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The literature is replete with studies suggesting that the microcredit market is expanding with varying degrees of impact on male and female clients. The paper investigates the extent to which differences in loan use behaviour and loan amount received contribute to differences in microcredit welfare impact among male and female clients. Using the s...
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... (GLSS 7) curves in Fig. 1. Secondly, RPAEHCE increases with higher quantiles for both periods. The implication is that there is a disparity in socioeconomic welfare with the relatively rich consuming at least more than one-third of consumption by the very poor (see Fig. 1). The socio-economic welfare disparity is identified to be gender-related. Fig. 2 shows that gaps in male and female consumption expenditure decrease at higher quantiles but increase over the period. At lower quantiles, the welfare gap between male borrowers and female borrowers is closely between 20%-25% but at ...
Citations
... The community needs Microfinance institutions, especially for low-income groups and small and micro-entrepreneurs who have not been reached by banking financial services, especially public banks. In providing loans to MSMEs, microfinance institutions must effectively educate and equip their clients with relevant entrepreneurial knowledge and skills (Shahinpoor, 2009;Rahim Abdul Rahman, 2010;Awaworyi Churchill, 2020;Amanor et al., 2023). ...
... Microfinance has proven to be an effective tool for poverty reduction in developing countries. If microfinance is implemented and managed carefully, and when services are designed to meet the needs of business actors, microfinance has a positive impact not only on business actors but also on families and the wider community (Shahinpoor, 2009;Addae-Korankye, 2012;Bel hadj Miled & Ben Rejeb, 2018;Amanor et al., 2023). ...
... Microfinance has experienced very rapid development in the last two decades. Since the success of the Grameen Bank program introduced by Muhammad Yunus (Nobel Peace Prize winner in 2006) in Bangladesh in the early 1980s, world financial institutions have begun to pay great attention to microfinance to alleviate poverty and also make a profit (Rahim Abdul Rahman, 2010;Awaworyi Churchill & Marr, 2016;Mushtaq & Bruneau, 2019;Awaworyi Churchill, 2020;Bansah & Adjei, 2023;Amanor et al, 2023). ...
This study aims to investigate and identify the current conditions regarding the role of Sharia microfinance institutions in developing MSME businesses. The community needs Microfinance institutions, especially low-income groups and small and micro-entrepreneurs who have yet to be reached by banking financial services, especially public banks. In providing loans to MSMEs, microfinance institutions must effectively educate and equip their clients with relevant entrepreneurial knowledge and skills. This research will use a qualitative approach with a case study method, which does not use statistical generalizations but uses logical generalizations and replication. Three Sharia microfinance institutions and sixteen MSME cases will be selected in this research. The research was conducted at Sharia Microfinance Institutions as providers of microcredit and MSMEs receiving microcredit in the Southern region of the Special Region of Yogyakarta, Gunungkidul, and Kulonprogo. This research will use three data collection methods, namely interviews, observation, and documentation, to maintain the validity and reliability of the data. Data triangulation is used to test the validity of the data. The data analysis process in this research uses two stages: descriptive analysis and case analysis. The findings of this research show hope regarding the promise of easy access to capital or funding sources as an effective tool for improving MSME business development through effectiveness, supervision, and guidance carried out by Sharia microfinance institutions. This change can be realized if the community has economic stability obtained through easy access to capital, increasing business income, and empowering the community to be ready to become entrepreneurs. It supports the development of a creative economy industry based on entrepreneurship and globally competitive ethics.
... It is found from related literature that microfinance positively impacts poverty alleviation and is an effective tool for poverty reduction in many countries, including India, Nigeria, Ghana, South Asia, Latin America, the Caribbean, Uganda, Ethiopia, and Tanzania. When implemented and managed carefully, and when services are designed to meet the needs of business actors, microfinance has a positive impact not only on business actors but also on families and the wider community (Belwal et al., 2012;Beisland & Mersland, 2012;Cristabell & Vimal Raj, 2012;Kato & Kratzer, 2013;Kaka & Abidin, 2015;Obadeyi, 2015;Awawory & Marr, 2016;Akingunola, et al., 2018;Fiala, 2018;Khan et al. ., 2022;Amanor et al, 2023;Bansah & Adjei, 2023). ...
... MSMEs, especially newly established ones, face many difficulties accessing alternative funding, which has increased over the last five years. Banks are less willing to lend to new companies as a result of the financial crisis (Rupeika-Apoga, 2014; Lahkar & Pingali, 2016;Thanh et al., 2019;Amanor, 2023) The many types of microfinance institutions that are growing and developing in Indonesia show that microfinance institutions are needed by society, especially low-income groups, small and micro-entrepreneurs who have not been reached by banking financial services, especially commercial banks (Islam & Ahmad, 2020;Anwar et al., 2023).In providing loans to MSMEs, microfinance institutions must effectively educate and equip their clients with relevant entrepreneurial knowledge and skills. Previous research found that 45% of microfinance institutions provide business management and development training to their clients in addition to innovative loan packages. ...
... The results show that microfinancing distributed to MSMEs not only helps increase MSME income levels but also helps increase the managerial competence of MSME owners and develop innovative products and services. However, the majority (55%) of microfinance institutions only focus on providing loans and do not provide business development training to their clients (Lahkar & Pingali, 2016;Thanh et al., 2019;Li et al., 2022;Amanor, 2023 ) ...
This study primarily investigates microfinance practices for sustainable community welfare. Microcredit aims to provide credit to poor people to help empower communities and reduce poverty. Community empowerment strategies can be carried out by increasing the productivity of poor communities to increase their income. A basic approach that emphasizes that the poor move from their current situation to a better position by empowering MSMEs through the distribution of microcredit by micro-financial institutions. Changes that will result in sustainable prosperity, decreasing inequality between regions, and reducing community income gaps. This research will use a qualitative approach using the case study method, which does not use statistical generalizations but uses logical and replicative generalizations. This research uses multiple cases with varying characteristics as research informants. Two microfinance institutions and ten cases of MSMEs will be selected in this research. The study was conducted at Sharia Microfinance Institutions as providers of microcredit and MSMEs receiving microcredit in the Southern region of the Special Region of Yogyakarta, Bantul. This district was chosen because Bantul has the highest poverty rate. This condition is the focus of attention for maximum treatment. This research will use three data collection methods: interview, observation, and documentation, to maintain the data's validity and reliability. Data triangulation was used to test the validity of the data. The data analysis process in this research uses two stages: descriptive analysis and within-case analysis. The research results found that microfinance practices carried out through Sharia Microfinance Institutions (SMFI), apart from focusing on providing accessible financing facilities, have also provided direction in developing MSMEs and taking action towards community welfare. SMFI regularly provides business development training to MSMEs
