IDEAS home Printed from https://ideas.repec.org/a/ajp/edwast/v9y2025i4p146-156id5950.html
   My bibliography  Save this article

The role of microfinance institutions in job creation

Author

Listed:
  • Qazim Tmava
  • Bashkim Bellaqa

Abstract

The primary objective of this research is to assess the influence of Micro Financial Institutions (MFIs) on job creation in Kosovo by examining the relationships between MFI microcredits, consulting services, government coordination, interest rates, and so on. According to the September 2024 status, Kosovo's microfinance sector consists of 9 MFIs and 23 Non-Banking Financial Institutions (NBFIs). The findings of the linear regression analysis suggest that there is a weak relationship between the volume of microcredits granted by MFIs and the creation of new jobs, with p = 0.042, which is slightly lower than the significance value of 0.05. The MFI consultancies, MFI programs, and high interest rates of MFI microcredits show a substantial negative link with employment creation. The parameter β values are smaller than the values of p. Methodologically speaking, apart from secondary data, a survey connected to the purpose of the research was also conducted. MFIs have a number of challenges in creating jobs, including a lack of entrepreneurial training and financial skills, low institutional capacity, high interest rates, and so on. The study recommends that policy and strategy makers in Kosovo maximize job creation through MFIs by implementing an integrated approach.

Suggested Citation

  • Qazim Tmava & Bashkim Bellaqa, 2025. "The role of microfinance institutions in job creation," Edelweiss Applied Science and Technology, Learning Gate, vol. 9(4), pages 146-156.
    • Handle: RePEc:ajp:edwast:v:9:y:2025:i:4:p:146-156:id:5950
    as

    Download full text from publisher

    File URL: https://learning-gate.com/index.php/2576-8484/article/view/5950/2145
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ajp:edwast:v:9:y:2025:i:4:p:146-156:id:5950. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Melissa Fernandes (email available below). General contact details of provider: https://learning-gate.com/index.php/2576-8484/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.