Role of Microfinance in Entrepreneurial Development in Low-Income Areas
This study examines microfinance’s role in developing entrepreneurship in low-income areas. Entrepreneurship is one of the better ways to eradicate the most critical problems, such as poverty, income inequality, and unemployment. The study uses a paired sample t-test on 200 small entrepreneurs from...
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| Format: | Article |
| Language: | English |
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Sciendo
2024-12-01
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| Series: | Studies in Business and Economics |
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| Online Access: | https://doi.org/10.2478/sbe-2024-0056 |
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| author | Ullah Saif Ali Mirza Raza Sidiki Shehla Najeeb |
| author_facet | Ullah Saif Ali Mirza Raza Sidiki Shehla Najeeb |
| author_sort | Ullah Saif |
| collection | DOAJ |
| description | This study examines microfinance’s role in developing entrepreneurship in low-income areas. Entrepreneurship is one of the better ways to eradicate the most critical problems, such as poverty, income inequality, and unemployment. The study uses a paired sample t-test on 200 small entrepreneurs from low-income areas to investigate the difference between before and after availing of a microfinance facility. Furthermore, the microfinance gap is calculated by taking feedback from entrepreneurs before and after getting the financing facility. The microfinance gap is employed to examine whether microfinance plays a role in developing entrepreneurial skills. The results show that the microfinance gap positively contributed to entrepreneurial development. The microfinance facility has proved to be a technique for entrepreneurial development for poor and young unemployed youth. MFIs are considered the best tool to reduce poverty and unemployment and increase entrepreneurial development. |
| format | Article |
| id | doaj-art-39dfdb7986744dd38e8bdc5a0e192de5 |
| institution | Kabale University |
| issn | 2344-5416 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Sciendo |
| record_format | Article |
| series | Studies in Business and Economics |
| spelling | doaj-art-39dfdb7986744dd38e8bdc5a0e192de52025-02-02T15:49:07ZengSciendoStudies in Business and Economics2344-54162024-12-0119327229010.2478/sbe-2024-0056Role of Microfinance in Entrepreneurial Development in Low-Income AreasUllah Saif0Ali Mirza Raza1Sidiki Shehla Najeeb21ZUFESTM, Ziauddin University Karachi, Pakistan2Institute of Business Management (IoBM), Karachi, Pakistan3Ziauddin UniversityKarachi, PakistanThis study examines microfinance’s role in developing entrepreneurship in low-income areas. Entrepreneurship is one of the better ways to eradicate the most critical problems, such as poverty, income inequality, and unemployment. The study uses a paired sample t-test on 200 small entrepreneurs from low-income areas to investigate the difference between before and after availing of a microfinance facility. Furthermore, the microfinance gap is calculated by taking feedback from entrepreneurs before and after getting the financing facility. The microfinance gap is employed to examine whether microfinance plays a role in developing entrepreneurial skills. The results show that the microfinance gap positively contributed to entrepreneurial development. The microfinance facility has proved to be a technique for entrepreneurial development for poor and young unemployed youth. MFIs are considered the best tool to reduce poverty and unemployment and increase entrepreneurial development.https://doi.org/10.2478/sbe-2024-0056entrepreneurial developmentmicrofinancepovertyentrepreneurship |
| spellingShingle | Ullah Saif Ali Mirza Raza Sidiki Shehla Najeeb Role of Microfinance in Entrepreneurial Development in Low-Income Areas Studies in Business and Economics entrepreneurial development microfinance poverty entrepreneurship |
| title | Role of Microfinance in Entrepreneurial Development in Low-Income Areas |
| title_full | Role of Microfinance in Entrepreneurial Development in Low-Income Areas |
| title_fullStr | Role of Microfinance in Entrepreneurial Development in Low-Income Areas |
| title_full_unstemmed | Role of Microfinance in Entrepreneurial Development in Low-Income Areas |
| title_short | Role of Microfinance in Entrepreneurial Development in Low-Income Areas |
| title_sort | role of microfinance in entrepreneurial development in low income areas |
| topic | entrepreneurial development microfinance poverty entrepreneurship |
| url | https://doi.org/10.2478/sbe-2024-0056 |
| work_keys_str_mv | AT ullahsaif roleofmicrofinanceinentrepreneurialdevelopmentinlowincomeareas AT alimirzaraza roleofmicrofinanceinentrepreneurialdevelopmentinlowincomeareas AT sidikishehlanajeeb roleofmicrofinanceinentrepreneurialdevelopmentinlowincomeareas |