scholarly journals Empowering Rural Women’s Involvement in Income Generating Activities Through BRAC Microfinance Institution in Sylhet District, Bangladesh

2020 ◽  
Vol 10 (16) ◽  
Author(s):  
Aysha Akter ◽  
Nobaya Ahmad
Keyword(s):  
Microfinance Institution ◽  
Income Generating Activities

AKIBAT HUKUM PENDIRIAN LEMBAGA KEUANGAN MIKRO OLEH BADAN HUKUM KOPERASI

2018 ◽  
Vol 4 (1) ◽  
pp. 35-50
Author(s):  
Zakiah Noer
Keyword(s):  
Microfinance Institutions ◽  
Microfinance Institution ◽  
Legal Consequences ◽  
Year 2013

This research is underlined by the existence of cooperative business activities which collect and distribute funds over its members, and also to its non-members. In order to avoid the violation of the provisions in Act No. 25 Year 1992 about Cooperatives, cooperative has established a microfinance institution (MFI) which called as Cooperative MFI. The establishment of microfinance institutions causes the legal consequences on several aspects because of the different regulations between Cooperative and MFI according Act No. 25 Year 1992 about Cooperatives and Act No.1 Year 2013 about Microfinance Institutions

scholarly journals Microfinance and Vulnerability to Seasonal Famine in a Rural Economy: Evidence from Monga in Bangladesh

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Claudia Berg ◽  
M. Shahe Emran
Keyword(s):  
Food Security ◽  
Rural Economy ◽  
Screening Process ◽  
Data Set ◽  
Estimation Strategy ◽  
Positive Effects ◽  
Unique Data ◽  
Primary Mechanism ◽  
Poor Households ◽  
Microfinance Institution

AbstractThis paper uses a unique data set on 143,000 poor households from Northern Bangladesh to analyze the effects of microfinance membership on a household’s ability to cope with seasonal famine known as Monga. We develop an identification and estimation strategy that exploits a jump and a kink at the 10-decimal land ownership-threshold driven by the Microfinance Institution screening process to ensure repayment by excluding the ultra-poor. Evidence shows that microfinance membership improves food security during Monga, especially for the poorest households who survive at the margin of one and two meals a day. The positive effects on food security are, however, not driven by higher income, as microcredit does not improve the ability to migrate for work, nor does it reduce dependence on distress sale of labor. The evidence is consistent with consumption smoothing being the primary mechanism behind the gains in food security of MFI households during the season of starvation.

scholarly journals Microfinance and Vulnerability to Seasonal Famine in a Rural Economy: Evidence from Monga in Bangladesh

2020 ◽  
Vol 20 (3) ◽  
Author(s):  
Claudia Berg ◽  
M. Shahe Emran
Keyword(s):  
Food Security ◽  
Rural Economy ◽  
Screening Process ◽  
Data Set ◽  
Estimation Strategy ◽  
Positive Effects ◽  
Unique Data ◽  
Primary Mechanism ◽  
Poor Households ◽  
Microfinance Institution

AbstractThis paper uses a unique data set on 143,000 poor households from Northern Bangladesh to analyze the effects of microfinance membership on a household's ability to cope with seasonal famine known as Monga. We develop an identification and estimation strategy that exploits a jump and a kink at the 10 decimal land ownership-threshold driven by the Microfinance Institution (MFI) screening process to ensure repayment by excluding the ultra-poor. Evidence shows that microfinance membership improves food security during Monga, especially for the poorest households who survive at the margin of one and two meals a day. The positive effects on food security are, however, not driven by higher income, as microcredit does not improve the ability to migrate for work, nor does it reduce dependence on distress sale of labor. The evidence is consistent with consumption smoothing being the primary mechanism behind the gains in food security of MFI households during the season of starvation.

