Microfinance Programs Research Articles

Examining the Effects of the Pandemic on Entrepreneurial Activities among Urban Single Mothers: An Exploratory Study

This study was conducted in Malaysia to examine the effectiveness of the microfinance programme for urban single mother entrepreneurs in MSMEs during the COVID-19 pandemic and Movement Control Order (MCO). Implemented as a response to the pandemic, the MCO significantly disrupted businesses, particularly MSMEs. The study aimed to investigate the relationship between empowerment factors (economic, social, digital, and psychological) and governance aspects concerning the effectiveness of microfinance programmes. Using a positivist paradigm and employing quantitative methods through online questionnaire distribution, this research established a framework based on empowerment theory. The findings underscore the importance of economic empowerment, digital empowerment, and governance aspects for microfinance programme success, and provide empirical backing for suitable mitigation strategies for MSME entrepreneurs. The study emphasises the importance of supporting single mother entrepreneurs through various developmental activities, technical and vocational training, and comprehensive financial and non-financial aid initiatives. It stresses the critical role of women, particularly single mothers, in propelling societal and economic advancement, and advocating for their empowerment through targeted interventions. Overall, the findings enhance understanding of the challenges MSMEs face during crises, and offer insights for policymakers and microfinance agencies to strengthen support for single mother entrepreneurs in navigating future challenges and fostering economic resilience and development.

The impact of government microfinance program on poverty alleviation and job creation in a developing economy

Government initiatives to eradicate poverty in developing countries have included establishing microfinance programs to provide microloans and credit to the less privileged living in peri-urban and rural areas where commercial financial institutions are underrepresented. The study aims to investigate the effect of the South African Microfinance Apex Fund (SAMAF) on poverty alleviation and job creation. This case study targeted 103 beneficiary firms and self-employed individuals to send them questionnaires. The data analysis was primarily exploratory and descriptive. The findings show that the majority, 87%, agreed that the loans they accessed were sufficient for their business plans and needs. In addition, they were able to create at least one additional job after receiving the loan and improve their total business income on average compared to before the SAMAF loan. However, due to the risk of non-repayment of loans by recipients living in informal settlements, most microfinance intermediary institutions were unwilling to expand their operations into such settlements. SAMAF, on the other hand, has flaws, one of which is the slow delivery of funds to microfinance intermediary institutions, which needs to be addressed. The study concludes that to address the credit needs of semi-rural and rural residents, microfinance intermediary institutions must do more to expand into these areas and adopt a more aggressive and creative approach to the development of financial products and expand their access to include more of the poorest and most vulnerable households.

Unveiling the Impact of Key Determinants on Microloan Allocation Using Machine Learning

Microfinance initiatives have emerged as crucial tools in poverty alleviation, particularly in developing countries. These initiatives extend small loans to underserved populations and marginalized communities, as a means to improve their financial standing. This research leverages machine learning models to analyze a large microfinance initiative and find the key variables that drive micro-loan allocation. By conducting an in-depth feature analysis of a comprehensive microloan dataset, we aimed to pinpoint key variables that impact the allocation and size of microloans. Our study finds that the repayment period, lender networks, and the geographic location of borrowers significantly influence the loan allocation and size. The insights from our study can provide strategic guidance to microfinance programs in their loan allocation decisions. More specifically, lending decisions can be targeted more effectively to maximize impact of microfinance programs. In addition, this research also demonstrates the application of machine learning models in the realm of microfinance.

Financial Empowerment of Tribal Women: An Inquiry into Sustainable Economic Justice Initiatives and Pathways towards Inclusive Development

