Abstract

How microfinance recipients utilize the microfinancing is of core interest in microfinance research. In the present study, we propose that microfinance recipients face work-family conflict over their limited financial resources. Analyzing data from an experiment that provided microfinancing to victims of a natural disaster, findings indicate that the microfinance recipients’ level of devotion to the family role (role involvement) is a critical factor in determining their investment decisions in their small business (role investment), regardless of their gender. Moreover, we find that the demands of the family (role stressors) and the amount of the available resources influence the investment in the business.

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