scholarly journals Evaluating the Impact of Microfinance at the Individual Level in Albania, Particularly in the Region of Vlora and Fier

2018 ◽  
Vol 1 (1) ◽  
pp. p143
Author(s):  
Oltiana Muharremi ◽  
Edlira Luҫi ◽  
Filloreta Madani ◽  
Erald Pelari
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Microfinance Institutions ◽  
Way Of Life ◽  
Individual Level ◽  
Right To Development ◽  
Micro Insurance ◽  
The Individual ◽  
The Impact ◽  
Micro Credit

Microfinance is defined as the provision of financial services such as micro-credit, micro savings, and micro insurance for individuals with low income. Although access to micro credit is seen as a right to have credit, it rather represents a right to development and economic initiatives that could change the borrower’s way of life. The purpose of this article is to examine the impact of microfinance loans in improving the living conditions of borrowers. This study is based on an empirical investigation of 384 structured questionnaires directed at microfinance institutions in the regions of Vlore and Fier, Albania.

scholarly journals Evaluating the Impact of Microfinance for Women in Albania

2016 ◽  
Vol 4 (2) ◽  
pp. 233
Author(s):  
Oltiana Muharremi ◽  
Filloreta Madani ◽  
Erald Pelari
Keyword(s):  
Social Influence ◽  
Low Income ◽  
Financial Services ◽  
Poverty Alleviation ◽  
Empirical Investigation ◽  
Social Value ◽  
Microfinance Institutions ◽  
The Poor ◽  
The Impact ◽  
Micro Enterprises

<p class="Default"><em>Microfinance is defined as any activity involving the offering of financial services such as loans, savings and insurance to individuals with low income.</em><em> </em><em>Creating social value includes reducing poverty and having a better impact to improve living conditions through capital for micro-enterprises; insurance and savings deposits for reducing risk and boosting consumption. Worldwide microfinance actors promote access to basic financial services by developing new tools, a variety of products and the adoption of an integrated banking access.</em></p><p class="Default"><em>Initially, microfinance was largely gender neutral: it sought to provide credit to the poor who had no assets to pledge as collateral. It quickly emerged, however, that women invested their business profits in ways that would have a longer-lasting impact on their families and communities. Consequently women became fundamental to the success of the microfinance model as a poverty alleviation tool. The purpose of this article is to examine the impact of microfinance loans in improving the lives of women borrowers, as well as in strengthening their social influence and the microcredit impact in promoting savings. This study is based on an empirical investigation of 384 structured questionnaires and surveys directed at microfinance institutions and their clients in the regions of Vlore and Fier, Albania.</em></p>

scholarly journals The Islamic Microfinance System And Its Ultimate Impact On The Poor In Bauchi Metropolis In The Context Of Socio-Economic Challenges

2021 ◽  
Vol 5 (1) ◽  
pp. 95-101
Author(s):  
Hashim Sabo Bello ◽  
Shamsuddeen Abubakar ◽  
Sunusi Abdulkadir Fateh
Keyword(s):  
Social Services ◽  
Low Income ◽  
Financial Services ◽  
Poor People ◽  
Microfinance Institutions ◽  
Islamic Microfinance ◽  
And Gender ◽  
High Level ◽  
Financial Transactions ◽  
The Impact

One of the conditions for providing social services to the population, reducing the differentiation of their incomes, as well as reducing poverty is to provide equal access to financial services for all segments of the population. Despite high unemployment and a significant number of poor people, only about a few thousand Nigerians today use Islamic microfinance services. The main purpose of this study is to study the impact of the Islamic microfinance system on the financial situation of the population. The study is based on the principles of the theory of positivism. Methods of deduction, statistical analysis, and survey served as methodological tools. The authors of the article developed a structured questionnaire, the analysis of which allowed to analyze the attitude of citizens to Islamic microfinance services. A representative sample of citizens of the metropolis Bauchi with different levels of wealth, age and gender was selected for the study. According to the results of the survey, the development of special microcredit programs for low-income people allowed to finance the start of their own business, thus providing their own and household members’ employment. The main factors hindering the development of microfinance in Muslim countries are the high level of non-repayment of borrowed funds, imperfect infrastructure, the presence of Sharia bans on certain types of financial transactions. The results of the study showed the need for an active information campaign aimed at explaining the benefits of using macro-financial services and their accessibility for low-income citizens, as well as expanding the network of microfinance institutions throughout the metropolis. These measures will create conditions for the development of small business in the country, and as a consequence reduce poverty and reduce the number of unemployed in the country.

