The Role of Microfinance in Poverty Alleviation: Empirical Evidence from South-West Nigeria

Kasali, Taofeek Aremu; Ahmad, Siti Aznor; Lim, Hock Eam

doi:10.5539/ass.v11n21p183

Cited by 30 publications

(22 citation statements)

References 12 publications

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“…At second stage, correlation analysis test the quality of connection between microfinance credits and execution of SMEs. At the third stage, One Way Manova demonstrates the connection between the two variables (Kibet et al, 2015). At the third stage, regression analysis demonstrated the degree of difference.…”

Section: Methodsmentioning

confidence: 98%

Impact of Microfinance Loans on the Performance of Smes: The Case of Lebanon

Moussa

2020

Business: Theory and Practice

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Microfinance is the arrangement of budgetary administrations to low-income individuals and to SMEs. An empirical study was undertaken to identify the relationship between micro credits from MFIs and the SMEs’ financial performance. Secondary data were collected from 17 SMEs in North Lebanon. Another secondary data were collected from four MFIs in Lebanon concerning the characteristics of their beneficiaries. Data were analyzed using SPSS Ver. 23. The results showed notable relationships between amount of micro loan and the dependent variables, the number of women recipients of credits remains little in Lebanon, the categories of businesses mostly profiting from the MFIs in Lebanon are commerce, service, and trade sectors and the beneficiaries are primarily situated at Mount Lebanon, South, Bekaa, and at the north. The research contributes to the enduring deliberation on the effect of micro loans on the SMEs’ financial performance. It is vital to see how MFIs could add to the monetary advancement of the country, by improving the welfare levels of all the needy individuals. This study can be utilized to provide useful empirical evidence for future research and to raise awareness on this significant matter for SMEs’ managers, MFIs’ managers and clients, and for the analysts.

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Section: Methodsmentioning

confidence: 98%

Impact of Microfinance Loans on the Performance of Smes: The Case of Lebanon

Moussa

2020

Business: Theory and Practice

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“…Microfinance loans have been used in numerous cases to reduce poverty, in rural areas which are believed to harbor the poorest people in the world (Taofeek Aremu Kasali, 2015). it is proved in this study that microcredit has also played a vital role in the reduction of poverty that 34% collectively female were progressed collectively in the next band by improving the scores on poverty scorecard.…”

Section: Discussionmentioning

confidence: 72%

Poverty Reduction Strategies: Evidence From U-Microfinance Bank

Rani

Laghari

Channa

2021

HSSR

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Purpose: This Study intends the assessment of microloan by U Microfinance Bank from females of upper Sindh. The core objective was to assess the impact of U-Microfinance on the poverty level of female for improving their living standards by providing them micro-loans to be used for their small-scale business which could enable them to be empowered politically, socially, economically, and assessing its impacts on the health and education of their families. Methodology: This study was conducted on the assessment of microloan interventions of U Microfinance Bank in the rural areas of upper Sindh. A quantitative approach was used to measure the impact of microloan on the poverty status of the female along with a qualitative study to further confirm the findings. In this study, a quasi-experimental design was used in which two groups of data from the same respondents assuming the data ‘Before-loan and After-Loan Situation’ from the female borrowers of Khairpur, Sukkur, Shikarpur, Larkana, and Dadu Districts of Upper Sindh. Poverty Score Card was used as a survey instrument originally developed by the World Bank for each region separately. The collected data were analyzed by applying the descriptive statistics and logistic regression technique by using SPSS latest version. Results: Results of the logistic regression analysis demonstrate that the microloan program does empower females of targeted cities, but the empowerment process does not necessarily occur simultaneously across all dimensions. Whereas microfinance does effect individually on each dimension of empowerment. For microfinance ventures, the results suggest that occupation types have a positive impact on women's empowerment. Applications of this study: This study can be very effective in improving the strategies for poverty reduction among the female borrowers of the upper Sindh. The Novelty of the study: The novelty of this study investigating the effect of poverty reduction strategies on female empowerment.

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“…The primary aim of introducing microfinance institutions in Nigeria in 2005 was to give credit facility to the poor vis-a-vis poverty reduction. Around fourteen studies reported that microcredit/microfinance positively impact poverty reduction among the beneficiaries of microcredit (Agbaeze and Onwuka, 2004;Akosile and Ajayi, 2014;Appah, et al, 2012;Christensson, 2017;Emefesi and Yusuf, 2014;IIhugba, Bankong, and Ebomuche, 2013;Irobi, 2008;Jegede, et al, 2011;Kasali, et al, 2015;Lawson, 2012;Obisesan and Oyedele, 2015;Owolabi, 2015;Ugochukwu and Onochie, 2017;Yahaya, Osemene, and Abdulraheem, 2011). In Bayelsa State, there was a significant relationship between microfinance and poverty reduction (Appah, et al, 2012).…”

Section: Results: Evidence Of Outcome and Impact Economic Outcomesmentioning

confidence: 99%

“…Further to this, Owolabi (2015) argues that the credit facility to women increased their business assets. However, Kasali, et al (2015) assert that women find it difficult to get loans because of their sociocultural background in Nigeria.…”

Section: Women's Empowermentmentioning

confidence: 99%

Microcredit as a strategy for poverty reduction in Nigeria: a systematic review of literature

Awojobi¹

2019

Glo J. Soc. Sci.

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Microfinance was introduced in Nigeria in 2005 to give microcredit to the poor, especially the petty traders. This was to allow them to expand their businesses, increase sales and earn income. This study systematically assessed the impact of the microcredit in poverty reduction. A systematic search for quasi-experimental, observation and comparative studies published between 2008 and 2018 was conducted in five literature databases, lists of relevant studies and websites. Both qualitative and quantitative studies were included in the review and their quality assessed. Inclusion criteria were met by twenty studies. These studies showed how microcredit influence poverty reduction among petty traders who are beneficiaries of microcredit. Among these studies, fourteen focused on microfinance and poverty reduction and seven dealt with microcredit and poverty alleviation. Most studies were quantitative, eight had mixed methods and one had a qualitative analysis. Among the included studies, nineteen supported the hypothesis that microcredit contributes to poverty reduction and only one study objected to this hypothesis. While the findings of this review have revealed that microcredit is a strategy for poverty reduction, there are some challenges that hinder the accessibility to microcredit. This calls for government actions to review its microcredit policy.

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The Role of Microfinance in Poverty Alleviation: Empirical Evidence from South-West Nigeria

Cited by 30 publications

References 12 publications

Impact of Microfinance Loans on the Performance of Smes: The Case of Lebanon

Impact of Microfinance Loans on the Performance of Smes: The Case of Lebanon

Poverty Reduction Strategies: Evidence From U-Microfinance Bank

Microcredit as a strategy for poverty reduction in Nigeria: a systematic review of literature

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