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This paper uses the theory of information imperfections to examine the relationship between income inequality and financial development in a dual financial system comprising traditional finance and microfinance. It uses panel data for 97 developing countries over a period characterized by declining income inequality from 2000 to 2017. Traditional finance is measured through domestic credit relative to GDP and the IMF Financial Development Index. Microfinance is measured through the size of microfinance gross loan portfolio relative to GDP and the number of active microfinance borrowers to the total population. Controlling for various measures of macroeconomic and socioeconomic variables and using different econometric specifications including a random-effects linear regression model with endogenous sample selection, the results show that microfinance consistently predicts a lower income inequality measured by the Gini coefficient, while traditional finance shows no impact. The findings of this paper draw clear policy implications regarding the role of microfinance as a tool for income equality in developing countries. [ABSTRACT FROM AUTHOR]

Microfinance institutions (MFIs) play a vital role in promoting financial inclusion and reducing poverty by providing credit to marginalized populations. However, sustainability issues arise due to challenges in loan repayment. This study examines the factors influencing loan repayment among microfinance borrowers in Tanzania, specifically the impact of dynamic incentives, joint liability, and regular group meetings. Using survey data from 251 MFI borrowers, we analyzed repayment behavior among individuals in group loans through correlation and multiple regression techniques. The results indicate that dynamic incentives and joint liability improve repayment behavior, supporting information asymmetry and carrot/stick theories by reducing information gaps. Joint liability, in particular, fosters mutual trust and accountability, as members become more involved in monitoring and reporting each other’s activities to lenders. These findings suggest that MFIs should enhance group lending management practices. For regulators, formalizing and legally recognizing community groups would further support their access to financial services. This study highlights the importance of structured group dynamics in improving loan repayment rates, which are crucial for the sustainability of MFIs. [ABSTRACT FROM AUTHOR]

This study examines the impact of microfinance services on the development of female entrepreneurship in Tunisia. A quantitative research methodology was used, combining descriptive and explanatory methods. A sample of 140 clients of the microfinance institution Enda Inter-arabe was randomly selected from a target population of 250 clients. The choice of Enda Inter-arabe is explained by its position as a leader in the microfinance sector in Tunisia and its mission to promote financial inclusion and economic development for disadvantaged populations, particularly women. A questionnaire was used to collect the data, which was analyzed using SPSS software. The findings from the mean descriptive analysis suggest that the financial and non-financial services provided by the microfinance institution had no significant effect on the quality of life or business growth for disadvantaged and low-income women. However, the correlation analysis indicates a strong positive relationship between the advancement of women entrepreneurs and factors such as savings practices, access to finance, skills development, and business support. The regression results indicate that the most significant factors influencing the development of female entrepreneurship are savings and the financial services of the microfinance institution. [ABSTRACT FROM AUTHOR]

Purpose: The effectiveness of microfinance institutions (MFIs) in rescuing poor borrowers from "clutches of" moneylenders has been a much-debated topic over the past few decades. This paper aims to contribute by presenting a model of competition between a socially motivated MFI and profit-maximizing moneylenders when market segmentation exists. Design/methodology/approach: A principal–agent model is used to characterize equilibrium conditions under scenarios where only moneylenders operate, only MFI operates and when both co-exist to pose comparative results effectively. Findings: The authors find unambiguous benefits arising when a welfare-maximizing MFI enters the market. However, there are benefits to having local agents like moneylenders on the ground who also have informational advantages. Originality/value: To the best of authors' knowledge, this study is the first to evaluate the competition between MFI and moneylenders under the framework of captive and noncaptive segments with a mandatory savings requirement. [ABSTRACT FROM AUTHOR]

