Exploring the Impact of Economic Downturn on Microfinance Institutions in Mysore

The provided assignment content is a collection of academic papers, articles, and book excerpts that discuss various aspects of social research methods, including quantitative and qualitative approaches. The papers cover topics such as microfinance institutions, poverty reduction, economic growth, and global economic downturns. The content also includes a questionnaire with questions related to the impact of microfinance institutions on rural development and the role of microfinance in women empowerment.

Literature Review

Table of Contents
CHAPTER 2: LITERATURE REVIEW.........................................................................................1
a. Importance and growth aspects of micro finance institutions............................................1
b. What is economic downturn as well as its impact upon the economy and micro finance
institution................................................................................................................................4
c. Interrelationship between the global economic downturn and growth of micro finance
institution................................................................................................................................8
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................10
Research Design...................................................................................................................11
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION....................................................15
REFERENCES..............................................................................................................................22
APPENDIX....................................................................................................................................25

CHAPTER 2: LITERATURE REVIEW
Literature review represents the theoretical analysis of secondary data sources. In this,
researcher critically evaluates the books, journals and research paper to find out valuable insight
in relation to the subject matter (Goudarzi and Ramanarayanan, 2011). It provides more
assistance to the researcher in accomplishing the research in an effective manner. In addition to
this, it also develops understanding about the subject area along with their advantages and
disadvantages. It acts as a guide which helps the researcher in getting depth knowledge about the
topic.
Micro finance institutions can be defined as a those institution who offers financial
assistance to the lower income group at very concessional rates. Micro finance institution plays a
significant role in the growth and development of the economy. This literature review aims at to
evaluate the economic down turn at global level in the recent past. Besides this, it also critically
assesses the potential growth of micro finance institutions in Mysore. Along with it, it also
critically discusses the relationship between global economic downturn and growth of micro
finance institution in Mysore.
a. Importance and growth aspects of micro finance institutions
Micro finance institutions refer to those institutions which provide financial assistance to
lower income group or segment of the people. They offer financial services to the entrepreneur
and small sized business organization which are unable to approach bank to meet their financial
requirements. It includes credit union, commercial bank, cooperatives and other government
institution who offers loan, depository and other financial services to the customers (Karlan and
Valdivia, 2011). Cooperative banking can be defined as a retail banking institution which takes
deposits and offers lending facilities in most part of the world. Cooperatives work on the basis of
the different values such as self responsibility, equality etc.
In addition to this, credit unions are termed as nonprofit financial cooperatives who offer
savings, credit and financial services to their members. It is the group of people who belong to
specific community, religion and place of employment. In this, each member of the group
deposits fixed amount in union as per the predetermined norms (Kothari, 2010). Besides
deposits, it also renders lending facility to members of the group at very concessional rate as
compared to the other sources of funding. Along with it, repayment loan system of credit union
is also very simple as compared to the other financial institutions.
1

As per the view point of Peters and et.al. (2012) micro finance institution helps poor and
unemployed people which further contribute in reducing the rate of the poverty.
In the present scenario, micro finance institutions play a significant role in promoting the
economic development. This statement is argued by that it is not necessary that financial
assistance provided by micro finance institution contribute in the economic development.
Growth and economic development of the country highly depends upon effective concept,
strategies and policies framed by the entrepreneur. For example: If entrepreneur fails to make
optimum utilization of finance which are provided by the micro institutions then growth and
development aspects in negatively affected. Thus, it is very difficult for the financial institution
to assess that which investment gives positive result or not.
According to Kothari (2010) micro finance institution also contributes in economic
growth by supporting the entrepreneur and small sized organizations. Micro finance institution
offers financial support to the entrepreneurs at very concessional rates as compared to other
financial institutions. Through this, micro finance institution encourages the entrepreneur to
think unique or something different. By providing financial services, micro financial institution
provides opportunity to the entrepreneur to implement their new ideas and strategies. Through
this, entrepreneur also assists in raising standard of living of the people. In addition to this,
micro finance institution also plays crucial in development of sector such as agriculture and other
aspects.
Due to lack of the sufficient fund farmers are unable to produce grains by taking into
consideration the most effective and innovative techniques. In this condition, micro financial
institutions provide assistance to the farmers by fulfilling their financial needs and requirements
at the cost effective rates. Prosperity of the country is highly dependent upon agricultural aspects.
In addition to this, micro finance institution secures farmers and rural people from the
exploitation of money lenders. However, it is to be critically evaluated by the Peters and et.al.
(2012) that still there are large number of people who take financial assistance from the money
lenders due to the low awareness towards these institutions.
As per the view point of another Venkatesh and Vanishree, 2014 micro finance
institutions encourages rural people to save their money. By introducing attractive rate of interest
on the deposits micro institutions can develop the saving habit among the individuals. MFI's
plays a vital role in reducing the gap between formal financial institution and rural people. In the
2