The current discussion on development emphasises the importance of empowering marginalised people in order to alleviate socioeconomic inequities and promote inclusive growth. This study aims to explore the financial empowerment of indigenous women, evaluating the complex relationship between economic justice programmes and sustainable approaches to achieve inclusive development. In this context, the research aims to explore the many aspects of financial empowerment programmes specifically designed for tribal women. Its goal is to contribute to the continuing discussion on promoting economic equality and long-term social change. This inquiry aims to examine the complex processes of financial inclusion and highlight the possibility for enabling indigenous women to achieve economic justice. By doing so, it envisions a future that is more egalitarian and resilient for these communities. In the backdrop of India's developmental discourse, this study delves into the imperative realm of financial empowerment for tribal women. Focused on unravelling the intricate relationship between economic justice initiatives and sustainable pathways toward inclusive development, our research aims to shed light on the challenges hindering the financial autonomy of indigenous women. Our investigation centers on the nuanced landscape of financial empowerment programs tailored specifically for tribal women, seeking to contribute substantively to the ongoing dialogue on economic equality and enduring societal transformation. By navigating the complexities of financial inclusion processes, our inquiry envisions a future where indigenous women not only achieve economic justice but also actively participate in reshaping a more equitable and resilient society. It is identified that to demolish patriarchal systems, there are need to expand educational possibilities, close income gaps, promote financial literacy, and combat prejudiced cultural viewpoints. Further, targeted interventions include microfinance programs, village savings and loans, direct cash transfers, and government schemes. Collective efforts from governmental, non-governmental, and community stakeholders are needed to create a more egalitarian society that empowers tribal women economically, socially, psychologically, and politically

Role of Microfinance in Promoting Financial Inclusion and Financial Capability in Rural Areas of Rajasthan

This quantitative study explores the pivotal role of microfinance in fostering financial inclusion and enhancing financial capability in rural areas of Rajasthan. Utilizing a structured questionnaire administered through Google Form, data will be collected from a convenient sample of 480 rural respondents with prior experience in microfinance programs. The study, conducted over a six-month period, incorporates data filtering techniques to ensure the relevance and reliability of responses. Employing the Smart-PLS statistical tool, the research will analyze the relationships between microfinance engagement and financial inclusion and capability variables. The findings aim to provide nuanced insights into the efficacy of microfinance interventions in rural Rajasthan, contributing to both academic discourse and practical implications. The study's policy implications suggest that energy professionals should consider incorporating microfinance strategies to enhance financial inclusion and capability in their sustainable energy initiatives, fostering a holistic approach to rural development.

Rawls’ difference principle, self-help group, financial inclusion and social cohesion—lore or actuality? Experience of Central Assam

Microfinance is an alternative banking service available to low-income individuals or organizations for whom no institutional financial services are available. A widely accepted approach to assisting disadvantaged and excluded communities, especially in remote rural areas, is microcredit. The purpose of microfinance is to promote financial equality and inclusion by acting as a substitute for traditional lending methods for the marginalized. In India, Self-Help Groups (SHGs)—Bank Linkage Program that led microfinance—gained maximum popularity. The National Bank for Agriculture and Rural Development architected this model. In this model, Grameen Banks are associated with SHGs. The model is familiar as the SHG-Bank Linkage Program (SBLP). A microfinance program’s theoretical foundation is the “Rawls’ Difference Principle” embedded in the “Theory of Justice.” The microcredit program, through the Self-Help Group-Bank Linkage Program (SBLP), gained maximum popularity in India. These SBLPs are registered with the “Deendayal Antyodaya Yojana—National Rural Livelihoods Mission (DAY-NRLM)” under the scheme Aajeevika. In harmony with “Rawls’ Difference Principle,” the ultimate goal of Aajeevika is social cohesion for all. The current study aims to assess the effectiveness of the SBLP-driven microfinance program in promoting financial inclusion. Furthermore, unlike earlier studies, the present study also considers whether or not involvement in SBLP increases social cohesion, which is a crucial component of the Difference Principle. The empirical research is conducted using novel data collected through a field survey of 335 participants and 490 non-participants from Nagaon, Morigaon, and Hojai districts of Central Assam. The “Propensity Score Matching” method facilitates the impact analysis of SBLP. The participation decision in the SBLP is positively influenced by the level of education. Empirical results also indicate that Hindus and low-caste women are interested in participating in SBLP. Contrarily, distance from the bank and operational land holdings are negatively influencing the participation decision. The empirical findings support higher financial inclusion through SBLP involvement but do not support greater social cohesion. Based on the empirical results, we suggest that more SBLPs be enrolled with DAY-NRLP under “Aajeevika.” Simultaneously, social cohesion may be achieved only by guaranteeing participation for every deserving individual, irrespective of religion, caste, and class.

