This thesis examines the effectiveness of microfinance in the socio-economic development with the major focus on poverty reduction and gender equality (in the sense of women empowerment) in Northern part of India.
The purpose of this research is to measure the effectiveness of microfinance in the sense of socio-economic development in the Northern part of India. The aim has been accomplished by using the methods of statistical analysis and through the examination of primary and secondary data. The methods of data analysis that were employed in the research incorporated chi-square tests, independent sample t-tests and binary logistic regressions.
The data has been analysed based on the survey of 100 respondents, who were below nationally defined poverty line in Lucknow (Major metropolitan city of North India) and areas nearby. The survey data was divided into two parts i.e. 60% of the respondents were the non-microfinance respondents and remaining 40% were the microfinance recipients. Recommendations regarding the research have been based on the findings from the analysis. Findings of the study have shown that young entrepreneurs who are below poverty line are more likely to apply for the micro loan. This has been explained by the binary logistic regression analysis of the whole sample. Further, the findings show that microfinance has very low outreach in North India.
This has been explained by the data from the MIX market, level of awareness of microfinance among the non-microfinance respondents and the case study of Nat Purva Village near Lucknow. Furthermore, the results disclosed that microfinance recipients face difficulty while applying to micro loan due to which they also face difficulty in paying the loan amount with interest back. This has been explained by the chi-square test and binary logistic regression analysis of the responses from the microfinance recipients.
However, overall impact of microfinance on both poverty reduction and gender equality is turned out to be positive. This has been explained by MFI’s major focus on women entrepreneurs, changes in social and economic conditions of the recipients after taking the micro loan, expenditure of the recipients on education of children, recipient’s recommendations regarding micro loan and the ability of recipients to apply for the micro loan again.
Table of Contents
Chapter 1: Introduction
1.1 Definition of microfinance
1.2 Why India
1.3 Why North India
1.4 Microfinance delivery models in North India
1.5 Aims and Objectives of the research
1.6 Summary
Chapter 2: Literature Review
2.1 Introduction
2.2 Micro Finance Loans and their uses
2.3 International Evidence
2.4 Indian Evidence
2.5 Scope of Research and Possible Contribution
2.6 Some Possible Research Hypothesis
Chapter 3: Methodology
3.1 Research Philosophy and Approach
3.2 Research Strategy
3.3 Data
3.4 Methods of data analysis
3.5 Limitations
Chapter 4: Findings and Analysis
4.1 Analysis of the whole sample.
4.2 Analysis of the sample of non-microfinance respondents.
4.3 Analysis of the sample of microfinance recipients.
4.3.1 Chi- Square Test with cross-tabulation
4.3.2 Independent- Samples T-Test
4.3.3 Binary Logistic Regression
Chapter 5: Conclusion
5.1 Recommendations
5.2 Future Scope
Research Objectives and Focus
This research aims to evaluate the effectiveness of microfinance in fostering socio-economic development within Northern India, specifically targeting poverty reduction and gender equality. The study investigates the disbursement and repayment processes, the impact on recipients' livelihoods, and the extent of public awareness regarding microfinance funding.
- Analysis of microfinance delivery models and operational processes in North India.
- Assessment of microfinance's role in poverty reduction and socio-economic improvement.
- Evaluation of gender equality and women's empowerment through micro-loans.
- Examination of the utilization of microfinance funding and recipient loan retention rates.
- Investigation into public awareness, outreach limitations, and structural challenges in the region.
Excerpt from the Book
Prostitution for the sake of traditional practice and poverty: case of Nat Purva village.
In the sample of 60 non-microfinance respondents as shown in (Table 4), 15 people who are reflecting their own business are the female respondents who are engaged in the business of prostitution. These females are forced into prostitution by their family members (primarily brothers and fathers) to earn for living for the sake of 400 years old traditional practice (Scoop Whoop, 2015). Earlier this business was limited to the village only but now the girls (as young as 11 years old) are sent to the places like Mumbai, Dubai, etc. (Aljazeera, 2013). Major source of income in this village comes from prostitution. Whatever these females earn in their youth is taken away by their brothers and fathers and after that when they become old they are considered of no use (Video volunteers, 2010).
“At least 30% of the women in this village are still sex workers. If you want to see progress, you should be able to offer them an alternative way of earning their livelihood”- Ram babu
The major cause of prostitution in North India is poverty and gender inequality (Youth Ki Awaaz, 2011). Funding options available within MFI’s may be proved beneficial in these cases (ZDNet, 2013) but the irony is that these people are not even aware of it.
Chapter Summaries
Chapter 1: Introduction: This chapter introduces the research context, defining microfinance and establishing its significance for poverty reduction and women's empowerment in North India.
Chapter 2: Literature Review: This section provides a critical overview of theoretical and empirical evidence regarding the effectiveness of microfinance in various global and Indian contexts.
Chapter 3: Methodology: This chapter outlines the research philosophy, data collection methods, and statistical techniques (such as chi-square tests and regression analysis) used to achieve the study's objectives.
Chapter 4: Findings and Analysis: This chapter presents the data analysis, exploring the outreach of microfinance, respondent demographics, and the factors influencing the likelihood of applying for micro-loans.
Chapter 5: Conclusion: The final chapter synthesizes the findings, confirming the research hypotheses, and offers strategic recommendations to improve microfinance operations in North India.
Keywords
Microfinance, Joint Liability Group, Poverty reduction, Gender equality, North India, socio-economic development, micro-loans, women entrepreneurs, MFI outreach, loan repayment, rural development, financial inclusion, statistical analysis, logistic regression, poverty line.
Frequently Asked Questions
What is the core focus of this research?
The research evaluates the effectiveness of microfinance in promoting socio-economic development in Northern India, with a specific emphasis on poverty reduction and gender equality through the empowerment of women entrepreneurs.
Which specific areas does this study explore?
The study examines the microfinance process, poverty reduction impacts, the utilization of micro-loans by recipients, public awareness levels, and structural problems affecting microfinance in Northern India.
What is the primary research question?
The central objective is to determine whether microfinance plays a significant role in a strategy for socio-economic development in North India, specifically regarding its effectiveness and outreach.
Which scientific methods are utilized?
The study employs a quantitative approach, using statistical analysis methods such as chi-square tests, independent sample t-tests, and binary logistic regressions on data collected from 100 respondents.
What topics are discussed in the main body?
The main body covers the theoretical literature review, the methodological framework, a comprehensive analysis of both microfinance recipients and non-recipients, and a detailed discussion on statistical findings.
Which keywords define this work?
Key terms include Microfinance, Joint Liability Group, Poverty reduction, Gender equality, and North India, alongside others related to financial outreach and socio-economic indicators.
Why was North India selected for this study?
North India was chosen due to significant regional development gaps, lower outreach of microfinance institutions compared to South India, and high poverty levels in states like Uttar Pradesh.
What are the findings regarding the "Nat Purva" village?
The case study of Nat Purva highlights how systemic poverty and traditional practices perpetuate prostitution among women, and notes that these vulnerable individuals lack awareness of microfinance as an alternative livelihood.
- Arbeit zitieren
- Kumar Deepam (Autor:in), 2015, Microfinance as a driving force for socio-economic development in emerging economies. Measuring its effectiveness in North India, München, GRIN Verlag, https://www.grin.com/document/310204
