Wanigasuriya, W.M.T.J.1 and Ramanayake, R.M.A.2
1Sri Lanka Technological Campus, 2Commercial Bank of PLC
tharangizzzz@gmail.com1, ashokaramanayake@gmail.com2
DOI : 10.57075/jaf1012303
ABSTRACT
Microfinance is a financial service that provides small loans, savings accounts, insurance, and other financial products to low-income individuals, typically in developing countries. Microfinance institutions (MFIs) provide these services to people who are unable to access traditional banking services, either because they lack collateral, a credit history, or live in remote areas. Various researchers seeking to examine the impact of microfinance on income generation across the world. But the most notable thing is that there is no consensus on the findings of those researchers. Therefore, this study aimed to find out the impact of microfinance on income generation in Kurunegala District. Micro credit, micro insurance, micro training and micro savings has used to explain microfinance. This study was conducted in Kurunegala District based on microfinance users. The findings of this research will be a meaningful impact on people who need to make an improvement in their income. A sample survey research design is employed in this research. The convenience sampling method is used in this research based on the availability of the respondents. A questionnaire is designed using a five-point Likert scale. Data are collected from 159 microfinance users attached to Micro Finance institutions in Kurunegala District. Both primary and secondary data has used for the study. Primary data has obtained through a structured questionnaire and interviews. Target respondents are both staff and customers of young, middle-aged, and matured ages both male and female individuals. To analyze the data both inferential and descriptive statistics were used. The data were analyzed using Descriptive Statistics, Correlation Analysis, and Regression Analysis using SPSS software. The results of the correlation analysis and simple regression analysis showed that there is a positive relationship between microfinance indicators and income generation. The study provided insights for policymakers, donors, academicians, and microfinance institutions to better understand the key variables that are significantly associated with income generation and enable them to implement suitable strategies to improve income generation.
Keywords: Financial Service, Income Generation, Micro Credit, Microfinance, Micro Saving”
