IDEAS home Printed from https://ideas.repec.org/a/jfr/ijfr11/v11y2020i1p49-59.html
   My bibliography  Save this article

Impact of Microfinance on Poverty: Qualitative Analysis for Grameen Bank Borrowers

Author

Listed:
  • Mohammad Aslam
  • Senthil Kumar
  • Tubagus Ismail
  • Shahryar Sorooshian

Abstract

Poverty is economic, social, political and even moral issue all over the world. Microfinance has been designed to eliminate poverty and may help marginal people to materialize their dreams. Microfinance has been formalized primarily in Bangladesh with this concept. Grameen Bank (GB) has been serving large number of people below poverty level here. Initially, microfinance institutions have been supported by the Government or Donor assuming its positive impact on borrowers. However, ambiguous impacts have been reported in several studies that make microfinance questionable. Therefore, this study intent to measure the impact of microfinance on GB borrowers through the process of qualitative changes in borrowers lives. The process has been measured by some case studies for participant and non-participant borrowers using Modified Household Economic Portfolio Model (M - HEPM). Our qualitative analysis shows that microfinance makes positive changes in the process of borrowers lives observed through financial and activity diaries of the borrowers.

Suggested Citation

  • Mohammad Aslam & Senthil Kumar & Tubagus Ismail & Shahryar Sorooshian, 2020. "Impact of Microfinance on Poverty: Qualitative Analysis for Grameen Bank Borrowers," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 11(1), pages 49-59, January.
    • Handle: RePEc:jfr:ijfr11:v:11:y:2020:i:1:p:49-59
    DOI: 10.5430/ijfr.v11n1p49
    as

