Impact Of Microcredit Programs Research Articles

The impact of micro credit programme on rural women livelihood development: A study of Bulathsinhala DS division in Sri Lanka

Micro credit (MC) is a financial service include under micro finance which is provide by consultative group to assist low income people. In global context, it is a very popular credit scheme among people who don't have access to formal financial services and most of them are women. However, this study tried to find the impact of Micro Credit programme on rural women livelihood development in Sri Lanka. The study conducted under main three objectives. Firstly, identify the Micro Credit client base and their intention of granting of Micro Credit loans. Then analyse the impact of Micro Credit loans on rural women livelihood development. Finally, provide suggestions and recommendations to improve effectiveness of credit programme in Sri Lanka. As the way to continue the study 50 Micro Credit women clients were selected from Bulathsinhala DS division by using simple random sampling technique. Then the data collected through structured questionnaires and interviews were analysed by using descriptive and inferential statistical analysis methods. According to the findings of the study, due to on-time & easy access to Micro Credit loans, people tend to use Micro Credit irrespective of the high-interest rate. Anyhow, Micro Credit has not helped to improve the livelihood and living standard of the rural women in the study area. Instead of that, their debtness was increased. Reasons for that were lack of financial literacy knowledge of women and miss utilization for recover previous loan premiums and for family consumption without a proper investment plan. Therefore, the study suggests responsible authorities to create accessible credit schemes for rural women & Micro credit institutions to create evaluating & monitoring process as an after care service of loans & organize programme to improve their client’s Financial Literacy knowledge to create an effective rural Micro Credit programme within Sri Lankan context.

Impact of Microcredit Program in Bangladesh

Impact of Microcredit Program in Bangladesh

The Impact of Microcredit Program on Cambodia

In order to explore the present development of Microcredit, the actual value to natives and future challenges microcredit faces in Cambodia, survey data, qualitative researches, and field experience have been utilized. The present stage and recent development of Microcredit in Cambodia were analyzed based on the survey data and statistical data. Throughout the research, I went to Cambodia and interviewed Cambodians about their real reflection under the local microcredit program. Survey data reveal that the usage of Microcredit in Cambodia has increased rapidly and continued to have a steady upward trend. Through the personal interview, we can find a positive reflection about microcredit programs’ improvement in native’s daily lives. However, the future development of microcredit organizations will not be plain sailing because the potential problems may emerge over time. Despite the deficiencies in the research process, this paper produces a detailed reflection of Microcredit’s impact on Cambodia and its future development, which has essential research significance.

Impact of Microcredit Programs on Women Empowerment in Bangladesh: A Comparative Study of Grameen Bank and BRAC

The purpose of this paper is to investigate the effects of microcredit programs on women empowerment in Bangladesh, especially in rural areas, by making a comparative study of Grameen Bank and BRAC. In this study, both primary and secondary data were used. Primary data were collected by a household questionnaire survey inTangail district. Percentage analysis, cross-tabulation, and paired t-test had been used to analyze and interpret the data. Secondary data were retrieved from different books and magazines, internet and related journals, and project papers. The results showed that microcredit programs of Grameen Bank and BRAC have a significant impact on women empowerment in Tangail district, Bangladesh. The research was limited to Tangail region, and only two NGOs were taken into consideration while collecting primary data. The policymakers can utilize these research findings while making policies on women empowerment. This study will also encourage different other NGOs to broaden their microcredit programs as well as the women to take microcredit and change their fortune.

Women economic empowerment via cash transfer and microcredit programs is enough to decrease intimate partner violence? Evidence from a systematic review.

