Document Type : Research Paper
Authors
1
Assistant Professor, Department of Agricultural Management and Development, Faculty of Agricultural Economics and Development, University of Tehran, Tehran, Iran.
2
MSc, Department of Agricultural management and development, Faculty of Agricultural Economics and Development, University of Tehran
3
Professor, Department of Agricultural Management and Development, Faculty of Agricultural Economics and Development, University of Tehran, Tehran, Iran.
4
Teaching assistant Department of Agricultural Economic and Development, Faculty of Agriculture, Baghlan University, Baghlan 3601, Afghanistan.
10.22059/ijaedr.2022.345671.669158
Abstract
Nowadays, as an efficient approach, microfinance play a vital role in supporting small businesses and creating job opportunities. Therefore, microfinance pave the way for saving and development. Evidence indicates that microfinance funds in Ghalehganj County, Iran face some challenges despite their achievements in credit services provided for strengthening the job status of local residents. Therefore, the extant study was conducted to identify and analyze challenges related to rural microfinance funds in Ghalehganj County. The statistical population comprised 21.000 villagers who were members of the microfinance funds established in Ghalehganj County. The data were collected by questionnaires. Besides measures of central tendency and dispersion statistics, exploratory factor analysis were employed for data analysis. Findings introduced some challenges, including low perception towards job-creation capabilities and entrepreneurial talents, low financial power of households, undesired loan conditions, lack of skills and appropriate technology, lack of infrastructures, and production factors as the most substantial barriers to the effectiveness of associated microfinance funds in business development. The findings of this study can play an important role in giving the accurate insights to the practitioners of microfinance funds, particularly regarding to the lack of the sufficient and appropriate empirical literature in Iran.
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