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Measuring Impacts of Microfinance
? Main aim of Microfinance is to break the Vicious Cercal of Poverty.
? As literature is full of success stories (based on case studies) and by only focusing success stories we can’t measure the impacts of Microfinance properly.
? For that careful research is required and that research should be based on large sample.
? Although this type of studies are small in number but they are growing with the passage of time.
Most of the times impacts are seen in quantitative aspects, like;
? Impact of Microfinance on rising income of Household.
? OR we try to find out relation between Increase in Income and Microfinance.
EXAMPLE
(Snodgrass and Sebstad 2002) USAID Study:
This study was conducted over different organizations like;
? SEWA Bank in India,
? Zambuko Trust in Zimbabwe,
? Mibanco in Peru
Found that
? On average borrowers had net income gains only in India and Peru.
? In Zimbabwe, there were no measurable increases in average incomes relative to those in control groups
(Mosley 1996)
==? Study of Bolivia’s BancoSol,
It was estimated that in any given cohort roughly
? 25 percent showed spectacular gains to borrowing,
? 60—65 percent stayed about the same,
? 10—15 percent went bankrupt.
Impact of Credit on Household:
Microfinance participation can affect households in many ways.
? Researchers have analy ...