A Holistic Overview of Agricultural Practices among CDIP Beneficiaries in Salimgonj Area: Current Status, Persistent Problems, and Promising Prospects

Agriculture is an essential industry in rural Bangladesh since it is the primary source of income for fifty percent of the workforce and eighty seven percent of families. Non-governmental organizations (NGOs) play an essential part in advancing sustainable development by providing assistance to communities in need and giving them the tools, they need to boost agricultural production, improve food security, and alleviate poverty. Centre for Development Innovation and Practices (CDIP), which is located in Bangladesh, runs microfinance programs with the goals of eradicating poverty and providing persons who are economically disadvantaged with financial security. The research project utilized a Mixed-method approach, with the CDIP beneficiaries participating in both Key Information Interviews (KII) and Focused Group Discussions (FGD) as part of the research. The efficiency of certain agricultural initiatives is hindered by obstacles such as limited technical skills, infrastructure limitations, and a lack of availability of high-quality seeds and irrigation facilities. Despite all of these obstacles, there are chances for CDIP beneficiaries to develop their agricultural practices. It has been demonstrated that the utilization of mobile agricultural consulting services and digital platforms can increase crop output while also ensuring financial security. It has also been established that collaboration among CDIP, government agencies, and local communities may increase infrastructure, which in turn leads to improved market access and economic development for agriculture beneficiaries. The research focuses on loan distribution in the Salimgonj area of Bangladesh and emphasizes how important it is to address persisting barriers to sustainable agricultural growth. Vol. 10, No. 3, December 2023: 277-284

Determinants that Contribute Women to Join in SHGs in Rayalaseema Region of Andhra Pradesh

The microfinance initiative, particularly the bank-linked Self-Help Group (SHG) program, has played a pivotal role in empowering women in rural areas, notably in India. This study employs an ex-post facto research design to examine the success of the SHG model in enhancing women's financial independence and overall empowerment. The study was conducted in the Rayalaseema region with a focus on Kurnool and Anantapur districts. A total of 6 mandals, 30 villages, and 360 women respondents representing 120 SHG groups were included in this research. By using factor analysis, the study categorized influential factors into sets. The study concluded that the key factors influencing women to join SHGs was enterprise development, improving family income, relationship dynamics, recognition, government support, and inspiration. This research provides valuable insights into the impact of microfinance programs on achieving women's empowerment. The study concludes that the Bank-Linked SHG model has been instrumental in addressing various aspects of women's empowerment, including economic independence, social recognition, and skill development.

Factors Contributing to the Success of Women Entrepreneurs Benefiting from Microfinance Programs in Algeria

Factors Contributing to the Success of Women Entrepreneurs Benefiting from Microfinance Programs in Algeria

Reducing maternal and child oral health disparities in Sub-Saharan Africa through a community-based strategy.

Oral conditions disproportionately affect mothers and children in Sub-Saharan Africa, due to biological vulnerabilities, a scarcity of oral health workers, deficient preventive strategies, and gender-based barriers to care. The World Health Organization (WHO) recommends integrating oral health into broader health delivery models, to reduce these disparities. We propose integrating preventive oral healthcare into community-based programs to bridge these gaps. We examine integrating preventive oral healthcare into Western Kenya's Chamas for Change (Chamas) community-based program which aims to reduce maternal and child health disparities. Chamas incorporates women's health and microfinance programs best practices to produce a low-cost, community-driven, sustainable, and culturally acceptable health delivery platform. Our strategy is based on the Maternal and Child Oral Health Framework and uses the WHO Basic Package of Oral Care principles. This framework prioritizes community involvement, cultural sensitivity, regular screenings, and seamless integration into general health sessions. We discuss the strengths, weaknesses, opportunities, and threats to enriching Chamas with oral health promotion activities. It is crucial to assess the effectiveness, sustainability, and acceptability of the proposed strategy through implementation and evaluation. Future studies should investigate the long-term impact of integrated oral health models on community health and oral health disparity reduction in Africa.

