As found by Hartangi (2007) that success of Micro finance depends upon the practices of that specific bank, which finance poor people, by quoting and example of BRI (Bank Rakyat, Indonesia) researcher says that they provide technical and moral support to the people they lend money, and make sure they do good, they also choose different collaterals like motorcycle, cars, cattle, and land etc to secure their loan yet making collateral stronger incase the client fails to repay and credits interesting for lower class community. Beside this, Risk management, internal audit, financial procedures, transparent system, dedicated staff, and clear incentives to staff and clients are the factors which contribute toward the successful lending of micro finances. Obamuyi (2009) says that poor credit culture and low risk management can result in low rate of return, which finally ends with the failure of the scheme. The risk of low rate of return can also be minimized by the assistance provided by the MFIs to develop the small business of clients (Zelealem, Temtime, & Shunda, 2003). RESEARCH METHADOLOGY Study type This study is a correlational study in which relation between income level, living standard, access to education, and empowerment due to micro financing in Pakistan is studied. Study setting Study was conducted in natural environment, and no lab settings were used while studying the relationship between income level, empowerment, access to education, and access to health facilities due to MFIs in Pakistan has been studies, which makes this study a non-contrived study. Unit of Analysis Different individuals, who obtained micro finances from Micro financial institutions of Pakistan, were asked to record their responses. Time Horizon Data was collected from individuals who obtained micro finances from MFIs in Pakistan once in one month time period; there will be no further data collection for this study. The collected responses are one shot, which make this study a cross-sectional study. Data This study utilized primary data as well as secondary data. Primary data was gathered from individual who obtained micro finances from MFIs in Pakistan, data was gathered using a prepared research instrument. And secondary data was collected for literature review, from different online research databases. Data Analysis Data was inspected, cleaned, transformed and modeled using SPSS V.17.0 to highlight useful information. Linear Regression was applied as per the requirement of the study to explore the relationship between increase in income, living standard, access to education, and empowerment, due to MFIs in Pakistan. Sampling type A non probability convenience sampling was done, questionnaire were distributed among customers of MFIs who were conveniently available to the researcher.
Education could help them; first, start from the poor kid and then to become a wealthy man. It is not only make people become rich, but it also makes students get more knowledge, feel smarter, and know what they suppose to do for their life and social. However, this author did not talk much of the affect of the country’s public school and opportunity to attain school. For example, when he discuses Retawadi, he neglects the public schools, the lack of attention of the apparatus government, and the dangers of day-to-day of each individual. Although he said “a hundred rupees for couple hours of each week for math lesson.”
The above questions are open-ended to enable the participants provide all-inclusive answers. Furthermore, systematic approach will be used in obtaining the required customer sample, which is 15 customers in this case. The customers will be randomly selected, whereby every 3rd customer will be asked to fill-in the questionnaire. The technique of systematic sampling was selected to ensure equal representation and accuracy of results by preventing biasness. In addition, ethical concerns will be considered. The representatives would be informed that their private identity will be concealed and that the study is entirely for the company. The representatives are also at liberty to withdraw from the study and will be provided with a written consent outlining the reasons for the survey.
The socio economic status and outcomes are based on, the people are rich, their health would be better than those who are poor. Poverty has many roots- material deprivation (of food, shelter, sanitation and safe drinking water), Social exclusion, Lack of education, unemployment and lower income, that all work together to reduce opportunities, limit choices, undermine hope, result, threaten health (sen, 2003). Poverty has been linked many higher prevalence health conditions, increase risk of chronic disease, injury, deprived infant development, stress, anxiety, depression and premature death (NFHS-3,
Women all over the world suffer from poverty and unfair treatment. Almost half of these women in poverty come from Africa, being paid barely a dollar a day. These women can barely feed themselves let alone their family. In order to feed and take care of their family they need micro-loans to either start a business and continue their business. Women are not empowered by micro-loans because of gender-based division of labor, their husbands and men in their family, and the women being shamed for not being able to repay the loan and be in debt.