present era, large number of borrowers prefers to take financial assistance from micro financial
institution in comparison to other institutions. Along with it, micro finance institution focuses on
understanding the needs and requirements of poor people. Through this, they are able to deliver
best services to the lower segment of the people by complying with their needs.
Growth aspect of the micro finance institution is high over past decades. As per the view
point of VenuGopal and Rao, 2014 due to the easy procedure to take financial assistance and
cost effective interest rates large number of people prefer to approach MFI's. During the period
of 2003-2008 micro financial institutions have grown by 21%. Along with it, the portfolio of
organization has also grown by an average of 34% in the same period. Micro institutions provide
financial support to the backward people which help the country in decreasing size of
unemployed people. Besides this, they also help farmers and rural people who facilitate
economic growth and development in the country. Thus, it can be said that growth potential of
the micro finance institution is very high as compared to other financial institution or sector.
However, it is to be critically evaluated by Boyer and Blazy (2014) that growth potential or
performance of micro finance institution is highly dependent upon favorable economic
conditions and policies. Customer preference and needs are also affected by the economic
condition which takes place within the country. Economic crisis which takes place at global level
also affects the growth potential of micro finance institution. In 2008, there is the high slowdown
in the economy due to which many micro institutions were forced to wind up many branches.
Thus, economical conditions and aspects also place significant impact upon the growth aspect of
micro finance institutions.
In accordance to Yadav (2014) the growth aspect of micro financial institution can be
visible in many aspects. More than 800 NGOs are involved in delivering financial services to
the customers. Along with it, approximately more than 350 new cooperatives provide thrift and
credit services to people. In addition to this, formal financial institution has failed to fulfill the
financial needs of poor people. By realizing this fact micro financial institution has started to
provide financial assistance to lower segment of the people. All the above mentioned aspects
show that the growth aspects of micro finance institution are very high as compared to the other
finance institutions.
According to the view point of Alem and Townsend (2014) there are many sub hubs of
Mysore which are still not developed. In addition to this, there are many rural people are resides
3

in Mysore who approach micro financial institutions to meet their financial needs and
requirements. Micro institutions which are established in Mysore provide financial services and
assistance to the lower income group of the people who economic background is not very strong.
Micro financial institution which works in Mysore plays a significant role in making contribution
in the organizational growth and development. Statistics of Mysore states that people of this city
prefers more to take financial assistance from the micro financial institution. Moreover, micro
institutions provide funding at the concessional rate. This aspect attracts entrepreneurs and small
business organization to approach MFI's for the financial support. In addition to this, micro
financial institutions that operate their business in Mysore provide high interest on deposits as
compared to the other financial institution.
In addition to this; MFI's gives more priority to the backward and rural people in
comparison to the people who have strong background. Thus, growth aspects of micro financial
institution are very high in Mysore. However, it is to critically evaluate by Alum and Townsend
(2014) that growth of the financial institution is not only dependent upon the demand and needs
of the customers. Economical situation or aspects such as inflation and deflation closely affects
the growth potential of micro finance institution. As activities and operations of micro financial
institution are not only restricted to national level but also they are also affected by the
happening which takes place in the international market. Any changes which take place in the
global market highly impact the activities and functions of micro financial institution. Thus,
micro finance institution shows growing or emerging trend but economical crisis which arose in
the past place negative impact upon such kind of institutions.
b. What is economic downturn as well as its impact upon the economy and micro finance
institution
Economic downturn refers to the slowdown in the economic activity of the country. As
per the view point of Fletschner and Kenney, (2014) economic downturn is the part of the trade
or business cycle which indicates that country is entering into the recession which closely
hampers the growth and development aspect of the country. There are several reasons due to
which situation of economic downturn is arises includes lower economic growth, falling asset
prices and investment, increasing unemployment as well as increasing government borrowing.
Economic downturn is the critical situation which may cause of the period of recession arises in
the economy or country. It is contradicted by Borio (2014) that there are many other factors
4

