FROM LOANS TO LIVELIHOODS: INVESTIGATING THE ROLE OF MICROFINANCE IN PROMOTING SELF-EMPLOYMENT OPPORTUNITIES

Abstract

This study assesses microfinance's role in self-employment activities since we are focusing on the provision of capital for starting business, expansion of business, growing business autonomy, acquiring social entrepreneurial support, and acquiring entrepreneurial skills. Seeing that this study only concentrates on one of the members of the microfinance programs, the beneficiaries only were surveyed using a structured questionnaire. Analysis of the beneficiaries revealed a representative sample of the microfinance clientele with regards to their education, occupation, and the three levels of income within a country, i.e., the lower, the middle, and the upper socio-economic levels. Reliability analysis showed that there was good internal consistency for the study constructs, while results of correlation indicated that microfinance had a strong positive impact on self-employment. Regression analysis showed also that microfinance plays a role to a greater extent on self-employment by increasing the level of finances available, augmenting one’s skills to manage a business, and polishing one’s entrepreneurial competencies. The microfinance programs impact statistically was evident since it greatly affected the participants income generating activities. The participants also fell the impact of the microfinancing on their financially independence. The findings of the study further attest the advantageous impact of microfinance on self-employment and self-employment. The study also detai