Impact of Microfinance Initiatives on Poverty Alleviation in Bangladesh

Abstract

Purpose: The aim of the study was to analyze the impact of microfinance initiatives on poverty alleviation in Bangladesh. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: Microfinance in Bangladesh has boosted incomes, improved housing and food security, and empowered women economically, fostering entrepreneurship and decision-making. It has also enhanced social cohesion and community development through economic participation. Despite challenges, microfinance remains crucial for poverty reduction in Bangladesh. Unique Contribution to Theory, Practice and Policy: Social capital theory, agency theory & capability approach may be used to anchor future studies on analyze the impact of microfinance initiatives on poverty alleviation in Bangladesh. Foster community engagement and social cohesion within microfinance groups through participatory decision-making processes, group activities, and capacity-building initiatives. Incorporate social capital building objectives into microfinance program design and evaluation criteria, incentivizing MFIs to prioritize community empowerment and social capital formation.