which may cause of the recession or situation of slowdown arises in the economy. High interest
rate is also one of the main cause due to which condition of recession is arises. During the period
of slowdown, investments are not encouraged in the economy and there by impacts the
productive activities of the respective country. Besides this, during the period of slowdown
consumer are not likely to spend money. Investors think that if economy is bad then there is no
chance to get higher investment. Thus, psychological state or mindset also impacts the
economical aspects. In addition to this, in economic downturn wages of the workers is also
reduced which place impact upon their purchasing power as well.
Slowdown in the economy represents that gross domestic product of the country is
decline which closely impacts the activities of the respective economy. Thus, period of
slowdown places many negative impacts upon the growth potential of the country. However, it is
to be critically evaluated by Machado and Mata (2015) that slowdown is not static condition of
the economy. Economic condition is dynamic in nature which can be changed by the country by
making sound strategies and policies. In the period of inflation purchasing power of the
customers is increase. Besides this, investment is also encouraged in the economy during this
period which proves to be more fruitful for the country. Thus, period of slowdown closely
impacts the economical aspects and activities.
Global crisis comes in existence in 2008 when two largest banks Marill lynch and
Layman brothers declared that they are become bankrupt. There are numerous US and other
nations companies that have their account in these banks. Due to bankruptcy of these banks
turmoil comes in world economy and concern about economic health were revealed by the major
economists. The main reason behind such case was loose risk management system of these
banks. In USA people takes a home loan at a very low interest rate by mortgaging their houses.
This trend was continuing from many years (Karlan and Valdivia, 2011). It is evident that people
of USA do not make prudent use of money and they start using loan amount to meet their
personal expenses. In 2007 prices of these houses start falling and many people show their
inability to make payment on time. Banks of USA does not give any importance on these trends
and them allotting more and more loan. As a result, number of defaulters in USA starts
increasing and due to devaluation in house prices it become difficult to recover loan. By the time
these banks take steps situation become out of control and these institutes were compelled to
declare their bankruptcy.
5

Due to bankruptcy of these banks corporate greatly affected and economy of USA start
falling. As per fact, form 2007 this trend commenced and at that time growth rate was almost
nearby to zero. In 2008 GDP of USA becomes negative. It is well known fact that USA is a large
market and it is largest importer and exporter of commodities. Due to negative growth rate;
production fall and due to this reason demand for raw material declines (Goudarzi and
Ramanarayanan, 2011). This affects other nation’s economy like China, Brazil and UK etc.
Moreover, unemployment rate also reached to 8-10% which was very high. Due to this reason
demand for products also declines in USA. As a result major exporting nations of USA greatly
affected by downfall in USA economy. The economy of nations that have good trading
partnerships with nations that export products to USA also affected indirectly due to negative
growth rate of USA economy. In this way USA economy poor performance affect entire world
and global recession comes in existence.
This entire scenario affects entire globe in many ways. In European nations and USA
GDP declined, inflation rate increased and unemployment rate skyrocketing. Due to rescission
Euro zone also face a lot of problems in economy. Countries like Greece economy growth fall to
-5%. At that time unemployment rate in Greece was 5% but in 2015 it grows to 25%. In case of
growth rate nearby results were observed in other nations of Euro zone. In all European nations
at that time unemployment rate was very high and same trend was observed in case of inflation
(Venkatesh and Vanishree, 2014). Due to this reason demand in European nations also decline
and this scenario further add fuel to the problem. Hence, it can be said that crisis in USA become
crisis for entire world and longer time is taken in order to overcome this crisis to some extent.
As pert the view point of Shepherd and Page (2015) global financial crisis which arises in
the period of 2007-08 placed high level of influence upon the rural as well as micro financial
sector. As micro financial institutions are closely related to global financial market. Thus,
economic crisis which arises at global level closely affects the activities and operations of the
micro finance institutions. Global financial crisis places more impact upon the micro financial
institution that is situated in Mysore. Moreover, micro financial institutions are not limited to the
national level but also they worked at global level (VenuGopal and Rao, 2014). Therefore, if
minute changes which take place in the economic market closely impacts the business functions
and activities of micro finance institutions. During the currency crisis, people are not interested
to make investment in their business operations. Thus, they are not interested in taking financial
6

