Micro Finance

This study aims to: 1) determine how actors in sharia microfinance institutions provide the perception toward the social function of the economic action undertaken. 2) determine the form of the social functions performed by the actors in sharia microfinance institutions. This study used a qualitative method with phenomenological approach.
The findings of this study are: 1) the perception of the social function by the actors of sharia microfinance institutions respectively: a) perception of social function is as management of zakat, infaq, and alms known in the concept of Baitul Maal. b) the social function as a medium of empowerment of poor communities where the sharia microfinance institutions are capable in producing new entrepreneurs. c) the social function as propaganda/symbols of Islam, Islamic microfinance institutions serve to eradicate the practice of existing usurer in the community. 2) The form of social functions held by sharia microfinance institutions are: a) The distribution of social grants, the distribution of development aid in the form of mosques, procurement assistance of Al-Quran,  home renovation, distribution of Zakat funds as well as scholarships to students who cannot afford school. b) Help the poor public capital, capital assistance is intended for the poor, capital assistance is also easy for small traders in accessing financing. c) Optimalization the role of sharia microfinance institutions by opening branches in remote areas which aim to facilitate the public in accessing Sharia financial institutions and also propaganda symbols of Islam in religious activities.
Key words: Social Function, Form of Social Function, Sharia Microfinance Institutions

Delivery of microfinance services to operators of small and medium enterprises (SMEs) is increasingly being viewed as a strategic means of assisting growth and development. The purpose of this study was to assess the contribution of microfinance to entrepreneurship development in Mogadishu. Survey research design was adopted and Primary data was collected by using questionnaires. This research study used purposive sampling method to select 120 respondents; but 108 were found usable and analyzed. The data was analyzed using descriptive statistics. This study found the access of microfinance services to the SMEs is poor. This study also found due to the collateral, short term repayment challenges, small and medium businesses are difficult to access loan from microfinance institutions which hinder their entrepreneurship development. In addition to these, this study found that the Microfinance institutions play significance role to the growth and sustainable development of SMEs and also increases the productivity and profitability of small and medium enterprises. This study recommends the guidelines of microfinance institutions to finance SMEs needs to be flexible and microfinance institutions should give technical assistant to the SME to ensure success in the SME sector. The study also suggests access of microfinance services to the SMEs should be facilitated and awareness to microfinance purposes and activities should be created.

This paper is an ethnographic investigation of the implementation of small-scale enterprises in inner city Addis Ababa. Drawing on 18 months of ethnographic fieldwork conducted between 2009 and 2013, I discuss how the narrations that young people used to dealt with the failure of entrepreneurship schemes in opening up opportunities for social improvement can suggest ways of conceptualizing 'alternatives' to established development concepts of poverty reduction, such as micro-finance and small-scale entrepreneurship. In doing this, I do not intend to either offer a grand solution or invent a brand new developmental concept. I aim to provide a critical commentary to the reasons why some of the current academic debate on alternatives to neoliberalism have come to, de facto, endorse Ethiopia's political authoritarianism

All around the world the price of solar PV system has significantly
come down in the last ten years and there are a lot of ways to pay for a
system in today’s world. Among various available financing options there
are certain methods to be analyzed with their structure and
appropriateness to increase the access to energy in Nigeria. The Analysis
of innovative solar financing models and possible support schemes for
distributed generation/ hybrid power plants in Nigeria investigates the
best finance models and possible support schemes for distributed
generation and hybrid power plants in Nigeria. The study covers Nigerian
energy sector from an electricity demand and supply perspective with offgrid
rural electrification focus respective to the financial modelling and
supportive structure review which includes a survey report to address the
research question. The study does not cover technical considerations
related to PV system siting, installation and connection to grid; nor does
it deal with all local market considerations that may influence financing a
system and/or approaches that can be studied state wise.
This study is structured as follows. First, the paper provides an
explanation of the background information for this thesis subject (Section
1.1) and the methodology applied (Section 1.2). The report then explores
the Nigeria country review on energy continued by Nigeria electricity
supply industry and the design of the new energy market. Chapter 2
compares solar electricity and diesel power generation to clarify a
combination of a solar-diesel-hybrid distributed generation system with
these two resources. Chapter 3 looks at the topics of policy process,
regulations and Incentives in energy sector of Nigeria. In chapter 4 and 5,
the analysis of finance models is considered to highlight viability and
applicability of solar-diesel-hybrid distributed generation system. In
chapter 6 the research broadened with an interviewer administrated
survey with random samples from Nigerian citizens to apply the public
point of view to the financial formula with a realistic approach. Chapter
7 and 8 are designed in a manner to assess the results of the survey with
impact measurement and suggest possible support schemes for solar diesel hybrid distributed generation in light of the survey results again.
Chapter 9 is the final part to address the research question, research
objective and research gap that have been filled with the conclusions of
this study. The last part, chapter 10 is for literature regarding the
referencing of the resources used. In this study Harvard referencing is used for in-text citation and also for the literature review which is primarily used by university students, to cite information sources (Cite This For Me,
2017).