Purpose: The authors study the effect of an exogenous shock in the form of Coronavirus lockdowns on individual default and on default contagion within the microfinance (MF) sector in India. The authors rely on proprietary data obtained from an MF institution for the period from Nov 2019 to Dec 2020. The authors show that default increased to 95.29% in the month of April 2020, when Covid lockdowns were fully in place. However, borrowers bounced back thereafter, either making full or partial payments, so that defaults had fallen to 5.92% by December 2020. Static features of the group lending model like peer monitoring and joint liability help explain 90% of the monthly deficit during Covid lockdowns among uneducated borrowers. Dynamic features such as contingent renewal help explain why defaults were cured quickly through timely repayments. Finally, there is an absence of default contagion at the district level. Indeed, lagged own default explains 96.6% of variation in individual default, rather than contagion through group, village or district-level defaults. The authors conclude that the MF sector is resilient to exogenous shocks like the pandemic. Design/methodology/approach: The authors use time series panel regressions, as well as cross-sectional regressions. Findings: The authors find that borrower defaults increased significantly to 95.29% during the month of April 2020, when Covid lockdowns were fully in place. However, borrowers bounced back almost immediately, either making full or partial payments, such that defaults had fallen to 5.92% by December 2020. The group lending model does remarkably well in explaining defaults even during Covid lockdowns. Among the majority (92%) of borrowers who are residents of rural districts, the group lending model appears to blunt the impact of the exogenous shock on rates of default. Indeed, panel regressions demonstrate that the group lending model helps explain 90% of the monthly deficit among uneducated borrowers. Logistic regressions indicate that the group lending model is less persuasive among relatively affluent borrowers residing in semi-urban or urban areas who have some formal schooling. Contingent renewal is shown to be an effective disciplining mechanism when a group does default due to the Covid lockdowns. The authors find that groups who defaulted in April 2020 but repaid the outstanding balance within the next two months were more likely to receive subsequent loans from the lender. On the other hand, groups who defaulted in April 2020 and did not repay the outstanding balance until December 2020 did not receive follow-on financing. Finally, the authors find that lagged individual default is the primary source of individual default, rather than contagion through group, village or district-level defaults. Research limitations/implications: The limitation of the study is that it is confined to a single MF institution in India. Social implications: The authors conclude that the social capital that is the foundation of the group lending model succeeds in limiting both the risk and contagion of default from an exogenous shock, such as the Covid pandemic. Originality/value: To the best of the authors' knowledge, the authors are the first to examine defaults in the Indian MF sector during the Covid lockdowns in April 2020. [ABSTRACT FROM AUTHOR]

Women devote much of their time to unpaid care work in West Africa. This situation is even more pronounced in rural areas and thus contributes to further weakening women's economic empowerment in these areas. Setting up community childcare centres is one way of creating time for these women. This article therefore analyses the impact of the use of these centres on the economic empowerment of rural women in Burkina Faso, using the Conditional Mixed Process model. Data collected from 1546 rural households in 2022 as part of the implementation of a research project funded by the International Development Research Centre were used for the analyses. The investigations showed that the use of community childcare centres offers more opportunities for rural women to participate in economic activities or the labour market through the time saved as a result of the reduction in time spent on domestic chores. Revitalising and scaling up community childcare centres in Burkina Faso are, therefore, the main way of empowering rural women. [ABSTRACT FROM AUTHOR]

AbstractMost rural households in Ethiopia depend on traditional cooking fuels. The inefficient combustion of those fuels significantly raises health concerns by exposing them to indoor air pollution. This study aimed to assess the factors contributing to indoor air pollution exposure in rural households. The study was based on data from 573 households selected randomly using a multi-stage sampling approach. Descriptive statistics and a Generalized Ordered Logit model, which explores the relationship between various independent variables and levels of exposure to indoor air pollution, were used. The study employed indicators such as traditional solid fuel use, inadequate ventilation during cooking, and lack of improved cookstoves as proxies to assess households’ exposure to indoor air pollution. More than 79% of households were found to be severely polluted. Women were the most exposed to indoor air pollution. The number of rooms, having a bank or microfinance savings account, education, income, access to electricity, floor building material, number of dependent family members, and cooking time were the main contributing factors. The use of clean fuels, improved cookstoves, and adequate ventilation must be strongly advocated. [ABSTRACT FROM AUTHOR]

This study aimed to assess the extent to which microcredit women clients practice microcredit fungibility, the factors contributing to microcredit fungibility, and whether credit fungibility affects the performance of the supported microenterprise. Data were collected using a structured questionnaire and analysed using logistic regression analysis and the Hayes Process Macro Linear-Based regression analysis. Results have shown that approximately 70% of sampled borrowers acknowledged engaging in microcredit fungibility, and the borrowers were likely to practice fungibility if they were married, had dependent children, and owned multiple businesses. The number of household members with income sources and the education level of the borrower were negatively related to fungibility. The findings also established that although microcredit plays an essential role in the entrepreneurial pursuits of women microcredit clients, its effectiveness hinges on how the funds are utilised. Results suggest that microcredit fungibility attenuates the impact of microcredit on enterprise performance. Conversely, the number of household members with income sources, the borrowers' level of education, and the duration of membership in the microfinance programme influenced enterprise performance significantly, while marriage exhibited a negative relationship with enterprise performance. Decision-making by the business owner, the number of dependent children, and ownership of different sources of income by the borrower do not affect business performance significantly. The study recommends microfinance programmes to understand borrower characteristics and household economic portfolios before disbursing the funds. Moreover, providing financial and business skills training to help borrowers grow and manage their businesses and finances effectively is crucial. [ABSTRACT FROM AUTHOR]

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This study examines how microfinance lenders design their loan contracts to motivate borrower repayments under competition. We develop a model of an individual lending scheme in which a dynamic incentive mechanism is employed to mitigate borrower strategic defaults. We find that competition affects loan terms and borrower welfare in different ways depending on whether lenders are non‐profit or for‐profit. Non‐profits always charge the lowest feasible interest rate and show some degree of leniency toward defaulters by renewing their contracts. An increase in competition leads non‐profits to curtail leniency to a level that induces repayment, without affecting borrower welfare. In contrast, for‐profits charge the highest feasible interest rate and show no leniency to defaulters. They respond to competition by lowering the interest rate, leading to welfare gains for borrowers. [ABSTRACT FROM AUTHOR]