scholarly journals Predicting The Impact of Commercialization Factors on The Social Mission of Islamic Microfinance Institutions for Muslim Community

2020 ◽  
Vol 6 (1) ◽  
pp. 14
Author(s):  
Hesi Eka Puteri
Keyword(s):  
Low Income ◽  
Financial Services ◽  
Quantitative Research ◽  
Social Performance ◽  
Microfinance Institutions ◽  
Muslim Community ◽  
Social Mission ◽  
The Social ◽  
Community Banking ◽  
The Impact

<p class="abstrak">As a community banking operating in Islamic principles, Islamic rural banks are faced with two performance targets namely financial performance and social performance which are both interrelated. This study examined the impact of commercialization factors covering profitability, regulation, and competition on the social performance of Islamic rural banks. This study was quantitative research based on a survey on six units of Islamic rural banks in West Sumatera province of Indonesia from 2012 to 2018. Data collected from the publication of financial services authority and other financial documents at Islamic rural banks then analyzed with panel data regression. The findings of this research showed that profitability and competition influenced social performance. Meanwhile, there was no regulation’s impact on social performance.  Regulatory factors that were initially expected to strengthen the social responsibility mission of Islamic rural banks, did not stimulate the increase of social performance. This study reveals the importance of the commercialization factor in improving the social performance of Islamic rural banks by increasing the social benefits through providing financial services for the low-income Muslim community.</p><p class="abstrak" align="left"> <em>Sebagai sebuah community banking yang beroperasi dalam prinsip-prinsip Islam, BPR Syariah dihadapkan pada dua target kinerja yaitu kinerja keuangan dan kinerja sosial yang keduanya saling terkait. Penelitian ini bertujuan untuk menguji dampak dari faktor-faktor komersialisasi yang meliputi profitabilitas, regulasi dan kompetisi terhadap kinerja sosial BPR Syariah. Penelitian ini menggunakan pendekatan kuantitatif berdasarkan survei pada enam unit BPR Syariah di provinsi Sumatera Barat Indonesia dari tahun 2012 hingga 2018. Data dikumpulkan dari publikasi Otoritas Jasa Keuangan dan dokumen keuangan lainnya di BPR Syariah kemudian dianalisis dengan regresi data panel. Hasil penelitian ini menunjukkan bahwa profitabilitas dan persaingan berpengaruh terhadap kinerja sosial, sedangkan regulasi tidak berpengaruh terhadap kinerja sosial. Faktor regulasi yang semula diharapkan memperkuat misi tanggung jawab sosial BPR syariah, ternyata tidak merangsang peningkatan kinerja sosial. Studi ini mengungkap akan pentingnya faktor komersialisasi dalam meningkatkan kinerja sosial BPR syariah dengan meningkatkan manfaat sosial melalui pemberian layanan keuangan untuk masyarakat muslim berpenghasilan rendah.</em></p><p class="abstrak"> </p>

Micro-Finance as a Triggering Mechanism for Empowering Women’s Entrepreneurship in Sri Lanka

2021 ◽  
Vol 9 (2) ◽  
pp. 70-86
Author(s):  
Ayoma Sumanasiri ◽  
Prabhavi Chandrarathna
Keyword(s):  
Sri Lanka ◽  
Rural Areas ◽  
Financial Services ◽  
Entrepreneurial Success ◽  
Urban Sector ◽  
Women’S Entrepreneurship ◽  
Micro Insurance ◽  
Women's Entrepreneurship ◽  
The Impact ◽  
Micro Credit