For Policymakers Financial inclusion is a buzzword the policymakers and governments for a long time. Attempts have been made by the policymakers and financial institutions to bring a large no of sections from the rural population to be a part of the banking system having realized that financial inclusion is the essence for sustainable economic growth & in order to develop a country like India. Inclusive growth becomes impossible without financial inclusion. Financial inclusion is also must for the economic development of the country. In order to reduce the degree of “financial untouchability” the new government has come up with a big bang action plan which is popularly known as “Pradhan Mantri Jan-Dhan Yojana”. It’s a mega financial inclusion plan for the objective to cover all the households in the country with various banking facilities along with inbuilt insurance coverage. The present paper is an attempt to highlight the impacts of total saving deposits with commercial banks on Indian GDP in Context with Pradhan Mantri Jan Dhan Yojna. The study is purely based on secondary data which covers 40 financial years (1975-76 to 2013-14).
Keywords: Financial inclusion, Pradhan Mantri Jan Dhan Yojna, cointegration;
Granger causality, GDP.
JEL Classification: C33, F21, F43, N25

Micro-financing has been globally praised for alleviating poverty and empowering the most vulnerable by providing financial services to marginalized groups who would otherwise not have access to banks and credit institutions. A twenty-year-old model, microfinance in India has revolved around targeting women, primarily lumped around the below-poverty-line determined by the World Bank each year. While microfinance has become standardized, institutionalized, and commercialized over the years, we must examine whether women have become a mere vehicle for such microfinance institutions to claim empowerment of the poor and poverty alleviation, or if they are engaged in progression towards gender equality and social development.  This cross-sectional exploratory study explores three types of microfinance outfits: for-profit, cooperative, and non-profit. By employing a variety of qualitative methods including structured and semi-structured in-depth interviews, focus group discussions, participant observation, and secondary findings, the study investigates the shift of the female member’s role within the trend of microfinance standardization in the Indian context. I examine the different levels of organization of three microfinance institutions  in order to understand their current and future aspirations, their targeting approaches, and the shift of women members from participants to targets. I find that, contrary to the hypothesis of a cooperative being the most democratic and therefore inclusive form of financial access for female clients, the distinctions in practices and performances This study aims to bring awareness to the impact of microfinance on women through the lens of gender equality and commercialization while exploring the implications of the reviving microfinance industry in India .

By inspection, observation and government records there are too many poor in Southwest Nigeria who require micro/small financial services such as credit, insurance, money transfer etcetera in order to engage actively in productive activities and improve their standard of living. Paradoxically, governments across the world, particularly in Nigeria over the years, have not been able to adequately help the poor in spite of all the rhetorics and several failed poverty-alleviation projects. The objective study examines the roles of microfinance towards the dispersion of credit among the working poor and also helped to improve the standard of living in Nigeria. The study draws from the data collected from the field survey and these were reported using tables, frequency counts and cross-tabulations to draw inferences. In addition, a loan demand model was specified and estimated using the Ordinary Least Squares (OLS) econometric technique.The study used cross-sectional data collected from selected respondents in selected areas of both the Lagos and Ogun States of Nigeria respectively. The study confirmed that most of the Microfinance banks in Nigeria are tailored after the Grameen Bank which focuses on the poor and people with basic, little or no education and that loan demand is interest rate insensitive to loan demand. The study recommended that MFIs should design appropriate products that are flexible enough to meet the different needs of the poor for both production and consumption purposes. Government should urgently tackle the infrastructural gaps such as electricity, water and efficient transportation system which impact greatly on the standard of living of the people. JEL Classification: G21, G33

