VOlUME 05 ISSUE 04 APRIL 2022
1,2Mohammad Al-Amin, 1,2,3Harun Ar- Rashid Mamun
1Department of Public Administration, Comilla University, Kotbari, Cumilla-3506, Bangladesh
2Social Research Group (SRG), Bangladesh;
3Fellow, 2022 Cohort, Teach For Bangladesh, Dhaka, Bangladesh.
Google Scholar Download Pdf
ABSTRACT
Micro-credit was designed to organize poor people's tiny savings into funds that could be accessed by the poor, particularly rural women. Microfinance is a powerful technique for affecting the socio-economic condition of respondents and their family members to generate more cash for personal purposes. The additional money enables the respondents' families to purchase nutritious food, land, and construction houses, have access to contemporary health care, multiple cultivations, and small business, and send their children abroad as well as to school. The objective of this study is to explore the reasons for the received microcredit and the impact of microfinance on socio-economic enrichment based on primary and secondary data by using previous studies and direct personal interviews, in-depth interviews through open-ended questionnaires conducted with microcredit receivers from BRAC, Grameen Bank, and ASA as well as field staff respectively at Balunnaghar in Cumilla, Bangladesh in 2021. Both random and Snowball sampling technique was adopted to select respondents. This study highlighted that microfinance has brought a lot of positive changes in respondents' income, family status, and overall socio-economic condition but somewhere few borrowers were unable to mobilize the credit appropriately; therefore, some bad loans arise. So, some recommendations are given for reducing the misuse of loans and also to be self-reliant.
KEYWORDS:Microfinance; Agriculture; Small-Medium Enterprise; Migration; Socio-economic condition; Bangladesh.
REFERENCES
1) Abdullah, W. M. Z. B. W., Zainudin, W. N. R. A. B., Ismail, S. B., Haat, M. H. C., & Zia-UlHaq, H. M. (2021). The Impact of Microfinance on Households’ Socioeconomic Performance: A Proposed Mediation Model. Journal of Asian Finance, Economics, and Business, 8(3), 821–832.https://doi.org/10.13106/jafeb.2021.vol8.no3.0821
2) Adhikari, D. B., & Shrestha, J. (2015). The economic impact of microfinance in Nepal: a case study of the Manamaiju Village Development Committee, Kathmandu. Economic Journal of Development Issues, 15(1), 36–49. https://doi.org/10.3126/ejdi.v15i1-2.11861
3) Adhikari, M. (2020). Impact of Microfinance Service on socio-economic Empowerment of Rural Poor Some Cases of Nepal Impact of Microfinance Service on Socio-economic Empowerment of Rural Poor Some Cases of Nepal Mahendra Adhikari INAFI Nepal. August. https://doi.org/10.13140/RG.2.2.13763.02086.
4) Ahamad, S., Bhuiyan, A., Solaiman, M., & Joarder, M. (2021). The Impact of Microfinance Programs on Borrowers’ Asset Accumulation: An Empirical Study in Bangladesh. The Journal of Asian Finance, Economics, and Business, 8(5), 1147–1154. https://doi.org/10.13106/jafeb.2021.vol8.no5.1147
5) Al-Shami, S. A., Mamun, A. Al, Rashid, N., & Al-Shami, M. (2021). Microcredit impact on socio-economic development and women empowerment in low-income countries: Evidence from Yemen. Sustainability (Switzerland),13(16). https://doi.org/10.3390/su13169326
6) Brau, J. C. (2004). Microfinance: A comprehensive review of the existing literature. Journal of Entrepreneurial Finance, 9(1), 1–28.
7) Chaudhury, S. K. (2016). Research Article Impact of Micro Finance on Socio-Economic Development: An Empirical Study on Selected Shgs of Coastal Districts of Odisha.
8) Chowdhury, A., Khaled, D. M., Rahman, D. S., & Salman, M. A. G. (2021). Economic & Social Impact of Microfinance: An Empirical Evidence from Bangladesh. Global Journal of Management and Business Research, 21(1), 63–73. https://doi.org/10.34257/gjmbrcvol21is1pg63
9) Deepam, K. (2015). Microfinance as a driving force for socio-economic development in emerging economies. Measuring its effectiveness in North India.
10) Dhakal, C. P., & Nepal, G. (2017). Contribution of Micro-Finance on Socio-Economic Development of Rural Community. Journal of Advanced Academic Research, 3(1), 134–141.https://doi.org/10.3126/jaar.v3i1.16623.
11) Ghose, A. K. (n.d.). Effect of Microfinance on the Development of Micro-entrepreneurs in Rural Areas in Khulna, Bangladesh Md Solaiman Chowdhury, Assistant Professor, Business Administration Discipline, Khulna University, Khulna, Bangladesh.
12) Karim, R. (2017). Socioeconomic Impacts of Microfinance Programs in the Development of Bangladesh. Asian Finance & Banking Review, 1(1), 1–16. https://doi.org/10.46281/asfbr.v1i1.1
13) Memon, A., Akram, W., Yasmin, I., & Abbas, G. (2020). South Asian microfinance outreach: an economic context. Academic Journal of Social Sciences, 4(2), 152–172.
14) Paudel, N. P. (2013). Socio-economic impact of microfinance in Nepal. Journal of Management and Development Studies, 25(1), 59–81. https://doi.org/10.3126/jmds.v25i1.24937
15) R. K. (2021). Role of Microfinance in Economic Development and Impact on Different Communities. 1(April 2014), 1334–1344. https://doi.org/10.9790/487X-2306070110
16) Reji, E. M. (2009). Socio-economic impact of microfinance: A study of neighborhood groups (NHGs) in nilambur block of Malappuram District, Kerala. Indian Journal of Agricultural Economics, 64(2), 246–258.
https://doi.org/10.22004/ag.econ.204628
17) Van Rooyen, C., Stewart, R., & de Wet, T. (2012). The Impact of Microfinance in SubSaharan Africa: A Systematic Review of the Evidence. World Development, 40(11), 2249–2262. https://doi.org/10.1016/j.worlddev.2012.03.01.
18) Yuge, Y. (2010). The Current Situation of Microfinance in Bangladesh: A Growing Concern about Overlapping Loan Problems – From a Field Visit to Rajshahi and Comilla. Center for Emerging Markets Enterprises, Student Research Series, March 2010