The Micro-Finance sector has been identified as one of the main sectors that contributes to the eradication of poverty and to empowering women in developing countries. Women’s Entrepreneurship is considered an emerging trend among nations and contributes to the development of a country. It is also identified as an important means to end poverty and therefore, female empowerment through entrepreneurship has been well recognized. Micro-finance enables women’s entrepreneurial success; however, the context of the urban sector has not been well examined in the literature since most scholars perceive that poverty is mainly confined to the rural areas of a country. There are many services provided by the Micro- Finance sector. However, it is vital to identify their impact on Women’s Entrepreneurial success, particularly in the urban sector of the country. Accordingly, this study focuses on examining the impact of Micro-Finance, which includes Micro-Credit, Micro-Savings and Micro-Insurance, on Women’s Entrepreneurial success in Sri Lanka, specifically in the Colombo district. 240 women entrepreneurs who have obtained micro financial services in the Colombo district were used as the sample of this study. In order to arrive at a conclusion regarding the relationship between micro-credit, micro-savings, micro-insurance and entrepreneurial success, a 5-point Likert scale questionnaire has been used. The required data were collected by distributing the questionnaire through Google Forms. The statistical software package SPSS was used to analyze the collected data. It was identified that all the measurement items under Micro-Credit, Micro-Savings and Micro- Insurance exhibit significant relationships with Women’s entrepreneurship in the Colombo District, and therefore, all the hypotheses were accepted. Recommendations are provided to further enhance female presence and success in entrepreneurship in Sri Lanka.

scholarly journals Does Micro-Credit Lending to Small Scale Enterprises Stimulate Economic Advancement in Nigeria? Evidence from ARDL Analysis

2021 ◽  
pp. 53-66
Author(s):  
Chuks Nwaogwugwu ◽  
John U. Ihendinihu
Keyword(s):  
Financial Services ◽  
Small Businesses ◽  
Financial Sector ◽  
Cointegration Analysis ◽  
Policy Framework ◽  
Small Scale ◽  
Microfinance Institutions ◽  
Economic Advancement ◽  
The Impact ◽  
Micro Credit

The microfinance institutions are evident tools for Small Scale Enterprises development due to the roles they perform in the economic advancement. Past studies have shown microfinance serves as a key player in the financial sector that has positively impacted in all works of life through the services it offers. This study is positioned to explore the case of Nigeria by examining the impact of micro-credit lending to Small Scale Enterprises on economic advancement in Nigeria over the period 1992–2019, using the autoregressive distributed lag approach to cointegration analysis. Controlling for the possible effects of crude oil price and trade openness on economic advancement in Nigeria, this study found the relationship between micro-credit lending to Small Scale Enterprises and economic advancement is negative and significant in the long‐run and positive but insignificant in the short‐run, thus, suggesting the weakness of financial intermediary sector in resource mobilization and allocation in Nigeria. The result, in general, illustrates the vulnerability of the financial sector in stimulating economic advancement by providing micro-credit for small businesses and the unbanked.  Hence, this study suggests a well‐articulated policy framework that will facilitate access to financial services.

Reducing Poverty and Sustaining Growth

2019 ◽  
pp. 773-792
Author(s):  
Nabila Nisha ◽  
Afrin Rifat
Keyword(s):  
Economic Development ◽  
Developing Country ◽  
Financial Institutions ◽  
Low Income ◽  
Financial Services ◽  
Microfinance Institutions ◽  
Intense Competition ◽  
Development Approach ◽  
Operational Structure ◽  
Micro Credit

Microfinance institutions have been effective rural banking channels that extended financial services to low-income individuals, particularly women in developing country settings. Since its inception, microfinance has evolved as an economic development approach and has grown to enormous scale in Bangladesh, with a reported approximate 23 million borrowers in a country of roughly 150 million people. These numbers reveal the highest population saturation of microfinance in any country. However, with the maturity of the microfinance market in recent years, competition has subsequently increased among various financial and non-financial institutions. Against this backdrop of intense competition, this chapter aims to focus on the current institutions of Bangladesh that has made the microfinance service almost a sole option for the downtrodden segment of the low-income society. In particular, various approaches of microfinance and its operational structure by these institutions including the challenges and attributions of a dynamic micro credit concept will be highlighted.

