Role Of Microfinance Research Articles

Role of microfinance in developing small-medium enterprise (SME) businesses

Role of microfinance in developing small-medium enterprise (SME) businesses

Role of Microfinance in Agriculture Transformation in Nepal

Role of Microfinance in Agriculture Transformation in Nepal

Critical Analysis of Microfinance in Perspective of Empowerment of Women: A Case Study of District Matiari

This study aimed to analyze out the role of microfinance in perspective of women empowerment in socio-economic aspects, and also reviewed some of the past studies relevant to the impact of microfinance in empowering the women. Microfinance is the basic tool to reduce poverty- provide a better livelihood to women and improve social, economic and personal lives of women. As women are always considered as a poor segment of society because mainly do not participate directly in income generating activities. This study has been conducted in the district Matiari. Both quantitative and qualitative methods of data collection have been used, for sample selection; multistage random sampling method as employed for such the research task. The sample as selected from two microfinance institutions for instance; Sindh Agriculture Forestry Worker Cooperation (SAFWCO), and National Rural Support Program (NRSP), total 288 samples of women beneficiaries selected in this way. This study has concluded that micro finance has significant impact to empower rural women economically and socially by increasing income and sustain their improved livelihood in future. Further, it is recommended by this study that MFIs should arrange the training programs of small enterprises for women as they can get expertise and set of skills to run their own business.

The Role of Microfinance in China's Rural Public Health: Evidence from the Anti-Poverty Microcredit Program.

This study presents nonlinear evidence of the effects of a microcredit program implemented in poverty-stricken villages in China on rural public health using multivariate-ordered Probit and IV-ordered Probit models. The results, which were based on a unique set of data gathered from two rounds of official tracking statistics obtained through investigation (2015 and 2018) at a household level, suggest that rural residents’ health levels and health insurance demands are related to the formal credit amount that they receive from the microcredit program. Further, the amount of debt that remains to be paid is a negative mediator and the poverty reduction degree is a positive mediator for the health impact of credit. After dividing the sample into subgroups according to income, credit rating and social network, the results show heterogeneity: the health outcomes of groups with a low income, a high credit rating and a strong social network are more significantly improved by loans. The estimations are still robust after using network and village clan numbers as instrumental variables to address endogeneity. Although most of the existing literature demonstrates that credit and indebtedness have negative impacts on health, our results supplement previous findings of the positive causality between access to formal credit and rural public health by showing that the former can exert positive effects by relaxing individuals’ external constraints and increasing health spending.

The moderating effect of attitude to risk on the role of microfinance in entrepreneurship development in Uttarakhand region, India

The moderating effect of attitude to risk on the role of microfinance in entrepreneurship development in Uttarakhand region, India

The Role of Microfinance in Combating Poverty in Sudan within the Scope of Dimensions (Economic, Social and Ethical) An applied Study on Microfinance Donor Banks (Gezira State-Local and Greater Wad Medani)

Microfinance policies in Sudan came to reduce poverty problems, so the study focused on clarifying the role of microfinance in combating poverty, through a study of several levels: the economic, social and moral level of the beneficiaries of the services of the microfinance industry. (95%), and the study concluded that there is a statistical relationship between microfinance and poverty reduction, by improving the economic, social and moral levels. Obstacles facing the microfinance industry and its marketing Adopting the Murabaha formula only and neglecting other financing formulas, in order to reduce risks, in addition to the lack of sufficient experience in the field, which makes the approved procedures an obstacle to financing small or micro projects. Therefore, the study recommends the issuance of a renewed map targeting the beneficiaries. From microfinance services, finding an appropriate formula to be adopted instead of working in the form of Murabaha, focus on marketing microfinance products and services, adopting a sufficient number of training courses for microfinance service workers, and a balance must be created between funding and social goals, in addition to devising new funding means.

The Role of Microfinance in Increasing Rice Yield and Productivity in Southeastern Nigeria

The Role of Microfinance in Increasing Rice Yield and Productivity in Southeastern Nigeria

The Role Of Microfinance In Poverty Reduction: Countries Experiences by Regions 2000-2018

Purpose of the Study: This study aims to assess the effect of microfinance provisions on poverty reduction in some developing and few developed countries across different regions and assess the effect of regions and time on the performance of the microfinance industry. Methodology: A panel data model and pooled OLS are used to estimate the effect of microfinance indicators; the number of microfinance institutions, gross loan portfolio, microfinance intensity (gross loan % GDP), along with other control variables; inflation, employment, population growth, trade openness, agriculture and industry shares in GDP, on the three poverty headcount ratios ($1.9, $3.2 & $5.5 a day). The empirical model is estimated using panel data of 91 countries across six different regions from 2000 till 2018. The study depends on World Development Indicators and Microfinance Information Exchange (MIX) Market data. Main Findings: The study findings reveal a significant effect of the three microfinance indicators and some control variables on reducing poverty. And that enhancing the performance of this sector will help governments in their goals towards poverty reduction. Research limitations: Literature covering the effect and performance of microfinance in developed and many developing countries are still to be considered insufficient thus, studying the impact of microfinance and its performance in such economies is challenging. Further, enhanced studies are needed for better assessments and identifying the gaps and means of improvements required. Novelty/Originality of the study: This empirical study estimated the effect of microfinance variables, along with other control variables, on the three poverty headcount ratios across many developing and developed countries in different regions over nearly two decades, which is not tested before.