" The economic growth of a nation cannot be justified if its people are not financially empowered by its financial resources " Financial Inclusion is the new buzz word for now a days for all developing nations. In case of India even after six decades of achieving Independence, a huge fragment of Indian population still remains abandoned by the formal banking institutions. The Financial Inclusion Plan aims at providing trouble-free access to financial services to those strata of the society who are deprived of it, so far at a reasonable cost thereby bringing them into the conventional financial sector.RBI set up the Khan Commission in 2004 to gaze into financial inclusion and the recommendation of the commission were incorporated into the mid-term review of the policy (2005–06).It insist banks to evaluate their existing practices to support the neglected strata of society and align them with the purpose of financial inclusion. Honourable Prime Minister of India, Sri Narendra Modi announced a scheme for comprehensive financial inclusion on his first Independence Day speech on 15 August 2014.The scheme was formally launched on 28 August 2014 with a target to provide 'universal access to banking facilities' starting with Basic Banking Accounts with

The pivotal emergence of micro-finance is a function of gross insensitivity of conventional finance sector to reach the overwhelming population of the poor and to assist in the drive to manage poverty. Micro-finance movement has captured the imagination of academics, policymakers, and practitioners in terms of provision of financial means to access credit, and start small businesses, with the potential to enhance community, local and national development. When micro-finance is adequately harnessed and supported, it could scale-up beyond the micro-level as a sustainable part of the process of economic empowerment by which the poor could lift themselves out of poverty. Poverty is a multi-dimensional problem, embedded in a complex and interconnected political, economic, cultural, and ecological system. Owing to poverty's large scope and multiplicity of actors, there is no single guaranteed approach to its management. As a result, solutions are as multifaceted as the causes. Problems and solutions are not isolated phenomena, but occur within an interconnected system in which actors and actions have reciprocal consequences. The greatest contribution of micro-finance is that it empowers people, by providing them with confidence, self-esteem, and the financial means to play a larger role in their development. The potential of micro-finance far exceeds the micro-level, scaling-up to address macro-problems associated with management of poverty.

self help groups started this micro finance movement. NABARD is the renowned name here and TATA has cooperated and accompanied in the evolution of the programme in order to undertake various improvement that helped rural India to go ahead with more enlightenment and adequacy.

Risk and uncertainty are the most inevitable factors in human life, and hundreds of millions of poor rural households around the world are the vulnerable groups facing risks arising in the form of sickness, accidents, deaths or loss of assets due to natural calamities and riots etc., which have a particularly debilitating affect on the poor who are less able to financially absorb and recover from such shocks. With barely any risk-management tools such as savings or insurance, they are compelled to borrow from informal markets at very high rates of interest, getting trapped in the vicious circle of poverty. Micro insurance is a financial instrument that provides coverage to help low-income individuals hedge against various risks. Increasingly, providing the poor with access to reliable and reasonably priced insurance instruments has become viewed as an integral component of inclusive financial sectors. Micro insurance is a tool for investment, savings and as a measure of social security.

This article seeks to investigate the determinants of financial performance of microfinance institutions in Kosovo over the period of 2007-2016. The data has been taken from twelve microfinance institutions in Kosovo. The dependent variables used as proxies for microfinance institutions' (MFI) performance are Operational self-sufficiency (OSS), Return on Assets (ROA) and Profit Margin (PM). ROA and PM are widely used indicators to analyse financial performance or profitability of MFI. The findings of this study show that the most important factor which has strong impact on financial performance of MFIs in Kosovo is high interest rate on loans. Our results show that the age of MFI is the determinant that influences its financial performance. It can also be noted that MFI with better governance are those that are members of financial associations.

“Micro finance” or its major part “micro credit”, both used interchangeably, is an important institutional device for alleviating poverty of the poor people. Micro finance concept was first developed and initiated in Bangladesh in the late seventies with a view to help the people living below the poverty line. Since its inception to till date, there has been tremendous growth of organizations, known as MFIs (Micro Finance Institutions), in this field to deal with the micro finance/credit activities. Despite this, the poverty situation of the poor people who have already used the micro finance programs was not improved substantially. The few MFIs have their own programs to conduct survey on impact assessment of their individual micro credit activities. The present study will focus on the impact assessment of micro finance activities on some variables of poverty alleviation, the extent to which these programs helped loanees to become micro finance graduates and the relevant suggestions as to the success of the micro finance activities.

