Impact of Microfinance on Uplifting the Socio-Economic Conditions of Merged Areas of Khyber Pakhtunkhwa

Abstract

Abstract

The main aim of this study was to know the impact of microfinance on uplifting the socio-economic conditions of merged areas of Khyber Pakhtunkhwa. Objectives, as per the aim, were to know the impact of microfinance on basic needs, living standards and microfinance usage in merged areas of Khyber Pakhtunkhwa. The research conducted, aligned with the positivist philosophical viewpoint. As far as the research approach was concerned, quantitative and deductive approaches were employed. On the other hand, the research was based on a descriptive or survey-based strategy and employed the mono method. Moreover, the time horizon was cross-sectional. The population of the study was unknown for which G*Power was used. The sample calculated was 350, after excluding the incomplete, it remained 304. The data was collected from the individuals who had taken microcredit from Akhuwat Islamic Microfinance (AIM), Sarhad Rural Support Program (SRSP), and National Rural Support Program (NRSP) via questionnaires. After highlighting descriptive statistics, the inferential statistics were carried out.  The model summary of the predictor and predicted variables and values of R² were calculated. ANOVA statistics and regression coefficients were also summarized. Hence, it was concluded that microfinance has an impact on basic needs, living standards, and microfinance usage. Furthermore, this study contributes to the present body of literature by filling a research gap as no such study, to the best of researcher knowledge, has been conducted in the said area.

      Keywords: microfinance, socioeconomic conditions, merged areas, basic needs, living standards, microfinance usage