Contribution of Microfinance in Women Empowerment: A Case of Janakpur Municipality, Nepal

Microfinance has been one of the major sources of financing for financially backward society in the rural part of Nepal. The economic demography has also been found updated recently through the women empowerment movement. Hence, the study mainly looks into the role and importance of microfinance in the women empowerment movement in the rural part of Nepal like Janakpur. The study found that the general awareness regarding the importance and role of microfinance has been updated. However, the decision making authority is still under the control of Elder Male members of the house. The researcher came to the conclusion that the microfinance has been playing an exemplary role in the field of women empowerment in Janakpur. However, there are still some rooms for improvement in the policy and operation of microfinance.

The Role Micro Funding and Family Funding on Wealfare Salt Farmer in Madura

Basically, financial institutions in the form of microfinance institutions (MFIs) are needed to support rural economic development, especially as institutions to facilitate the costs of salt farming businesses. This is because most farmers face technology adoption due to weak capital. This condition occurs in salt farmers, Kalianget District, Sumenep Regency. This study aims to determine the concept of salt business. factors that affect the productivity of salt business, and the role of microfinance in salt farming. The study was conducted in the paper village with the aim of purposive sampling with a total of 40 samples. The data obtained from the study were analyzed using the R/C and Cobb-Douglass functions. The results showed that salt farmers were profitable with an R/C value 1, salt production had a significant effect on labour, weather and family resources

Role of microfinance in women’s empowerment and poverty eradication in India

Role of microfinance in women’s empowerment and poverty eradication in India

Microfinance as a Measure of Poverty Alleviation- A Survey of Longding District of Arunachal Pradesh

The supremacy of microfinance services emerges from the fact that the various financial services and its other allied complementary non-financial activities that the micro financial institutions deliver are friendly and reliable for the poor individuals. Similarly, another significant essence of microfinance institution is that, in the process of delivering microcredit services it is generally the micro finance institutions that reach out towards the door steps of the poor clients, instead of the poor individuals arriving at the gateway of the financial institutions seeking for assistance. The outcome of microfinance services on poverty alleviation has been measured on the basis of multiple dimensions such as increased in income of the family, improvement in the living standards, increase in family expenditures, rise in socio economic status, advancement in children’s education etc. Hence, though many studies supported that role of microfinance in achieving the long term goal of poverty alleviation, the main challenge in order to draw a proper conclusion is to obtain reliable data for better analysis and understanding

Role of Microfinance in Economic Development

As it leads to greater respect, independence, and involvement for women both, inside and outside their homes and in the workplace, microfinance plays a significant role in empowering society and the country at large. More in-depth definitions of microfinance may be found on this page. A microfinance institution provides financial services (loans, savings, and insurance) to individuals and small businesses on a small scale to people and small businesses, particularly those with low or moderate incomes, as defined by the World Bank. In developing countries, providing small business owners with low-interest loans with a low monetary value is one of the most widely used strategies for assisting them in their efforts to lift themselves out of poverty. Micro-loans are loans with a low economic value that are given to small business owners. Microfinance Institutions (MFIs) provide loans and savings services to small and medium-sized enterprises (SMEs) are made possible through a range of funding techniques. Microfinance institutions (MFIs) provide services to small and medium-sized businesses (SMEs) leading to economic development and social development. As a result of having access to these services, the idea holds that the poor’s financial position will become more stable, predictable, and secure over time. Through education, healthcare, and self-determination, individuals will be able to better plan for their futures and enhance their livelihoods in the process. Microfinance may also be utilized to assist individuals in achieving their financial independence. The high capital cost in microfinance is highlighted as one of the reasons leading to high-interest rates in the industry. Apart from traditional lending sources, microfinance providers may also get loans from commercial banks, which lend to Microfinance Institutions at market rates.

Role of Microfinance in Functioning of Women Self-Help Groups (SHG) Under Bank Linkage Programme in the Rayalaseema Region of Andhra Pradesh

Aims: To understand the functioning of bank-linked women-based self-help groups in the Rayalaseema region of Andhra Pradesh.
 Study Design: Cross-sectional.
 Place and Duration of Study: The study was conducted in two districts of the Rayalaseema region of Andhra Pradesh. The survey was conducted from April to May 2021. The reference year for the present study regarding financial parameters and group-related information was taken 2020 – 2021.
 Methodology: A total representative sample of 360 respondents with 120 SHG groups from two districts of the Rayalaseema region was taken for evaluation of the functioning of SHGs. All the respondents taken for the study were women. A well-structured interview schedule was used for collecting the primary data from the individuals.
 Results: It is revealed from the study that, savings activity by SHG is a regular activity. Through SHG group involvement a considerable change is observed among women in terms of various skills i.e., decision making, entrepreneurial skills, competency, managing, credit handling, coordination, and planning.
 Conclusion: It is concluded that using group meetings, member involvement, savings habit, external lending, and starting up of own enterprise a significant improvement of leadership qualities, managerial ability, psychological wellbeing, financial upliftment, and improved living standards are observed among all the rural women beneficiaries. validate reliability.