Impact Of Microfinance Programme On Socio-Economic Empowerment In Haryana State

Purpose: To study the socio-economic characteristics of the sample households and to analyze the saving and credit pattern of SHG’s members. Design/Methodology/Approach: The present study is empirical in nature as it is mainly based on primary data which was collected through interview schedule during field survey. A multistage random sampling method was adopted for the study. The collected data was analyzed with the help of various statistical tools like Frequency, Percentages, Means, Standard Deviations, and Coefficient of Variation. To prove the hypotheses, some tests like t-test (paired), Z test and Chi-square (ᵡ2) test also used in the study. Findings: Microfinance has helped in increasing income/savings levels and number of assets which resulted in improvement in quality of life, satisfaction and esteem of the members thus leading to their empowerment. SHGs had positive impact on the employment and income of members. Microfinance programmes raised members above poverty line and enhanced their socio economic status. Research Implications/Limitations: The study was considered only in one district of Haryana (India) i.e. Mewat District. Practical Implications: Contributes to the body of knowledge on impact and success of microfinance programme and its implications for government and non government agencies and organisations for policy formulation regarding microfinance. Originality/Value: The paper identifies a framework of relevant values and facilities that will be of use to those interested in this field.

The microfinance sector in Uganda: Journey, experiences, lessons, and outlook

The purpose of this paper is to explore the microfinance industry to note where it has been, the industry experiences and lessons learned, and the peer into its future. The study adopted a qualitative approach reviewing the extant literature about the subject. The review reveals that the industry evolved from the desire to help poor people access affordable microcredit and transform themselves into economically empowered members of their communities. Consequently, a number of initiatives have been undertaken to develop the industry. This has included targeted legislation and institutional development both globally and in Uganda. The industry experiences indicate that both welfarist and institutionalist objectives of developing the microfinance industry can be pursued with minimal contradiction. However, events pose a mixed bag of results. One the one hand, success stories of microfinance enhancing access to affordable credit, and empowering the poor financially to be more productive, among others, are mentioned. On the other hand, blatant failures at institutional and individual level are noted. Cases of usury, corruption, diversion of funds, confiscation of poor borrowers’ property, a weak credit culture, and politicisation of the industry are noted. Nonetheless, the industry remains promising to the poor given the existing infrastructure. Moving forward, strengthening regulation, increased funding, depoliticisation of the microfinance policy and programmes will refocus the industry to serve better the poor.

Empowering Women through Microfinance: A Case Study of Jalpa Samudayik Laghubitta Bittya Sanstha Ltd. in Pokhara Metropolitan City

Empowering women is crucial for global development and promoting gender equality. Microfinance plays a vital role in women's empowerment. This study investigated the impact of microfinance services on women’s empowerment in Pokhara Metropolitan City, specifically focusing on Jalpa Samudayik Laghubitta Bittya Sanstha Limited (JALPA). The research involved 152 female clients in Pokhara, using a structured questionnaire for primary data collection. Data were analysed using both descriptive and inferential statistics. The study revealed significant positive changes in economic empowerment, including enhanced access to microcredit, property ownership, job opportunities, health services, and life insurance schemes. Moreover, improvements were observed in socio-political empowerment, reflected in increased participation in social, political, and religious organizations, leadership roles, and the ability to express opinions in public. The findings also highlighted positive transformations in decision-making power, respect, communication, confidence, and access to training opportunities after joining microfinance institutions (MFIs). This study concludes that microfinance interventions play a pivotal role in positively influencing women's economic status, decision-making capabilities, and socio-political involvement. The study not only provides empirical evidence but also emphasizes the need for improvements in the design of microfinance programs to comprehensively address the diverse dimensions of women's empowerment.

Socio–Economic Effects of the Microfinance Services on the Women in Sindh: A Case Study of the First Microfinance Bank District Larkana