Microfinance institutions (MFIs) operate in diverse institutional contexts and serve as the backbone for microenterprises typically excluded from traditional financial markets. At the same time, MFIs and the microenterprises they support solve tangible social problems, such as alleviating hunger, lifting people out of poverty and creating more sustainable communities. When appealing for resources, MFIs work with microenterprises to create rhetoric that communicates both the financial needs and the social good that supporting them can do. Building on previous research concerning the hybrid rhetoric of microenterprises and the literature rooted in organisational legitimacy, we take a multi-level approach and assess whether country stability and MFI financial performance influence the hybrid rhetoric of microenterprises. [ABSTRACT FROM AUTHOR]

Due to limited access to affordable financial products and services, many people with disabilities experience social exclusion and struggle to secure their financial well‐being. While microfinance has been widely used in Bangladesh for more than three decades as a tool to reduce poverty and empower people living in poverty, few people with disabilities have had access to microfinance services. Therefore, the aim of this research is to identify the barriers and challenges that people with disabilities experience to access microfinance in Bangladesh. Drawing on a qualitative case study approach, the findings of a thematic analysis show that people with disabilities experience significant barriers in accessing microfinance such as stigma against people with disabilities, stringent credit conditions, negative staff attitudes, insufficient training, and the absence of an integrated approach. The research suggests that inclusive policies and their effective implementation are vital to ensure that people with disabilities have access to financial resources so that they could work to enjoy greater socio‐economic independence and contribute equally to society with others. [ABSTRACT FROM AUTHOR]

Purpose: Microfinance emerged as an essential catalyst for socio-economic development and financial inclusion to reduce poverty. Microfinance institutions cannot meet their primary objective of poverty reduction if they are not sustainable financially. With the theoretical support of profit incentive theory, this paper aims to investigate the impact of organizational structure (OS), growth outreach (average loan per borrower [ALPB] and number of active borrowers), women empowerment (percentage of women borrowers [PWB]), liquidity, leverage and cost efficiency (cost per borrower) on the financial sustainability of microfinance providers (MFPs) in India and explore the possible moderating effect of the national governance indicators (NGIs). Design/methodology/approach: A financial sustainability index has been developed by using principal components analysis, including both conventional measures (return of assets and return on equity) and efficiency measures (operational self-sufficiency and financial self-sufficiency). Due to the existence of endogeneity and heteroskedasticity, this study uses two-step system generalized method of moments estimates to examine the relationships for a period of 2006 to 2018. Findings: The finding reveals that there is a strong significant relationship between financial sustainability and its influential factors. Organizatioanl Structure, loan size, women borrowers, Gross Domestic Products and inflation enhance the financial sustainability of India's microfinance sector. However, a number of borrowers, liquidity, leverage and operating costs negatively affect the financial sustainability of MFPs of India. The estimates demonstrate that NGIs significantly moderate the association between financial sustainability and its influential factors. The NGIs negatively affect the positive impact of Organizatioanl Structure on financial sustainability. National governance increases the positive effect of loan size (ALPB) and reduces the negative effect of a number of borrowers and leverage on the financial sustainability of MFPs of India. However, NGIs negatively affect the positive relationship between Percentage of Women Borrowers and Financial sustainability of Microfinance Providers of India. Originality/value: To the best of the authors' knowledge, this study is the first of its kind that incorporates all of the six dimensions of the National Governance Indicators (NGIs) and uses as a moderator. Secondly, a financial sustainability index has been developed for measuring the financial sustainability of Microfinance Providers (MFPs). [ABSTRACT FROM AUTHOR]

This study examines the combined and individual effects of gross domestic product (GDP), microfinance loan disbursement, per capita power consumption, and total energy consumption on poverty rate in Bangladesh by using annual time series data over the period of 1995–2022. This study determines the direction of causality by applying the Toda–Yamamoto (T–Y) procedure of the Granger causality test in the vector auto regression (VAR) model given the presence of a mixed order of integration of I(1) and I(2). The results of the stationary tests show that all variables except poverty rate are stationary at the I(1) order of integration, according to both the augmented Dicky–Fuller (ADF) and Phillips–Perron (PP) methods, while the poverty rate shows stationarity at the I(2) order in both methods. The T–Y empirical test result shows that the four independent variables combined affect the poverty rate significantly. Power consumption affects both GDP and microfinance and they have bi-directional causality relationship with each other. Our study shows that GDP and total energy consumption individually contribute to poverty reduction. Based on the findings, it is imperative that national policy makers place a greater emphasis on increased domestic production and the proper utilization of power and energy to reduce poverty rates. Policy implications may include strategies to promote sustainable energy development, improve energy efficiency, and provide equitable access to energy services. [ABSTRACT FROM AUTHOR]

