Microcredit and Rural Women Entrepreneurship Development in Bangladesh: A Multivariate Model

Journal of Business and Management – Vol. 16, No. 1, 2010

28 Pages Posted: 26 Sep 2018

See all articles by Sharmina Afrin

Sharmina Afrin

Uttara Univcersity

Nazrul Islam

Canadian University of Bangladesh

Shahid Ahmed

University of Dhaka - Faculty of Business Studies

Date Written: August 21, 2010

Abstract

Microcredit programs have a positive socioeconomic impact on the rural female borrowers of Bangladesh. This study suggests that the microcredit programs do not help the borrowers to develop any entrepreneurial capabilities other than survival. Thus, this paper aims at identifying the factors related to the development of entrepreneurship among rural women through the microcredit programs of providers. A multivariate analysis technique (Factor Analysis) was conducted to identify the factors related to entrepreneurship development. Structural Equation Modeling (SEM) was used to identify the relationship between microcredit programs and the development of rural female entrepreneurship in Bangladesh. Results show that financial management skills are the most important factor and have a significant relationship with the development of rural women and entrepreneurship. Results also show that the group identities of the female borrowers have a significant relationship with the rural entrepreneurship development in Bangladesh. A borrower’s experience from the parents’ families and the limitation of options also lead to the development of entrepreneurship among the rural female borrowers of Bangladesh.

Keywords: Microcredit, Women Empowerment, Financial Management Skills, Experience from the Parents' Families

Suggested Citation

Afrin, Sharmina and Islam, Nazrul and Ahmed, Shahid, Microcredit and Rural Women Entrepreneurship Development in Bangladesh: A Multivariate Model (August 21, 2010). Journal of Business and Management – Vol. 16, No. 1, 2010. Available at SSRN: https://ssrn.com/abstract=3236289

Nazrul Islam

Canadian University of Bangladesh ( email )

House 99, Road 11, Block C, Banani,
Dhaka, 1213
Bangladesh
8801716370643 (Phone)
880258952047 (Fax)

HOME PAGE: http://www.cub.edu.bd

Shahid Ahmed

University of Dhaka - Faculty of Business Studies

Bangladesh

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