The microfinance has turned into a significant tool alleviating poverty in emerging nations as it provides financial and non-financial services to needy peoples. It turns out those key aspects of the microfinance in focusing on the ladies lead to more beneficial economic development results. Therefore, this study sought to investigate the socio economic impacts related with the women's participation in microfinance programs. The study was conducted in The First Microfinance Bank District Larkana in Sindh province. A simple random sample of 1000 women participants of no less than two years or more was drawn from the 13500 individuals from The First Microfinance Bank District Larkana. The data were analyzed quantitatively with the help of descriptive statistics from the SPSS tool and presented in the form of frequencies, pie charts, and tables using a structured questionnaire. The study's objectives were to evaluate the socioeconomic effects on women's access to micro-credit, micro-savings, micro-insurance and non-financial services. The foundations of this study was depended on the accompanying theories as well as model, the Grameen bank model ,the vicious cycle of poverty theory, and the imperfect information paradigm.. The outcomes showed that the microfinance services have impact on women's socio-economic status. The review showed that that an access to microcredit services expanded pay levels, expanded stocks as well as result of endeavor and expanded use on wellbeing and educational services. Conversely, availability of micro savings services for women increased income to generate wealth, smoothed irregular income levels to manage consumption needs, and increased capital resources to support education and health care. Additionally the outcomes demonstrated the impacts of micro insurance services empowered ladies build more grounded trust securities, made more informal communities as well as propel cooperation being developed activities. In conclusion, impacts of non financial services microfinance balanced out pay levels that facilitated creation imperatives, improved intrapersonal abilities, for example, relational abilities and to wrap things up this program imparted a decent practice on preventive wellbeing measures for prosperity of individuals. A portion of recommendation made included, the need to do a further report to particularly distinguish the impacts of microfinance benefits freely on the financial status of the clients, additional comprehension the impacts of new areas of the microfinance, for example, that of of micro-insurance services to assist with planning better items, gain an upper hand and animate the market in the long haul for manageable turn of events, need to look at the impacts among various plans and microfinance projects to direct reasonable investment of the government, development fund and a cautious examination of consequences for various subgroups-for instance, monetarily unique, social, orientation to upgrade the comprehension of value related impacts of the microfinance services (micro credit, micro savings and micro insurance) plans for productivity and viability.

The Effectiveness Of Village Microfinance Financing Program By Baznas In Encouraging The Development Of Micro-Entreprises

This research aims to identify how the implementation of the village microfinance program by Baznas affects the development of micro-enterprises owned by the beneficiaries in BAZNAS Maros Regency. The research methodology employed in this study involves a qualitative approach with a descriptive nature. Data collection methods include observations, face-to-face interviews, and documentation. The research findings reveal that the execution of the Village Microfinance program by the National Zakat Agency in Maros Regency significantly contributes to micro-entrepreneurs in enhancing their businesses, especially those facing difficulties in accessing capital. The program also assists micro-entrepreneurs in mitigating the decreased income impacts caused by the COVID-19 pandemic. In addition to financial support, beneficiaries entering the micro-business sector also receive market access support from the BAZNAS Village Microfinance program, aiding them in promoting their commercial products more effectively.

Digitalization and agricultural transformation in developing countries: Empirical evidence from Tanzania agriculture sector

Agribusiness can potentially increase value for agriculture and the entire value chain, but it is hard to achieve these goals without digitalising the sector. The transformation reforms modern technology and digital infrastructure adoption to facilitate growth and inclusivity. These conditions make the agricultural digitization transformation more appealing. Therefore, using a survey of 400 smallholder farmers in four regions of Rukwa, Ruvuma, Morogoro and Tabora, this study examines the interplay between digitalization and agriculture transformation in Tanzania by focusing on the determinants and effects of digitalization on smallholder farmers' welfare. The study used the double hurdle model to estimate the determinants and extent of digitalization adoption; the Two-stage least square (2SLS) and the Control function approach (CFA) to estimate its effects on smallholder farmers' welfare. The findings revealed that access to credit (0.17428, p < 0.01), extension services (0.52884, p < 0.01), education and government support (0.10922, p < 0.05) are key determinants for agricultural digitalization. Moreover, digitalization was found to influence smallholder farmers' welfare significantly. The benefits of digitalization across smallholder farmers in all regions were observed in enhancing extension services (76.50 %), pest management (71.25 %), and accessibility of the market information (72.25 %), enhance an access to financial services (74.75 %). In sum, to promote digital technology adoption among smallholder farmers, policymakers in Tanzania and developing nations should prioritize financial inclusion through tailored microfinance programs, educational initiatives must integrate digital literacy, enhance extension services, subsidized technology access, and encouraging public-private partnerships to create incentives for sustainable agricultural development.