Ecotourism is an approach to tourism development to meet the sustainable development initiative globally. In order to meet the sustainability through resource appropriation a clear and well-knitted framework is very essential. The present study made a detailed investigation on destination management with reference to Thenmala Ecotourism Project, India's first planned ecotourism. Further, it evaluates the competencies of institutional arrangements to meet the policy objectives of ecotourism through SWOT analysis of the destination. The study shows that the destination level framework is (a). Thenmala Ecotourism Promotion Society (TEPS) at the administrative level and (b) community based organizations like Eco Development Committees (EDC) under Forest Development Authority (FDA) and Self Help Groups (SHG) under Kudumbashree Programme at the operational level which have certain operational weakness leading to sustainability failures. Study further suggests for an integrated efforts to revitalize these grass root level institutions.

Purpose: The study purport to investigate the effectiveness of internal control mechanisms, investigate whether evidence of agency problem is found among banks in Europe and determine how internal controls affect credit risk. Design/methodology: Panel data from 91 banks from 23 European Union countries were studied from 2008-2014. Hausman's specification test suggest the use of fixed effects estimation technique of GLS. Quantitatively modelled data on 15 variables covering elements of internal controls, objectives of internal controls, agency problem, bank and country specific variables were used. Findings: There is still high credit risk in spite of measures being implemented by the European Central Bank. Banks have individual entity factors that increase or decrease credit risk. The study finds effective internal control systems because objectives of internal controls are achieved and significantly determine credit risk. Agency problem is confirmed due to significant positive relation with credit risk. There is significant effect of internal controls on credit risk with specific variables as risk assessment, return on average risk weighted assets, institutional ownership, bank size, inflation, interest rate and GDP.-25-Intangible Capital – http://dx.doi.org/10.3926/ic.911 Research limitations/implications: Missing data prevented the use of strongly balanced panel. The lack of flexibility with using quantitative approach did not allow further scrutiny of the nature of variables. However, statistical tests were acceptable for the model used. The study has implications for management and owners of banks to be warry of agency problem because that provides incentive for reckless high risk transactions that may benefit the agent than the principal. Management must engage in actions that profile the company better and enhances value maximization. Rising default risk has tendency to impair corporate image leading to loss of reputational capital. Originality/value: The study provides the use of quantitative approach to measuring certain phenomena within the discipline of internal controls. The study adds to a previous study by same authors and confirming the agency problem in a different approach.

As mooted by Indian government, agri-finance instrument would allow farmers to purchase
agriculture inputs such as seeds, fertilizers, pesticides and also allow them to withdraw some
cash for meeting their other crop production related requirements. (Expert Committee,
NABARD, 2010). Since then, the scheme of KCC is under implementation by State Cooperative
Banks (SCBs) through DCCBs and PACS as also the Regional Rural Banks (RRBs) and
Commercial Banks (CBs) under the agencies of NABARD, as on 31 March 2009, 828.7 lakh
farmers were issued KCCs by various banks. Co-operative banks have the largest share (62%),
followed by commercial banks (30%) and RRBs (8%). The performance in the implementation of
the KCC scheme has been impressive6 in the states of Andhra Pradesh, Gujarat, Haryana,
Karnataka, Maharashtra, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh and Uttaranchal.
Hence, an attempt was to assess the impact of kisan credit card scheme on short term
agricultural credit in India.

The system of teaching financial literacy described in this paper has been developed by an undergraduate electrical engineering student, and the computer application by which it is taught and learned has been developed by an undergraduate software engineering student. This system illustrates the importance of household savings to people in developing countries. The system is actually a game that illustrates how placing a portion of family earnings into a savings account, along with prudent use of loans, can increase available household income over time. This system has been used in a community in rural Honduras composed almost completely of farming families who have access to a local micro-finance institution (MFI). After participating in a session of this financial literacy learning game, the participants had a better understanding of the foundational practices incumbent upon the proper management of household finances through an MFI. Developing this learning system into a computer application enhances and widens its usability in developing countries, particularly for non-governmental organizations (NGOs) that teach financial literacy. The importance of the computer application is that it incorporates the rules of the game, which are based on the financial principles required for the success of an MFI, and the rules also take into consideration those conditions unique to rural Honduras. Thus, NGO staff members can quickly learn this game and the principles upon which it has been developed and quickly master this learning system so it can employed in rural communities.