Loan officer rotation and credit access: evidence from Madagascar

2019 ◽  
Vol 80 (1) ◽  
pp. 51-67
Author(s):  
Yaw Sarfo ◽  
Oliver Musshoff ◽  
Ron Weber
Keyword(s):  
Rural Areas ◽  
Urban Areas ◽  
Frequency Effect ◽  
Content Type ◽  
Credit Access ◽  
Loan Officer ◽  
Microfinance Institution ◽  
Lending Decisions ◽  
Loan Officers ◽  
Loan Approval

Purpose With exclusive data from a commercial microfinance institution (MFI) in Madagascar, the purpose of this paper is to investigate if loan officer rotation (change of loan officer) has an effect on credit access (loan approval) in rural and in urban areas. The authors further analyze how the frequency of loan officer rotation affects credit access in rural and in urban areas. Design/methodology/approach The authors apply propensity score matching to compare credit access between loan applicants who experienced loan officer rotation and loan applicants who experienced no loan officer rotation in rural and in urban areas. Findings Results show that loan officer rotation has a positive and statistically significant effect on credit access. The authors observe further that loan officer rotation has a different effect on credit access in rural and in urban areas. Whilst rural loan applicants who experienced loan officer rotation are more likely to have credit access, urban loan applicants show no statistically significant effect of loan officer rotation on credit access. For the frequency effect on credit access, the authors observe that one loan officer rotation has a positive and statistically significant effect on credit access whereas results are mixed for two loan officer rotations. Research limitations/implications Even though the authors can show that loan officer rotation can improve credit access to loan applicants, especially in rural areas, the conditions in Madagascar are unique. Therefore, results need to be verified in other countries and institutional contexts. Practical implications From the perspective of MFI, the authors recommend that the management of MFI needs to provide better tools to loan officers to improve on the evaluation of agricultural loan products or standardize the assessment of agricultural loan products to improve on lending decisions. Further, if applicable, the authors recommend that MFI should consider using credit worthiness assessment procedures which rely less on loan officer’s judgment for loan evaluation, such as automated systems. From the perspective of loan applicants, the authors recommend that loan applicants should request for a change of loan officer if they experience successive loan applications rejection. Originality/value To the authors’ knowledge, this paper is the first to provide empirical evidence on the effect and frequency of loan officer rotation on credit access in Sub-Sahara Africa, and Madagascar, in particular.

scholarly journals Muḍārabah and mushārakah as micro-equity finance: perception of Selangor’s disadvantaged women entrepreneurs

2020 ◽  
Vol 12 (2) ◽  
pp. 217-237
Author(s):  
Reazul Islam ◽  
Rubi Ahmad
Keyword(s):  
Women Entrepreneurs ◽  
Structural Equation ◽  
Islamic Law ◽  
Profit Sharing ◽  
Equity Financing ◽  
Content Type ◽  
Disadvantaged Women ◽  
Poor Women ◽  
Microfinance Institution ◽  
Equity Finance

Purpose This study aims to gain the perception of Selangor’s disadvantaged women on the Sharīʿah (Islamic law) rules on two micro-equity financing instruments, namely, muḍārabah (profit sharing) and mushārakah (profit-and-loss sharing) (M&M). Design/methodology/approach A survey was carried out in the rural area of Selangor district in Malaysia by administering a self-generated structured questionnaire. A total of 330 completed questionnaires were retrieved from the members of an Islamic microfinance institution (IsMFI), namely, Amanah Ikhtiar Malaysia (AIM). The data were analysed by using structural equation modelling. Findings The female borrowers of AIM perceive the Sharīʿah rules of M&M requiring high moral and ethical values and diligent repayment performance. They are aware of some other underlying provisions such as business liquidation, share transfer, information discloser and business termination. The overall findings of this study suggest that the perceived Sharīʿah rules are akin to those that are commonly used in general partnership businesses between Muslims. It also indicates that disadvantaged entrepreneurs would accept the rules that are easy to comprehend as well as favourable to their interests. It further suggests that respondents’ experiences of microfinance and business operation do not have a significant influence on their perception of M&M instruments. Research limitations/implications This study was limited to Selangor. So, the perception of Muslim women surveyed may not represent the views of all women in Malaysia. However, it can offer a primary understanding of the said issue. Practical implications The findings of this study can help IsMIFs take initiatives to offer M&M as micro-equity finance to poor women entrepreneurs. Originality/value So far, limited studies have been carried out on M&M-based microfinancing. This paper offers new insights presenting disadvantaged women entrepreneurs’ perception of these financing instruments.