Islamic Social Finance In Addressing Poverty Reduction And Economic Growth: Using Structural Equation Modeling

Islamic social finance is one of the sources of fund in the Islamic economic system. It refers to voluntary philanthropic activities that have a unique presence in Islam. Islamic law is the first to define and regulate Zakat and Waqfs as civil society institutions. Currently, microcredit and microfinance programs are unsuccessful in reducing poverty and income inequality in Northern Nigeria. Islamic social finance institutions are promoting programs such as offering free education, scholarships, free medical care, and orphanage activities around the globe. However, in Nigeria, such Islamic social finance is currently growing slowly. This paper investigates people's perception of reducing poverty and promoting sustainable economic development in Northern Nigeria. The study employed random sampling using Structural Equation Modeling for the analysis. Findings indicate the relationship between Waqf and sustainable economic development and Zakat and sustainable economic development as a direct effect. The findings indicated that Waqf and Zakat significantly reduce poverty, and Poverty reduction promotes and enhances sustainable economic development in Northern Nigeria. The study further suggests and recommends that the Northern states, where the majority of the citizen are Muslim, deserve serious consideration for developing Zakat and Waqf institutions in the region to assist in reducing the vulnerable group in society.

A Study on Loan Delinquency of the Self Help Group-Bank Linkage Programme in Rural Rajasthan

Abstract Research background Providing the microfinance to rural women is the prime concern of the government at central and state level in which the best microfinance programme is the Self Help Group Bank Linkage Programme. However, the Delinquency rate of the SHGBLP loan is on the higher side. As, borrowers do not make their loan repayments on time. Purpose The purpose of this research is to examine which types of self-help groups make timely repayments of an old loan. Also, to find out the different aspects of the loan delinquency rate which affect them and to find out the impact of self-help group maturity on loan repayment. Research methodology For this a total of 300 members were selected from the Udaipur and Banswara district of Rajasthan. Further, Tobit Regression has been applied to find out the factors which affect the loan delinquency percentages in the Self Help Group Bank Linkage Programme. Results The results highlighted that the maturity of the SHG group affects their repayment performance as old SHGs are functioning well in terms of repayment. The reason for the high delinquency rate is that the members had no surplus Income to repay back because of the failure of Business, natural calamities and medical issues. The members who are repaying the loan back on time are giving from their agriculture and enterprise profits. Novelty A lot of research has been carried out on the Impact of SHGBLP on many other factors but there is no research that has been done to find out why the programme has high loan delinquencies after being the best together with the impactful microfinance programme.

Determinants of adoption of female headed household in microfinance program: a case study on Oromia Credit and Saving Share Company (OCSSCO) in Guto Gida district, Ethiopia

Since its introduction in the 1970, the word microfinance is being used very often in the development vocabulary today. It is taken as a strategy to overcome the constraints of conventional bank in reaching the poor and seen as one of the most efficient instruments for livelihood improvement. However, empirically the effectiveness of these programs on the livelihood of household is still inconclusive and debatable. Additionally, the relationships between socio-economic, demographic factors and participation in microfinance program are not seen in the study area and this motivated the researcher to undertake the study. The objectives of this study were identifying the factors that affect female headed household participation in microfinance program. Multi-stage sampling technique was used to draw representative sample and used cross-sectional survey. Cross-sectional survey data were collected from randomly selected 169 female headed household using interview/survey schedules. Descriptive and econometric methods were used to analyze the data. The results of descriptive statistics indicate that the majority of client household use microcredit to purchase agricultural input. Logit results indicate that program participation was significantly affected by seven explanatory variables. Among the variable’s family size of the household, livestock ownership and land size affected household participation in the program positively, whereas age of household head, distance of household home from microfinance office, wealth status of the household and household perception of risk have negative effect. Finally, the study recommends that microfinance institutions should broaden their outreach and expand its access in to large.

The Changing Landscape: Sustainability of Nepalese Microfinance Institutions (MFIs)

The primary goal of this research is to identify changing landscapes Nepalese microfinance institutions (MFIs) in order to achieve outreach and sustainability. This is a descriptive research design. Typically, a microfinance program is designed to assist the poor and marginalized Nepalese women who are unable to access government and institutional financial services by focusing on modest loans with short terms, no collateral, and monthly payments. MFIs, on the other hand, have major challenges in terms of social and economic transformation, as well as long-term viability. In the Nepalese scenario, most of the microfinance institutions hold traditional dimensions till now and these need to be modified to bring the social transformation to equip with globalized cultural practices through social business. The study's findings indicate that zero poverty, zero unemployment, zero carbon emissions, zero loan default, zero loan abuse, zero over-indebtedness, and zero credit renewal goal can achieve rough microfinance institutions. The findings of the study might be applicable to the BFIs, MFIs, regulatory authorities, HR analyst, economist and planners.