Assessment of Islamic microfinance on poverty reduction in Bangladesh Online publication date: Tue, 20-Apr-2021
by Md Nazim Uddin; Ataul Huq Pramanik; Ahasanul Haque; Hamdino Hamdan
International Journal of Islamic Marketing and Branding (IJIMB), Vol. 5, No. 4, 2020
Abstract: The main objective of Islamic microfinance institutions (IsMFIs) is to uplift the socio-economic status of the poor. This is essential to evaluate the effects on the Islamic microfinance (IsMFs) program and its participants. This research attempts to analyse the multilevel effect of IsMFIs at the enterprise level and social level in Bangladesh. Rural development schemes (RDS) are considered as baseline tools for measuring the effects on the social and enterprise levels. Primary data have been collected from the program's participants, which are the two leading IsMFIs in Bangladesh, by employing cross-sectional design with the stratified random sampling method. IsMFIs appear to spur the social and enterprise of the program's participants. The analysis indicated a powerful and positive effect of system participation on financial efficiency and enterprise resource foundation. This study proposed a model that has the potential of being applied for poverty alleviation programmes in Bangladesh.
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