Impact Of Microfinance Research Articles

The Impact of Microfinance on Women's Empowerment in Rural Areas in Canada

How to Cite Ali, S. (2024). Effects of Temperature Variations on Solar Cell Efficiency in Tanzania. American Journal of Physical Sciences, 2(1), 50 – 60. https://doi.org/10.47604/ajps.2664

Microfinance and Entrepreneurial Empowerment of Women: The Case of Women’s Microfinance Initiative in Uganda

Purpose: Women have always been underestimated and discriminated in social, economic and political spheres of life. Moreover, the traditional household chores create hindrances in their social and economic empowerment. Entrepreneurship development among women largely focuses on the empowerment of women through developing skills in Small to Medium-sized Enterprises (SMEs) and business ventures by taking risk of making investment decisions. Over the years, various efforts have been made by Government and Non-Government Organisations to promote women empowerment in Uganda and one such effort is through the micro-finance intervention. This Paper attempts to explore the impact of micro finance on the women’s entrepreneurial empowerment with specific reference to Women’s Micro-finance Initiative (WMI) in Buyobo in North Eastern Uganda. Materials and Methods: The study adopted an exploratory cross sectional research design. The target population comprised women’s microfinance Initiative Laon beneficiaries. A study Sample of 1,380 Respondents were purposively selected. The main Instrument for data collection was a structured Questionnaire and was complemented by Interviews and Focus Group Discussions. The study findings were presented in form of Tables, Graphs, Pie charts and where appropriate and where necessary, quotes or excerpts were used to strengthen the interpretation. Findings: The study findings reveal that the Micro-finance has a positive impact in terms of improvement in Business Operations; Diversification of Businesses; Business Skills Improvement; Improvement in Household livelihoods and living standards. The study findings will act as a basis for policy formulation as it will provide empirical evidence for policy makers to formulate relevant policies geared towards enabling environment for enhancing women Entrepreneurial Empowerment in Uganda. The study will further contribute to the struggle to eliminate gender inequality in Entrepreneurial empowerment. The study will further add value to existing scholarship which the future scholars may use to generate further research in the area of Microfinance and Entrepreneurial Empowerment of Women. Implications to Theory, Practice and Policy: The study recommends strengthening and expansion of micro-finance support to resource poor and vulnerable women in other parts of the country through entrepreneurial education and training, provision of access to credit and financial services as well as markets. The study will contribute to critical debates and raise awareness on issues pertaining to Microfinance and Entrepreneurial Empowerment of Women at community level which will help to build initiatives for effective women Entrepreneurial empowerment in Uganda.

Unveiling the Impact of Microfinance on Women's Empowerment: Insights from Cumilla District, Bangladesh

Unveiling the Impact of Microfinance on Women's Empowerment: Insights from Cumilla District, Bangladesh

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

Group Lending Models As An Alternative Empowerment Model: Assessing Gendered Socio-Economic Impacts in the Global South

Grameen Banks and other microcredit banks specialised towards collective empowerment in rural Bangladesh. The research reviews case studies alongside open-source data on group lending initiatives and models data on creditworthiness, upward mobility, and financial security of women in Bangladesh to examine the potential for the Grameen Bank’s replication for other marginalised economic groups in countries in the Global South, including India, Pakistan, and Sri Lanka. The study aims to identify successes and failures in building community solidarity, the extent of women’s exclusion from other formal credit institutions, and the psychological well-being of female borrowers. It explores the long-term sustainability of group lending programs in specific Global South economic contexts (with widening income gaps across class and gender divides, and growing polarisation) and assesses their broader economic impacts on community development and growth in the identified countries. The study revealed that high repayment rates and the social dynamics of group lending with female borrowers translate into a sustainable and profitable model for lenders, as well as being an alternative system of empowerment benefiting both borrowers and lenders. The paper will analyse the impact of microfinance in developing economies. How far has this concept enabled women’s empowerment in Bangladesh? Has this resulted in encouraging adequate skills for women in other marginalized sections of these economies? What are the models on which this concept works? How effectively have these been used in other developing economies like Pakistan, Shri Lanka and India? Has the model changed in the country in which this model originated? What are the advantages and disadvantages of this system of microfinancing? These and other similar questions will be addressed in the course of this paper.

Evaluating the Impact of Microfinance on Socioeconomic Development in India: A Comprehensive Assessment

Given that access to conventional financial services is rather limited, particularly in rural areas, microfinance serves as a significant driver of social and economic development. The purpose of this study is to analyze the effect of microfinance, with a focus on self-help groups (SHGs) and microfinance institutions (MFIs), in tackling poverty, women empowerment, and financial inclusion in India. This study, based on secondary sources and the analysis of such, shows that programs like the SHG-Bank Linkage Program have enabled low-income households to access credit and led to improved income generation and financial stability. Women, who comprise the majority of MFI clients, have particularly benefited, gaining greater empowerment and decisionmaking power within their households and communities. Despite these successes, however, challenges remain, such as regional differences in accessing microfinance resources and rising non-performing assets (NPAs), which were worsened by COVID-19. The study also highlights the immediate need for targeted interventions such as financial literacy programs, improved risk management, and digital financial solutions, in order to keep microfinance's role in inclusive growth.

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.