Effectiveness of Microfinance on Household Income Generation Strategy in the Southwest Region of Bangladesh

Abstract

The primary purpose of the study is to evaluate the effectiveness of microfinance on household income generation in the south-west region of Bangladesh. A set of statistical tools such as descriptive analysis, t-test, correlation analysis, and log-linear multiple regression models have been used to achieve the objective of the study. It has been found that the difference between household income, expenditure, saving, working hours, and capital is statistical and significant after joining the microfinance program. Also, results from correlation analysis show a positive and meaningful relationship between credit and household monthly income, expenditure, and savings. Besides, the regression analysis confirms that the age of the respondent, family members and loan amount has a positive and statistically significant impact on income generation for the microfinance receiver. The finding of the research is crucial and meaningful to the policymaker to take practical steps in reducing poverty and sustainable rural development.