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Scientia Agriculturae Bohemica

The Journal of Czech University of Life Sciences Prague

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1805-9430
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Microfinance As A Tool For Poverty Reduction: A Study Of Jordan

M. Žiaková
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  • University of South Bohemia in České Budějovice, Faculty of Economics, České Budějovice, Czech Republic
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  • Czech University of Life Sciences Prague, Faculty of Tropical AgriSciences, Prague, Czech Republic
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Published Online: 2015-12-30 | DOI: https://doi.org/10.1515/sab-2015-0033

Abstract

The aim of this study is to evaluate the impact of microfinance on the poor, particularly in the specific areas of economic and social development of people and their employment. The research was carried out in Jordan, a country with a well-developed microfinance sector. The results have shown that microfinance has led to an improvement in the financial and social situation of the poor, especially for female clients of microfinance institutions. Interestingly, the higher income of clients has not caused higher expenditure on their basic needs, but rather people have generated saving for their future and used the additional money for education. According to the results of the microfinance impact assessment, it can be assumed that people, particularly females, prefer to improve the social situation for future generations. Based on this finding, we consider microfinance an effective tool for breaking the vicious circles of poverty, especially in Jordan. Furthermore, microcredits have facilitated in increasing employment for the poor, mainly through self-employment. It is believed that there exists a direct connection to the future expansion of microcredits that will lead to the development of small businesses with a promising impact on employability throughout the population structure.

Keywords: microcredit; microfinance institution; microfinance impact assessment; poverty

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About the article

Published Online: 2015-12-30

Published in Print: 2015-12-01


Citation Information: Scientia Agriculturae Bohemica, ISSN (Online) 1805-9430, ISSN (Print) 1211-3174, DOI: https://doi.org/10.1515/sab-2015-0033.

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© 2015 M. Žiaková et al., published by De Gruyter Open. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License. BY-NC-ND 3.0

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