Purpose: This study attempts to examine how employee orientations and paranoid arousal intersect and influence the voice behaviors of employees, as they significantly influence workplace practices. Design/methodology/approach: Drawing on a multi-source and multi-time-based survey, the data were collected from 37 supervisors and 270 employees in 80 branches of 11 microfinance banks. SmartPLS-4.1 was used to test the measurement and structural model. A total of 307 questionnaires were used for the data analysis. Findings: This research presents the contrasting results of employee orientations with voice behavior. Results support the direct relationship between paranoid arousal and promotive-prohibitive voice behaviors. However, no support was found for approach-avoidance orientation and promotive-prohibitive voice behaviors. Practical implications: Employees' ability to voice-out in organizations depends on several motivational factors, consolidated into three areas – organizational culture, leadership, and individual traits. Organizations must implement a culture of transparency and open communication. Participative and inclusive leadership styles increase the quality of relationships with employees, stimulating a promotive voice. A support system for employees is needed to advance in their careers, increasing promotive behaviors. Originality/value: The study adds value to the existing body of knowledge by studying approach-avoidance orientations and voice behaviors through the lens of paranoid arousal in the framework. [ABSTRACT FROM AUTHOR]

Examining gender differences in business financing reveals important dimensions on which women- and men-owned businesses differ. Although considerable progress has been made in understanding gender differences in mobilizing resources, the role of time in business financing remains an underexplored topic, particularly among marginalized entrepreneurs, where decisions about and outcomes related to time play an important role in business success. Leveraging the literature on gender role congruity and risk preferences along with a sample of nearly 300,000 microloans funded on the kiva.org platform, we explore whether the timespan for women to reach their microloan funding goal differs from that of men and how borrowers' strategies regarding the size and repayment duration of these microloans influence this gender difference. Plain English Summary: It takes women longer than it takes men to get the same business loan on kiva.org because (1) women choose bigger loans, (2) women ask for more time to pay back their loans, and (3) because lenders prefer lending to men-owned businesses. Thus, our data suggests that lenders prefer men-owned businesses partially because men make choices about loans that lenders prefer—men choose smaller loans and ask for less time to pay back the same loan. [ABSTRACT FROM AUTHOR]

This paper investigates the balance between social and financial sustainability goals in the European microfinance sector using an original dataset obtained from a survey conducted in 2016–2017 on 159 microfinance institutions (MFIs) operating in 38 European countries. Overall, our results show that MFIs that are more likely to comply with their social sustainability objectives are also doing well financially. The only aspect on which social sustainability does not seem to have a positive effect on financial sustainability is the financing of the poorest through the provision of small-scale loans. A phenomenon that seems peculiar to the European context is that larger MFIs operating in countries with stringent financial regulation tend to show a comparative advantage and better withstand competition from the traditional banking sector. However, a separate issue that deserves attention is the specific regulation on interest rates, which seems to penalize the MFIs operating in countries imposing interest rate caps due to the impossibility to pass on the high unit costs of microlending to borrowers. Our results are robust to alternative measures of financial sustainability and to the use of the Generalized Method of Moments (GMM) and Instrumental Variable (IV) estimation techniques to overcome the problem of endogeneity. Plain English Summary: European Microfinance Institutions that more tightly pursue social objectives are also more likely to be financially sustainable but are penalized by regulatory restrictions on interest rates. The microfinance sector underwent a significant global expansion in recent years, creating chances for underprivileged and vulnerable groups, particularly women entrepreneurs, to start their businesses. The balance between social and financial sustainability is one of the most hotly debated themes in a growing number of studies, although there is little empirical evidence on the European microfinance sector. In this paper, we provide one of the first pieces of evidence of this relationship in the European context. Our findings have important implications for researchers, policymakers, and society as a whole. The research reveals that European Microfinance Institutions (MFIs) that more tightly pursue social objectives are also more likely to be financially sustainable. Furthermore, smaller MFIs appear to achieve a double bottom line more easily, especially targeting higher shares of women borrowers. The critical aspect of European MFIs appears to be their greater reliance on subsidies, as well as a regulation that is ill-suited to the microfinance sector, especially regarding interest rate caps. Thus, a more structured regulatory framework focused on social sustainability variables could improve microfinance effectiveness in the coming years. [ABSTRACT FROM AUTHOR]

