Impact of Islamic Microfinance on Improving the Income and Poverty Reduction on Microenterprises in Province Aceh : Case Study in BaitulQiradh (original) (raw)
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Journal of Business & Tourism
The aim of this research is to investigate role of Microfinance in Poverty alleviation. Primary data was used in this research and was collected through personally administered questionnaires from 150 respondents. Results showed that most of the respondents were in favor of the Khud Kafalat scheme because it helped them in increasing their living standards and standard of education of their children due to establishing small scale businesses or expanding existing businesses. Moreover, Khud Kafalat Scheme has a very important role in Poverty alleviation and increased their gross monthly income. Furthermore, their satisfaction can also be depicted from the fact that although they observed no change in their employees’ condition but on individual level, most of them, were still in favor of applying again for the loan, if needed, in the future.
Do Islamic Microfinance Practise Descrease the Level of Three Aspects of Poverty
IQTISHADIA, 2019
Islamic microfinance institutions such as Baitu Tamkin is one of Koperasi Syariah at Lombok Timur practising islamic value. In practising islamic value, Baitu Tamkin insert this value in line with three aspect including commercial finance, social aspect, and spiritual awareness. But the evaluation of this islamic microfinance practise has not been conducted yet. Therefor we conducted a research to evaluate the curent impact of this program wheter there was improvement and how the conditions of poverty in the member self before and after taking part in empowerment programs on Baitut Tamkin. Poverty condition that we observed not only financial aspect but also social and spiritual aspect. This research used parametric including Multiple Linear regression, a simple Linear Regression, t-test and non parametric test using Wilcoxon test. We conclude that the level of poverty at local region decreased at three aspects but with various condition. First, the islamic commercial financing...
The Role of Islamic Microfinance For Poverty Alleviation in Bandung, Indonesia
Ihtifaz : Journal of Islamic Economics, Finance, and Banking, 2019
The emergence of Islamic micro financial institution becomes the alternative solution for the micro-entrepreneurs who need working capital assistance. However, the impact of Islamic microfinance institution in reducing poverty level is somewhat still debatable. In Indonesia, Islamic microfinance established through the presence of Baitul Mal wa Tamwil (BMT), the most popular type of Islamic microfinance institutions. BMT providing financing for the micro-entrepreneurs, as their potential clients, that operates their activities mostly at the traditional markets. The purpose of this study is to measure the impact of BMT for poverty alleviation in Bandung as the capital city of West Java as the biggest population province in Indonesia, not only based on material level but also on spiritual level. This study is looking at income variables of micro-entrepreneur’s household, as well as the spiritual level indicator of micro-entrepreneur before and after they received financing from BMT. The primary data obtained through in-depth questionnaires in Bandung, Indonesia.
Impact of Microfinance on Poverty Reduction: A Case Study of District Faisalabad
The micro -finance program extends small loans to very poor people for self-employment projects that generate income, allowing them to care for themselves and for their families. Micro-finance enables an entrepreneur to build a business or expand the existing business and create a better change in their lives. The micro-financing institutions (MFIs) provide the opportunity for the people who are living under the poverty lines by investing the affordable funds/capital and somehow by providing their management expertise. This study shows the effect of micro-financing of small business and the implications for poverty reduction. The respondents are the clients of Khushhali Bank Ltd, District Faisalabad. The data were collected with the help of well-designed and structured questionnaire, which will be analyzed by applying FGT techniques. The results showed that the poverty has been reduced by financing the peoples.
This study determined the effectiveness of Micro-Finance-Loans-Assistance Program in alleviating poverty in Catarman, Northern Samar. A total of 175 respondents from eight (8) microfinances were drawn through random sampling deploying t-test in evaluating the means gross income of respondents before and after availing the program. Findings revealed that respondents were having household sizes mean of 6 household signifying that microfinance loans beneficiaries' were under the poverty. Majority of members were three to four (3-4) years as member and availed loans four times above. When income of the respondents was compared with their income before and after loans assistance, it prevailed that there was significant improvement of their income. An indication that micro-finance-loans assistance program relieved them from poverty. This was testified by identified beneficiaries of micro loans assisted individuals. One beneficiary testified that because of loans assistance family need...
