Impact Of Microfinance Research Articles

A STUDY ON IMPACT OF MICROFINANCE INITIATIVES ON POVERTY ALLEVIATION AND COMMUNITY DEVELOPMENT

Microfinance initiatives have emerged as powerful tools for poverty alleviation and community development. This study examines the impact of microfinance initiatives at the Ponneri Urban Co-operative Credit Societies Ltd (PUCCSL) on poverty alleviation and community development. The sample size for the study is 210. This abstract outlines the impact of microfinance initiatives on poverty alleviation and community development at the Ponneri Urban Co-operative Credit Societies Ltd (PUCCSL) stems from the urgency to assess the efficacy of these initiatives in addressing the pressing socio-economic challenges within the Ponneri community. The study investigates the impact of microfinance initiatives on income level, Self-Help Group (SHG) loans, microfinance initiatives towards employment opportunities and overall impact of microfinance on poverty alleviation. The data were collected from respondents through a well-structured questionnaire. The tools used are non-parametric tests (H- Test, U-Test, Correlation). Overall, the findings of this study highlight the significant positive impact of microfinance initiatives at PUCCSL on poverty alleviation and community development in the Ponneri region. By continuing to innovate and expand its microfinance offerings, PUCCSL remains well-positioned to drive further social and economic progress in Ponneri and empower individuals to build a better future for themselves and their communities. Keywords: Microfinance, Self-Help Group (SHG), Income level, Employment opportunity, poverty alleviation, Socio-economic growth

The chronic illness of poverty: the effects of microfinance on the severity of poverty and the cost of its eradication

PurposeThis paper investigates the impact of microfinance on poverty gap which is the shortfall in income or consumption expenditures below $1.90, $3.20 and $5.50 per day. The paper’s primary goal is to investigate how microloans have impacted the severity of poverty and influenced the cost of poverty eradication in Latin America, empirically evaluate these effects and offer appropriate policy recommendations.Design/methodology/approachThis paper used panel data for 13 Latin American countries from world bank spanning the period 2001–2019 and Fully Modified Ordinary Least Squares model for heterogeneous cointegrated panels. This study used Gross Loan Portfolio per active borrowers, gross domestic product per capita, Gini index, Inflation and Unemployment rate as independent variables and poverty gaps as dependent variables.FindingsPoverty gaps narrow as the loan per borrower increases, and the degree of effect differs with the poverty line, with the magnitude increasing as the poverty line falls, underscoring microloans as an effective tool in closing poverty gaps and lowering the cost of poverty eradication. Growth of GDP per capita is helpful reducing the poverty gap, especially for the less poor of the poor. Inflation and unemployment have no to little impact on the severe poverty gaps, but they start to matter when the poverty line is $5.5 per day. Finally, income distribution inequality widens the poverty gap regardless of the poverty line used.Originality/valueThis study suggests several implications. For example, Latin American nations need to embrace tangible policies that encourage economic growth while reducing inequalities in income distribution to effectively eradicate poverty. More supportive environment is necessary to increase the effectiveness of microfinance operations, particularly for the poorest populations. Microfinance institutions need to set less stringent conditions for loan accessibility and repayment schedules that are commensurate with different levels of poverty. Finally, strengthening microfinance as a strategic policy to gradually close poverty gaps and reduce the cost of poverty eradication.

Microfinance: A bibliometric exploration of the knowledge landscape

Microfinance has gained significant attention as a social innovation, offering flexible and low-cost financial services to households who are otherwise excluded from formal financial services. Over the years, numerous research works have expanded the knowledge base of microfinance. Applying bibliometrics, we summarise findings from 1599 articles published between 1987 and 2022. Our performance analysis reveals insights into the research trend, including its geographical distribution, the theories under examination, and the most influential publications. More importantly, the knowledge foundation and thematic analysis categorize microfinance research into three broad themes, viz. impact of microfinance, management of microfinance and performance and efficiency of microfinance. Furthermore, we trace the evolution of various research topics and forecast future trends using periodical average publication years over time. This study, therefore, serves as a valuable reference in microfinance research both for new researchers and seasoned academics, as well as policymakers, providing insights into research trends, seminal works, and future directions.

