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Journal articles on the topic 'Microfinance'
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1
Dhakal, Chandra Prasad, and Govinda Nepal. "Contribution of Micro-Finance on Socio-Economic Development of Rural Community." Journal of Advanced Academic Research 3, no. 1 (February 11, 2017): 134–41. http://dx.doi.org/10.3126/jaar.v3i1.16623.
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Microfinance institutions are established to promote the financial activities mainly saving and credit in community. Microfinance’s activities are focused on reducing poverty level of community people. Poor, disadvantaged, marginalize and women are in mainstream of microfinance’s programs. The study was focused on finding out the contribution of microfinance on socio-economic development of rural community. The study was based on the quantitative design. Cross-sectional data was collected from the 8 microfinances of Syangja district. Purposive sampling technique was adopted to select the respondents. The perceptual analysis of data reported the significant contribution of micro-finance in social change and development. Microfinances working since 2 to 20 years covering the diverse field of social activities were the samples of the study. There was a need to improve the internal management of microfinance to provide the services more effectively.
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B. Gerard, Nguessan, Atiampo K. Armand, Kasse Youssou, and Zohoungbogbo Similie. "MICROFINANCE MANAGEMENT MODEL: CASE OF COTE DIVOIRE." International Journal of Advanced Research 10, no. 10 (October 31, 2022): 968–75. http://dx.doi.org/10.21474/ijar01/15568.
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This article deals with the issue of client solvency in microfinance. Microfinance includes all financial products and services designed for a public excluded from traditional banking circuits. The development of these microfinances is a very important issue and makes it possible to reduce the unemployment rate. However, the lack of customer solvency makes the management of these microfinances complex. In this article, we propose a microfinance management technique based on the use of K-nearest neighbor (KNN) and smart contract algorithms. The proposed approach makes it possible to model the behavior of a customer to arrive at their solvency.
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Parajuli, Rita. "An Exploration on Success and Failure of Cooperatives and Microfinance." Journal of Economic Concerns 15, no. 1 (October 2, 2024): 116–29. http://dx.doi.org/10.3126/tjec.v15i1.70245.
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Cooperatives and microfinances are regarded as a vehicle of development. The history of cooperatives and microfinance development is relatively short which dates back to the 1970s. With the assistance of cooperatives and microfinances, households can expand opportunities for income generation. Small size of loan, group savings, small-scale entrepreneurs, diversified utilization and simple and flexible terms and conditions on credit are the determining characteristics of microfinance and cooperatives. Basically this study is based on the review of past studies and research documents and has tried to collect detail information regarding the history, success and failure of microfinance and cooperatives. It covers the information of advanced countries as well as developing countries like Nepal. In course of research, the study found that cooperatives and microfinance have contributed too many households including backward people, women and marginalized groups. It has assisted to poverty eradication, inequality reduction, women empowerment, unemployment reduction which all result to economic development. These outcomes lead to the success of cooperatives and microfinance whereas public policy issues, fraud of the management team, lack of accountability, unproductive use of cooperatives and microfinance lead towards its failure. On the basis of the findings, it can be concluded that there is rapidly expanding number and size of cooperatives and microfinance institutions in many parts of the world, and in course of time these are moving towards commercial sector rather than being oriented to backward people.
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Rachman, Arief, and Ari Juliana. "Mediation and Facilitation of the Poor Society Financing Access to Microfinance Institutions." Administratio: Jurnal Ilmiah Administrasi Publik dan Pembangunan 14, no. 1 (June 7, 2023): 99–112. http://dx.doi.org/10.23960/administratio.v14i1.336.
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Microfinance offers loans to the poor with the aim of improving their living standards. Empowerment of microfinance becomes important and strategic through the formulation of policies and programs that are right on target. However, in its development there are still problems faced, especially the difficulty of accessing capital and financing. This study aims to examine how perceived benefits mediate the effect of microfinance accessibility on the utilization of microfinance. This study utilized a quantitative approach by using a structured questionnaire developed for the purpose in consultation with experts in the field. Survey was conducted in 2021 of 629 microfinances at Banten Province, Indonesia. Moderated regression analysis was used in data analysis. The result shows that the impact of microfinance accessibility on increasing the utilization of microfinance when the perceived benefit is maximized. This study recommends other constructs such as financial literacy, community, and population density as factors which driving microfinance growth. The results can be a reference for policy makers to further improvement of the existing policy framework and provide more opportunities for microfinance to improve its service strategy to the community.
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Koob, Michael. "Mikrofinanzierungen." Der Betriebswirt: Volume 51, Issue 3 51, no. 3 (September 30, 2010): 17–22. http://dx.doi.org/10.3790/dbw.51.3.17.
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Mikrofinanz hat sich zu einem entwicklungspolitischen Schlagwort ausgebildet. In der Entwicklungszusammenarbeit gilt die Vergabe von Kleinstkrediten seit langem als Erfolgsmodell. Was steckt hinter diesem durch den Friedensnobelpreisträger Muhammad Yunus bekannt gewordenen Instrument? Wie sieht die Praxis in den Entwicklungsländern aus? Gibt es für Mikrofinanzierungen auch einen Markt in den entwickelten Ländern. Microfinance has raised high expectations regarding poverty alleviation in the developing countries. Lack of empirical evidence has not, however, diminished the enthusiasm of the proponents of microfinance. The perception that microfinance plays an important role in poverty alleviation has attracted substantial assistance from international donors and local governments. What are the instruments and tools for implementing microfinance successfully in a country? What are the challenges? We have chosen Uganda in East Africa as a good example to see the lessons learnt in microfinance. Even in the industrialized world microfinance plays a more and more important role in the financial sector for customers and institutional investors. Keywords: mikrofinanzierungen, microfinances
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Maikabara, Abdullateef Abdulqadir. "Applicability of Islamic microfinance as an alternative tool for Poverty Eradication in Nigeria." Li Falah: Jurnal Studi Ekonomi dan Bisnis Islam 8, no. 1 (July 2, 2023): 1. http://dx.doi.org/10.31332/lifalah.v8i1.6496.
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The microfinance system is one of the governmental and non-governmental initiatives to eradicate poverty, even though conventional microfinance does not satisfactorily serve the needs of underprivileged households in Nigeria. However, Islamic microfinance has great potential to facilitate its roles in providing financial services per Islamic values. This research examines Islamic microfinance's perception of poverty eradication in the Kwara State of Nigeria. The 364 responses from microfinance clients in Ilorin, Kwara State of Nigeria, were analyzed through SPSS using descriptive and Pearson coefficient moment correlation (PPMC). The findings indicated a positive statistically significant correlation between Islamic microfinance and household income (PEHI), healthcare (PEHC), education(PEED), and employment(PEEM). This study is significant as it presents the applicability of Islamic microfinance for eradicating poverty in the study area. Policymakers should widely institutionalize Islamic microfinance institutions nationwide and take necessary and exclusive measures to ensure their effectiveness for poverty eradication and achieving sustainable socioeconomic development.
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Amrit Shahi. "Role of Microfinance on Entrepreneurship Capacity Building." Journal of Nepalese Management and Research 6, no. 1 (November 28, 2024): 156–72. http://dx.doi.org/10.3126/jnmr.v6i1.72094.