A widely held view is that small firms in developing countries are prevented from making profitable investments by lack of access to credit and insurance markets. One solution is to provide repayment flexibility in credit contracts. Repayment flexibility eases both the credit constraint, as it allows for increased spending during the start-up phase, and offers insurance, in case of fluctuations in income. In a field experiment among traditional microfinance clients and larger collateralized borrowers in Bangladesh, we randomly assign the option to delay up to 2 monthly repayments at any point during a 12-month loan cycle. The flexible contract leads to substantial improvements in the traditional microfinance clients' business outcomes, driven by borrowers in the upper tail of the distribution. In addition, we find a significant impact on socio-economic status, combined with lower default rates. We show theoretically and empirically that these effects are induced by an increase in entrepreneurial risk taking, implying that the primary mechanism is insurance provision. Repayment flexibility also attracts less risk-averse borrowers interested in business expansion. At the same time, the effects for the larger loan are much more modest. Our findings suggest that lack of insurance is an important constraint for small firms but that a simple financial product that increases repayment flexibility can be an effective tool for enabling enterprise growth. [ABSTRACT FROM AUTHOR]

Social impact investors claim to promote sustainable development by mobilizing private finance capital to solve pressing global challenges like poverty alleviation. In this paper, I interrogate this claim through an examination of microfinance in Cambodia, a major destination for impact investment. In the past decade, Cambodia has received nearly 10% of global investments from microfinance-specific funds. It now has the largest microfinance-debt per capita ratio of any country in the world. Based on qualitative research between 2021 and 2023, I argue that impact investment functions as an anti-politics of development that reinforces finance as a political technology of neoliberal governance. Over the past two decades, impact investors have poured capital into the country's microfinance industry to expand access to credit without acknowledging structural political-economic conditions that have produced rising over-indebtedness among microfinance borrowers. Instead, they have argued that the problems created by the microfinance industry are best resolved through a self-regulation model that uses a voluntary code of conduct based on global standards of responsible finance. Thus, impact investors have been integral in broader transformations that have extended financial logics, technologies and accumulation imperatives into people's daily lives. This paper contributes to economic geography and critical development studies by explaining how impact investment deepens neoliberal financialization. [ABSTRACT FROM AUTHOR]

Crowdfunding and micro-donations for funding political campaigns have been extensively studied, especially in the US. However, digital participatory financing in Europe, with a different regulatory context and relevant public funding, has been investigated less. This article analyses the effects of an innovative and digital-native electoral campaign financing tool: the microcredit. Microcredits consist of small "civil loans" that a political party requests from sympathizers to finance the party's electoral campaign. Based on the case study of the Spanish party Podemos – the first one to implement it – for the period of 2015–2021, we use official data and party documents to explore the consequences of microcredit. We argue, first, that microcredits (and party financing) should be considered another way to differentiate challenger parties from traditional ones. Second, there is a link between the number and amount of microcredits and the political context, not limited to good electoral expectations but also to the polarized political context. Third, microcredits change the structure of campaign funding. Finally, we point out a regulation problem that may deter other parties from adopting this mechanism and present different legal problems (monitoring, data protection, or potential corruption), showing the regulatory issues for adapting to the digitalization of politics. [ABSTRACT FROM AUTHOR]

The aim of this study is to understand the impact of group maturity (age) on savings and investment behaviour of self-help group (SHG) members. Based on the survey data of 300 SHG members, the study finds that as groups mature or get older there is a three-fold rise in the share of household savings being diverted to savings in the SHGs. The results of the propensity score matching (PSM) reveal that group maturity has a positive impact on the per capita savings of member households. Furthermore, the usage of bank loans for a majority of beneficiaries distinctly shifts from consumption purposes to income-generating activities as the group becomes more mature. [ABSTRACT FROM AUTHOR]

A multitude of NGOs form informal savings and lending associations in developing countries, called savings groups. Group members are responsible for the day-to-day governance, operating within the framework provided by the NGOs. As NGOs differ in the model they provide, savings groups are endowed with different levels of autonomy over their operations. Drawing on theories related to autonomy and performance, we test whether more autonomous savings groups perform better. A two-way correlated random effects regression on data for 97,653 savings groups formed by five NGOs in 16 countries shows that savings groups with more autonomy over their financial operations demonstrate greater financial performance. Additionally, the financial performance of more autonomous savings groups improves more in subsequent cycles, suggesting that savings groups with more autonomy have a greater ability to adapt. We argue that groups thus benefit from being granted more autonomy over their day-to-day operations. Our study may have broader implications for similar development interventions by NGOs, in which participants could benefit from increased autonomy. [ABSTRACT FROM AUTHOR]

Purpose: This study aims to contribute to the extant literature by assessing how microfinance institutions (MFIs) affect female entrepreneurship, contingent on female unemployment levels. Design/methodology/approach: The study focuses on 44 countries in sub-Saharan Africa for the period 2004–2018. The empirical evidence is based on interactive quantile regressions, which put emphasis on nations with high, low and intermediate levels of business constraints. The analysis is tailored to provide avoidable female unemployment levels in the implementation of policies designed for MFIs to promote female business ownership. Findings: The hypotheses that MFIs are favorable for female business owners and some critical rates of female unemployment should be avoided in order for the favorable incidence to be maintained is exclusively valid in the 10th quantiles of the cost of business by females and time to start-up a business by females. Policy implications are discussed. Originality/value: This study has complemented the extant literature by providing actionable female unemployment critical masses that governments can act upon in tailoring the relevance of MFIs in the doing of business by females. [ABSTRACT FROM AUTHOR]