Abitract-Micro Finance or SHGs represent unique
approach to financial intermediation. Poverty alleviation and
women empowerment go side by side as women especially in
developing economies reflect the weaker section of the society
and empowering them means going long distance in
eradicating poverty. Women are the most crucial elements of
the social fabric and are playing a pivotal role in the socioeconomic
scenario of Rajasthan. Microfinance programs like
the SHGs in India have been promoted for their positive
economic impact and belief that they empower women. The
survey was conducted on around 100 respondents from
various SHGs of Alwar district, Rajasthan and the analysis
was done to study the empowerment of women through
microfinance. The results presented that on an average, there
is a significant increase in women empowerment of the Self
Help Groups members. There was a moderate increase of
income, enhanced savings, undertaking income generating
activities, reduced dependency on money lenders, ability to
deal with the financial crisis and women moved
independently to other places without the support of male
members of the family.

The purpose of the study is to examine self-help group (SHG) in Pakistan. In last few years, many techniques have been used from saving accounts to secure investments and to meet income expenditure level for saving money in developing countries. In Pakistan, saving has become more challenging after high inflation in recent few years. SHGs are reporting significantly in helping poor people to save money. SHGs are allowing poor people to pool their money in a group to save in a better way at small level. This case study is done in district Mianwali, Punjab, Pakistan, with prime objective to find out importance of SHG as a tool of saving. Other objectives of the study are to demonstrate the Self-help group structure and describe precisely rules and principles. The SHGs member feel satisfied more in comparison of loan taking through formal ways. Data has been collected through questionnaires from 118 respondents of various SHGs. Descriptive statistics explain that SHG is working as a saving tool. Its analysis shows that SHG is better alternative option of formal loans. The Study has identified Self-help group as a competitive saving tool. Both types of SHGs are being practiced and working efficiently i.e. Traditional and Brotherhood. Moreover, SHGs are equally practiced by both young males and females between the ages of 21-30. The study also finds that Private employees are more participating in SHGs. Overall, 42 members out of 118 have positive savings which indicates potential of self-help group.

The initiation, funding, servicing and monitoring of loans by financial intermediaries has been done without regard to some critical factors which could have averted the likelihood of default. The study aimed at measuring the extent that owner-specific, borrower-specific, loan and lender-specific characteristics could determine the probability of loan default. The study used logistic regression for 224 business customers of a bank in Ghana from its nationwide branches. The study found that owner's extra income (ownership characteristics), multiple borrowing, diversion of loan purpose (borrower characteristics), loan price, loan purpose, loan age, repayment plan (loan characteristics) and underfunding (lender characteristics) significantly determined the probability of business loan default. The overall model predicted up to 78.5% of variations in the likelihood of default. The hierarchy of strong determinants given by their odd ratios were loan purpose (47.9 times), underfunding (19.2 times), diversion of loan purpose (11.7 times) multiple borrowing (9.4 times) and owner's extra income (8.2 times). The study can conclude that financial intermediaries should be wary of the credit granting process taking cognisance of ownership, borrower, loan and lender characteristics especially the significant predictors. Combining quantitative and qualitative variables as determinants of default could be considered in future.

Micro-insurance is seen by many as a promising tool to improve the social protection of low-income earners. This assumption is supported by the positive experience of existing micro-insurance schemes. At the same time, however, many schemes have failed to organize sustainable insurance arrangements that are affordable for the poor and near-poor. The question is thus which institutions are best able to arrange for micro-insurance. Formal institutions such as public agencies or commercial companies are usually too distant in social and spatial terms from the target group of micro-insurance and face severe difficulties in downscaling. Informal institutions, however, such as self-help groups or grassroots NGOs, usually lack the know-how, experience and capacities to design and manage insurance arrangements. They need powerful partners to upgrade. An alternative would be that formal and informal institutions cooperate in providing micro-insurance. This article argues that such a linking approach is superior to both the downscaling and upgrading approach.