The Role of Microfinance in the Development of Small and Medium Enterprises (SMEs)

This work has tried to investigate the impact of microfinance on the development of SMEs). The primary data was collected through questionnaires from SMEs in Peshawar. The results show that microfinance plays a vital role in the revenue and profit growth of SMEs and reveals that SMEs with higher financial risk and lower levels of productivity are more likely to seek microcredit. Furthermore, the results suggest that firm characteristics including product innovation efforts and managerial and entrepreneurial attitudes are the key determinants of the likelihood of receiving microfinance. The main problems identified were lengthy documentation process, lack of information about the microcredit other security requirements.

Role of Microfinance in Entrepreneurial Development of Women in India

Today, one of the most widely debated topics in the world is disparity in global wealth and access to social services. Within the new economy, microfinance is becoming a more powerful tool for poverty alleviation. The bulk of microfinance programs were established with the explicit objective of alleviating poverty and empowering individuals of the country. Furthermore, a rising number of microfinance institutions (MFIs) prefer to work with promising entrepreneurs with unique business ideas because they believe they are more responsible and trustworthy. Programs such as the Self Help Bank Linkage Program in India have been steadily gaining popularity due to their beneficial economic impact and the assumption that they help women to become more self-sufficient. So far, the SHG Program has delivered microfinance to its mostly female participants using a new form of group saving and lending. According to the research, investing in women has been proved to be the most effective way to increase family health, nutrition, hygiene, and educational levels, and hence the entire society. Thus, it is vital to provide additional support for women in both financial and non-financial services. A large number of top public and private sector banks are launching programs specifically aimed to assist women in starting their own businesses. In recent years, even the unorganized sector has begun to participate in the microfinance movement. The purpose of this study is to determine the effectiveness of microfinance as a tool for boosting women entrepreneurship in India.

Role of Microfinance in Eradication of Poverty in India – Perspectives & Operations

In developing economies and particularly in rural areas, many activities that would be classified in the developed world as financial are non-monetized: that is, money is not used to carry them out. This is often the case when people need the services money can provide but do not have dispensable funds required for those services, forcing them to revert to other means of acquiring them. Often money is needed for the purposes; by a chunk of the population like lifecycle needs such as weddings, funerals, childbirth, education, home building, widowhood and old age, personal emergencies such as sickness, injury, unemployment, theft, harassment or disasters such as fires, floods, cyclones and man-made events like war or bulldozing of dwellings, investment opportunities: expanding a business, buying land or equipment, improving housing, securing a job (which often requires paying a large bribe). This paper is divided into two parts, perspectives and operations of Micro Finance. Perspectives portion deals theoretical conceptions and Operations portion deals with organizational insights and models plus some governmental compliances.

The impact of microfinance on poverty and income inequality in developing countries

Economic growth in developing countries provides an opportunity to accelerate progress towards the UN Sustainable Development Goals (SDGs). However, in reality, the number of people living in extreme poverty remains unacceptably high. Utilising the experiences of 34 developing countries for the period 2009 to 2016, the role of microfinance on poverty in these countries is examined. The results imply that the degree to which the existing forms of microfinance effectively reduce extreme poverty is less workable in developing countries, particularly when the hardcore poor are likely being deprived of receiving access to microfinance. It is suggested that governments may need to revise the structure and strategy of microfinance to be more hardcore poor oriented. The hardcore poor have needs beyond pure monetary assistance. More hand‐holding types of assistance are needed as most are also poor in respect of literacy, assets, and skills.

The role of microfinance in funding Small & Medium Enterprises: Harekello Town of Goro Dolla District in Focus, Ethiopia

This study examines the role of the Microfinance on funding of the Small and Medium Enterprises (SMEs) in Gorodola Harakallo town. This study was exploring the role of microfinance institutions on small and medium enterprise as well as the extent to which the small business have benefited from the credits scheme of microfinance institution. The specific objectives of this study were as follows; to determine at what extent role of microfinance lead to increase the volume of gross sales of participants and to understand other factors that affect SME’s growth. This study tries to answer two important questions: To what extent does microfinance lead to increase the growth of sale costumer? What are the factors that affect small and medium enterprise growth? The literature review also describes the objectives and function of MFIs, role of microfinance policy, development and policy of SMEs challenges and opportunity and relationship between MFIs and SMEs. With regard to the above objectives in mind, the research is carried out by gathering primary data through questionnaires and interviews with key informants. In addition, secondary sources of data have also been used. Eventually, using a mix of qualitative and quantitative tools, the study found out that SMEs have played positive role in improving income, creation of employment and improving the quality of life of the participants of the enterprises in the study area.

The role of microfinance in environmental governance: with a focus on payments for ecosystem services

The role of microfinance in environmental governance: with a focus on payments for ecosystem services