Beruflich Dokumente
Kultur Dokumente
1.2
1.4
1.5
Study Methodology
1.5.1 Approach of the Study:
Research methodology is a systematic means of solving the research problem. It
includes sets of components covering research design, tools and methods chosen
to investigate the problems. The main objective of the study is to examine the
impact of microfinance in the development of the people lives in Lekhnath
Municipality ward no. 8,shihuwa. To obtain relevant qualitative and quanititative
data, the following methodology has been employed, which are the essential for
this research purpose.
1.5.2 Study Design:
According to Kothari (1989), research design is the arrangement of condition for
collection and analysis of data in a manner that aims to combine relevance to the
research purpose with the economy procedure. It is the plan structure and strategy
of investigation conceived so as to obtain answers to research question and to
control variance. To achieve the objective of this study, Descriptive and Analytical
research designs have been used. This paper aim to analyze the economic impact
of the respondents with the help of some determinant variables:
household
The word loanees stand for loan users and non-loanees stand for savers only. The
study has also examined the respondents before and after conditions of the health
and education level of their children.
1.5.4 Size of Sample
There are 3 centers (Chemiki Lagubitta Sanstha) within the Sishuwa ward.
Among the 120 members in the 3 centers, 90 were loanees and 30 were nonloanees. Sample comprises all 3 centers of the Sishuwa ward of Lekhnath
Municipaity. A 50 percent of the total population has been taken as a sample. The
sample size was 60 which included both 50 loanees and 10 non-loanees. The
information was taken within 5 days period from January 20, 2015 to January 25,
2015. Microsoft excel, calculator been used to calculate values and t-test.
1.5.5 Sources of Information:
In social science research, field work is the central and important method for
collecting the primary information. Secondary information also plays an
important role while analyzing and giving inference of some empirical knowledge
(Adhikari, 2011). The study is based on various indicators of economic status of
household. As far the primary data is concerned, structured questionnaire was
used to collect data. Primary and secondary data both qualitative and quantitative
approaches were used for data analysis. Various data and information are
collected from the periodicals, economic bulletins, journals, magazines and other
published and unpublished report document from various sources are also been
used.
1.5.6
Work Schedule
Preparation of questionnaire
Field questionnaire Survey , Primary Data collection
Written of preliminary part of report
literature review and preliminary data analysis
Data Presentation and Analysis
Written of Conclusion and recommendation
Revising, preparing list of works cited, editing , presenting
4 | Page
1.5.7
1.6
Literature Review
This part reviews the related studies; Definition and Key Concept of
Microfinance, Microcredit, Microfinance Institutions, Empowerment, Poverty;
Impact of Microfinance, conceptual review and research review. Conceptual
review covers the concepts of basis terms used in the study and research review
includes the reviews of article published in different journals, dissertations,
reports and other related published and unpublished materials.
Micro-credit:
It is a component of microfinance and is the extension of small loans to
entrepreneurs,
Who are too poor to qualify for traditional bank loans. Especially in developing
countries, Micro-credit enables very poor people to engage in self-employment
projects that generate income, thus allowing them to improve the standard of
living for themselves and their families.
8 | Page
Both primary and secondary data were used for the analysis. In the study, both
before and after and with and without approaches were used. The major finding
of the study was the positive impact of microfinance on poverty reduction.
Microfinance enabled the poor to enhance their access to financing for income
growth and welfare improvement through micro-enterprise development and
increased ability to address vulnerability and economic empowerment; Microcredit
was used for production (66%) and the remaining for consumption. Microfinance
contributed to reduce poverty in client households. Respondents increased their
incomes by 56 percent after participation in the microfinance programs.
Beneficiaries have increased slightly more financial, physical and human capital
than non-clients; Microcredit has served to lessen their dependency on
moneylenders, reducing the average interest rate burden especially for the poor;
Microcredit has promoted micro-enterprise activities, which in turn have increased
wage and self-employment opportunities for the beneficiaries and the community
people. There is great need to expand the MFIs in high hills and mountains, where
the majority of poor lives
Shrestha (2010) analyzed the Microfinance and social Mobilization in the context
of ADBL (Agricultural Development Bank, Nepal) in promoting SFCLs (Small
Farmers Cooperative Limited) in his book entitled Financial Performance of Small
Farmers Cooperative Limited in Nepal. Considering the positive outcome of
SFDP in terms of targeting the poor for their overall well-being, expansion of the
program was highly demanded in rural Nepal to deliver services to the poor and
disadvantaged groups. Social mobilization is also equally required in order to
improve and maintain the better financial performances of SFCLs.
Microfinance and its contribution in the economy are significant. This sector
contributes to reduce poverty, unemployment and inequality. This sector is self
employment generation and tries to raise leaving standard of people. Very few
researches have been carried out in the case of developing countries like Nepal. But
9 | Page
some effort has been made to find out the problem and these efforts are not
sufficient. So a fresh and new research is significant.