An Empirical Assessment of Microfinance and its Associated Socio-Economic Development

Abstract Microfinance institutions (MFIs) provide support for the sustainability of livelihood and financial inclusion through social development. Micro-enterprises helps in empowering the communities especially marginalized section worldwide. The MFIs attempt to transform the lives of poor people, through different interventions. It revolved around the social development of marginalized people. In recent decades, microfinance played a vital role in alleviating poverty and involved empowering low-income earners socially and economically. The present study intended to highlight the role of MFIs located in Jabalpur (Madhya Pradesh) in enhancing the social and economic status of beneficiaries. This study also acknowledges the significance of MFIs in eradicating poverty, through financial services. In this research, questionnaire responses were gathered and analyzed from 150 beneficiaries of three MFIs (Credit Access Grameen, ESAF, and Fusion Micro-finance) in Jabalpur. The exploratory data analysis reveals diverse findings, regarding the impact of microfinance on the socio-economic conditions of beneficiaries through improving their savings, supporting the employment generation, and as a whole improving life standards as well as eradicating poverty. Alternatively, MFI programs also assist beneficiaries in employment generation, to a certain extent. The conclusion of the research prioritizes that MFI programs ought to be accelerated more by the Government through different schemes and can be easily accessed to even remote areas for economic expansion and social development of low-privileged people.

Recent Developments in Financial Innovation Research and Sustainable Accounting Models Bibliometric Analysis approach

This study conducts a systematic bibliometric analysis to examine recent developments in financial innovation research and sustainable accounting models. The intertwining of financial innovation and sustainability reflects a significant shift in the global economic paradigm, with innovations such as green bonds and impact investing reshaping financial markets. The research aims to identify key themes, trends, and interdisciplinary connections within the literature, offering insights for academia, practitioners, policymakers, and other stakeholders. Analysis reveals a growing emphasis on the role of financial innovation in driving sustainable growth and the importance of sustainable accounting in fostering transparency and accountability. The study also highlights emerging research directions, including interdisciplinary approaches, drivers of innovation and development, microfinance impact on household economics, and the nexus between education and health. Ultimately, this research seeks to contribute to the advancement of knowledge and practices promoting both financial prosperity and environmental and social well-being.

Impact of Microfinance on Rural Development through Joint Liability Groups

Microfinance stands out as a crucial financial inclusion mechanism, addressing the needs of individuals who find themselves excluded from the formal financial system. By breaking down barriers, microfinance ensures that even the most excluded individuals have the opportunity to benefit from a range of financial services, fostering economic empowerment and inclusion. The present study examines the role of microfinance on rural development through Joint Liability Groups (JLGs) with special reference to Kerala. The study also examined the trend of loans distributed to the southern region of India through JLGs for the last five years. The study used a descriptive research design and collected data from 385 beneficiaries through a purposive sampling method. The study revealed that microfinance has a positive influence on the rural development of Kerala. The researcher identified five predictors such as social development, economic development, financial development, employment generation and financial inclusion and dependent variable is rural development. The result shows that 99.6% attributed to microfinance on rural development in Kerala.

Utilization and Economics of Microfinance Under Self-help Groups: A Micro-Level Analysis from Tripura

"The present study was conducted in Tripura state during 2020-21 to determine the impact of microfinance through SHG. A multistage stratified random sampling technique was used to select the SHGs, i.e. sampling unit and data collected from SHG members. Analysis of collected data using percentages, averages, ranking techniques, etc. and results indicated that vegetable production has the highest B-C ratio followed by the fishery in the small SHGs inferring that fishery and vegetable cultivation were more profitable than other enterprises. Results also showed that the highest amount of credit was utilized in the fishery. It was observed that insufficient amounts of loans, complex procedures of loaning, high cost of inputs, delay in loan disbursement, lack of marketing facilities, and inadequate knowledge of potential funding sources were the major problems in microfinancing through SHGs. Nevertheless, SHGs connected a very large section of poor households with banks, who otherwise remain out of reach from the conventional banking system."

