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Financing micro-entrepreneurs for poverty alleviation: a performance analysis of microfinance services offered by BRAC, ASA, and Proshika from Bangladesh

Dilruba Khanam (), Muhammad Mohiuddin (), Asadul Hoque () and Olaf Weber ()
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Dilruba Khanam: Faculty of Business Administration, University of Chittagong
Muhammad Mohiuddin: School of Business and Economics, Thompson Rivers University
Asadul Hoque: College of Business, American University of Kurdistan (AUK)
Olaf Weber: University of Waterloo

Journal of Global Entrepreneurship Research, 2018, vol. 8, issue 1, 1-17

Abstract: Abstract Microfinance services have emerged as an effective tool for financing micro-entrepreneurs to alleviate poverty. Since the 1970s, development theorists have considered non-governmental microfinance institutions (MFIs) as the leading practitioners of sustainable development through financing micro-entrepreneurial activities. This study evaluates the impact of micro-finance services provided by MFIs on poverty alleviation. In this vein, we examine whether microfinance services contribute to poverty alleviation, and also identify bottlenecks in micro-finance programs and operations. The results indicate that the micro-loans have a statistically significant positive impact on the poverty alleviation index and consequently improve the living standard of borrowers by increasing their level of income.

Keywords: Poverty alleviation; Microcredit; NGOs; Sustainable rural development; Developing country; Bangladesh (search for similar items in EconPapers)
JEL-codes: C13 (search for similar items in EconPapers)
Date: 2018
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