Microfinance Lending's Dual Impact: Fostering Growth in Micro and Small Enterprises and Alleviating Poverty in Sindh Province

Authors

  • Shankar Lal Ph.D Scholar, Faculty of Commerce & Business, Sindh University Jamshoro. Author
  • Prof. Dr. Javed Ahmed Chandio Dean Faculty of Commerce & Business, Sindh University Jamshoro. Author
  • Dr. Sadia Anwer Associate Professor, Institute of Commerce and Management, Sindh University Jamshoro. Author

Keywords:

Microfinance, lending, micro& small, poverty, economic growth

Abstract

Microfinance institutions, such as the Karachi Province of Pakistan, have emerged as strong engines for socioeconomic development in regions with high levels of poverty and low access to public finance services. The study examines the differentiates of MFI lending in terms of micro and small business growth, as well as its potential to decrease poverty in Sindh Province. This study examines the transformative effect of microcredit on the business landscape in Sindh through an intensive analysis of both primary and secondary data. It assesses, in particular with a view to their role in poverty reduction, the impact of MFI lending on MSEs' expansion and sustainability, job creation and income generation. Preliminary findings indicate that microfinance lending can have a twofold effect: Firstly, it substantially enhances the growth of Microfinance Services Enterprises and supports their business development and employment opportunities. Second, by make sure that vulnerable populations have access to financial resources for income generating activities, which has played crucial role in declining poverty. This study has emphasized the critical role of microfinance institutions as key actors in terms of dealing both economically and socially with these challenges in Sindh Province. Microfinance loans offer a comprehensive approach to development, through their empowerment of micro businesses and the promotion of individuals out of poverty. The findings of the study give policymakers, microfinance institutions and development agencies valuable insights into how growth in MSEs can be symbiotically linked with poverty reduction via MFI interventions. This knowledge will contribute to the development of more targeted and efficient strategies, with a view to doubling the two objectives of boosting growth and poverty reduction within the province of Sindh.

https://doi.org/10.5281/zenodo.10503700

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Published

2023-09-30

How to Cite

Microfinance Lending’s Dual Impact: Fostering Growth in Micro and Small Enterprises and Alleviating Poverty in Sindh Province. (2023). International Research Journal of Management and Social Sciences, 4(3), 430-445. https://irjmss.com/index.php/irjmss/article/view/35

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