1.7
1.8
10 | P a g e
2.1 Introduction
Data analysis is the process of developing answers to questions through the examination
and interpretation of data. This chapter is the core of the study which includes detailed
presentation, analysis and their interpretation of primary data which was collected from
the respondent in order to fulfill the objectives of the study. It is the most valuable and
crucial tool to evaluate the true and actual impact of microfinance in our community. By
analyzing the data, one can find out core problems of the limitations of the community.
2.2 Tools for Data Presentation and Analysis
Tools are the important factors for presentation and analysis of the data. Tools make
clearer to analyze and understand. Using tables, bar diagrams, pie charts, etc are the tools
for presentation which expose information at a glance. After presenting collected data,
they will be analyzed by various tools. And report has been analyzed under some
techniques.
2.3 Presentation of Data
In this section, the filtered data are presented and analyze. The main objective of any
project work or research is to present and analyze the data obtained from such work. Only
the reports drawn from such analyze will be helpful to show actual situation and impact
11 | P a g e
of the community. In accordance to it, the data collected are shown in different tables,
charts and percentage and are analyzed clearly.
No. of respondent
Illiterates
23
Under SLC
20
Intermediate
12
Education level consists of Illiterates, Literates but not formal study, Under SLC, Intermediate.
There is the majority of respondent who are literate but not formal study i.e 23 respondents and 5
respondents are in minority.
12 | P a g e
no. of respondent
Loanees
50
Non-Loanees
10
60
From the group of 60 respondents, only 50 respondents take loan from micro finance whereas
other 10 respondents where only saver or depositor. The numbers of respondents who borrow and
who do not borrow are also shown in the pie chart.
13 | P a g e
percentage
0-15000
14%
15000-30000
18%
30000-45000
12%
45000-60000
15
30%
60000-75000
6%
75000-85000
4%
85000-100000
16%
Total
50
100%
14 | P a g e
No. of Loanees
Percentage (%)
Shop/Business/Trade
14
28%
Agriculture/Vegetable
Farming
13
23%
Poultry Farming
14%
Tailoring
6%
Cow/buffalo Farming
8%
Bee Keeping
2%
Wine
6%
Consumption
10%
15 | P a g e
Total Loanees
50
100%
Chimmeki Lagubitta Sanstha (CLS) has been providing loan for undertaking incomegenerating activities like Shop/trade/business, poultry farming, bee keeping, agriculture
farming, and livestock farming. Some amount of the loan is used for purchasing assets,
household consumption, foreign employment, and repayment of loans. Out of 50 loanees
only 5 people had taken loan for consumption purpose. The rest 45 took loans for
productive activities. Amount demanded for the purpose of first loan was
shop/business/trade, which stands higher (28 percent) followed by Agriculture/Vegetable
farming (23 percent). Likewise loan is take for Poultry farming and cow/buffalo farming
is respectively 14% and 8%. Three person were taken loan for tailoring business and only
one respondent is interested bee keeping.
capacity and the intention to grow has been positive. Three loanees were seen indulge
himself in wine making activity, which is not a legal activity. No loan has been given in
this category.
2.3.5 Distribution of Average Household income
The table shows the average household income before and after participating in
Chimmeki Lagubitta Sanstha (CLS). To uplift their business and economic condition the
respondent were participating in the CLS. Because of training and empowerment by the
CLS, the responded generate more income after participating in the CLS.
Table 5: Average Household income
Types of business area
Before
After
Shop/Business/Trade
30860
48500
Agriculture/Vegetable Farming
20340
30500
Poultry Farming
30000
40000
16 | P a g e
cow/Buffalo Farming
17550
25000
Bee Keeping
15550
19800
Wine
16550
18000
Tailoring
14000
19000
From the table the income of household is increasing after participating in CLS. Before
joining in CMO the respondent generate income from shop/business/Trade is Rs 30,860
and after joining CMO increasing by Rs 48,500.
Compares the sources of income in another statistical format, the paired t-test for
difference of means
Table 6: paired t-test
d2
d=X-Y
Types of business area
Before
After
0000
Shop/Business/Trade
30860
48500
-17640
31116.96
Agriculture/Vegetable
Farming
20340
30500
-10160
10322.56
17 | P a g e
Poultry Farming
30000
40000
- 10000
10000
cow/Bufallo Farming
17550
25000
-7450
5550.25
Bee Keeping
15550
19800
-4250
1806.25
Wine
16550
18000
-1450
210.25
Tailoing
14000
19000
-5000
2500
d= -55950
d2=61506.27
Null hypothesis H0: X=Y (There is no significance different between in the average
income of respondents of before and after)
Alternative hypothesis H1: X Y:- that means average income of respondents differ
significantly before and after the implementation of micro finance.
Test statistic = d`
s2 /n
= -7992.85/1987.235114
=4.022095796
Items
Before (Rs)
Percentage
(%)
After
(Rs)
Percentage changed
(%)
Percentage
Food Expenses
49,560
69.3418%
75,636
67.69%
52.62%
Clothing
5,781
8.0885%
9,339
8.36%
61.55
Health Treatment
3,351
4.6885%
5,169
4.63%
54.25
Child Education
12,000
16.7998%
20,000
17.90%
66.667
Electricity charge
150
0.2099%
300
0.27%
100%
130
0.1819%
300
0.27%
130%
Social Expenses
500
0.6996%
1,000
0.8949
100%
71,472
100.0000%
1,11,744
100%
56.35%
Total (n=50)
The average household expenses on food had increased after the people joined CMO
(from Rs. 49,560to Rs. 75,636) reflecting an increase by 52.62%percent. After
participating in CMO, the changed percent of loanees expenses in health treatment of
own and their family members had reached up to 54.25 percent. Similarly, the clothing
expenses changed by 61.55 percent.