Reducing Poverty and Sustaining Growth

2017 ◽  
pp. 50-75 ◽  
Author(s):  
Nabila Nisha ◽  
Afrin Rifat
Keyword(s):  
Economic Development ◽  
Developing Country ◽  
Financial Institutions ◽  
Low Income ◽  
Financial Services ◽  
Microfinance Institutions ◽  
Intense Competition ◽  
Development Approach ◽  
Operational Structure ◽  
Micro Credit

Microfinance institutions have been effective rural banking channels that extended financial services to low-income individuals, particularly women in developing country settings. Since its inception, microfinance has evolved as an economic development approach and has grown to enormous scale in Bangladesh, with a reported approximate 23 million borrowers in a country of roughly 150 million people. These numbers reveal the highest population saturation of microfinance in any country. However, with the maturity of the microfinance market in recent years, competition has subsequently increased among various financial and non-financial institutions. Against this backdrop of intense competition, this chapter aims to focus on the current institutions of Bangladesh that has made the microfinance service almost a sole option for the downtrodden segment of the low-income society. In particular, various approaches of microfinance and its operational structure by these institutions including the challenges and attributions of a dynamic micro credit concept will be highlighted.

scholarly journals Micro-Finance & Micro-Credit for Sustainable Development

2017 ◽  
Vol 6 (3) ◽  
pp. 365
Author(s):  
Shital Prakash Bhusare ◽  
Ruby Chanda
Keyword(s):  
Interest Rates ◽  
Low Income ◽  
Financial Services ◽  
Urban Areas ◽  
Microfinance Institutions ◽  
Self Help ◽  
Deviation Coefficient ◽  
Self Help Groups ◽  
The Impact ◽  
Self Help Group

<div><p><em>Poverty is one of the biggest challenges to the development of a developing country like India where a major population is living in rural and semi-urban areas. Institutional credit is considered as a powerful tool for alleviating poverty. Microfinance is the supply of loans, savings, and other basic financial services to the poor. As the financial services of microfinance usually involve small amounts of money – small loans, small savings etc. the term "Microfinance" helps to differentiate these services from those of commercial banks. Microfinance in India has been through two channels of credit delivery to poor and low-income households–Self Help Group Bank Linkage Programme (SBLP) and the Microfinance institutions lending through groups as well as directly to individuals. This study was with the overall objective of conducting a detailed analysis of interest rates, costs and margins of microfinance institutions. </em></p><p><em>This study highlights the reach and the impact on the customers and the channels used by these firms for the effectiveness of Micro Finance and Microcredit schemes. For the purpose of analysis the statistical tools like Mean, Standard deviation, coefficient of co-relation and regression have been used. </em></p><p><em>Microfinance is playing a very important role in decrease poverty. Microfinance to the rural SHGs is a way to raise the income level and improve the living standards of the rural peoples. Thus, it can be concluded that the self-help groups contribute substantially in pushing the conditions of the rural population up.</em></p></div>

scholarly journals Impact of Micro-Credit on Poor Households in Kurigram District

2018 ◽  
Vol 5 (1) ◽  
pp. 102
Author(s):  
Thuhid Noor ◽  
Farid Saha ◽  
Rabiul Auwal
Keyword(s):  
Low Income ◽  
Rural Areas ◽  
Financial Services ◽  
Developing Economies ◽  
Financial Education ◽  
Good Health ◽  
Living Standard ◽  
Poor People ◽  
The Impact ◽  
Micro Credit

This paper aims to examine empirically the impact of micro-credit and the living standard of poor people in former enclaves. People of the former enclave economy, like all developing economies, live in rural areas and their living standard are not good. Therefore, the need to improve the living standard of those areas gave birth to the establishment of the Micro-credit organizations in Bangladesh. These organizations targeted low income clients through giving loans and other facilities like savings, insurance, and transfer services to poor low-income households and micro enterprises. Dashier Chara, one of the deprived regions in all former enclaves, was selected to study the impact of Micro credit activities and the living standard of poor people in the area. Primary sources of data collection method were used, and structured schedule also used in the study. The main finding was that the impact of micro credit has contributed positively to improve the living standard of poor people. The contribution was evident in improving their property acquired, housing conditions, livelihood improvement, their income, and subsequently led to good health and education for their families, acquisition of assets. Based on the findings, it is recommended that financial education should be intensified to educate people on financial services.

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