The SHG Bank linkage programme has enabled access to formal credit to a large segment of the rural poor, the majority of whom were women. Formal rural financial institutions like commercial banks, RRBs, co-operatives banks, and other agencies like NGOs and MFIs are actively involved in the SHG bank linkage programme. Hence the present study was undertaken to analyze the share of credit disbursement by various institutional agencies to the rural poor and to understand the importance of microfinance in this reference. The scope of rural credit is wide as it consists of not only agriculture credit but also lending to the priority sector. As a result, the region-wise disbursement of rural credit was studied and analyzed to find out the trends in the growth of priority sector advances as compared to the total bank credit outstanding over the last decade. [ABSTRACT FROM AUTHOR]

The aim of the study was to evolve strategies for improving female farmers’ access to selected agricultural input in rural areas of Ozubulu, Anambra State. Specifically, the study determined strategies for improving female farmers’ access to: land, credit, extension services, training and appropriate agricultural technologies. Four research questions guided the study. The study adopted a survey research design. The study involved 291 participants: 282 registered female farmers, seven agricultural extension workers, and two bank executives from microfinance banks in Ozubulu. No sampling was needed due to the manageable population size. Data were collected using questionnaire. Data were analyzed using mean and standard deviation. The study identified nine strategies for improving female farmers’ access to land, including the abolition of cultural barriers that prevent women’s access to land(x̄= 3.52); 11 strategies for improving rural female farmers’ access to credit, such as access to loans at low interest rate(x̄= 3.38); eight strategies for improving access to extension services, like using mass media for information dissemination (x̄= 3.26); and nine strategies for access to agricultural technologies, such as providing agricultural research findings (x̄= 3.45). Recommendations include among others, enforcing policies to protect women's land rights for secure tenure and developing user-friendly manuals for agricultural technologies. [ABSTRACT FROM AUTHOR]

This research investigated the performance of microfinance institutions (MFIs) with the focus of social media marketing as the predictor of the performance. The research was carried out in Dodoma City whereas a crosssectional research design with involvement of 84 staff selected proportionately from MFIs’ strata was employed. Key informants were managers of the MFIs who were purposively selected. Data were collected using questionnaire and interviews. Analysis of qualitative data was undertaken by using adopting content analysis. Regarding quantitative data, application of descriptive statistics in form of percent, frequency and cases of occurrence in multiple responses fashion was carried out that was followed by further econometric analysis using and logit model to determine the performance of MFIs as contributed by social media as marketing strategies. The results indicated that WhatsApp, Instagram, Twitter and Facebook statistically were significant (p < 0.05) with positive relationship with increase in sales. The conclusion made from this research is that social media as marketing strategies positively influence the performance of MFIs. Serious investment in the usage of social media in marketing MFIs and their activities should be maximized for optimal performance. [ABSTRACT FROM AUTHOR]

Purpose: Islamic banking and microfinance institutions (MFIs) share the core objective of serving the underprivileged. This study aims to investigate whether Islamic banking development facilitates (greases) or hinders (sands) the social mission of MFIs. Design/methodology/approach: Data for 19 countries covering the period 2010–2018 were collected from the World Bank, Bank Focus and International Monetary Funds and analyzed using conventional econometric methods. Endogeneity-corrected techniques and alternative proxies were employed to ensure robust results. Findings: The study revealed that Islamic banking development (proxied by the size of the Islamic banking assets) weakens the depth of outreach of MFIs (measured by average loan size). In countries with growing Islamic banking, MFIs appear to shift their focus toward wealthier clients, potentially due to market saturation among the poor. This is evidenced by MFIs offering larger loans, suggesting a mission drift toward profit maximization. Therefore, it can be inferred that competition from Islamic banks, to some extent, erodes the social mission of MFIs. Originality/value: This study is among the few to examine the recent and comprehensive relationship between Islamic banking development and the social mission of MFIs. [ABSTRACT FROM AUTHOR]

We use a database composed of 2,545 Microfinance Institutions (MFIs) worldwide for the period 2008–18 to explore the effect of a larger share of women's workforce on both staff wages and overall monetary compensation within MFIs. MFIs are different from other industries, as they are traditionally women‐centered, i.e. they have a significant share of women employees at every level of the corporate hierarchy and mostly serve women clients. Applying both traditional estimation methodology and techniques aimed at accounting for possible endogeneity among the main variables, we find that a higher proportion of women on staff significantly increases the average expense per worker (which also includes the incentive components of remuneration) while the effects are considerably smoothed (or not significant) on the base salary. This leads us to conclude that, unlike what is seen in other sectors of the economy, MFIs do not pay women less. Yet, significant positive effects of women in the workforce, especially on average overall monetary compensation, suggest that women are likely to exploit their superior skills and/or gender affinity advantages with customers of the same gender to enhance MFIs' efficiency and profitability, thereby achieving higher incentive compensation, mostly in the form of bonuses and other benefits. [ABSTRACT FROM AUTHOR]

