The Impact of Microfinance on Poverty Alleviation and Employment Creation
Keywords:
Microfinance, Human Capital, Job Creation, Financial Inclusion and Poverty AlleviationAbstract
The purpose of this study was to examine the impact of microfinance on poverty alleviation with mediating and moderating role of human capital and financial inclusion. The data was collected using the questionnaire. The questionnaires were distributed to four banks in Dhaka Bangladesh namely as; Grameen bank, UCB bank, NRBC bank and BRAC bank. For the analysis software known as Smart PLS4 version was used. The results show a significant and positive relationship between microfinance and poverty alleviation which means that microfinance is a key factor in reducing the poverty in the society. Microfinance also depicts a positive and significant association with human capital and human capital shows a positive and significant relationship with poverty alleviation. A skilled and educated human can play a significant role in decreasing down the poverty by different means. The results demonstrates that human capital mediates the relationship between the microfinance and poverty alleviation. The financial inclusion also moderates the association among the human capital and poverty alleviation in such a way that it strengthens the association. The limitations and future work suggestions have also been discussed in the study.
https://doi.org/10.5281/zenodo.10504331
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