IDEAS home Printed from https://ideas.repec.org/a/blg/journl/v19y2024i3p272-290.html
   My bibliography  Save this article

Role Of Microfinance In Entrepreneurial Development In Low-Income Areas

Author

Listed:
  • Saif ULLAH

    (ZUFESTM, Ziauddin University Karachi, Pakistan)

  • Mirza Raza ALI

    (Institute of Business Management (IoBM), Karachi, Pakistan)

  • Shehla Najeeb SIDIKI

    (Ziauddin University Karachi, Pakistan)

Abstract

This study examines microfinance's role in developing entrepreneurship in low-income areas. Entrepreneurship is one of the better ways to eradicate the most critical problems, such as poverty, income inequality, and unemployment. The study uses a paired sample t-test on 200 small entrepreneurs from low-income areas to investigate the difference between before and after availing of a microfinance facility. Furthermore, the microfinance gap is calculated by taking feedback from entrepreneurs before and after getting the financing facility. The microfinance gap is employed to examine whether microfinance plays a role in developing entrepreneurial skills. The results show that the microfinance gap positively contributed to entrepreneurial development. The microfinance facility has proved to be a technique for entrepreneurial development for poor and young unemployed youth. MFIs are considered the best tool to reduce poverty and unemployment and increase entrepreneurial development.

Suggested Citation

  • Saif ULLAH & Mirza Raza ALI & Shehla Najeeb SIDIKI, 2024. "Role Of Microfinance In Entrepreneurial Development In Low-Income Areas," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 19(3), pages 272-290, December.
    • Handle: RePEc:blg:journl:v:19:y:2024:i:3:p:272-290
    as

    Download full text from publisher

    File URL: http://magazines.ulbsibiu.ro/eccsf/RePEc/blg/journl/19316ullah.pdf
    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:blg:journl:v:19:y:2024:i:3:p:272-290. 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: Mihaela Herciu (email available below). General contact details of provider: https://edirc.repec.org/data/feulbro.html .

    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.