Microfinance organizations are helping women in developing countries. Women in developing countries are receiving income based on their husbands job without
Poverty is a serious phenomenon that has been widespread all over the world. Although, many charitable organizations like CARE, Action Against Hunger (AAH) or Emergency Nutrition Network (ENN) have operated with a highest enthusiasm to help the indigent, the amount of those have still been increasing significantly in recent years. According to the survey of the United States Census Bureau, the percentage of Americans in poverty rose from 12.2 to 15.9 percent and the proportion skyrocketed from 33.3 million to 48.8 million between 2000 and 2012 (Bishaw, 2013). The indigent are very poor people, including the disabled, beggars, homeless people who live in slums with lacking of insurance, being unemployed and earning underpaid salaries, about 1.25$ a day (Shah, 2011). Many of them are innocent people who face with mishaps that they cannot control. Consequently, they not only affect the society but also impact on development of the young generation. Therefore, the government should be responsible for take care of the indigent as well as supporting them to enhance the standard of living of citizens and maintain the stability of the society.
The study performed restricted to the culture of Pakistan. Similar studies can be conducted in other geographical contexts to add the applicability of beyond budgeting in such cultures.
The lifestyle of people across the world is developing rapidly. As there is a growing concern for people about the lifestyle and way of living, the scope for the microfinance industry is also at a growing pace. A large number of people across the world prefer finance for the purpose of purchase of consumer durables as well as lifestyle products. As the credit card EMI options are more expensive, people prefer NBFCs for the purpose of consumer durable loans. The project done in bajaj finserv explains the role of NBFCs in the consumer durable loans and the procedure undertaken in order to disburse the consumer durable loans.
Microcredit can be defined as small loans, or microloans, for people around the world in extreme poverty to help spur entrepreneurship. The issue of microcredit is extremely important in the world’s economy. Poverty alleviation and economic development are the primary goals of microcredit programs, that is why they began in the developing countries of Asia and Latin America, economist Muhammad Yunus and his Grameen Bank in Bangladesh are credited of pioneering this financial innovation (Smith, Thurman, 2007). After acquiring a loan, impoverished people get involved in self-employment projects that help them to start a business and begin generating income and in many cases leave poverty. Microcredit offers loans to poor people without requesting any financial history from them. These loans help to improve the quality of life of individuals and communities through commitment. In recent years, the idea of giving small loans to poor people became the darling of the development world, giving a way to propel even the poorest people into better lives (Jolis, 2011).
Access to capital and credit at various stages in the business life cycle is identified as the major hurdle by the entrepreneurs. For many small firms and most start-ups, the personal funds of the business owners and entrepreneur and those of relatives and acquaintances constitute as the major source of capital. For many small businesses, especially during the early years of their operation, credit is simply not available. For many others, the limited available credit is not through bank loans. Due to this many of them rely on multiple credit card balances and home equity loans as major sources of credit for start-up firm. Because banks are bound by laws and regulations to prudent lending standards that require them a risk management assessment for each loan made. These regulations were made more vigor during the late 1980'' and early 1990 . Banks always found that lending to manufacturing firm with hard asset such as property, equipment, and inventory has always been easier than lending to today's expanding service sector firms. Because the service sector firms own few hard asses, therefor lending judgment have to be based in terms of character, markets, and cashflow, which make it difficult to the bank to meet the regulations for the approval of the loan. Additional, the banking industry, as well as the entire financial sector of the
It creates economic self-sufficiency and stability, and higher resilience to major life changes and difficulties, such as having children or being diagnosed with a chronic illness. In the 2011 study The Role of Education and Income in Poverty Alleviation: A Cross-Country Analysis by Pervez Zamurrad Janjua and Usman Ahmed Kamal, the authors came to three conclusions on the topic of education and poverty. Firstly, per capita income growth only had a moderate role in poverty alleviation. Secondly, an increase in income equality played a stronger role in poverty reduction only in countries with higher per capita incomes. Lastly, education is the most significant contributor to poverty reduction.
As there are many types of banking and financial institutions in Cambodia, the scope and limitation of the study is mainly take only the commercial banks and microfinances to examine. The study will only go through the basic background of the banking industry and the basic issues and solutions which excludes the other related cases involved in politics.
Altaf Hussain Sumo “Small Business in Pakistan: Characteristics, Problems and Sources of Finance”. Downloaded from http://sbaer.uca.edu/research/icsb/2009../paper141.pdf
1.Christen, Robert Peck; Rosenberg, Richard & Jayadeva, Veena “Financial institutions with a double-bottom line: implications for the future of microfinance” (July 2004)
This report analyses social and economic factors such as, risk of poverty, employment rate and population completed at least upper secondary education. In this report you can find summary of the data, descriptive statistics, correlation and regression analysis, which shows that poverty has a small negative relationship with employment rate and negative relationship with education. Thus, this means if countries would increase employment rate and increase number of people who finish secondary education they would be able to reduce poverty level in the countries.