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Microfinance is pivotal for economic growth and entrepreneurship in Nepal, as evidenced by recent financial reports from leading institutions like CBBL, DDBL, and FOWAD have reported substantial profit increases. Theoretical frameworks and policies emphasize microfinance's role in poverty reduction and economic development. However, research highlights gaps in understanding its impact on entrepreneurship, financial inclusion, and decision-making, especially in marginalized areas. Empirical studies acknowledge microfinance's positive effect on entrepreneurship and identify challenges such as limited access and low financial literacy. This study employs structured questionnaire surveys with 150 participants and conducts inferential analysis using SPSS 20 to uncover correlations between microfinance interventions and entrepreneurship outcomes. The proposed conceptual framework explores the relationship between microfinance and entrepreneurship, revealing significant correlations with entrepreneur well-being. Regression analysis indicates that while ability awareness training positively impacts entrepreneurship, micro-credit, micro-insurance, and micro-saving may not directly influence entrepreneur well-being. This underscores the intricate dynamics between microfinance and entrepreneurship, necessitating tailored interventions and policies to support micro-entrepreneurs and foster inclusive development. The analysis highlights the importance of ability awareness training and challenging traditional microfinance strategies. Policymakers are urged to prioritize comprehensive support, focusing on skill enhancement programs. Future research should conduct longitudinal studies to understand the long-term impacts of interventions better and inform policy development for more effective practices. By linking theory, empirical evidence, and practical applications, this study offers a comprehensive understanding of how microfinance can be optimized to support entrepreneurship and economic growth in Nepal.
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Musanganya, Isabelle, Chantal Nyinawumuntu, and Pauline Nyirahagenimana. "THE IMPACT OF MICROFINANCE BANKS IN RURAL AREAS OF SUB-SAHARAN AFRICA." International Journal of Research -GRANTHAALAYAH 5, no. 9 (September 30, 2017): 80–90. http://dx.doi.org/10.29121/granthaalayah.v5.i9.2017.2201.
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Many researchers consider microfinance as a tool for poverty reduction. Even more, especially in post-conflict African countries, micro-financial institutions are seen as an opportunity of reconciliation. Lending from microfinance institutions to that from traditional banks and examine their respective effects upon economic growth has been practiced in some sub-Saharan countries. Considerable progress in research has been found that microfinance loans raise growth comparatively to that of traditional banks. A lot of number of researches carried out in sub-Saharan countries even in other developing countries outside of Africa did not find strong evidence that bank loans raise growth. There is, however, some evidence that bank loans do increase investment, whereas microfinance loans do not appear to do so. Differently, other researchers highlighted clearly that microfinance can provide its contribution on poverty reduction and better access to finance needed for startup micro-entrepreneurs along the world. These results suggest that microfinance loans are not primarily invested as physical capital in developing countries, but could still augment total factor productivity, whereas banks may have been financing non-productive investments. Herein, we highlighted the impact of microfinance banks on developing countries economic growth. We also indicate how microfinances system incorporated in rural areas boosted the lifestyle of poor people in Sub-Saharan Africa.
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Njagi, Joram Nyaga, and Charity Njoka. "Microfinance Reforms and Financial Inclusion in Kenya." International Journal of Current Aspects in Finance, Banking and Accounting 3, no. 1 (August 28, 2021): 54–72. http://dx.doi.org/10.35942/ijcfa.v3i1.181.
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Statistics indicate that about 1.7 billion people can’t access a savings account and slightly above 200 million small and medium-sized enterprises are deprived access to satisfactory financial solution. Kenya views microfinances as a development instrument for poverty lessening and economic growth through ensuring financial inclusion. It is due to the acceptance of this vital role of Microfinance that Kenya has undertaken strategic microfinance reforms and regulations aimed at promoting financial inclusion through microfinance business. The research’s general objective is to examine the effect of microfinance reforms on financial inclusion. Specifically, to determine the influence of microfinance transformation from non-deposit taking into a deposit-taking microfinance institutions on financial inclusion, to examine the association between microfinance board characteristics and public trust, to investigate the effect of microfinance licensing requirements on financial inclusion and to examine the effect of microfinance prudential standards requirements on financial inclusion in Kenya. The research adopted Financial Intermediation Theory and Public Interest Theory of Regulation. This research utilized descriptive research design and the population targeted included all the thirteen Microfinance institutions, which were licensed by the central bank of Kenya as at 2018. The study used purposive sampling to select six microfinance banks. Both descriptive and inferential statistics were done by use of multiple linear regression analysis. The research results indicated that microfinance transformation (pvalue=0.001), board characteristics (pvalue=0.042), licensing requirements (pvalue=0.035) and prudential standards (pvalue=0.002) significantly influenced financial inclusion. Results from regression analysis indicated a strong relationship between microfinance transformation, board characteristics, licensing requirements and prudential standards and financial inclusion. The study concluded that financial inclusion in micro financial institutions increases when there is sound microfinance transformation, board characteristics, legal requirements, and prudential standards. From the findings, the study recommended that micro financial institutions should support institutions reform functions and processes. Further the study recommended that micro financial institutions should recruit adequate and proficient workers and offer satisfactory training as well as certification for professional appreciation on strategies for microfinance reform processes and their influence on the financial inclusion of the micro financial institution. The research recommends that board members should be reliable and open so as to substantially contribute to financial performance.
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ANDRIANONY, Victorien, Harimpitia Harenatiana ANDRIANARIZAKA, and Eddy RAKOTOMALALA. "Les Offres Microfinances Comme Levier De L’Entreprenariat Malgache." International Journal of Progressive Sciences and Technologies 41, no. 1 (October 30, 2023): 343. http://dx.doi.org/10.52155/ijpsat.v41.1.5726.
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Ce travail de recherche explore le rôle de la microfinance dans la promotion de l'entrepreneuriat à Madagascar, en mettant l'accent sur son impact sur les petites et moyennes entreprises (PME). Il part du constat que les pays en développement, comme Madagascar, sont confrontés à des défis économiques, sociaux et de pauvreté importants. L'entrepreneuriat est considéré comme un levier essentiel pour relever ces défis, mais il est souvent entravé par des contraintes financières. D’où la problématique de savoir Comment les offres microfinances pourraient-ils être un levier de développement de l’entreprenariat ? Ainsi, l'étude examine les facteurs qui influencent la décision des entrepreneurs de recourir aux services de microfinance, les caractéristiques distinctives des institutions de microfinance à Madagascar et leur impact sur la création et l'exploitation d'opportunités entrepreneuriales, afin de pouvoir vérifier que l'efficacité des prêts de microfinance dans la promotion de l’entreprenariat dépend de la synchronisation des offres aux besoins spécifiques des entrepreneurs.
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Beck, Erin, and Smitha Radhakrishnan. "Tracing Microfinancial Value Chains." Sociology of Development 3, no. 2 (2017): 116–42. http://dx.doi.org/10.1525/sod.2017.3.2.116.
