INVESTIGATING THE ROLE OF MICRO FINANCE ON ECONOMIC AND SOCIAL DEVELOPMENT OF PEOPLE: A CASE STUDY OF RURAL AREAS OF SIND, PAKISTAN

Muhammad Tariq (), Abdur Rehman Aleemi () and Dr.Athar Iqbal ()
Additional contact information
Dr.Athar Iqbal: Iqra University, Main Campus Karachi

IBT Journal of Business Studies (JBS), 2015, vol. 11, issue 2, 182-199

Abstract: Purpose This study is designed to investigate the role of micro finance 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 micro loan.Methodology/Sampling The target population for this study is those people who planned to take micro credit from the banks with objective to change their lives by investing such funds in their existing business or opening new business.We conducted survey about their economic well being before taking micro credit FebJuly 2013 and than revisited to them after a year and determined their status after taking micro credit.The study considers descriptive as well as statistical analysis such as Chi square, OLS estimation and one sample T test.Findings The study concludes that there is no change in Economic Conditions of Borrowers after accusation of Micro finance.The micro finance could not improve their Business growth as well.However, in Social Development, there is significant improvement in the Life Style of borrowers, whereas, there is no significant improvement in Health and Education needs of Buyers before and after taking of micro finance.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.Practical Implications this study provides bases for new dimensions especially for the policy makers and the regulatory bodies that term structure of Micro credit 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. (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://ibtjbs.ilmauniversity.edu.pk/journal/jbs/11 ... nt%20of%20People.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:aib:ibtjbs:v:11:y:2015:i:2:p:182-199

DOI: 10.46745/ilma.ibtjbs.2015.112.14

Access Statistics for this article

More articles in IBT Journal of Business Studies (JBS) from Ilma University, Faculty of Management Science Contact information at EDIRC.
Bibliographic data for series maintained by Syed Kashif Rafi ().