Purpose. The purpose of this research is to propose a tool for designing a microcredit risk pricing strategy for borrowers of microfinance institutions (MFIs). Design/methodology/approach. Considering the specific characteristics of microcredit borrowers, we first estimate and measure microcredit risk through the default probability, applying a parametric technique such as logistic regression and a non-parametric technique based on an artificial neural network, looking for the model with the highest predictive power. Secondly, based on the Basel III internal ratings-based (IRB) approach, we use the credit risk measurement for each borrower to design a pricing model that sets microcredit interest rates according to default risk. Findings. The paper demonstrates that the probability of default for each borrower is more accurately adjusted using the artificial neural network. Furthermore, our results suggest that, given a profitability target for the MFI, the microcredit interest rate for clients with a lower level of credit risk should be lower than a standard, fixed rate to achieve the profitability target. Practical implications. This tool allows us, on the one hand, to measure and assess credit risk and minimize default losses in MFIs and, secondly, to promote their competitiveness by reducing interest rates, capital requirements, and credit losses, favoring the financial self-sustainability of these institutions. Social implications. Our findings have the potential to make microfinance institutions fairer and more equitable in their lending practices by providing microcredit with risk-adjusted pricing. Furthermore, our findings can contribute to the design of government policies aimed at promoting the financial and social inclusion of vulnerable people. Originality. The personal characteristics of microcredit clients, mainly reputation and moral solvency, are crucial to the default behavior of microfinance borrowers. These factors should have an impact on the pricing of microcredit. [ABSTRACT FROM AUTHOR]

Purpose: This paper examines whether household economic status mediates the effect of microcredit on entrepreneurial success amongst women microcredit clients and if this effect is conditional on the borrower's marital status. Design/methodology/approach: This cross-sectional study uses primary data collected through a structured questionnaire from microcredit borrowers in Tanzania. The selection of the respondents for the survey involved categorising them based on their loan amount and length of membership in the program and randomly picking them for study participation. To realise the study objective, we used the moderated mediation model and employed the Linear-Based Regression Model 8 of the Hayes PROCESS macro V4.1 for SPSS. Findings: The findings show that the loan amount and household economic status positively and significantly affect entrepreneurial success. However, the effect of microcredit on entrepreneurial success is mediated by household economic status. On the other hand, the direct and indirect effects of microcredit on entrepreneurial success differ depending on the borrowers' marital status, with married borrowers being negatively affected. Originality/value: Microfinance supporters suggest that microcredit is vital for enterprise development and other socioeconomic outcomes. However, the results are inconclusive, including the role of household economic status. This study provides empirical insights into the moderated mediation effect of household economic status on the relationship between microcredit and entrepreneurial success. The study's findings and limitations suggest considering not only microcredit and related factors but also the essential role of family factors in future research and design of microfinance services in efforts to support and grow microcredit-assisted women-owned businesses. [ABSTRACT FROM AUTHOR]

Purpose: The purpose of microcredit is to offer small loans to people who are not covered by traditional financial channels. It can facilitate entrepreneurship, boosting local socio-economic development and improving environmental and political factors. Design/methodology/approach: This paper aims to analyse microcredit in Italy, focusing on a project based in Rione Sanità, Naples. Rione Sanità is one of the poorest areas of Southern Italy, displaying high rates of criminality and unemployment, especially among youth, women, migrants and the vulnerable. The district is renowned for its fine and ancient handicrafts, food, trade and historical heritage – potential drivers for boosting tourism in the area. Qualitative methodologies were used to collect primary data through field visits and interviews with project bankers, local businesses, artisans, associations and religious representatives, project volunteers, as well as participation at local meetings. These data were corroborated by budget analysis based on the project's accounting. Findings: The study shows encouraging results for the project and policy prospects. Despite the tiny starting numbers, there emerges a significant potential for microcredit to spread in the district, as in Southern Italy, providing an effective strategy to combat unemployment, usury and criminality, yielding community development and favoring broad societal challenges. Originality/value: With this evidence, the paper attempts to shed some light and verify the potential of microfinance projects as a driver of sustainable development and ethical finance in poor areas of developed countries. [ABSTRACT FROM AUTHOR]