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The global expansion of the microfinance sector demands new conceptual work that recognizes microfinance's simultaneous imbrication in profit-oriented global finance and socially oriented development programs. Drawing from our respective areas of specialization in Latin America and South Asia, and an extensive review of the literature, we posit here that microfinance is best understood as a global industry, with traceable value chains. Microfinancial value chains are vertically organized by hierarchical relations of power, and populated by diverse actors performing various forms of gendered and class-stratified labor. Our conception of microfinance draws attention to the industry's reliance on the devalued labor of women, and the influence of class and geographic divisions on the functioning of microfinancial chains at all levels. Our chain-oriented conceptualization disrupts prevailing paradigms for studying microfinance by allowing us to analyze exactly where, and under what conditions, value is extracted across multiple global sites.
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Ouma, Cavine Onyango, Dr Daniel Makori, and Dr Moses Odhiambo Aluoch. "Firm Characteristics, Interest Rate And Financial Performance Of Microfinance Banks In Kenya." IOSR Journal of Economics and Finance 15, no. 5 (October 2024): 54–73. http://dx.doi.org/10.9790/5933-1505055473.
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Microfinance Banks gives the forte to improve the economic activity of low-income individuals and eliminate poverty, resulting in economic progress. However, microfinance's Banks financial performance in Kenya has declined over time. The objective of this study is to investigate firm characteristics, interest rate and financial performance of microfinance banks in Kenya. The study was grounded on buffer capital, efficiency structure and interest rate parity theories. The study research methodology rested on positivism research philosophy. Research design was explanatory non-experimental design. Secondary panel data was utilized. 13 microfinance banks in Kenya were target. Information was gathered using secondary data sources from microfinance banks accounting report from 2016 to 2022. Data was analysed using descriptive and inferential statistics. The study used multiple regressions and Pearson’s Product Moment Correlation analysis. All ethical considerations were appropriately observed. Findings indicated that adequacy of capital exerts a notable and direct effect on financial performance, underscoring the importance for microfinance banks in Kenya to prioritize maintaining sufficient capital levels to support their overall stability and financial outcomes. Conversely, quality of asset demonstrates a significant and adverse influence on performance financially, highlighting the need for microfinance banks to enhance their credit assessment processes to ensure the quality of their loan portfolios. The research revealed that efficiency of management has an insignificant direct influence on financial performance of Microfinance banks. To address this, microfinance banks are advised to invest in comprehensive management training programs and capacitybuilding initiatives to improve operational effectiveness and decision-making processes. Earning ability, on the other hand, exhibits a considerable and direct influence on financial performance. Microfinance banks should thus focus on continuous innovation of their products and services to enhance their earning potential and overall financial outcomes. Liquidity levels exhibit an insignificant and inverse effect on the financial performance outcomes. To mitigate potential risks, microfinance banks should establish comprehensive policies and procedures to monitor and manage liquidity effectively. Interestingly, the study reveals that the connection concerning firm-level attributes and financial outcomes for microfinance institutions in Kenya does not appear to be subject to a substantial moderating influence from interest rate movements. Therefore, the survey recommends that microfinance banks concentrate on improving governance structures, operational efficiency, risk management practices, and asset quality. This can be achieved through capacity-building programs, training initiatives, and adopting best practices from successful microfinance institutions. Strengthening these firm characteristics will enable microfinance banks to enhance their financial performance, irrespective of interest rate fluctuations
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Rifat, Md Arifur Rahman, Rizwan Qasim, Md Abdur Rahman Arafat, and Dastgir Alam. "Does Microfinance Impact Sectoral Growth?: A Case Study of Bangladesh." South Asian Journal of Social Studies and Economics 21, no. 12 (November 30, 2024): 75–87. https://doi.org/10.9734/sajsse/2024/v21i12919.
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Purpose: This research examined the impact of microfinance loans on sector-specific outputs—agriculture, services, and industry—and their contribution to Bangladesh's economic growth from 2008 to 2022. Methodology: The unit root test result gave mixed-order of stationarity—three variables followed I(0), and three followed I(1). Therefore the study employed the Autoregressive Distributed Lag (ARDL) model to analyze the effects of microfinance loans on the selected sectors. Data had been taken from the Bangladesh National Portal, the Bangladesh Bureau of Statistics, the Bangladesh Economic Review, and the World Bank database. Findings: The results showed that microfinance loans positively affected the agriculture and service sectors, promoting growth and productivity. However, a negative impact was found in the industrial sector, suggesting inefficiencies in utilizing financial support. Regarding sector contributions to overall economic growth, the service and industrial sectors showed positive and statistically significant impacts, aligning with Bangladesh's economic objectives. Surprisingly, the agricultural sector did not significantly contribute to economic growth, indicating potential structural challenges. Originality: This study provided a comprehensive sector-wise analysis of microfinance's influence on Bangladesh's economic growth, offering new insights into how different sectors responded to microfinance interventions. The findings contributed to understanding the disparities in the utilization and effectiveness of microfinance across sectors.
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Ahmad, Waqas. "The Role of Islamic Microfinance in Poverty Alleviation: Evidence from Pakistan." Journal of Economic Impact 4, no. 1 (March 20, 2022): 39–49. http://dx.doi.org/10.52223/jei4012205.
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This study aims to develop and propose an Islamic microfinance model that can be used for poverty alleviation in Pakistan. Other than investigating poverty, other interrelated aspects were also considered in which entrepreneurship, conventional microfinance, and Islamic finance were included. Moreover, by moving beyond and further exploring, this research presents various uses of Islamic microfinance to reduce poverty. A set of primary data was collected through interviews to carry out this research. Initial findings of the study unveil that poverty exists concerning common perceptions such as lack of necessities, unemployment, poor health, and insufficient financial resources. However, child selling, unethical ways of earning such as begging, robbery, and incompetency of the skilled person were the findings representing poverty from totally different perspectives. Moreover, the studied results also reveal that few respondents were aware of the concept and use of conventional microfinance. Still, at the same time, all the respondents represented the forbiddance of interest. Findings also represent the unawareness about Islamic microfinance's concepts, practice, and importance. This research is helpful as it presents the idea and the use of Islamic microfinance for the impoverished people of Pakistan and how it can be a beneficial alternative for reducing poverty. Moreover, it also seeks the attention from the financial institutions in the Country that how the beliefs and expectations of poor people are important in reducing their poverty. The significance of this study broadens the scope of the neglected concept of Islamic finance generally and Islamic microfinance particularly.
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Odhrani, Jaydeep. "Evaluating the Impact of Microfinance on Socioeconomic Development in India: A Comprehensive Assessment." International Journal of Social Science and Economic Research 09, no. 10 (2024): 4340–50. http://dx.doi.org/10.46609/ijsser.2024.v09i10.024.
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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.
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Homavazir, Malcolm, Smita Mishra, Trapti Tak, Supriya Rai, and Sahil Suri. "Exploring human attitudes and psychology to understand the impact of microfinance on the insurance sector." Multidisciplinary Science Journal 6 (July 3, 2024): 2024ss0418. http://dx.doi.org/10.31893/multiscience.2024ss0418.
