic system GMM (generalized method of moments) of Blundell and Bond (1998) that is considered as the new methodology currently in use in the empirical investigation of the financial performance in banking and finance. This paper outlines some of the parameters that affect the nature of trade-offs and complementarities between social and financial objectives in microfinance performance, and provides empirical evidence from cross-country analysis. Sustainability has a positive link with outreach. MFIs tend to expand their outreach in order to achieve sustainability, based on the advantages of the economies of scale. However, a threshold which makes the trade-offs or complementarities between financial and social objectives reverse if it goes beyond a certain point is also observed.
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Ayayi, Ayi Gavriel, and Chantale Sidohon Dali. "Entrepreneurial microcredit support: the silver bullet for microenterprises success. The case of funds Mauricie in Quebec." Qualitative Research in Financial Markets 12, no. 4 (September 28, 2020): 579–97. http://dx.doi.org/10.1108/qrfm-03-2019-0034.
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Purpose This study aims to propose a model of entrepreneurial microcredit support that could address the problem of entrepreneurial support provided by microfinance institutions. This objective is justified by the need to produce scientific knowledge that could be of use to practitioners and political decision-makers who formulate and implement strategies of social inclusion and poverty reduction. Design/methodology/approach The study adopts a socio-constructivist research perspective. Social constructivism is a theoretical approach that posits that all social reality is constructed. In other words, individuals construct their knowledge of reality relative to their social setting. This justifies the use of the focus group to supplement and validate the data gathered in an individual interview. The socio-constructivist perspective allows us to better understand and develop knowledge based on the meaning that interviewees attribute to their experience. This perspective also justifies the choice of qualitative data collection method. The data were collected during semi-structured interviews. Findings Entrepreneurial microcredit support is distinguished from classic entrepreneurial support because it places the individual at the center of the process by emphasizing soft skills in the development of the entrepreneurial spirit. This approach engenders an efficient support process that comprises three main steps: determination of entrepreneurial potential, empowerment and reinforcement of autonomy and acquisition of managerial skills. The efficiency stems from the fact that the time factor is not a constraint in the entrepreneurial microcredit support process and from the relationship of proximity and trust between the credit agent and the micro-entrepreneur. Originality/value To the best of authors’ knowledge, this is the first paper to deal with the entrepreneurial microcredit support, which is completely different from the classical entrepreneurial support because of the uniqueness of microfinance and micro-entrepreneurs. The model clearly reveals that the support for the development of the skills required to successfully run a microenterprise is provided based on a socio-constructivist approach in which the micro-entrepreneur is the main actor in the construction of “mobilized knowledge” required to nurture promoters’ entrepreneurial spirit. Consideration of soft skills in a socio-constructivist perspective is, therefore, indispensable for entrepreneurial development.
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Manzur, Murtoza. "Impact of Non-Government Organizations and Microcredit Institutions on the Development of Bangladesh." Political Science Undergraduate Review 2, no. 2 (February 15, 2017): 30–35. http://dx.doi.org/10.29173/psur34.
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In this paper, I will argue that although local microfinance institutions and non-governmental organisations such as BRAC and Grameen Bank have played a significant part in the development and reduction of poverty in Bangladesh, some challenges remain. This paper will first present a brief background of the socioeconomic conditions of Bangladesh. The history of NGOs in the country and their transformation from primarily relief oriented agencies to being full-scale development actors will also be explored. I will analyse the relationship between the state and the non governmental agencies in delivering service to the people of Bangladesh. Furthermore, this paper will present the rise of microcredit institutions and facilities that have changed the economic landscape of Bangladesh. Finally, the essay will present the challenges that are faced by non governmental agencies in the country. This paper will bring forward the bureaucratic hurdles and the political opposition that are faced by such agencies. Public perception of NGOs will also be highlighted in this essay. I will also present the criticisms that some of the microcredit organisations such as Grameen Bank have faced due to their high emphasis on repayment of loans.