    Download full text from publisher

    File URL: http://www.sciedu.ca/journal/index.php/ijfr/article/view/16476/10236
    Download Restriction: no
    File URL: http://www.sciedu.ca/journal/index.php/ijfr/article/view/16476
    Download Restriction: no
    File URL: https://libkey.io/10.5430/ijfr.v11n1p49?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Sarah Gammage, 2010. "Time Pressed and Time Poor: Unpaid Household Work in Guatemala," Feminist Economics, Taylor & Francis Journals, vol. 16(3), pages 79-112.
    2. Tania Burchardt, 2008. "Time and Income Poverty," CASE Reports casereport57, Centre for Analysis of Social Exclusion, LSE.
    3. Robert Goodin & James Rice & Michael Bittman & Peter Saunders, 2005. "The Time-Pressure Illusion: Discretionary Time vs. Free Time," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 73(1), pages 43-70, August.
    4. Mark M. Pitt & Shahidur R. Khandker, 1998. "The Impact of Group-Based Credit Programs on Poor Households in Bangladesh: Does the Gender of Participants Matter?," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 958-996, October.
    5. Elena Bardasi & Quentin Wodon, 2010. "Working Long Hours and Having No Choice: Time Poverty in Guinea," Feminist Economics, Taylor & Francis Journals, vol. 16(3), pages 45-78.
    6. P. Mosley, 2001. "Microfinance and Poverty in Bolivia," Journal of Development Studies, Taylor & Francis Journals, vol. 37(4), pages 101-132.
    7. Hulme, David, 2000. "Impact Assessment Methodologies for Microfinance: Theory, Experience and Better Practice," World Development, Elsevier, vol. 28(1), pages 79-98, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Abera Alemu & Zerhun Ganewo, 2023. "Impact Analysis of Formal Microcredit on Income of Borrowers in Rural Areas of Sidama Region, Ethiopia: A Propensity Score Matching Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(1), pages 65-85, March.
    2. Francis Lwesya & Adam Beni Swebe Mwakalobo, 2023. "Frontiers in microfinance research for small and medium enterprises (SMEs) and microfinance institutions (MFIs): a bibliometric analysis," Future Business Journal, Springer, vol. 9(1), pages 1-18, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gutiérrez-Nieto, Begoña & Serrano-Cinca, Carlos, 2019. "20 years of research in microfinance: An information management approach," International Journal of Information Management, Elsevier, vol. 47(C), pages 183-197.
    2. Emmanuel Orkoh & Phillip Frederick Blaauw & Carike Claassen, 2020. "Relative Effects of Income and Consumption Poverty on Time Poverty in Ghana," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(2), pages 465-499, January.
    3. Jason R. Williams & Yuta J. Masuda & Heather Tallis, 2016. "A Measure Whose Time has Come: Formalizing Time Poverty," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 128(1), pages 265-283, August.
    4. James C. Brau & Gary M. Woller, 2004. "Microfinance: A Comprehensive Review of the Existing Literature," Journal of Entrepreneurial Finance, Pepperdine University, Graziadio School of Business and Management, vol. 9(1), pages 1-28, Spring.
    5. Joachim Merz & Tim Rathjen, 2011. "Intensity of Time and Income Interdependent Multidimensional Poverty: Well-Being and Minimum 2DGAP – German Evidence," FFB-Discussionpaper 92, Research Institute on Professions (Forschungsinstitut Freie Berufe (FFB)), LEUPHANA University Lüneburg.
    6. Pablo Cotler & Christopher Woodruff, 2008. "The Impact of Short-Term Credit on Microenterprises: Evidence from the Fincomun-Bimbo Program in Mexico," Economic Development and Cultural Change, University of Chicago Press, vol. 56(4), pages 829-849, July.
    7. Lilian Lopes Ribeiro & Emerson Luis Lemos Marinho, 2015. "A new approach to poverty in Brazil: a bidimensional measurement of well-being [A new approach to poverty in Brazil: a bidimensional measurement of well-being]," Nova Economia, Economics Department, Universidade Federal de Minas Gerais (Brazil), vol. 25(2), pages 447-464, May-Augus.
    8. Richard L Meyer, 2009. "Track Record of Financial Institutions in Assisting the Poor in Asia," Working Papers id:2284, eSocialSciences.
    9. Kazushi TAKAHASHI & Takayuki HIGASHIKATA & Kazunari TSUKADA, 2010. "The Short‐Term Poverty Impact Of Small‐Scale, Collateral‐Free Microcredit In Indonesia: A Matching Estimator Approach," The Developing Economies, Institute of Developing Economies, vol. 48(1), pages 128-155, March.
    10. Charlene Kalenkoski & Karen Hamrick & Margaret Andrews, 2011. "Time Poverty Thresholds and Rates for the US Population," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 104(1), pages 129-155, October.
    11. Chakraborty, Lekha S, 2022. "Covid19 and Fiscal Policy for Unpaid Care Economy," MPRA Paper 111925, University Library of Munich, Germany.
    12. Thath, Rido, 2018. "Microfinance in Cambodia: Development, Challenges, and Prospects," MPRA Paper 89969, University Library of Munich, Germany.
    13. Mohummed Shofi Ullah Mazumder, 2022. "The Effects of Microfinance Programs on Recipients’ Livelihoods in Rural Bangladesh," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 34(3), pages 1383-1418, June.
    14. Martey, Edward & Etwire, Prince M. & Atinga, David & Yevu, Mawuli, 2021. "Household energy choice for cooking among the time and consumption poor in Ghana," Energy, Elsevier, vol. 226(C).
    15. Mishra, Aswini Kumar & Bhardwaj, Vedant, 2022. "Financial access and household’s borrowing: Policy perspectives of an emerging economy," Journal of Policy Modeling, Elsevier, vol. 44(5), pages 981-999.
    16. Joana Silva Afonso, 2020. "Impact evaluation, social performance assessment and standardisation: reflections from microfinance evaluations in Pakistan and Zimbabwe," Working Papers in Economics & Finance 2020-14, University of Portsmouth, Portsmouth Business School, Economics and Finance Subject Group.
    17. Indunil De Silva, 2012. "Evaluating the Impact of Microfinance on Savings and Income in Sri Lanka:Quasi-experimental Approach Using Propensity Score Matching," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 6(1), pages 47-74, February.
    18. Yuta J. Masuda & Jason R. Williams & Heather Tallis, 2021. "Does Life Satisfaction Vary with Time and Income? Investigating the Relationship Among Free Time, Income, and Life Satisfaction," Journal of Happiness Studies, Springer, vol. 22(5), pages 2051-2073, June.
    19. Debadutta Kumar Panda, 2017. "Impact assessment of group-based credit–lending projects with controlled project placement bias and self-selection bias," DECISION: Official Journal of the Indian Institute of Management Calcutta, Springer;Indian Institute of Management Calcutta, vol. 44(3), pages 227-238, September.
    20. Nene Oumou & Jonathan Goyette, 2016. "Can microcredit impact the activity of small and medium enterprises? New evidence from a Regression Discontinuity Design in Panama," Cahiers de recherche 16-05, Departement d'économique de l'École de gestion à l'Université de Sherbrooke.

    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:jfr:ijfr11:v:11:y:2020:i:1:p:49-59. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Gina Perry (email available below). General contact details of provider: http://ijfr.sciedupress.com .

    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.