Despite digitalization in Microfinance institutions, the marketing orientation and strategies will play a major role in success of micro finance institutions. Marketing concept is recognizing and understanding the customers need and designing the product according to customers' needs. Micro Finance institutions are predominantly, considered as the supplier of credit to low income groups and to some extent it fulfilled this objective profitably. One main aspect the Micro finance institutions have to concentrate on new product development which fulfils the customers' needs. The high levels of dropouts after every loan cycle is there, because usually the Micro finance institutions have short term credit products. The present study is on the marketing strategies that a Micro Finance institution has to follow to control these dropouts and more emphasis is given on relationship banking. Transition from product orientation to market orientation has been done in all major industries. The Micro Finance institutions are following the same product orientation concept and it is a big challenge for them to concentrate on marketing orientation concept and its relationship with the success of institutions. The present study is how marketing strategies will boost the performance of the Micro finance industry and also to study the adoptability of these strategies by the Micro finance institutions. The data is collected from the secondary sources from international journals and other reports which provide the performance of Micro finance institutions. The analysis is done through descriptive statistics, tables and other analytical tools.

The importance of financing products on performance of SMEs can therefore not be underestimated. Access to financing products such as savings, credit, insurance and payment services lead to a positive improvement in financial performance of SMEs. This study sought to determine the effect of financial products on the financial performance of Small and medium enterprises in Nairobi County with an aim of making policy recommendations for improvement. A descriptive survey design was adopted to achieve the research objectives. The study target population consisted of a total of 30, 253 small and medium enterprises which operate in Nai-robi County according out of which 400 SMEs were sampled. The data collection instrument used was a questionnaire and data was analyzed through correlation and regression analysis. The study findings showed that the financing products that are micro savings products, micro credit products and internet banking products had a positive and significant effect on financial performance of SMEs. Micro insurance products had a positive but not significant effect on financial performance of SMEs. The study recommends SMEs in Kenya to adopt Savings products with high annual interest. There is also need for SMEs to adopt savings products with no minimum balance and savings products which are accessible any time. The study also recommends SMEs to adopt loan products which are guaranteed by the financial institutions such as short term loan products, emergency loan products and group loan products as well as micro leasing products. Further, there is need for SMEs to adopt insurance products such as property insurance products, life insurance products, general liability insurance products and crime insurance products. Furthermore, the study recommends SMEs to adopt internet saving products such as internet deposit products, internet credit products and internet insurance products.

Muslims in Indonesia is the largest Muslim who are the target market in the Islamic finance industry. In the context of Islamic financial product marketing, Muslim consumers being potential consumers. Muslim consumers have a unique character
because they believe religious rules. This research aims to examine the effect of Shariah Marketing Characteristics on customer satisfaction and trust. This research used a quantitative approach with 375 respondents as sample BMT in Malang. The data were analyzed using Generalized Structured Component Analysis (GSCA). The findings of this study is that the Theistic, Ethic, Realistic and Humanistic (Shariah Marketing Characteristics) significantly affects the satisfaction and trust. There is a hypothesis that is not significant, which between Humanistic on customer trust.

Microfinance enables the poor and excluded section of people in the society who do not have an access to formal banking to build assets, diversity livelihood options and increase income, and reduce their vulnerability to economic stress. Microfinance covers a broad range of financial services including loans, deposits and payment services and insurance to the poor and low-income households and their micro enterprises. Microfinance institutions have shown a significant contribution towards the poor in rural, semi urban or urban areas for enabling them to raise their income level and living standards in various countries

The prominence of money lenders is a result of the barriers to access finance, by poor residents, from formal financial institutions. Despite the expansion of formal financial institutions in South Africa, these institutions have been unable to serve the needs of poor households adequately .This paper presents a case study on an illegal micro-lender currently operating in the Delft community in Cape Town and provides insights into the business operations within this community. This case study follows a combination of qualitative field research and quantitative analysis. This paper is considered an initial step in attaining insight into micro lending in the Delft community.

