INVESTIGATING THE ROLE OF MICRO FINANCE ON ECONOMIC AND SOCIAL DEVELOPMENT OF PEOPLE: A CASE STUDY OF RURAL AREAS OF SIND, PAKISTAN
Download Volume 11 Issue 2 2015 | |
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Author(s): |
Muhammad Tariq
Abdur Rehman Aleemi
Dr. Athar Iqbal
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Abstract | This study is designed to investigate the role of microfinance on the economic and social development of people in the rural areas of the Province of Sind Pakistan. This study considers and compares two situations of the respondents: economic and social conditions before and after taking a microloan. The target population for this study is those people who planned to take microcredit from the banks to change their lives by investing such funds in their existing business or opening a new business. We surveyed their economic well-being before taking micro-credit (Feb-July 2013) and then revisited to them after a year and determined their status after taking microcredit. The study considers descriptive as well as statistical analysis such as Chi-square, OLS estimation, and one sample T-test. The study concludes that there is no change in the Economic Conditions of Borrowers after the accusation of Microfinance. Microfinance could not improve their business growth as well. However, in Social Development, there is a significant improvement in the LifeStyle of borrowers, whereas, there is no significant improvement in the Health and Education needs of Buyers before and after taking microfinance. The study further concludes that borrowers believe that the Loan Amount provided is not sufficient for their needs and both the repayment schedule and interest rate are not reasonable to facilitate them. this study provides bases for new dimensions especially for the policymakers and the regulatory bodies that the term structure of Microcredit should be revised as well as the amount of loan should also be sufficient enough for the borrowers’ need. |
Keywords | Financial Distress cost, Liquid assets, investment, employment and sale. |
Year | 2015 |
Volume | 11 |
Issue | 2 |
Type | Full Length Paper |
Recognized by | Higher Education Commission of Pakistan, HEC | Category | "Y" | Journal Name | IBT Journal of Business Studies | Publisher Name | ILMA University | Jel Classification | - | DOI | http://dx.doi.org/10.46745/ilma.jbs.2015.11.02.14 | ISSN no (E, Electronic) | 2409-6520 | ISSN no (P, Print) | 2416-8393 | Country | Pakistan | City | Karachi | Institution Type | University | Journal Type | Open Access | Manuscript Processing | Blind Peer Reviewed | Format | Paper Link | http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/11.2/14.%20Investigating%20the%20Role%20of%20Micro%20Finance%20on%20Economic%20&%20Social%20Development%20of%20People.pdf | Page | 182-199 |