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Despite its ups and downs in recent years, the finance sector in India remains crucial to the country's economy. Microfinance organizations allow people with little or no credit history to have access to loans and participate in the insurance market. Microfinance's impact on India's insurance sector is the focus of this study. The research also explains how increased number of consumers' social and emotional resources may translate into new venture formation and the expansion of active businesses in the context of a developing economy. In doing so, we identify factors that may increase the effect the use of microloan supply social and psychological capital, particularly for underfunded businesses in environments with limited resources, such as exactly how much micro lending organizations offer business assistance as well as possibilities for social interaction. There were 155 participants polled for this study, and 138 of them were employed in the microfinance sector. The research shows that insurance firms might benefit from microfinance and other forms of investment. Microfinance has a significant impact on the insurance sector.
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Engel, Susan, and David Pedersen. "Microfinance as poverty-shame debt." Emotions and Society 1, no. 2 (November 1, 2019): 181–96. http://dx.doi.org/10.1332/263168919x15653391247919.
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In an excellent anthropological study of microfinance in Bangladesh, <xref ref-type="bibr" rid="CIT0028">Karim (2008: xviii)</xref> argues that it operates as ‘an economy of shame’. That is to say, microfinance is not the benign tool for financial inclusion and empowerment that mainstream development organisations proclaim. Rather, it unintentionally (perhaps) but nevertheless actively deploys shaming techniques in order to maximise loan repayment rates. Karim, however, does not employ an explicit analysis of shame; instead she emphasises its disciplining power for rural women in Bangladesh. Our article builds on this insight but applies a specific psychosocial approach to shame that critically examines a number of the emotion’s harmful practices and outcomes, especially when deployed within microfinance practice. It highlights that microfinance personalises and socialises people’s debt relations, making them a matter for group concern, but that at the same time money-debt’s impersonalising nature results in coercive and disciplinary actions that would otherwise be seen as intolerable. We demonstrate how the active shaming of microfinance participants all too often degenerates into human rights abuses, including violence. The shame of debt and the active shaming that facilitates microfinance’s high repayment rates harms the psychosocial wellbeing of those being shamed as well as their families, and can be linked to a range of concerning outcomes including self-harm and suicide. To conclude, we explore whether the coercion by shame and shaming of microfinance may be linked to its growing use in other areas of development programming.
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Manahan, Hugh. "Private Equity Investments in Microfinance in India." Michigan Business & Entrepreneurial Law Review, no. 4.2 (2015): 293. http://dx.doi.org/10.36639/mbelr.4.2.private.
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A trail connects a skyscraper in Manhattan’s Financial District to a tiny food stand in a village in the southeast Indian state of Tamil Nadu. Initially wild and overgrown, the trail now resembles a well-developed road, cleared and shaped. The trail does not connect customers to call centers or raw materials to laborers; the path connects lenders seeking abnormal returns on their investments to borrowers living in poverty. This is the path of private equity investments in microfinance. Microfinance is a powerful financial innovation that has changed personal finance in many parts of the world. While microfinance began as non-profit means of empowering low-income entrepreneurs, the promise of scale, high repayment rates, and underserved markets has made microfinance an increasingly attractive investment for profit-seeking investors. This observation is supported by an unprecedented level of private equity investment in microfinance enterprises. Microfinance’s promise as an investment opportunity is best exemplified in India, which offers a vast low-income population, low penetration of personal financial products, liberal regulatory policies, and cultural forces that support group liability structures. This Note analyzes the investment potential of microfinance through the scope of Microfinance Institutions (MFIs) in India in four parts. Part II describes the MFI business model and explores how MFIs create contractual advantages and operational efficiencies in serving low-income borrowers. Part III explores how the Reserve Bank of India regulates MFIs and the incentive effects of these regulations on MFI behavior. Part IV attempts to quantify the extent of private equity investment in MFIs. Part V analyzes why private equity firms invest in MFIs and argues that two emerging trends may make MFIs less attractive investments in the future.
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McKee, Katharine. "Microfinance." Development Outreach 10, no. 1 (April 2008): 35–37. http://dx.doi.org/10.1596/1020-797x-10-1_35.
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Schäfer, Henry, Oliver Oehri, and Marco Menichetti. "Microfinance." WiSt - Wirtschaftswissenschaftliches Studium 38, no. 4 (2009): 206–8. http://dx.doi.org/10.15358/0340-1650-2009-4-206.
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ALFANI, FEDERICA. "MICROFINANCE." BANKPEDIA REVIEW 1, no. 2 (December 2011): 35–39. http://dx.doi.org/10.14612/alfani_2_2011.
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Zainuddin, Mohammad, Masnun Mahi, Shabiha Akter, and Ida Md Yasin. "The role of national culture in the relationship between microfinance outreach and sustainability: a correlated random effects approach." Cross Cultural & Strategic Management 27, no. 3 (July 11, 2020): 447–72. http://dx.doi.org/10.1108/ccsm-12-2019-0219.
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PurposeThis study investigates the role of national culture between outreach and sustainability of microfinance institutions (MFIs). Despite microfinance's deep embeddedness in cultural contexts, research on the influence of national culture on MFI performance is rather sparse. This paper seeks to fill this gap and, based on cross-country microfinance data, attempts to explain the outreach-sustainability relationship in reference to cultural factors.Design/methodology/approachAn unbalanced panel, consisting of 5,741 MFI-year observations of 1,232 MFIs from 43 countries in six regions, is drawn from the Microfinance Information Exchange (MIX) Market database. Two different econometric models are tested. Model 1 estimates the direct effect of outreach on sustainability, using a fixed-effects estimator. Model 2 examines the moderation effect of national culture on outreach-sustainability relationship, employing correlated random effects approach.FindingsThe results show that depth of outreach and financial sustainability of MFIs are negatively related, and the relationship is moderated by national culture. Power distance and uncertainty avoidance positively moderate the outreach-sustainability relationship, whereas individualism and masculinity negatively moderate the relationship.Originality/valueThe findings suggest that the national culture where MFIs are located plays an important contingent role in their performance and that the magnitude of the trade-off effect varies from culture to culture. The research thus provides further insight in the trade-off debate and contributes to literatures of both microfinance and cross-cultural management.
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Gerard, Kelly, and Melissa Johnston. "Explaining microfinance's resilience: the case of microfinance in Australia." Globalizations 16, no. 6 (January 7, 2019): 876–93. http://dx.doi.org/10.1080/14747731.2018.1560188.
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Shawl, Sana. "An Analysis of Microfinance in Kashmir." SMS Journal of Enterpreneurship & Innovation 4, no. 01 (December 20, 2017): 39–54. http://dx.doi.org/10.21844/smsjei.v4i01.10800.