assistance from any kind of financial institutions. In addition to this, people do not have the
capacity to take loan or financial support from the micro financial institutions.
In the period of slowdown income aspect of the individual is decreases and there by
affects the purchasing power of the individual as well. Therefore, people ignore to make
investment in the luxurious aspect by taking loan from the financial institutions. As real wages of
the people decreases and thereby saving of the individual also decreases. On the basis of the
above aspect it has been stated that in the slowdown people neither save nor lend money from
the micro financial institution. It is one the main reason which compels large number of the
micro financial institution to close their branches. Micro financial institution which is situated in
Mysore shows growing trend but financial crisis which arises in the economy closely impacts the
growth and development aspects of them. Moreover, working aspects of micro financial
institutions are highly dependent upon the deposits, lending and other financial services. In the
economic downturn people shows very less interest towards the micro finance institutions. It is
contradicted by Krause and Ellram (2014) that not only the micro financial institutions are
affected by the currency crises which arouse in 2008. In this period, banking industry is closely
affected by financial crisis which proves to be more disastrous for them. During the economic
downturn, share prices of the banking industry and micro financial institutions are highly
decreased. This situation imposes difficulty in front of the financial institution or banking
industry. Thus, it is very difficult for the micro financial institution to survive during the period
of the economic downturn.
Along with it, organization or MFI's also faces difficulty in predicts the impact of global
financial crisis which will arise in the near future on the basis of the past trends. Various impacts
which financial crisis place upon the micro financial institution is seem like a punishment.
Before the financial crisis which arises in the East Asia and Latin America micro financial
institution serves the rural and backward people more effectively and efficiently. However, it is
to critically evaluated by Drezner (2014) that currency crisis not only affects the micro finance
institution but also impacts the rural and lower income segment of the people. During the
economic downturn most of the branches of the micro financial institution are closed which
creates difficulty in front of the rural people to take financial assistance from the financial
institutions at very concessional or cost effective rates. In addition to this, financial crisis is also
the cause of unemployment which hampers the economic growth and development (Boyer and
7

Blazy, 2014). In addition this, people are least interested to make investment in their business
operations and activities. Thus, situation of economic downturn closely impacts the growth of
the micro financial institutions establish in Mysore and other parts of the world.
c. What is economic growth and its effect on Mysore in recent times
According to the view pointy of Frankel (2015) economic growth consists of the situation
when capacity of an economy in relation to the production of goods or services are increased as
compared to before. GDP, per capita income etc. are the significant measures which help in
assessing the market condition. It refers to the situation of full employment in which people are
able to make use of quality products or services. In addition this, during the session of economic
growth standard of living of people is increased to the large extent. Moreover, in inflation
disposable income of people is also increases. As per the view point of Khan and Thimmaiah,
(2015) in the period of economic growth entrepreneurs are encouraged to implement their
innovative ideas and suggestion at marketplace. Through this, entrepreneurs are able to raise the
standard of living of poor people. This situation refers to the condition of growth and thereby
makes contribution in development of economical aspects.
Coale and Hoover (2015) claimed that economic growth place positive impact upon
development aspect of Mysore in recent times. During the session of economic growth large
number of the poor people gets employment opportunity and thereby makes reduction in the
poverty aspects. Besides this, entrepreneurs are also motivated to start their new venture by
taking financial assistance at reasonable prices from micro finance institutions. Through this,
individual is able to offer unique product or services to their customers as compared to existing
business organization. In addition to this, high output increases government revenue in terms of
taxation amount. It enables government to increase health care provision and raise educational
standards. However, it is to be critically evaluated by Dahiya (2016) that situation of economic
growth may result of rise in the speculative activities. In addition to this, due to increase in
disposable income people have started to consume de-merit goods and thereby negatively
impacts the situation of social welfare. Further, huge increase in industrial waste may lead to
market failure and negatively affects economical development aspect of Mysore.
8

