Impact of microfinance of IBBL on the rural poor's livelihood in Bangladesh: an empirical study
International Journal of Islamic and Middle Eastern Finance and Management
ISSN: 1753-8394
Article publication date: 22 June 2010
Abstract
Purpose
This paper describes a scheme which aims to alleviate rural poverty by providing small and microinvestment to the agricultural and rural sector for generating employment and to raise the income of the rural poor.
Design/methodology/approach
To assess the impact of rural development schemes on rural poor's livelihood, primary data were collected from 1,020 clients working across the country. Multistage random sampling method was followed to select the clients. Tabular, graphical, and econometrical methods were followed to analyze the data.
Findings
Results show that household income, productivity of crops and livestock, expenditure, and employment had increased significantly due to the influence of invested money. Results of the Logit‐model showed that clients' socio‐economic factors like age, number of family members in farming, total land size and clients' ethics and morals had a positive and significant influence on household income.
Practical implications
Client's opined that the microinvestment program had provided them with the opportunity to perform their economic activities in a more organized way, leading them to the higher quality of life and also develops their awareness towards health care, proper sanitation, and drinking safe water.
Originality/value
The paper recommends the replication of this program in other rural areas of the country with the increment of investment size, demand‐led effective training on different income generating activities and monitoring on more shariah compliance of the investment mode.
Keywords
Citation
Mizanur Rahman, M. and Ahmad, F. (2010), "Impact of microfinance of IBBL on the rural poor's livelihood in Bangladesh: an empirical study", International Journal of Islamic and Middle Eastern Finance and Management, Vol. 3 No. 2, pp. 168-190. https://doi.org/10.1108/17538391011054390
Publisher
:Emerald Group Publishing Limited
Copyright © 2010, Emerald Group Publishing Limited