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One of the most important objectives of development planning in India is poverty alleviation. Various approaches to alleviate poverty have been undertaken by the Government of India. The agenda for financial inclusion involves creating specific environment through which the poor across the country have open, safe, secure and affordable access to various financial products. Microfinanceis one such strategy for inclusive growth, which can be explained as provision of financial services such as loans, savings, insurance, financial literacy, etc. Those who promote the concept of microfinance as an inclusive development tool believe that such unrestricted access will help in poverty alleviation and uniform growth. Various steps have been taken in this direction since Independence by Government, Financial Institutions, Microfinance Institutions, and NGOs which include SHG-Bank Linkage Programme as one such initiative.Microfinance in J&K is still in its initial stage; from the formal sources like Public Sector Commercial Banks, District Cooperative Societies, Regional Rural Banks and Private Sector Commercial Banks, which provide microfinance services to few thousand SHGs formed in theState and it is in this direction that the present study has been undertaken in Kashmir. Jammu and Kashmir accounts for 1.04 percent of the total population of India but its contribution to the national income is mere 0.7 percent. In this backdrop, micro finance has emerged as one of the tools in Jammu and Kashmir State for poverty mitigation against economic backwardness and political turmoil being witnessed over two decades now. The study attempts to assess the role of microfinance in Kashmir with emphasis on analyzing the performance of Self Help Groups in terms of growth, employment, improvement in living standards and so on. The study shows that microfinance has played a positive role in the valley. In Jammu and Kashmir, microfinance plays an important role in women empowerment of the poor and widows but a lot more needs to be done in this direction
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Syamlan, Yaser Taufik. "The Circular Economy of the Islamic Group Lending Model: Lending Money for Garbage in Return." International Journal of Islamic Economics 2, no. 02 (January 8, 2021): 110. http://dx.doi.org/10.32332/ijie.v2i02.2580.
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The Model of Group Lending has been flourishing in the Microfinance Industry. This model has been used widely to serve the needy and un-bankable group of people by lending money plus interest addition. Islamic finance also embraces this model by omitting the interest and applying the Qardul Hassan to finance the members' daily needs. This divine scheme's problem is the microfinance's sustainability since they have a burden to bear the operational cost due to the non – interest feature of the financing. This paper tries to solve this problem by utilizing the household garbage as the media to repay the Qardul Hassan financing to the Islamic Microfinance Institution (IMFI). This would enable to create more added value product, selling it to get more income and achieving the organization sustainability.
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Syamlan, Yaser Taufik. "The Circular Economy of the Islamic Group Lending Model: Lending Money for Garbage in Return." International Journal of Islamic Economics 2, no. 02 (January 8, 2021): 110. http://dx.doi.org/10.32332/ijie.v2i02.2580.
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The Model of Group Lending has been flourishing in the Microfinance Industry. This model has been used widely to serve the needy and un-bankable group of people by lending money plus interest addition. Islamic finance also embraces this model by omitting the interest and applying the Qardul Hassan to finance the members' daily needs. This divine scheme's problem is the microfinance's sustainability since they have a burden to bear the operational cost due to the non – interest feature of the financing. This paper tries to solve this problem by utilizing the household garbage as the media to repay the Qardul Hassan financing to the Islamic Microfinance Institution (IMFI). This would enable to create more added value product, selling it to get more income and achieving the organization sustainability.
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Bin Ramazani, Kithima, and Eugenia Nkechi Irechukwu. "Microfinance Services and Women's Empowerment in the Democratic Republic of Congo: A Case Study of FINCA and Hekima Microfinance." African Journal of Empirical Research 5, no. 4 (October 30, 2024): 535–45. http://dx.doi.org/10.51867/ajernet.5.4.43.
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Microfinance has emerged as a vital instrument for promoting economic development and alleviating poverty, particularly in developing countries. In the Democratic Republic of Congo (DRC), where socio-economic challenges are prevalent, microfinance services play a crucial role in enhancing the livelihoods of marginalized groups, especially women. Women in the DRC face significant barriers to accessing financial resources, which limits their ability to engage in entrepreneurial activities and contribute to their households and communities. Microfinance institutions (MFIs) like FINCA and Hekima have been instrumental in addressing these challenges by providing women with access to credit, savings, and financial education. However, few is known about mobility, economic securities and household decisions empowerment by using Finca and Hekima microfinances as case study. The study was guided by the agency theory. The study adopted a descriptive survey design to examine the impact of microfinance services on women's empowerment in the Democratic Republic of Congo (DRC), specifically focusing on the roles of FINCA and Hekima Microfinance. The research adopted quantitative data analysis, involving questionnaires of women beneficiaries to assess changes in their economic status, decision-making power and social standing. The target population was 1676 members from FINCA and Hekima MFIs. A sample of 323 respondents was determined using Slovin formula. The study used questionnaires to collect data. The results were analyzed by using descriptive, bivariate and multivariate analysis using SPSS Version 25. The findings indicate that women beneficiaries of FINCA and Hekima perceive the loans and services provided by these microfinance institutions as significantly beneficial to their financial empowerment and overall well-being. Notably, 48.8% of respondents strongly agree that the loan received has positively impacted their financial situation, resulting in a mean score of 4.44 (SD = 0.585). Additionally, 52.0% feel more empowered to make financial decisions post-loan, with a mean of 4.41 (SD = 0.676). The accessibility and user-friendliness of the services were affirmed by 47.6% of respondents who strongly agreed, achieving a mean score of 4.44 (SD = 0.564). Furthermore, 48.0% reported an increase in business income since obtaining the loan (mean = 4.42, SD = 0.609), and 56.3% believe that access to microfinance is essential for women’s empowerment in their community, resulting in the highest mean score of 4.54 (SD = 0.552). The findings reflect a strong positive sentiment towards the support received, with 52.4% feeling supported by the staff, leading to a mean score of 4.39 (SD = 0.707). In conclusion, the study highlights the significant positive impact of microfinance services provided by FINCA and Hekima on the financial empowerment of women in Congo, underscoring the critical role these institutions play in improving their economic situations. It is recommended that FINCA and Hekima continue to enhance their training programs and support services while ensuring the accessibility of their financial products to further empower women and strengthen their communities.
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Asif Nadeem, Muhammad, Waheed Akhter, and Muhammad Akhtar Sherani. "Impact of Islamic and Conventional Microfinance on Poverty Alleviation: A Comparative Study." Journal of Islamic Business and Management (JIBM) 14, no. 02 (December 31, 2024): 127–51. https://doi.org/10.26501/jibm/2024.1402-004.
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Purpose: This study investigates the impact of microfinance on poverty alleviation and compares the effects of both Islamic and conventional microfinance for poverty alleviation. Design/Methodology/Approach: This cross-sectional research has adopted a quantitative research design, and a survey research strategy has been used for collecting data from microfinance clients. The data are analyzed through SPSS and AMOS software. Findings: Both Islamic and conventional microfinance are found to be helpful in poverty alleviation, wherein Islamic microfinance is found to be more suitable for poverty alleviation than the conventional microfinance. Originality/Significance: This study represents the initial attempt to comprehensively compare the efficacy of Islamic and conventional microfinance in alleviating poverty, based on the available knowledge. Additionally, it emphasizes the significant impact of Islamic microfinance on poverty alleviation. Research Limitations/Implications: This study provides useful implications to policymakers and practitioners for improving microfinance strategies aiming to fulfill the objective of poverty alleviation. Further, it provides policy recommendations for microfinance institutions, donors in the microfinance sector, and the government.
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Babajide, Abiola Ayopo, Joseph Niyan Taiwo, and Kehinde Adekunle Adetiloye. "A comparative analysis of the practice and performance of microfinance institutions in Nigeria." International Journal of Social Economics 44, no. 11 (November 6, 2017): 1522–38. http://dx.doi.org/10.1108/ijse-01-2016-0007.