This paper proposes to analyze and gain empirical evidences of the rural community perception  on  sharia  micro  finance institution  to  empower  local economics at Margoyoso-Pati District Central Java, Indonesia. The data were gathered with survey method and questionnaire. The analysis technique in use is multiple linear regressions. The findings of the paper shows significant evidences on constructed research hypothesis, namely the products of Sharia Micro Finance Institution and the its services affecting the rural community perception on the sharia one, whereas on parametrically (t statistic test) and simultaneous (F statistic test). It shows better rural community knowledge and understanding on offered products from the Sharia Micro Finance Institution and their services  quality; the two variables will simultaneously and parametrically affect rural community perception on Sharia Micro Finance Institution to empower local economics.

Keywords: economic empowerment,  service quality, rural community perception, Sharia
Micro Finance

Essay singkat ini merupakan catatan dari 'soft launching' lembaga keuangan mikro Mitra Surya Sejahtera yang merupakan program 'management trainee' penulis dan Imam Thoyibi di salah satu anak perusahaan PT Astra Agro Lestari, Tbk yang berlokaso di Mamuju Utara, Provinsi Sulawesi Barat.

Lembaga ini diharapkan dapat menjadi instrumen untuk mendukung keberlanjutan usaha perkebunan kelapa sawit petani plasma di 5 desa utama dan petani IGA (income generating activity) di 6 desa berbeda lainnya.

Lembaga keuangan rakyat seperti koperasi dan sejenisnya telah lama kehilangan kepercayaan. Sebagian dari penduduk yang diharapkan mengunakan layanan perbankan rakyat ternyata korban dari lembaga keiangan bernam 'Kospin' ('money game') di Pinrang dan Pare-Pare, Sulawesi Selatan dekade yang lalu. Jadi ada banyak trauma di calon anggota.

Bagaimana meyakinkan petani plasma dan petani IGA (income generating activity) agar mereka mendukung bahkan menjadi bagian dari layanan perbankan ini merupakan pekerjaan tidak mudah, dan lebih tidak mudah lagi karena modal awal untuk operasional lembaga urung di kucurkan oleh YBDA (Yayasan Dhrama Bhakti Astra) dan AMV (Astra Mitra Ventura). Praktis kami harus  mencari dana dengan cara menggalang dari masyarakat melalui tabungan. sebagai MT (management trainee) tidak banyak waktu yang diberikan untuk menyelesaiankan ini. Dengan kerja keras, kurang dari 3 bulan, lembaga ini akhirnya mampu menarik tabungan dari masyarakat dalam jumlah yang cukup dan menyalurkannya kembali ke petani melalui produk pinjaman: pupuk, infastruktur kecil, pembelian alat angkut TBS (tandan buah segar) serta biaya replanting.

The program on Livelihood Support and Partnership (DZLiSPP) has been implemented in four districts in the Dry Zone namely Anuradhapura, Kurunegala, Badulla, and Moneragala. The DZLiSPP is partly funded by the International Fund for Agricultural Development (IFAD) and co-financed by several other donor agencies. The total program period is seven years and is executed under the overall responsibility of the Ministry of Agricultural Development and Agrarian Services. Its objective is to improve the incomes and living standards of poor households. Components include upland farm development through participatory extension by the Farmer Field Schools; improved marketing modalities through the promotion of forward sales contracts and export of organic products; the support to micro-enterprises; the rehabilitation of micro-tanks, the provision of micro-finance and support to income generating activities and the provision of priority community infrastructure including rehabilitation of village roads, water supply, electricity using renewable energy.
The program has the expectation that the household income will increase by directly productive investments in income-generating activities, through improved marketing, through increased productivity of upland cropping, and by improved marketing opportunities and access to organic niche markets for export.
The main objective of this PRA assignment is a village needs assessment, identifying problems hindering the overall development process in a village; resource mapping; prioritization of village development needs, evaluating options for developing the village; preparing a village development plan (VDP) and a budget. The Consultants would only act as facilitators of the need identification and planning process, providing necessary mobilization efforts and providing technical information.

This study has come out with detailed investigation on role of micro credit on empowerment of socially excluded people belonging to watershed development area.The empirical findings suggest that micro credit has potential to gender empowerment, eradicate poverty through outcome even in backward and under privileged regions