Impact Of Islamic Microfinance Research Articles

Mediating Influence of Islamic Microfinance on agricultural Antecedents and Agribusiness Performance in Jigawa state, Nigeria

The object of research is the relationship between farm technical know-how (FTK), farmers’ cooperatives (FC) and agribusiness performance (ABP) in Jigawa State, Nigeria. Despite the importance of the agribusiness in terms of economic growth and development of Jigawa state, yet, the agribusiness performance is decreasing in the state. The findings from the sector revealed inconsistency due to that this study is motivated to includes Islamic microfinance as a mediating variable on the relationship between the study variables.The study seeks to establish a relationship between agricultural antecedents and Agribusiness Performance. Also, to explore the mediating impact of Islamic microfinance on the relationship between agricultural antecedents and Agribusiness Performance in Jigawa state, Nigeria.The study used a quantitative approach with 320 questionnaires and analysed by Partial Least Square Structural Equation Modelling (PLS-SEM) through Smart PLS software.The findings of the study indicated that there is a positive relationship between farm technical know-how, farmers’ cooperatives, and agribusiness performance. Similarly, Islamic microfinance was found to mediate the relationship between farm technical know-how, farmers’ cooperatives and agribusiness Performance. The study recommended that Jigawa state government decision-makers, agribusiness associations and farmer cooperatives should consider use of Islamic microfinance as a solution to the problems of Agribusiness Performance through which poverty reduction and unemployment can be solved. In relation to this, Islamic micro-financial institutions should provide more opportunities to support agribusiness activities.

Impact of Islamic Microfinance on Borrower’s Income in Pakistan- A Case Study of Akhuwat

Microfinance is a process of providing financial access in the form of micro-credits, and other services such as micro-insurance, savings, checking accounts and payment systems to the poor who do not have access to conventional banking. Lack of collateral and capital assets put limitations on the marginalized community to access the funds through the conventional banking system which leads to their financial exclusion. It is grasped that the objective of financial inclusion can be achieved at its full potential through redistributive instruments (Zakah, Awqaf, Qard al-hassan) of the Islamic microfinance industry. Pakistan Microfinance Review (2017) revealed that Akhuwat (A leading Islamic microfinance organization based on voluntarism and philanthropy) had maintained its outreach top spot in terms of Active Borrowers (820,000) during the year 2017. This study is conducted to analyze microfinance services provided by Akhuwat and its effects on borrowers’ income and consumption. The study adopted the qualitative research designed by applying questionnaires and interviewing techniques to collect data. The study finds that there was a reasonable increase in the income and consumption of the borrowers. Results indicate an average increase of 18 % in rural borrowers’ income and an average increase of 23% in urban borrowers’ income. The study recommends that vocational training should be provided to people in rural areas to enable them to engage in diverse business activities instead of solely relying on agriculture-related business.

An Impact of Islamic Microfinance on women borrower’s Happiness: A Psychological and Economic Theoretical perspective in Southern Punjab, Pakistan

This study attempts to understand how Islamic microfinance can be used to increase happiness in women and maintain sustainable economic development in Southern Punjab, Pakistan. It will analyze how the principles of Islamic microfinance help women in increasing their happiness. It also put forth light on the linkage between economic development and happiness. The survey will be conducted in Bahawalpur the State of Southern Punjab, Pakistan. It will also be considered that religion is not a hindering factor in the implementation of Islamic microfinance. It will also assume that Islamic microfinance in concert with the right fiscal and monetary policies framework, will contribute positively to increase happiness among women in Pakistan.