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Purpose The successful story of microfinance institutions is often tied to the practice and methods of credit delivery as evidence among international world class microfinance institutions across the globe. The purpose of this paper is to examine the impact of practice and methods of credit delivery employed by “non- profit” and “for-profit” microfinance institutions on financial sustainability and outreach programmes of the microfinance institutions in Nigeria. Design/methodology/approach The study adopts the survey research design and multi-stage stratified random sampling procedure to collect data from 372 senior management staff, managing directors and board members of microfinance institutions of both groups in Nigeria. Data collected were analyzed using descriptive statistics and multiple regressions analysis. Findings The findings suggest that the current practice and methods of credit delivery of microfinance in both “non-profit” and “for-profit” microfinance institutions have an inverse relationship with the financial sustainability and outreach programmes of the institutions. This study provides empirical evidence for the incessant failure of microfinance institutions in Nigeria. Research limitations/implications The study therefore recommends an immediate overhaul of the methodology and practice of microfinance institutions in the country to align with international best practice. Originality/value In spite of the huge literature on microfinance in Nigeria, there is not enough evidence to empirically prove that the practice of microfinance has affected the performance of the industry in Nigeria. This study sets out to fill that gap in the literature. The paper examines the practice of microfinancing in Nigeria vis-à-vis the performance of the microfinance institutions, categorized into NGO and microfinance bank “for-profit” institutions using international best practices from countries where microfinance is highly successful as a benchmark for deployment of microfinance in Nigeria, in order to proffer policy direction to stakeholders on steps to take to ensure viability in the microfinance subsector in Nigeria.
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Baskaran, Angathevar, Thiri Dong, and Sonia Kumari Selvarajan. "Microfinance and Women’s Empowerment in Myanmar." Jurnal Institutions and Economies 14, no. 2 (April 1, 2022): 59–90. http://dx.doi.org/10.22452/ijie.vol14no2.3.
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Like in many other developing countries, microfinance programmes in Myanmar have become an avenue to reduce poverty. This research examines whether microfinance in Myanmar has empowered female clients compared to non-microfinance clients, in terms of: (i) general decision-making (children’s education, family planning, children’s marriage, health care); and (ii) financial decision-making (income utilisation, loan usage, savings, investment). Primary data was collected using a questionnaire survey to achieve the research objectives. The sample of the survey consists of two groups of women living in the Ayeyarwady region, Myanmar: (i) Beneficiaries of microfinance programmes, and (ii) non-beneficiaries of any microfinance institutions. Female clients either started a new business or expanded/diversified an existing business using microfinance, which helped to increase income and savings. Overall, 89.8% of microfinance clients have gained significant empowerment (in making general and financial decisions combined). The discriminant analysis based on four indicators - children’s education, children’s marriage, savings, and investment - shows that the decision-making power of microfinance clients has improved compared to non-clients. The government should actively promote a microfinance ecosystem through robust microfinance institutional frameworks including, microfinance institutions, intermediaries, and local government agencies. Financial literacy awareness campaigns should be organised frequently to promote wider women’s participation in microfinance programmes.
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Md Saad, Norma, and Azizah Anuar. "‘Cash Waqf’ and Islamic Microfinance: Untapped Economic Opportunities." ICR Journal 1, no. 2 (December 15, 2009): 337–54. http://dx.doi.org/10.52282/icr.v1i2.751.
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The success of microfinance programmes in alleviating poverty in many countries has spurred the development of faith-based microfinance institutions. Muslims have combined certain elements in Islamic finance and microfinance to create a new programme called ‘Islamic microfinance’ and use it as a tool to fight poverty in their community. Even though microfinance is proven successful in fighting poverty, current microfinance practised by commercial banks in Malaysia has several shortcomings. Current weaknesses include stringent credit evaluation and missing the real target group, i.e., the poor and the needy. Furthermore, the mode of financing is mostly personal loan using bay’ al-‘inah, whereby the use of the loan is to fulfil personal consumption instead of income-generating activities. Given these shortcomings, the article explores the possibility of using ‘cash waqf’ as a new source of funding for Islamic microfinance and proposes a new concept and application of Islamic microfinance so that it is truly in line with the Islamic spirit of microfinance. It is hoped that with this new concept and application of Islamic microfinance, the use of microfinance genuinely caters for the needs of the poor as well as generating socio-economic growth of the Muslim ummah.
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Ebissa, Tarekegn Tariku, and Arega Seyoum Asfaw. "Gender diversity and profit efficiency of microfinance institutions: A Sub-Saharan study." PLOS ONE 19, no. 8 (August 5, 2024): e0307758. http://dx.doi.org/10.1371/journal.pone.0307758.
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Irrespective of the promising opportunity to improve profit efficiency by at least 73%, microfinance institutions operating in Sub-Saharan Africa are efficient only for 27%, far below the average value. The conclusion is drawn after analyzing the profit efficiency of the microfinance institutions using the stochastic frontier approach applied to data obtained from 128 microfinance institutions operating in 34 Sub-Saharan African countries. The study results suggest the presence of uniform profit efficiency experience across time among microfinance institutions. Microfinance institutions operating in low-income countries and credit union form microfinance are economically more efficient than their counterparts. Furthermore, the profit efficiency of microfinance institutions is significantly affected by total assets, cost per loan, loan per staff, legal status, and the county’s income group of microfinance. Notably, the profit efficiency of microfinance institutions is adversely affected by the presence of female borrowers and female loan officers suggesting that gender diversity plays a role in the efficiency of microfinance institutions. Finally, we recommend that the managing body of microfinance work more on improving labor efficiency, earning asset utilization, loan collection efficiency, women’s involvement and the hottest technology implementation.
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Xiong, Fang, and Jia Lu You. "The impact paths of social capital and the effects of microfinance." China Agricultural Economic Review 11, no. 4 (October 25, 2019): 704–18. http://dx.doi.org/10.1108/caer-12-2017-0256.
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Purpose The purpose of this paper is to investigate the impact paths of the social capital and the effects of microfinance in rural China, and address effective methods to enhance the effects of microfinance for rural China. Design/methodology/approach Using a structural equation model with survey data from 350 rural households in China, this paper analyzes empirically whether greater level of social sanctions and social relations caused more tangible effects of microfinance, and whether tangible effects of microfinance are associated with social capital formation of households. Findings The results indicate that social capital promotes the effects of microfinance and the process of providing microfinance service is also the process of building social capital. Moreover, social sanctions diminish the effects of microfinance while social relations boost them and enhance the effects of microfinance that can encourage social capital formation. Results also show that a reverse causal relationship exists between social sanctions and social relations. Research limitations/implications The empirical results imply that actively utilizing and creating social capital is vital to improve the effects of microfinance, and microfinance institutions (MFIs) should concentrate more on harmonious social relations and deliberately build social capital. Practical implications These findings imply that actively utilizing and creating social capital is vital to improve the effects of microfinance, and the MFIs should concentrate more on harmonious social relations and deliberately build social capital to enhance the effects of microfinance while prudently use social sanctions. Social implications Enhancing the effects of microfinance, while prudently using social sanctions, increases households income. Originality/value This paper originates to investigate the links between the social capital and the effects of microfinance in a mutual way, and the results urge more attentions on the harmonious social relations which have been ignored to enhance the effects of microfinance.
