Abstract
This article highlights the moderating effect of living areas of the borrowers on the impact of microfinance programs on poverty alleviation. The study has utilized the data from 497 borrowers of Samurdhi microfinance in five disaster-affected districts in the country to examines that two different living areas (disaster-affected and non-disaster affected area) of borrowers moderate the relationship between microfinance services and poverty alleviation. The Multi- Group CFA analysis was performed to identify the moderating effect using AMOS 21. Quantitative results were finding revealed that the moderation tests were significant for all the three microfinance services on poverty alleviation. The effect of microfinance services of borrowers in the disaster-affected area higher than the borrowers in non-disaster area.
Highlights
Microfinance is referred as the provision of financial services such as credit, savings, insurance, payment services to poor earning less than $2 per day
The Samurdhi Development Program was the national poverty alleviation program, which was introduced in 1994, replacing the previous poverty alleviation program (Janasaviya). 1,070 Samurdhi Bank Societies (SBSs) has provided 65% from total microcredit the end of 2016 (Samurdhi Performance Report, 2017).Microfinance services are increasing the income, micro- played a vibrant role in the economy over the past few entrepreneurship, and economic wellbeing of the poor
Primary data were collected from Likert scale questionnaire using 497 borrowers of Samurdhi microfinance programs in five disaster-affected districts in Sri Lanka namely, Kandy, Kegalle, Rathnapura, Gampaha, and Colombo
Summary
Microfinance is referred as the provision of financial services such as credit, savings, insurance, payment services to poor earning less than $2 per day. 1,070 Samurdhi Bank Societies (SBSs) has provided 65% from total microcredit the end of 2016 (Samurdhi Performance Report, 2017).Microfinance services are increasing the income, micro- played a vibrant role in the economy over the past few entrepreneurship, and economic wellbeing of the poor. It is a significant tool to alleviating poverty and empower the poor economically and socially vulnerable segments of society. Majority of the study revealed that the positive impact of microfinance servicers reduction of poverty outcomes of poor such as a health and nutrition, financial literacy, education, women’s empowerment, and social cohesion (Bent,2019; UNICEF, 1997; Schuler et al, 1997). This study mainly identifying the moderation effect of living area to the focused on the impact of living areas of respondents to relationship of microfinance services and poverty control the impact of microfinance on poverty in the alleviation using AMOS 21and SPSS 21 version.
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