Intimate partner violence (IPV) is a worldwide public health problem. Many proposals aiming to eliminate its occurrence include the empowerment of women through their socio-economic development. In this context, some studies suggested that microcredit programs (MP) and cash transfer programs (CTP) are initiatives that can also reduce the risk of IPV. Others pointed to an opposite effect. The objective of this study was to investigate the influence of women's economic empowerment in MP and CTP on the risk of physical, psychological and sexual violence through a systematic review. Papers/documents selection was conducted by two researchers according to the following criteria: published in English, Portuguese or Spanish; primary data; assessing the effect of MP or CTP on IPV; in heterosexual couples; on women beneficiaries of the intervention; using a comparator group eligible for an MP or CTP; and focusing on risk IPV as the outcomes. Our results showed that the impact of MP are mixed when it comes to physical and physical/sexual violence. Even so, the review suggests that the effect of MP on sexual violence is trivial or nonexistent. Regarding the impact of CTPs, the present study showed that the effects on physical, physical/sexual, psychological, and sexual violence were also heterogeneous. Women more empowered and with some autonomy could be at risk. Despite that, participation in the empowerment program should be encouraged for poor women and families. However, parallel interventions to lead with IPV should be addressed to the main actions to reduce the risk of increasing IPV prevalence in certain scenarios.

Impact of Microcredit Program on Women Entrepreneurship in Bangladesh: Experience from Society for Social Service

The purpose of this paper is to explore and measure the influence and impact of microcredit program on women entrepreneurship in developing countries like Bangladesh. The research used 150 questionnaires from women borrowers financed by Society for Social Service, a microfinance institution of Bangladesh. Logistic regression model is used to analyze the results of the study. Under the microcredit program, women borrowers are served with credit and other facilities that influence them for starting and managing their business. Therefore, a huge conversion of economic condition- from ultra-poor (2.7%), poor (55.3%), and middle class (42%) to micro entrepreneur (92.7%), and small and medium entrepreneur (1.3%) is one of the indicators of success of microcredit program. Findings of this study indicate that amount of microcredit significantly impacts the women entrepreneurship, if other factors remain unchanged. Training facilities, supporting environment, tenure of business, capital, and family savings are also considered to be the factors that affect the women entrepreneurs. In this study, only one microfinancing institution is taken as sample firm, therefore care is required when generalizing the results. This paper will give proper guidelines to investigate the area of microcredit in developing countries and facilitate to form the base of future research in the issue of microcredit and women entrepreneurship.

Influences of micro-credit programmes on women empowerment in Bangladesh

The focus of this study was to measure the impact of micro-credit programme on women empowerment in Bangladesh. Six leading NGOs/MFIs which operated micro-credit programmes were considered (namely ASA, BRAC, Grameen Bank, SSS, PROSHIKA and TMSS). A total of 406 credit-receivers were randomly selected from twenty-six villages in eight districts of Bangladesh viz., Dhaka, Mymensingh, Sherpur, Netrokona, Kishoregonj, Sylhet, Lalmonirhat, and Narsingdi. The study revealed that 68.5 percent of the respondents could change their empowerment situation. By the estimated change in empowerment it was realised that 15.8 percent of the respondents experienced positive change in their empowerment situation. The main factors affecting the change in women empowerment were membership of different micro-credit organizations, poverty change due to micro-credit and use of loaned money. In single level logistic regression model, the change in poverty situation due to micro-credit had positive association with the perceived change in women empowerment. On the other hand, in multinomial regression analysis the change in poverty situation due to micro-credit had a negative impact on the estimated change in empowerment situation. This contradiction dictates for further investigation into the issue possibly at different component levels of women empowerment. Finally, this research recommended that micro-credit organizations should increase the amount of loan to at least Tk. 15000 encouraging the clients to invest in less risky business with efficient follow up programme.J. Bangladesh Agril. Univ. 14(1): 93-100, June 2016

Impact of Micro-credit Programme on Women’s Empowerment

This article examines the impact of the rural women’s participation in the micro-credit programme on their levels of empowerment in different domains, namely, savings, use of money, physical mobility, decision making, health and children’s education. For this purpose, we applied the method of propensity score matching to appropriately measure the empowerment gains after addressing the problem of selection biases arising out of differences in observable characteristics of the members of the treatment (participant) and the comparison (non-participant) groups. To measure the influences of various family/social conditions on the individuals’ agency freedom, we applied the framework suggested by the Self-Determination Theory (SDT). The data used in this study have been collected through a field survey in six blocks of Midnapore district of West Bengal. Our overall conclusion is that the participation in the micro-credit programme by the rural women in our study areas helped to enhance their levels of empowerment at least in some domains.