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Adams, Dale W., and Robert C. Vogel. "Microfinance dreams." Enterprise Development and Microfinance 27, no. 2 (June 2016): 142–54. http://dx.doi.org/10.3362/1755-1986.2016.010.
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KUMASHIRO, Chihiro. ""Reinventing" Microfinance:." Journal of African Studies 2014, no. 84 (2014): 17–30. http://dx.doi.org/10.11619/africa.2014.84_17.
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Byström, Hans N. E. "Structured Microfinance." Journal of Structured Finance 13, no. 2 (July 31, 2007): 26–28. http://dx.doi.org/10.3905/jsf.2007.690263.
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Giné, Xavier, Pamela Jakiela, Dean Karlan, and Jonathan Morduch. "Microfinance Games." American Economic Journal: Applied Economics 2, no. 3 (July 1, 2010): 60–95. http://dx.doi.org/10.1257/app.2.3.60.
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Microfinance banks use group-based lending contracts to strengthen borrowers' incentives for diligence, but the contracts are vulnerable to free-riding and collusion. We systematically unpack microfinance mechanisms through ten experimental games played in an experimental economics laboratory in urban Peru. Risk-taking broadly conforms to theoretical predictions, with dynamic incentives strongly reducing risk-taking even without group-based mechanisms. Group lending increases risk-taking, especially for risk-averse borrowers, but this is moderated when borrowers form their own groups. Group contracts benefit borrowers by creating implicit insurance against investment losses, but the costs are borne by other borrowers, especially the most risk averse. (JEL D82, G21, G31, O16)
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Manning, T. E. "RE microfinance." Refocus 2, no. 8 (October 2001): 22–25. http://dx.doi.org/10.1016/s1471-0846(01)80101-3.
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Ukanwa, Irene, Lin Xiong, and Alistair Anderson. "Experiencing microfinance." Journal of Small Business and Enterprise Development 25, no. 3 (June 18, 2018): 428–46. http://dx.doi.org/10.1108/jsbed-02-2017-0043.
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Purpose The purpose of this paper is to address the problem of why the poorest, most disadvantaged groups such as rural African women, benefit less from microfinance. The authors focus on the perception and experiences of ordinary rural entrepreneurial women on microfinance in a context of extreme poverty and where family responsibility and economic activities are closely intertwined. Design/methodology/approach The authors purposefully sampled 15 poor females with small businesses in two Nigerian villages. The key characteristic guiding the sampling was that the respondents had to be poor. The authors held two focus groups and ten interviews to capture their experience and understanding of microfinance. The authors used thematic analysis to establish patterns in the data. Findings For poor entrepreneurial women, a livelihood for survival, putting food on the table and paying school fees are priorities, not business growth. They see microcredit as debt and a great risk that could lead to irreversible losses. Family responsibilities for basic consumption needs of the household can affect their ability to repay loans; perceived dangers of microcredit may outweigh potential benefits. Research limitations/implications The theories, especially functionalist economic theory, do not take account of microfinance users’ experiences. Practical implications Microfinance should be aware that the poorest perceive microcredit differently and should eliminate the intimidating barriers raised to them. Instead of providing a means for the poor to alleviate poverty or coping strategies for them to manage cash flows and risks, microfinance causes fear and anxiety by demanding high rate of return in a very short period of time. Social implications The very poorest, who should be the beneficiaries of microfinance, are less likely to be able to benefit. The condition of poverty creates different realities for those at the base of the pyramid. Originality/value This research questions the neoliberal rationality assumptions that microfinance rest on; the paper fills a gap in the literature, i.e. how the potential borrowers themselves living in deep-rooted poverty perceive and experience microfinance.
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Bubna, Amit, and Bhagwan Chowdhry. "Franchising Microfinance*." Review of Finance 14, no. 3 (April 9, 2009): 451–76. http://dx.doi.org/10.1093/rof/rfp005.
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Pluskota, Przemysław. "Microfinance and microfinance institutions – development directions and prospects." European Journal of Service Management 27 (2018): 223–32. http://dx.doi.org/10.18276/ejsm.2018.27/1-28.
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Risal, Nischal. "Microfinance Position and Indebtedness: Empirical Evidence from Microfinance Institutions in Nepa." Pravaha 24, no. 1 (June 12, 2018): 120–36. http://dx.doi.org/10.3126/pravaha.v24i1.20232.
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The paper has been built up with the aim of analyzing the microfinance institutions status and indebtedness in Nepal. Initially, the paper starts with the thematic review based on etymological, ontological, epistemological dimensions then the status of microfinance institutions and indebtedness in Nepal have been presented in the second part. The descriptive analytical research design has been adopted to analyze and interpret the population data. The fifty three microfinance institutions' data have been reviewed, tabulated and analyzed using MSExcel. The microfinance institutions have been found efficient in saving and credit services. The microfinance credit service has not been utilized as per the need of the people and capacity of the institutions. The loan recovery, interest recovery, clients awareness/activeness have been found effective. Overall, microfinance institutions status has been found sound. Only few institutions are below the satisfaction level. The microfinance services in terms of micro loan are not uniform among microfinance institutions. The indebtedness challenge have found at bottom level in the microfinance industry. It is recommended to all the microfinance institutions to come up with policies, strategies and regulatory framework to benchmark the level of tolerance to indebtedness, so that the microfinance institutions may sustain by achieving the objectives of poverty alleviation through microfinance services. Pravaha Vol. 24, No. 1, 2018, Page: 120-136
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Firdaus, Nur. "The Relationship between Culture and Social Capital with the Sustainability of Microfinance." International Research Journal of Business Studies 13, no. 2 (August 20, 2020): 113–26. http://dx.doi.org/10.21632/irjbs.13.2.113-126.
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Poverty has been the biggest problem around the world, and one of the innovative solutions offered is microfinance. Since the success story of Grameen Bank has been widely spread, many countries decided to adopt microfinance programs to alleviate poverty. Microfinance is then believed as an effective instrument that can answer the poverty challenges. Several studies have analysed the impact of microfinance on poverty reduction, but the results varied. Some support that microfinance can improve the poor, but other criticize and argue that microfinance does not play a significant role to reduce the poverty rate and even undermine the poor. This article aims to analyse factors, namely culture and social capital, that can influence the sustainability of microfinance performance. The assumption used in this article is that the success of microfinance cannot be separated from the borrowers’ background that influences their behaviours towards microfinance. The article summarized a number of studies that have discussed this issue using a qualitative approach. The findings show that culture and social capital have an impact on the sustainability of microfinance, but the impacts depend on the condition of cultures and social capital in a society. However, additional supports are needed and should not be ignored to accelerate the impact of microfinance.
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Njeru, Caroline Wawira. "Microfinance Services and Household’s Income among Saving and Internal Lending Community Groups in Evurore Ward, Embu County, Kenya." Journal of Finance and Accounting 8, no. 7 (June 28, 2024): 15–27. http://dx.doi.org/10.53819/81018102t4273.