An Investigation of Coping Strategies Adopted by Small-Scale Sugarcane Growers in Bungoma County, Kenya

2021 ◽  
Vol 3 (1) ◽  
pp. 89-102
Author(s):  
Protas Fwamba Khaemba ◽  
Philomena Muiruri ◽  
Thomas Kibutu
Keyword(s):  
Coping Strategies ◽  
Survey Design ◽  
Primary Data ◽  
Coefficient Of Determination ◽  
Farm Income ◽  
Small Scale ◽  
Sugarcane Farming ◽  
Income Generating Activities ◽  
Household Heads ◽  
By Products

This paper reports on one of the findings of a study undertaken to investigate the coping strategies used by small-scale sugarcane growers in Bungoma County, Kenya. A descriptive survey design was used. A multi-stage sampling procedure was employed in the selection of the divisions, villages, key respondents, and sugarcane farmers to be interviewed. Primary data were collected using questionnaires from 100 small-scale sugarcane growers’ household heads from Bumula Sub-County. Data were collected during the month of December 2016.  Qualitative data collected were analysed thematically. Quantitative data was analysed using regression in SPSS version 23 and Microsoft Excel. Results from small-scale sugarcane farmers in Bumula Sub-County revealed a declining farmers’ participation in sugarcane farming activities in the area. Coping strategies identified included off-farm income-generating activities, sale of sugarcane by-products and non-contracted cane farming. Significance test qualification was based on a percentage of adjusted R2 and within 0.3 to 0.7 ranges for Beta weight value.  The correlation coefficient (R-value) for the model was 0.362, indicating a moderately positive relationship between variables. The coefficient of determination (R2) was found to be 0.284 (28.4%). Adopted coping strategies accounted for 28.4% variability in the declining farmers’ participation in sugarcane farming. This result suggests the existence of other factors that explain the remaining 71.6% of the variation in the declining farmers’ participation. Farmers should enhance both on-farm and off-farm income-generating activities, sugarcane by-products value addition, and non-contracted cane farming in order to reverse the outcome and result in an enhanced farmers’ participation in sugarcane farming activities by 36.2%

scholarly journals Income Generating Activities of Rural Kenyan Women

2015 ◽  
Vol 8 (8) ◽  
Author(s):  
Everleigh Stokes ◽  
Carlye Lauff ◽  
Evan Eldridge ◽  
Kathryn Ortbal ◽  
Abdalla Nassar ◽  
...  
Keyword(s):  
Kenyan Women ◽  
Income Generating Activities

scholarly journals The impact of microcredit on income: the case of Banco Real in Brazil

2014 ◽  
Vol 18 (3) ◽  
pp. 453-476
Author(s):  
Lauro Gonzalez ◽  
César Righetti ◽  
Luiz Carlos Di Serio
Keyword(s):  
Commercial Bank ◽  
Female Participation ◽  
Academic Literature ◽  
Loan Officer ◽  
Individual Participant ◽  
Microfinance Institution ◽  
The Individual ◽  
The Impact

This study aims to evaluate the impact of productive microcredit provided by a microfinance institution linked to a commercial bank by examining a sample of 20,628 customers. Academic literature points to the existence of shared specific characteristics amongst successful microcredit programs, including: (a) the use of a solidarity group, also called a joint debtor, (b) strong female participation, (c) a focus on poor regions, and (d) the presence of a loan officer. This article finds that the female variable is associated with increased income for the individual participant. Women began the program with an average sales value less than men, yet their sales grew exponentially at about 10% with each extension of credit.

Microfinance Institution Performance: Does the Macroeconomy Matter?

2018 ◽  
Vol 37 (4) ◽  
pp. 429-442
Author(s):  
Sefa Awaworyi Churchill ◽  
Jeffrey Korankye Danso ◽  
Elikem Nyatefe
Keyword(s):  
Microfinance Institution
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