This study examines the perceptions of small business operators on microfinance loans received from PRIDE (Promotion of Rural Initiative and Development Enterprises)-Tanzania in Kinondoni Municipality in relation to poverty reduction. The study involved 96 small business owners who worked in hair-dressing and cutting salons, food vendors, and tailor shops in Kinondoni Municipality. We used a cross-sectional design for data collection, which included structured questionnaires, interviews, and focus group discussions. Additionally, we analyzed quantitative data using descriptive statistics. The findings show that about 74% of small businesses had initial capital of less than 500,000 Tanzanian shillings or US$190 to start a business, while PRIDE prefers group loans. Small business borrowers expressed dissatisfaction with the loans offered by PRIDE. The focus group discussions suggest that the provision of loans has not contributed to an improved standard of living but rather trapped people in poverty as they sell their assets to repay the loans. Factors that lead small businesses to fail to repay the loans include high PRIDE operating costs, higher risk associated with lending to poor businesses, and lack of collateral or credit repayment histories among borrowers. These findings imply that PRIDE-Tanzania aligns with the neoliberal agenda, relying on market mechanisms to provide financial services to small businesses in Kinondoni that cannot translate into an improved standard of living, but rather into poverty. The policy implication is for policymakers to develop revised policies that regulate the operations of other microcredit institutions to protect the interests of small business owners. [ABSTRACT FROM AUTHOR]

Microenterprise development has been lauded for its capacity to empower socially marginalised women and alleviate poverty. However, the high cost of microcredit due to the relatively high-interest rate charged by institutions poses a debt trap to microenterprises. The study presents a successful case of a private sector-non-governmental organisation partnership to provide interest-free microcredit embedded in a flexible training and mentoring program by Women of Will. The study uses quantitative and qualitative methods to measure the impact of such microcredit and mentoring models on women's empowerment and entrepreneurial growth, analysing what works and why. The growing importance of environmental, social and governance (ESG) suggests that corporate support for these initiatives has become increasingly sustainable, challenging neoliberal assumptions concerning the inevitable cost of microcredit. The case study draws on a realist approach to inform evidence-based policy by shedding light on the interactions and processes that influence the outcomes. [ABSTRACT FROM AUTHOR]

This paper examines the claim that the Kudumbashree women of Kerala, built around microfinance but now a key actor in Kerala's economic, social, and welfare landscape, constitute a form of social capital and contributes to social cohesion. The study is based on desk research based on the existing studies supplemented by interviews with key informants and focus group discussions. An overview of Kerala's society and politics, the rise of inclusive neighbourhood movements as precursors of the Kudumbashree and the functions that the poverty-focused and state-initiated Kudumbashree women's program is discussed. It then discusses the communal situation in Kerala and how stiff competition between the dominant communities have operated without violence and how the sporadic communal conflicts are contained through accommodation and public disapproval. It then concludes with a critical assessment of the role of Kudumbashree as a form of social capital primarily and as a force for social cohesion. [ABSTRACT FROM AUTHOR]

This paper explores the history of Dutch credit unions (credietvereenigingen). Launched to provide SME credit, these credit unions gradually drifted away from their original aims, hereby increasingly targeting a wealthier echelon of clients at the expense of their poorer customers. In the end, they were squeezed out of business by new, government-supported SME banks and the big commercial banks. This study is devoted to understanding why this drift occurred and how this ultimately determined the development of these institutions. Thereby, it deepens our understanding of the similar challenges faced by present day social enterprises (most notably microcredit institutions) which may also succumb to mission drift, and hints to possible solutions in which such drift may be prevented. [ABSTRACT FROM AUTHOR]

Women empowerment (WE) in food security is one of the global issues faced by women in all the countries of the world. Achievement of zero-hunger goal of Sustainable Development Goals in 2030 (SDG) still seems to be unachievable because of this food insecurity. This research aims to study the achievement of food security by enhancing WE in the informal sector in Lahore, Pakistan. Moreover, the analysis goals are to determine the contribution of microcredit facilities and management skills in the enhancement of WE which improves food security. Method: This study was quantitative and descriptive. Using a primary survey questionnaire on cross-sectional data source by simple random sampling, 495 women borrowers in the informal sector of Lahore, Pakistan were investigated. Data analysis was done using SMART PLS3. Results: The results of the study revealed a positive relationship between WE and food security through the active participation of women in production decisions. The utilization of resources within the households is strengthened by familial rights, social support, and the removal of gender disparity. Conclusion: Women's capacity to contribute more to the daily household expenditure is increased by the higher income, and eventually, it increases their empowerment and food security.

Abstract The study investigates how microfinance interventions and the entrepreneurial engagement of Self-Help Group (SHGs) members impact women’s social and economic empowerment in rural communities. The study employs a mixed-methods approach, combining quantitative data analysis and qualitative insights gathered through surveys, interviews, and case studies. The study’s findings demonstrated a notably positive and moderately significant impact of microfinance and entrepreneurial engagement on the social, economic, and psychological dimensions of women’s empowerment. Furthermore, the inclusion of case studies provided evidence that microfinance activities and entrepreneurship involvement have substantially empowered women across various domains, such as increasing financial independence, enhancing participation in decision-making processes, fostering social networks and support, and boosting their overall self-confidence and well-being. These insights emphasise the transformative potential of microfinance initiatives in advancing gender equality and women’s empowerment in diverse socio-economic contexts.