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The research established loans, savings and training services effect on the income of household’s income among saving and internal lending community groups in Evurore Ward of Embu County, Kenya. Greeman Bank model, Saving-Asset Accumulation model and Village Saving Model served as theoretical base of the study. Descriptive design was implemented following a population of 562 SILC practicing group members in Evurore Ward where proportionate sampling technique was applied to arrive at 291 respondents. Primary data was sourced employing the utilization of structured questionnaire. The outcome unveiled a significant positive effect of microfinance loans on household’s income; the effect of microfinance savings on household’s income among SILC groups was not statistically significant but positive; microfinance training had a significant positive effect on household’s income among SILC groups in Evurore Ward, Embu County, Kenya. The survey recommends that to further enhance the income-generating potential of SILC groups, it is necessary to promote increased access to microfinance loans. This can be achieved by collaborating with microfinance institutions, NGOs, and government agencies to expand the availability of microfinance loan programs tailored to the needs of SILC groups in the area. Keywords: Microfinance Services, Microfinance Lending, Microfinance Training, Microfinance Savings, Household Income
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Le Saout, Erwan. "Performance of the Microfinance Investment Vehicles." Applied Economics and Finance 4, no. 6 (October 23, 2017): 42. http://dx.doi.org/10.11114/aef.v4i6.2719.
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Over the last few years, the microfinance sector has seen its transformation. Microfinance institutions seek a wide range of sources of funding, while private investors seek not only social returns but also financial returns. This new approach has led to the emergence of microfinance investment funds and initial public offerings of certain Microfinance institutions. Microfinance now seems to be seen as a new investment opportunity by global investors.Aim of this paper is to study the performance of public Microfinance Investment Vehicles. Despite a significant currency risk, we find that the integration of microfinance assets diversifies the investor’s risks and improves the efficient frontier. We conclude that microfinance institutions, via investment vehicles, are likely to attract capital from socially responsible investors seeking new investment opportunities despite a sharp decline in the Sharpe ratio over the past few months.
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Grimbald, Ndah, and Tarbot Chelsea Mah. "Bank Marketing and Its Effects on Customer Retention in Microfinance in Yaounde, Cameroon." Business and Economic Research 13, no. 1 (March 13, 2023): 57. http://dx.doi.org/10.5296/ber.v13i1.20331.
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This study seeks to assess bank marketing and its impact on customer retention in microfinance in Yaoundé, Cameroon. A cross-sectional research design consisting of 348 clients of category two microfinances were sampled from the center region of Cameroon. Data for the study was sourced using closed structured questionnaires. The analysis was concluded using statistical software’s such as Statistical Package for Social Sciences (SPSS 24) and Analysis of Moment Structures (AMOS24). The results from the analysis reveal that Customer service and retention have a significant positive impact on customer retention. The study therefore concluded that emphasis on better customer services leads to a high customer retention rate in category two microfinances in Yaounde, Cameroon. A new model called Bank Marketing and Customer retention Model (BMCR Model) was developed to test the relationship amongst variables. This study contributes to the limited theoretical and empirical evidence of the impact of bank marketing on customer retention in microfinances in Yaounde, Cameroon.
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Quao, Kwami Hope. "Conceptual Framework for Enhancing the Implementation of Specific Microfinance Policies in Sub-Sahara Africa." International Journal of R&D Innovation Strategy 1, no. 1 (January 2019): 33–45. http://dx.doi.org/10.4018/ijrdis.2019010103.
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Deficient policy formulation processes and inadequate monitoring and supervision remain factors impeding the growth of microfinance in sub-Saharan Africa. This article explores issues mitigating policy implementation for microfinance institutions to propose a framework that will integrate stakeholders in the microfinance sector for effective financial policy implementation and promotion of microfinance performance and growth. The article proposes financial monitoring policy ownership structure and argues for the creation of an independent national microfinance supervisory authority as an alternative to ensuring effective implementation of microfinance policies in Ghana. This framework, the authors argue, will enhance stakeholder engagement in police formulation and create the necessary implementation environment, with adequate information, in which policy implementation for microfinance will flourish.
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Darwanto, Darwanto. "STRATEGI PENGUATAN MICROFINANCE SYARIAH BERBASIS EKONOMI KELEMBAGAAN." INFERENSI 8, no. 2 (December 1, 2014): 501. http://dx.doi.org/10.18326/infsl3.v8i2.501-522.
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The purpose of this study is to obtain an overview of the sharia microfinance issues, sharia microfinance solutions to solve problems, and institutions strategies for strengthening sharia microfinance. The method used in this study is a qualitativeanalysis method using the tool Analytical Network Process (ANP) is used to find the priority of problems, solutions and strategies for improvement of sharia microfinance institutions. The results of studies suggest that the improvement in sharia microfinance institutions have 4 aspects, those are the problems of the human resource aspects (SDI), infrastructure aspects, market aspects, and management aspects. Aspect of the priority issues in the sharia microfinance institutional improvement is a human resources (SDI), while the improvement solution of sharia microfinance institutional is an aspect of human resources(SDI) as well. Then the strategy which becomes a priority in the improvement of sharia microfinance institutions is the optimization of the board of sharia (DPS)
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Chinwe, Okeke Ijeoma. "Microfinance Banks and Economic Development in Nigeria (2013-2023)." International Journal of Research and Innovation in Social Science VIII, no. XII (2025): 1424–32. https://doi.org/10.47772/ijriss.2024.8120121.
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This study examines the effects of microfinance banks on Nigeria’s economic development, specifically examining HDI, investments, loans, and deposits. Utilizing multiple regression analysis on data from 2013 to 2023, the study aims to assess how microfinance investments, loans, and deposits influence Nigeria’s economic development. Data from all micro finance banks were sourced from the Central Bank of Nigeria’s Statistical Bulletin and Annual Reports. The results indicate that In contrast, microfinance loans have a negative, insignificant effect on HDI. Deposits from microfinance have a positive and insignificant effect on HDI. microfinance investments have a positive and significant effect on HDI. The study suggests that microfinance institutions should focus on investments in social sectors, such as education, healthcare, and housing, to foster human development. This study also questions the general assumption that microfinance consistently enhances economic and human development, emphasizing the importance of context-specific factors like financial literacy for effective microfinance outcomes.
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Tunio, Ghazala. "Performance of Microfinance Providers in Sindh, Pakistan: A Study of Formal and Informal Microfinance Institutes." IBT Journal of Business Studies 16, no. 1 (2020): 151–70. http://dx.doi.org/10.46745/ilma.jbs.2020.16.01.11.
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This research aims to analyze the performance of microfinance providers of the Sindh province of Pakistan. For this purpose, the formal and informal microfinance institutes were selected. Data was gathered from a sample of 150 managers of microfinance banks and institutions. In this research, the random sampling technique is used to collect the data through questionnaires. The OLS regression model is employed to analyze the data. The results of this study show that the number of branches, and less number of defaulters significantly affect the performance of microfinance institutes in Sindh, Pakistan. Moreover, the total cost also has an important relationship with the performance of microfinance organizations in Sindh. However, the study finds the interest rate, and more diversified financial services to have no significant impact on the performance of microfinance organizations. Due to the lack of financial information of the microfinance institutions in Sindh, there is dearth of the research on the performance of microfinance institutions. Rather than using only the published financial information this study relies on the information provided by the managers of the microfinance providers for the analysis. The results of this study have implications for the well-functioning of microfinance institutes, and for the government to achieve the poverty alleviation objectives in Pakistan