19 | P a g e
Items
Before (Rs)
(X)
d=X-Y
d2 0000
Food Expesnses
49560
75636
-26076
67995.7760
Clothing
5781
9339
-3558
1265.9364
Health Treatment
3351
5169
-1818
330.5124
Child Education
12000
20000
-8000
6400
Electricity charge
150
300
-150
2.25
130
300
-170
2.89
Social Expenses
500
1000
-500
25
d= -40272
d2=76022.3648
Null hypothesis H0: X=Y: - That is average expenses of the respondents before and after do not
differ significantly.
Alternative hypothesis H1: X Y:- that means average expenses of respondents differ
significantly before and after the implementation of micro finance.
Test statistic = d`
s2 /n
= -5753.142857/3547.410453
20 | P a g e
=1.621786634
Decision: - since tabulated value of t is greater than the calculated value of t, it is not significant
and H1 is rejected and H0 is accepted which means there is no change in expenditure pattern.
Mean Saving
21373.44
Median Saving
47710.10
Standard deviation
31880.02
Minimum saving
11775.00
Maximum saving
73830.32
21 | P a g e
The figures in Table 9 show that average saving of loanees is Rs 21373.44. That can be
anticipated as that every household were able to save their income which can be used to
repay their next installment easily. The standard deviation figure, however, shows less
variation of saving between loanees which is Rs 31880.02
No of respondents
Percent
32
64%
11
22%
Remittance
10%
4%
Majority of the respondents could repay their monthly loan installment from their own business.
(64 percent) have been paying their installments from their same business whereas only 22
percent were using household income for repayment purpose. Table 10 reflects their level of
independency and increased positive attitude towards their business. Some loanees repayment
was made from remittance and friends.
no. of respondent
Yes
46
No
22 | P a g e
From the above table, 46 responded received training and 4 responded did not received
training provided by the CLS. From the voice of respondent training like tailoring, candle
making, agriculture, poultry farming, Beauty paler, Bee keeping, fishery, driving are
provided by the CLS. The CLS is empowering the member to uplift their economic
condition.
NO
44
From the table 12 respondents have already experience of business and 44 respondents
gained experience after Membership of CLS. The CLS provide money any and idea,
concept about the business.
23 | P a g e
3.1 Introduction
This chapter provides overall description, findings, conclusion from the data analysis and
presentation and recommendation.
3.2 Sumarry
This paper reports on the findings of an descriptive and analytical research whose main
purpose was to investigate the impact of micro finance on the socio economic lives of
sishuwa. This study mainly focuses on women only who are participating in Chemmeki
Lagubitta Sanstha. Among the 120 members in the 3 centers, 90 were loanees and 30
were non-loanees. Sample comprises all 3 centers of the Sishuwa ward of Lekhnath
Municipaity. A 50 percent of the total population has been taken as a sample. The sample
size was 60 which included both 50 loanees and 10 non-loanees. The study sought to
establish whether micro finance empowers the poor and reduces poverty. The study was
conducted through the use of nineteen questionnaires randomly distributed to clients of
different Micro financial institutions. The study revealed that there is a positive
relationship between microcredit and the socio economic lives of people. It was found out
that the activities of microfinance institutions resulted in increased social interaction and
socio economic sustainability.
With the help of purpose of loan borrowing, Sources of income, utilization of Loan,
Income, saving generalized the impact of microfinance. The micro finance has positive
impact to the household in the community.Likewise the Chemeki Microfinance
Organization provides training and help to uplift the economic condition of women and
empower them.
24 | P a g e
3.3 Conclusion
Thus to alleviate the poverty in the country, microfinance became an effective
tool. In this context, the study area Lekhnath municipality , sishuwa was selected
where CMO has implemented the first microcredit program to uplift the socioeconomic status of the women of that area. Consequently, the following findings
are arrived at from the study:
The economic status of loanees has improved consequently than when they
started small business with loan in the earlier days. Moreover, it was found that
their socio-economic status was higher than past. From all these we can conclude
that microcredit is an effective tool for raising the socio-economic status of the
poor people, particularly the women.
3.4 RECOMMENATION
As revealed by the study, the loanees were demanding that the loan size should
be increased; effective means should be developed to identify the poor and target
them for loan, training, and regular follow up should be conducted. The interest
rate must be decreased. The outreach of the institution should be enhanced.
Modern technology should be applied to increase the efficiency and to provide
service in remote areas. The study reveals that economic status of women has
risen due to income generating activities and they were socially empowered due
to group solidarity created by microfinance program. They can raise voice against
gender discrimination.
25 | P a g e