The Mediating Role of Group Lending Between Poverty and Microfinance

Shah, Saif-Ul-Mujahid; Rahman, Mujib Ur; Khan, Junaid Athar

doi:10.51239/nrjss.v0i0.116

Cited by 4 publications

(10 citation statements)

References 45 publications

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“…Volume 1, Issue 1 Summer/ Fall 2023 permanent access to an appropriate range of high quality microfinance services, including not just credit but also savings, training, insurance and fund transfers (Donou-Adonsou & Sylwester, 2016;Rahman & Khan, 2019).…”

Section: International Journal Of Social Science Technology and Econo...mentioning

confidence: 99%

“…That, according to commercial banks and other financial institutions (FIs), it is risky to loan poor people, particularly smallholder farmers, because agriculture is regarded by FIs as a non-performing sector. In that regard, smallholder farmers were regarded as non-capable of either pledging loan securities or repaying loans (Rahman et al, 2019). As a result, the rural poor found themselves entangled in a massive poverty basket due to lack of capital (Rahman et al, 2019;Cull & Morduch, 2017).…”

Section: International Journal Of Social Science Technology and Econo...mentioning

confidence: 99%

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Influence of Group Based Micro-financing on Business Performance of Rural Based MSMEs in Tanzania

Kaserwa

2023

IJSSTEM

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Following on-going debate among scholars and researchers on influence of group based micro-financing on rural based businesses some Tanzanians are afraid of group loans. For that case a study was undertaken in Tanzania in 2020. The general objective of the study was to determine influence of group based micro-financing model on business performance of rural based Micro, Small and Medium Enterprises (MSMEs) in Tanzania. It was guided by the theory of group based micro-financing (GBM) model. Data were collected using a structured questionnaire from 279 group based borrowers of financial institutions. Multiple Linear Regression Analysis (MLRA) was conducted to estimate the influence of the Model on business performance of rural based MSMEs. The study found out that group based micro-financial services and borrower qualities had significant positive influences on business performance while nonfinancial services had insignificant positive influence. Mandatory loan servicing costs and transaction costs had significant negative influences. Furthermore, the study confirmed that group based micro-financing model in general had significant positive influence which implied that it was essential and a panacea for the rural poor. It is therefore recommended for smallholder farmers in rural Tanzania to enable them engage in income earning businesses in their respective areas.

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Section: International Journal Of Social Science Technology and Econo...mentioning

confidence: 99%

Section: International Journal Of Social Science Technology and Econo...mentioning

confidence: 99%

Influence of Group Based Micro-financing on Business Performance of Rural Based MSMEs in Tanzania

Kaserwa

2023

IJSSTEM

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“…The establishment of microfinance institutions (MFIs) all over the world was regarded as a tool for fighting against poverty among the poor, both in rural and urban areas (Cull R. & Morduch, J., 2017;Rahman, M. U., & Khan, J. A., 2019).…”

Section: Introductionmentioning

confidence: 99%

“…Micro-financing the poor intends to enable the impoverished families to sustain livelihoods by meeting basic family needs such as better shelters (houses), clothes, food, education for children, etc. According to Rahman, M. U., & Khan, J. A.…”

Section: Introductionmentioning

confidence: 99%

Effect of Borrower Qualities on Business Performance of Rural Based SMEs in Kagera Region, Tanzania

Mtae,

Ngaruko,

Kaserwa

2022

ARDJ

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The objective of the study was to assess the impact of Borrower’s qualities on business performance of rural-based SMEs in Kagera region Tanzania. The Study was guided by the theory of the Group Based Micro-financing (GBM) model. It was done in four districts of Kagera region. The study used structured questionnaires composed of a five-point Likert Scale. The quantitative and regression research approach was adopted for the study. A sample size of 279 group borrowers of two commercial banks and two MFIs was used to collect primary data from June to August 2020. The regression analysis was done between three independent variables of Borrower’s qualities against three dependent variables of Business performance. It was found that 98.5 percent, 96.4 percent and 96.0 percent of respondents agreed to have increased knowledge, family income and household assets, respectively. On the other hand, the hypothesis testing confirmed that Borrower’s qualities impacted positively on the business performance of rural-based SMEs in Kagera region. These results imply that Borrower’s qualities under GBM model have a big positive contribution to the business performance of rural-based SMEs. It is therefore recommended that they should be adopted and promoted as a tool for fighting poverty as a result of increasing borrowers’ abilities to engage in prosperous income-generating businesses.

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“…a. Group-lending activities (which can host crowdfunding innovations, as anticipated in paragraph "From traditional microfinance to crowdfunded group lending"), analyzed bySangwan and Nayak (2020) andShah et al (2019). b. Crowdfunding is summarized in ad hoc surveys(McKenny et al, 2017;Cai et al, 2019;Kim and De Moor, 2017), and interpreted byBeaulieu et al (2015) andKietzmann (2017).…”

mentioning

confidence: 99%

Should gender be a determinant factor for granting crowdfunded microloans?

Rambaud

Pascual

Moro-Visconti

et al. 2022

Humanit Soc Sci Commun

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Crowdfunded microloans are a suitable tool for financing basic economic activities in developing as well as developed countries, favouring female empowerment. Despite the loans being relatively small, the widespread use of this instrument merits analyzing the factors affecting the microloan. One of these factors is gender because microloans are an important tool to finance projects promoted by women in many developing countries where microfinance is widely diffused. This research aims to determine if the gender of crowdfunded micro-borrowers is related to the main features which define the conditions of a microloan: amount, term, number of lenders, length of time to contact with borrowers and repayment system. The methodology used is the multinomial logit regression. The sample used in this study has been obtained by applying sampling techniques to a extensive public database from Kiva. This provided information on microloans from 56 countries around the world. The results based on amount, term, repayment method and recruitment period indicate that women are the best borrowers. All these variables, except the term, are significant at a 5% level. These findings may be useful to improve financial inclusion and outreach, consistently with the Sustainable Development Goals. Future research is needed to assess how “green and pink” microfinance (with environmental strategies particularly favored by women) can attract more ESG-compliant crowdfunding resources.

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The Mediating Role of Group Lending Between Poverty and Microfinance

Cited by 4 publications

References 45 publications

Influence of Group Based Micro-financing on Business Performance of Rural Based MSMEs in Tanzania

Influence of Group Based Micro-financing on Business Performance of Rural Based MSMEs in Tanzania

Effect of Borrower Qualities on Business Performance of Rural Based SMEs in Kagera Region, Tanzania

Should gender be a determinant factor for granting crowdfunded microloans?

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