Impact of microfinance on income generation: Evidence from a rural community‐driven development programme in Myanmar

AbstractThis paper evaluates the impact of a rural community‐driven development programme in Myanmar, which promoted village‐level microfinance for income generation. Utilizing a three‐round household survey consisting of 100 treatment and 50 comparison villages with approximately 8500 households per round, we employ difference‐in‐differences and two‐stage least squares estimations. Our analysis shows three key findings. First, the programme significantly increased access to microfinance, primarily for production. Second, formal and informal finance were substituted in part with village‐level microfinance. As a result, treated households were less likely to borrow money from formal banks or informal lenders such as their relatives, friends or neighbours. Third, the village‐level microfinance nudged rural households to harvest, yield and sell their products more, which led to increase in seasonal income. Our study suggests that microfinance targeted for productive investment can significantly improve income of rural households in developing economies.

Impact of Microfinance on Agriculture Sector Development, SMEs and Small Entrepreneurs: A Literature Review

Introduction: This research paper reviewed the impact of microfinance on agriculture sector development and small enterprises to reveal the effectiveness of microcredit on small businesses and farmers' lives. In recent years, the progress and outreach of microfinance have been magnificent, and now it is considered a new approach and way to promote the agriculture sector and small enterprises. The efficiency of microfinance institutions has increased over the past decade, and they have significantly increased their outreach, products, and loan sizes, which helps to promote loan productivity and benefit borrowers. Methodology: In this study, we analyzed and study the impact of microfinance on agribusinesses and small enterprises by reviewing the different research articles and books on microfinance to realize the its importance and its impacts on different business communities. Findings: Finding disclosed that microfinance is an effective tool to minimize poverty and educate entrepreneurs about the promotion and management of their new and existing businesses. Since the 1990s, the microfinance sector has been rapidly growing day by day, and the success stories of entrepreneurs show the positive role of microfinance in building a financially stable and better society by uplifting the living standards of poor entrepreneurs and small farmers. Future Direction/Implications: In this study we found through the research findings that microfinance has a positive and significant impact on the growth of agriculture sector development and small enterprises. Governments should facilitate the microfinance institutions by providing the financial and logistic support to increase their outreach to benefits the maximum farming community, as well as SMEs and small entrepreneurs.

Impact of micro finance on economic empowerment of women

Impact of micro finance on economic empowerment of women

Impact of microfinance on women empowerment in Rewa district

Impact of microfinance on women empowerment in Rewa district

Impact of microfinance on socio-economic status of women entrepreneurs in developing countries: a sentiment analysis

Impact of microfinance on socio-economic status of women entrepreneurs in developing countries: a sentiment analysis

Impact of Microfinance on Women Empowerment: A Study Based Upon Micro Finance Institutions of Kanchanpur, Nepal

This study explores the transformative impact of microfinance on the lives of women in Kanchanpur, emphasizing the role of microcredit in fostering economic self-reliance and social empowerment. The research aims to analyze the contributions of women entrepreneurs, evaluate socio-economic activities, and assess the effectiveness of microfinance in improving living standards. The investigation focuses on the ability of group-based micro loans to alleviate poverty, address socio-economic vulnerability, and foster the formation of social capital among women in Kanchanpur.
 Using a descriptive survey research method with both quantitative and qualitative paradigms, the study randomly selects 350 informants from five microfinance institutions in Kanchanpur. Data collection involves schedules, focus group discussions, interviews, and field observations. The research framework includes control, dependent, and independent variables, with four criteria—access, creation, and control over private resources; decision-making freedom at home; self-confidence in socio-economic activities; and status in the community and family— used to examine the impact of microfinance on women’s empowerment.
 The empirical findings reveal that small loans provided by microfinance institutions stimulate income-generating activities among rural women, leading to improvements in their well-being and socio-economic status. The study concludes that women owning and utilizing microcredit positively influences their decision-making abilities at home, contributing to an overall elevation of their socio-economic status. The results suggest a need for government initiatives to facilitate rural women through targeted microcredit schemes, thereby further promoting women’s empowerment in Kanchanpur.