Assessing the Impact of Microcredit Programs on Participants’ Quality of Life: A Theoretical Framework

The important role of microcredit programs in contributing towards poverty alleviation among the poor is well acknowledged. However, in measuring the effectiveness of the loans offered to the poor, it is not sufficient to just focus on how it helps to reduce poverty level but further consideration should also be given to other terms of measurement of its efficacy; an example of such issues is participants’ quality of life. The quality of life should be valued based on a quality of an individual’s whole life which cannot be segmented and analysed separately. Therefore, the aim of this paper is to provide a rational discussion on the conceptualization of the microcredit participants’ quality of life and to contribute to the literatures in this area. This paper shows that a comprehensive measure of quality of life is needed in assessing the impact of microcredit programs.

Micro Credit: The Empowerment of Women

All Micro-credit institutions of Bangladesh claim that they bring the poor women from dead end situation to a promising position by providing a very small size of loan, which is given in cash. This paper attempts to critically examine the impacts of micro credit program of micro credit institution on the empowerment of the rural poor women. In this study some major indicators of women empowerment have been specified so as to make a judgment whether or not micro credit institution could actually reach the poor women. The details of the impact analysis in this sphere have been made by using both the qualitative and quantitative tools on the basis of secondary data. The estimates show hardly any significant relationship between micro credit institute operations and a strong position of the rural women in question.However the gloomy findings of this paper are expected to create awareness of the policy makers about the long run impact of micro credit programs of micro credit institution and followers on the rural poor women.

Impact of Micro Credit Program on Social Mobility of Women

The term development is defined various ways by different social scientist. For an example: Hugo Slim defines it, as "Development is not a commodity to be weighted or measured by gross national products. It is the process of change that enables to take changes of their own destinies and realize their full potential. It requires building up the confidence among the people. For this, the skill, assets and freedoms are necessary conditions to achieve this goal". The process of development crosses number of turns and bends as we see its historical tracks. Its starting point can be considered from mercantilism. The state led strategy is followed as an alternative option of mercantilism. Since the decade of 90, the community-based strategy has become one of the best options. In the later day, the NGO-led strategy is also standing as a strong alternative option in the development arena. It is quite impossible to distinctly differentiate the strategy wise policy of any government but the development by mobilizing the NGO came to be indispensable in the present world. The involvement of the women fluctuates in its dimension. At present, the government/donors and some INGOs and the women-specific National-level NGOs have moved faster to the development adopting gender approach-GAD. Other civil society institutions such as media and trade unions, local NGOs seem still to be grappling with the WAD approach. DOI: http://dx.doi.org/10.3126/researcher.v1i1.8371 Researcher: A Research Journal of Culture and Society Vol.1(1) 2013

The Impact of Microcredit Programs on Self-Employment Profits: Do Noncredit Program Aspects Matter?

Microcredit programs provide a two-tiered approach to poverty alleviation: credit for the purchase of capital inputs in order to promote self-employment and noncredit services and incentives. These noncredit aspects may be an important component of the success of microcredit programs. However, because they are costly to deliver and their contribution to the success of the programs is difficult to measure, they may not be properly valued. This paper uses primary data on household participants and nonparticipants in Grameen Bank and two similar microcredit programs to measure the total and noncredit effects of microcredit program participation on productivity. The total effect is measured by estimating a profit equation and the noncredit effect by estimating the profit equation conditional on productive capital. Productive capital and program participation are treated as endogenous variables in the analysis. I find large positive effects of participation and the noncredit aspects of participation on self-employment profits.

Impact of microcredit program on poverty reduction among rural households in Saki East Local Government area of Oyo State, Nigeria

It is widely acknowledged that access to financial services plays a critical role in helping poor people strengthen their economic potentials, increase their asset base and diminish their vulnerabilities to external shocks. However, poor people have very limited access to financial services provided by the formal financial institutions due to the procedures outlined for accessing such loans. In recent time, Microcredit has received global attention owing to its claim in alleviating poverty. This study investigates the impact of microcredit program on poverty reduction among rural households in Saki East Local Government area of Oyo State using logit model and propensity score matching techniques to prove the impact. Findings revealed a negative, non-significant impact of microcredit on poverty reduction among rural households. Therefore, it is recommended that microcredit program should be implemented along with other poverty alleviation strategies.