d. Interrelationship between the global economic downturn and growth of micro finance
institution
As per the view point of Ahlin, Lin and Maio (2011) there is the high interrelationship
between the global economic downturn and growth of micro financial institutions. Global
economic downturn represents the condition of decreasing tends in the investment and other
productive activities. Besides this, during the condition of financial crisis there is no huge
production of goods and services. In addition to this, purchasing power of the customers are also
decreases during the period of financial crisis which closely impacts the growth of the micro
finance institution. Moreover, in the time currency crisis people does not approach to bank for
the financial support and services. Due to the low income people are not able to pay interest to
the micro financial institution and there investment is discouraged. Thus, growth of the micro
financial institution is negatively affected during the period of financial crisis. As financial crisis
take place in the economy then activities and functions of micro financial institutions are affected
in the same direction. It is contradict by Brau and Woller (2004) that it is not necessary
condition of economic slowdown negatively affects the operations and functions of small sized
financial institution. In the period of slowdown in the economy survival of the micro financial
institution is highly dependent upon their capacity to fulfill the financial needs and requirements
of the lower segment of the people. During the period of recession or economic downturn
success of an organization is highly based on their strategies and policies. With the help of
competent policies it is possible for the micro financial institution to serve their customers in an
effective manner.
Chang and et.al. (2009) has found that micro financial institution shows growing trend in
all part of the world including Mysore. This aspect indicates that customers prefer to take
financial services from MFI's rather than formal financial institutions. It indicates positive sign
for the economy as it provides financial support to the people who are not in the position to
approach bank for the loan. Moreover, bank demands high amount of security as compared to the
amount of loan which creates financial burden in front of the person who require financial
assistance. Whereas, micro financial institution does not demand for the financial security who
value is higher than the amount of loan. It indicates that financial there is the more growth
opportunity to micro financial institution to open their branches. However, it is to be critically
evaluated by Chor and Manova (2012) that growth potential is not enough for the smooth
9

working of the micro financial institution. It also requires favorable economical conditions and
aspects to take benefit of the growth opportunities which are present at marketplace. This,
growth of the micro financial institution is closely affected by the economical conditions which
are present at national and global level.
10

CHAPTER 3: RESEARCH METHODOLOGY
Research methodology consists of the techniques which researcher will undertake to
conduct the study in an appropriate manner. It entails the types of research which researcher will
undertake to find out the solution of the problem. Besides this, it also shed light on the data
collection method which researcher will undertake to collect suitable amount of data for the
research study (Carson and et.al, 2014). In addition to this, it states the ways through which
researcher will analyze data collected by them.
It also includes ethical as well as accessibility issues which researcher needs to be taken
into consideration during their study. Further, it also includes the schedule which provides
deeper insight to the researcher about the time which he will take to accomplish the each activity
of research. Besides this, it also gives information about the total time duration which researcher
will take to complete their research study (Hippisley‐Cox, Coupland and Brindle, 2015). Thus,
all these steps provides assistance to the researcher in assessing the impact of global economic
downturn upon the micro finance institutions who operates in Mysore
Research Type
In order to conduct the research study in the right direction researcher needs to assess the
type of the research which researcher undertakes for their study. Assessment of the type of
research is highly required because the data collection methods are dependent upon the type of
research. There are specifically two types of research such as qualitative and quantitative
research (Kremers and Çakir, 2014). Quantitative research may be defined as a systematic
observation or analysis of the collected data through the statistical or mathematical aspects. On
other hand, qualitative research is the non-numerical analysis of the research problem. It is
usually undertaken by the researcher in order to develop understanding about the underlying
reasons and opinion. For present study, researcher undertakes qualitative research in order to
assess the impact of economic down upon the micro finance institution of Mysore. Qualitative
research provides assistance to the researcher to asses each and every aspect without any
biasness.
Research Approach
Research approach consists of ways through which researcher can easily address the
problem of the research. There are mainly two approaches of research such as inductive and
deductive approach. Inductive approach is usually associated with the qualitative research which
11