Impact of community-based micro-finance in urban poverty reduction in Bangladesh

Purpose: This study aimed to assess the impact of community-based microfinance in reducing urban poverty with a particular focus on Sylhet City, Bangladesh. Methodology: The Community Saving & Credit (CSC) strategy of the Urban Partnership for Poverty Reduction project was chosen as a case in this study. This study used a qualitative research approach by following focus group discussions and in-depth interviews as data collection instruments. The purposive sampling method has been observed to collect data from 20 (twenty) respondents from Sylhet City Corporation's two slum areas, where the Urban Partnerships for Poverty Reduction Project was implemented like other urban areas of Bangladesh. Findings: The study findings show that implementing the Community Saving and Credit (CSC) strategy in Sylhet City has reduced poverty among those who applied for loans. It has enhanced the availability of food, made housing more affordable, diversified income sources, improved health conditions, increased access to education, and amplified the voice of women, especially those in poverty. Research implications: This research will help the government to achieve the Sustainable Development Goals (SDGs). It will also inform the government about local perceptions regarding the dimensions of escaping poverty. After knowing about the locally specific dimensions of getting out of poverty and the effect of the CBM system in reducing poverty, the government and the policymakers can plan additional steps to operate community-based microcredit systems to reduce poverty.

Empowering Women through Microfinance: Catalizing Societal Transformation via Entrepreneurship

Microfinance has emerged as a transformative tool addressing financial needs, especially for marginalized communities with a focus on empowering women. This study investigates the impact of microfinance on women’s entrepreneurship and societal transformation via entrepreneurship in Butwal sub-metropolitan city emphasizing decision-making, effectiveness, lifestyle changes, and the reduction of domestic violence and gender inequality. Surveying 100 women entrepreneurs, the study reveals significant positive effects of microfinance. It empowers women in decision-making, enhances effectiveness, uplifts living standards, promotes investments, and reduces domestic violence. Microfinance fosters entrepreneurship, challenges patriarchal norms, and contributes to economic growth and social change. Correlation analysis demonstrate strong associations between women entrepreneurship development and other variables. The findings underscore the vital role of microfinance in women’s empowerment and economic development. Policymakers need to prioritize regulatory support and targeted interventions to sustain and enhance the microfinance sector, ensuring inclusive economic growth and empowerment of women entrepreneurs.

Exploring the Post-Covid pathway of microfinance on women’s empowerment

Having access to microfinance institutions in Sri Lanka, Poor women in the country have opened up to diverse microfinance services and supported them in growing economically while enhancing gender equality, health, level of education, etc. Microfinance institutions provide both financial and non-financial services and it has a significant effect in eradicating poverty and empowering women. With the effect of the COVID-19 crisis, almost all the sectors were severely affected in every aspect and the poor women of the country was one of the key parties. Thus, the primary aim of this study is to explore the post-COVID pathway of Microfinance on Women's Empowerment. Concerning the study, Sri Lankan microfinance services can be classified into five categories: micro-credit, micro-savings, micro-insurance, business support, and skills development. This study focused on determining the effect of micro-credit, micro-savings, micro-insurance, and training on women's empowerment after the COVID-19 pandemic. The study adopts a quantitative research methodology to explore the impact of microfinance on women's empowerment. An empirical investigation was carried out among a sample of 100 women selected in the Kurunegala District of Sri Lanka who were receiving microfinance services and training programs. A self-administered questionnaire was the key data collection method, which had been built on a five-point Likert scale. The data were analyzed with the aid of the SPSS Statistical Package. Correlation and Multiple Regression analysis were the key statistical techniques used to test the hypothesis. The findings have confirmed that micro-credit, micro-savings, and training have a significant positive impact on women's empowerment after the COVID-19 crisis where micro-insurance was not statistically significant. Based on the results, training offered by microfinance institutions for these poor women to sharpen up their income-generating mechanisms from obtaining microfinance services has the highest impact in empowering them. Thus, the study contributes key microfinance factors to empower women economically, socially, and politically which would in turn create a social implication of eradicating poverty and economic development after the COVID-19 crisis.

