Microcredit and the Third World

Elahi, Khandakar Qudrat-I; Danopoulos, Constantine P.

doi:10.1108/03068290410540855

Cited by 23 publications

(8 citation statements)

References 5 publications

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“…This recognition of microfinance especially the micro-credit component has received global attention as echoed by the UN General Assembly [3] and Ehali and Danopoulos [4]. Generally, microfinance is the provision of financial and non-financial services to the poor on sustainable basis.…”

Section: Introductionmentioning

confidence: 99%

The Impact of Microfinance on Grassroot Development: Evidence from Smes in Kwabre East District of Ashanti Region of Ghana

Yeboah¹

2017

OJBM

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Empirical studies attest to the assertion that development interventions aimed at people at the grassroots are poverty alleviation oriented. Microfinance has been acclaimed to be effective vehicle for poverty eradication. Since poverty alleviation is rooted in grassroots development, the impact of microfinance on grassroots development cannot be gainsaid. Equally relevant in this regard is the pivotal role of the SME subsector in grassroots development. This is against the backdrop that at the grass root, the active poor are those who run enterprises known as micro, small and medium enterprises. This research looked at the impact of microfinance on grassroots development using SMEs in Kwabre East District of Ashanti Region in Ghana as the case study. Both theoretical and empirical literatures were reviewed. The study adopted the descriptive type of research and the survey method to collect data from 82 respondents. The survey was done through the administration of structured questionnaires. The sampling techniques used included the non-probability methods of purposive and convenience. Qualitative and quantitative techniques were utilized in the data analysis. The research used the development evaluation framework for impact assessment of projects pioneered by the Inter-American Foundation. It was evidenced that microfinance as a development intervention has some level of impact on grassroots development. The impact is of direct benefits to individual operators of SMEs and their families. These included positive impact on basic needs; knowledge and skills; employment and income; and assets. Other positive effects of microfinance on SMEs relative to grassroots development were self-esteem, creativity and critical reflection. However, findings from the survey are not explicit on the impact of microfinance on strengthening organizations and broader impact on society in relation to local, regional and national as demanded by the Gras- The researcher therefore recommends for further studies the effect of microfinance on organizations and society in the areas of organizational capacity and culture, policy environment and community norms. It was also revealed that microcredit remained the dominant feature of microfinance in making significant impact. The hurdle of accessibility to credit by SMEs has not been completely cleared. Over 60% of the respondents posited that microfinance has not increased their business capital and stock levels. The researcher makes far-reaching recommendations for accessibility to credit by SMEs and the strengthening of Microfinance Institutions to enable them resilient in financial intermediation and provision of non-financial services.

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Section: Introductionmentioning

confidence: 99%

The Impact of Microfinance on Grassroot Development: Evidence from Smes in Kwabre East District of Ashanti Region of Ghana

Yeboah¹

2017

OJBM

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“…shown the light of Microfinance by introducing the Grameen Bank in Bangladesh more than three decades ago (Roslan & Karim, 2009). A resolution was made in Washington in February, 2007 to put forth the meaning of microfinance facilities in supporting between the self-employment and divested poor (Elahi & Danopoulos, 2004). (Biblarz, & Gottainer, 2000;Popenoe, 1996).…”

Section: Literature Reviewmentioning

confidence: 99%

The Magnitudes of Personal Empowerment and Familial Life of Single Mothers Borrower’s in Bahawalpur, Pakistan

Bukhari

Fayyaz

Khan

et al. 2021

Academic Journal of Social Sciences

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Microfinance has become an eminent tool that is used by the poor women of community of Pakistan to upsurge turns and lessen paucity in developing countries specifically in Pakistan as well as all over the world. This study examines the family life of single mothers that belongs to the remote area to generate defensible returns, rescuing prospects, prolific resources, and satisfying crucial requirements in Bahawalpur, Pakistan. Data has been collected through Interview based on a Survey of 194 single mothers (divorcees, widows and separated) out of 400 women borrower’s in the District of Bahawalpur. The theory of human capital advocated that not only microcredit gradually relieving in their earnings but also trying to self-assured substantially highlights in age, education, economic decision making, marital status and number of kids among single mothers in Bahawalpur. Less over, results indicated a considerable progressive role of single mothers and provided significant practice and policy implications that focus the importance of the study and endlessly improve the family life of these suffering women.

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“…On the other hand, some studies found that the impact of microcredit on income or consumption is weak or insigni ficant (Coleman, 1999(Coleman, , 2006Khandker, 2005). More specifically, Elahi and Danopoulos (2004) criticize strongly that microcredit cannot be a model for poverty alleviation in the third world. Also, they argue that an increase in female employme nt may be 1 The Bangladesh Rural Advance Committee a result of microcredit program, but it may decrease children's schooling because children have to replace their mothers to take care of their younger siblings, or help their parents to do some other work like animal caring, housework, and farming.…”

Section: Introductionmentioning

confidence: 99%

Credit constraint and household income: a quantile analysis approach

Tran¹

2017

EA-XXI

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Using a quantile regression approach, this study contributes to the literature by analyzing the first time of role of credit constraints on household income in Vietnam. Using the latest version of Vietnam household living standard survey in 2016, our results show a negative impact of credit constraint on income of household when using OLS. Whereas using a quantile approach, a negative impact of credit constraint on household income is still recorded, the linkage shows a decreasing trend of the impact of credit constraint on income through various points of income distribution. These results might suggest that access to household microfinance can be a way to help Vietnam improve in their welfares.

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Microcredit and the Third World

Cited by 23 publications

References 5 publications

The Impact of Microfinance on Grassroot Development: Evidence from Smes in Kwabre East District of Ashanti Region of Ghana

The Impact of Microfinance on Grassroot Development: Evidence from Smes in Kwabre East District of Ashanti Region of Ghana

The Magnitudes of Personal Empowerment and Familial Life of Single Mothers Borrower’s in Bahawalpur, Pakistan

Credit constraint and household income: a quantile analysis approach

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