Purpose – This study aims to know the present structure and move of the Islamic banks of Pakistan as well as current issues and challenges for Islamic microfinance. However, this is based on perceptions of the Islamic bankers, regulators and micro-entrepreneurs and petty traders, as they are the key players in the credit market. Design/methodology/approach – The study gathered relevant information through conducting field survey. Two questionnaires were designed for the survey. One questionnaire was administered to survey 270 micro-entrepreneurs and petty traders in three major cities of Pakistan. Another survey deals with the perceptions of Islamic bankers. In total, 100 people from middle and top management were surveyed from five full-fledged Islamic banks of Pakistan. The SPSS software, version 16, was used for questionnaire reliability and descriptive analysis to analyse the data. Findings – In general, the study found the strong opinions of the respondents speak in favour of Islamic microfinance under a system of profit and loss sharing. Conversely, the majority of the clients also feel that Islamic banks do not encourage lower-income micro-entrepreneurs. In addition, the study found that Islamic microfinance is constrained by lack of knowledge, experience and professionalism of the supporting staff; however, Islamic bankers have shown great consensus that Islamic banks should offer Islamic microfinance products and instruments to respond to the needs of the poor for poverty alleviation. Research limitations/implications – The first limitation of the study is the meagre interest of micro-entrepreneurs and petty traders to participate in the survey. The second limitation of this work concerns the extremely busy schedule of top management and administrative impediment to approach and fix an appointment. Despite these limitations, the findings of this study provide insights to Islamic banks in diversifying their products by offering Islamic microfinance to the low-income entrepreneurs but with proper guidelines and policies. Practical implications – There is a need to educate the community towards the merits of Islamic banking system by developing a good information system using good visuals and professionally presented seminars, banners and arranging regular sessions with the business community. The growth and development of Islamic banking in the country largely depend on its customers' enhanced knowledge and awareness about its products and services. Social implications – It is the responsibility of the community as well as of government to change the mindset of the poor that banks are meant to serve the interest of everybody, regardless of social, economic and political status.
Afkaruna, 2018
The objective of the study is to analyze the effectiveness of Islamic microfinance distribution and its impact on microbusiness owners' poverty alleviation in Purworejo. This study used descriptive analysis method that is Likert scale and ordinary least square method (OLS) to analyze the influence of Islamic Microfinance Institution's financing to microbusiness performance. The impact on the poverty alleviation is indicated by the change of microbusiness owners' income. The results indicate that Islamic micro-financing is considered to be effective in several aspects, they are proposal aspect, disbursement aspect, utilization aspect, and pay-back aspect of financing. In addition, Islamic microfinance has a positive impact on microbusiness performance and poverty alleviation.
The microfinance institutions service in Pakistan has a wide geographical outreach but the extent of outreach of private operators like microfinance institutions, commercial banks, foundations and NGOs in rural areas for the poor peoples is rather limited although the poor and poorest people have been reached by these institutions. Most of poor people prefer the microfinance institutions rather than the banks of the country because they can easily access the loans from the microfinance institutions. The relevant literatures were reviewed for the study and to guide the study, four hypotheses were developed and they were used to measure the main variables of the study. This is a survey based research as well as primary data is collected for this study through a structured questionnaire that comprising various aspects of microfinance (MF) and poverty reduction including fulfillment of basic necessities (BN), selfemployment (SE) and living standard (LS) and random sampling technique was used for data collection from the customers of the microfinance Khushhali Bank that are operating in taluka Ratodero district Larkana.
Role of Islamic Microfinance in Poverty Alleviation in Pakistan: An Empirical Approach
International Journal of Academic Research in Accounting, Finance and Management Sciences, 2014
After 2008 world economic crises, banks and other financial institutes move towards Islamic financing not only in Muslims countries but also in non-Muslim countries of the world. In view of this, some micro financial institutions also introduce Islamic micro financing products in Pakistan. The present study was conducted to analyze the role of Islamic microfinance to alleviate poverty in Pakistan its impacts, people satisfaction level and assess the future of it in Pakistan. An Empirical approach has been adopted due to lack of knowledge to clients about products, technical terms, lack of time, and we come to know the changing improvement in the eyes of those people who directly involve in this system. Questionnaire was used as a tool for data collection. The qualitative data was quantified and chi-square test was applied to test the association of attributes by 5% level of significance. Our analysis concluded that Islamic microfinance playing an important role to improve the living standard, per capita income, awareness level (Educational level), ethical values, profitability, sustainability, infrastructure position, employment level in the society, helpful to control the inflation and unequal distribution of wealth. People are more interested due to religious prospective and prohibition of riba in Islam as well as in Christianity but there should be proper regularity authority to control over it in order to get fruitful results through an implementable model.