Islamic Microfinance Impact: Comparative Effectiveness Study

Despite the rising adoption of Islamic microfinance, there remains a crucial gap in the comparative analysis of how Islamic microfinance impacts the economic status of low-income families against conventional methods. This study investigates the factors influencing the effectiveness of Islamic microfinance in improving the economic status of low-income families in Muslim-majority regions compared to conventional microfinance methods. The research methodology encompasses a comprehensive literature review, utilizing sources from peer-reviewed academic journals, international financial organization reports, and books focused on microfinance and Islamic banking. The study involved thematic analysis to identify and critically evaluate key themes such as economic empowerment, comparison with conventional microfinance, regulatory dynamics, customer perceptions, and sustainability goals. The findings indicate that Islamic microfinance provides distinctive benefits due to its adherence to Sharia principles, which resonate well with the target communities’ cultural and religious norms. However, the effectiveness varies significantly across different regions due to diverse economic contexts and regulatory environments. This study contributes to the existing literature by providing a detailed comparative analysis of Islamic versus conventional microfinance, highlighting specific areas where Islamic microfinance excels or requires further improvement.

Role of Microfinance and Self Help Groups in Rural Women Empowerment – A Study of Two Sub district under Mahisagar District, Gujarat

Being the most important program in the SHG movement in India, NABARD started the pilot phase of SHG Bank Linkage Program in February 1992. This was the first example of a viable SHG financed directly by a commercial bank. Informal saving and borrowing groups of the poor were recognized as bankable customers. Soon after the SHG-bank linkage was in place, RBI advised commercial banks to consider lending to SHGs as part of their rural credit operations. Linking SHGs with the financial sector was good for both sides. Because banks were able to enter the money lending market, borrowers were lower income families, household costs were lower, and repayment rates were higher. By joining SHGs they were able to expand their operations with more credit and they had productive surplus funds for more credit. (Reddy and Maneck, 2005). This research paper attempts to examine the impact of microfinance in the context of poverty alleviation and socio-economic empowerment of women. Help empower women through microfinance by supporting women's economic participation, thus promoting gender equality and improving household welfare. To study the role of microfinance and self-help groups (SHGs) in women empowerment, Santrampur and Virpur sub district of Mahisagar district have been selected, for the present study a total of 20 SHG organizations have been selected from these two sub district and Out of these 20 SHGs, 150 respondents have been selected for the research. has been selected to start the job. Here tabular analysis has been used to analyze the data collected from local survey reports.

Catalyzing Socioeconomic Change: Exploring Microfinance's Impact on Poverty Dynamics in Afghanistan

Amidst the challenges of post-conflict reconstruction and poverty reduction, this study delves into the dynamics of microfinance and its potential to catalyze socio-economic change in Afghanistan. With a focus on critical indicators including employment rates, literacy rates, infant mortality rates, and the national poverty headcount ratio, this research examines the nuanced relationship between microfinance and poverty alleviation. Employing a quantitative approach, the study employs regression analyses to unveil the impacts of microfinance engagement indicators on these socio-economic variables. Drawing from a rich collection of secondary data, this research collects four dimensions of microfinance engagement (i.e. number of active borrowers, gross loan portfolio, amount of savings, and number of active savers) and employs them as parameters vis-à-vis the critical indicators. This research conducts a systemic analysis of the empirical evidence and contributes to the understanding of how microfinance interventions can pave the way for a more inclusive and prosperous future for Afghanistan.

Asymmetric impact of microfinance on economic growth: Evidence from Bosnia and Herzegovina

This study explores the correlation between microfinance loans (MFL) and economic growth in Bosnia and Herzegovina (Bosnia). It utilizes the non-linear Autoregressive Distributed Lag (NARDL) method to examine cointegration and short-run dynamics by analyzing quarterly data spanning from 2010 to 2022. The findings underscore the link between MFL shocks and long-term economic growth. The study unveils the unique effects of both positive and negative MFL shocks on growth, suggesting a non-linear relationship between microfinance loans and economic growth in Bosnia. However, the study concludes that the impact of MFL on Bosnia's GDP is adverse. Short-term fluctuations in MFL show no substantial influence on Bosnian economic growth. The coefficient of the error correction model is both negative and significant indicating the stability of the long-term relationship. This implies a rapid correction, with 46.4 % of the previous quarter's imbalance rectified within the current quarter. While our results are based on a single country, they align with recent criticisms of microfinance practices. Furthermore, our study offers a novel approach as it represents the first examination of the asymmetric relationship between MFL and GDP in Bosnia, providing valuable policy recommendations.