Islamic Microfinance Experience in a Secular State: Case of Benin

Islamic finance has gained interest in Muslim as well as non-Muslim countries as financial markets are trying to attract capital from investors in search of investment opportunities in accordance with Islamic principles. While the industry is growing on fertile grounds in countries such as Malaysia, the United Arab Emirates, Saudi Arabia, a mix of other countries such as the United Kingdom, Luxemburg, Hong Kong, Senegal, South Africa etc., have tapped into that market by issuing Sukuk or Islamic bonds, although their regulatory frameworks are not designed for their specificities. In 2010, Benin, a former French colony, which inherited its secular constitution has introduced Islamic microfinance without modifying its regulatory framework. The objectives in this paper are three-fold: review the microfinance policy, the regulatory framework and its relevance to the effective functioning of Islamic microfinance. The paper also presents the experience of Benin in Islamic microfinance, and the evaluation of its impact in a policy environment characterized by secularism that implies exclusion of religious specificities. Using a combination of evaluation studies, survey of stakeholders and experts in Islamic microfinance in Benin, and complementary interviews, this research finds that the impact of Islamic microfinance is not separable from the impact of the overall microfinance sector in which it is blended. The impact appears to be positive in terms of contributing to the improvement of living conditions, and loosening the financing constraints on households and small and medium enterprises through additional financial resources.

Islamic Micro Finance and Its Impact on Poverty Reduction of Two Village Models in Bogor, Indonesia

The purpose of this paper is to identify the effectiveness of Islamic microfinance institutions and their impact on poverty reduction in two types of rural areas in the district of Bogor, Indonesia. This research uses descriptive analysis, using a likert’s scale and with a paired sample t test to determine the impact of Islamic micro finance to micro business performance. Multiple regression is also used to see the effect of the types of villages in the implementation of micro-enterprise businesses. The results show that the Islamic micro financing has affected the effectiveness of the income and expenditure aspects, but also quite effective in the aspect of profit and use in expenditure. Furthermore, funding-based Islamic microfinance also has a positive influence on business micro and poverty reduction.DOI: 10.15408/sjie.v6i1.4337

Does Islamic Microfinance Go beyond the Self-employability? An Appraisal from Lahore, Pakistan

Unemployment is a syndrome which is a common feature of all developing nations. Masses are either unemployed or self-employed due to lack of opportunities and distorted public policies regarding employment generation in these countries. Microenterprises financing through microfinance institutions are playing a pivotal role in creating employment opportunities for their target households. This study observes the impact of Islamic microfinance on self, family and community employment generation activities. In this regard, data were collected from 168 clients of three pioneering Islamic microfinance institutions working in Lahore, Pakistan. The study uses descriptive analysis and probability econometric modeling to achieve its objectives. The results show that the Islamic microfinance played a significant role in starting and extending existing businesses of the target households. Moreover, it also helps households and community members to get absorbed in the microenterprises apart from borrowers themselves. Therefore, it is concluded that Islamic microfinance does go beyond self-employability.

Assessing the Impact of Islamic Microfinance on Poverty Alleviation in Northern Nigeria

Nigeria is one of the leading economies in Africa endowed with vast oil reserve and abundant human and material resources. Despite these resources, poverty among the populace is widely spread. The National Planning Commission in Nigeria in 2012 reported that more than 75 million people are trapped by poverty. Several efforts have been put forward at various points in time by successive governments, private entrepreneurs and other development partners to overcome the menace of poverty among the populace. Recently, the Islamic microfinance becomes a mechanism through which poverty is being challenged aswitnessed in some Muslim countries such as Bangladesh, Malaysia, and Pakistan. The purpose of this study is to examine the role of Islamic mircofinance products on poverty alleviation in northen part of Nigeria. The study used recipients of Islamic loan from some selected microfinance banks in Kano and Jigawa states of Nigeria. A total of 400 samples drawn from beneficiaries of Islamic microfinance loan through simple random sampling were used. Questionnaires were used and the data generated were analyzed using Pearson correlation analysis. The findings of the study has also identified that amount of Islamic loan, age, level of education, and gender as important variables for increasing household income. Microfinance regulators or policy makers (Central Bank of Nigeria) will also make use the findings of this study in designing policy framework for microfinance institutions in Nigeria.