Microfinance schemes and poverty reduction of microfinance institution

Abstract

The aim of this research is to investigate how microfinance can improve members’ living standards and empower them, as well as to provide recommendations for enhancing the effectiveness of the program.

This study employed descriptive and informal comparative research designs, using both qualitative and quantitative methods. A sample of 300 respondents from microfinance organizations was selected for primary data collection, using a non-probability sampling approach. Basic random sampling was applied to administer the questionnaires. In the study, poverty served as the dependent variable, while wealth, education, health, and standard of living were independent variables. The findings indicate that standard of living, wealth, and education significantly influence poverty, whereas health shows a positive but statistically insignificant relationship. Overall, there is a substantial positive correlation between poverty and wealth, education, health, and standard of living.

Keywords: Poverty, Wealth, Health, Education, Living Standard