places more emphasis upon the exploration of new phenomena (Neuman, 2005). In contrary to
this, deductive approach is usually used in quantitative research. It starts with hypothesis and
ends with the confirmation of such hypothesis. To assess the extent to which economic downturn
have impacted the micro finance institution of Mysore researcher undertakes inductive approach
to find out the suitable outcome of the research study. In this, researcher evaluates existing
theories with the aim to develop new theories.
Research Philosophy
It consists of the ways under which the data in relation to the research study is gathered,
analyzed and used. Interpretivism and positivism are the main research philosophies which
researcher can undertake for their study (Creswell, 2013). Selection of approach is highly
dependent upon the philosophy which is undertaken by the researcher to identify the impact of
downturn which arouse at global level upon the micro financial institutions. Positivism
philosophy is usually used in quantitative research. On other hand, interpretivism philosophy
proves to be more suitable for qualitative research. In order to assess the impact of economic
downturn upon the small scale financial institution researcher undertakes qualitative research. On
the basis of this aspect researcher undertakes interpretivism philosophy to assess the impact of
economic downturn.
Research Design
Methods of data collection
Accuracy of the outcome is highly dependent upon the data collection methods which are
undertaken by the researcher for the study. There are mainly two types of data which includes
primary and secondary data. Primary data are those which are collected by the researcher for the
first time in order to fulfill the purpose of research (McMillan and Schumacher, 2014). It
provides assistance to the researcher to collect the suitable amount of information by taking into
consideration the research issue. In contrary to this, secondary data consists of those which are
collected by another researcher for their own research study. In order to analyze the impact of
economic downturn which arouse in 2007-08 upon the micro finance institution of Mysore
researcher undertakes both primary and secondary data collection methods. For such study,
researcher conducts survey via questionnaire to gather the primary data. It provides assistance to
researcher to collect specific data which addresses research issue. In addition this, researcher also
considers secondary data sources such as books, journals and research papers. Library has the
12

huge collection of the books, journals and research paper. In addition to this, it also contains the
articles upon the micro financial institution. By taking into consideration primary and secondary
data sources researcher is able to conduct the study in the right direction (Shawver and et.al,
2016). Both sources of data collection provide assistance to researcher in finding the effect of
economic downturn upon the growth and development aspect of the micro finance institution.
Sampling methods
Sample may be defined as a small part of the population which researcher needs to select
to conduct the research study in an appropriate manner. Moreover, it is highly difficult for the
researcher to conduct research upon the whole population. Thus, researcher is required to select
the appropriate sample size by taking into consideration the various sampling technique (Zou,
2015). Specifically two types of sampling technique are available to researcher such as
probabilistic and non-probabilistic sampling techniques. Researcher has undertaken the
purposive sampling technique to assess the level of impact which economic downturn have
placed upon the growth and survival of the micro finance institution of Mysore. Researcher has
selected 10 managers of micro financial institution as a sample by taking into consideration the
purposive sampling technique. Such technique provides assistance to the researcher to meet the
purpose of the research. It helps researcher in collecting the suitable data in accordance with the
research issue or problem.
Data analysis plan
Data analysis is the most important part of the research study which helps researcher in
finding the appropriate result of the issue or problem. Data analysis plan is highly dependent
upon the nature of the research study. Type of investigation has high level of influence upon the
technique which researcher undertakes to analyze the result of the questionnaire (Hippisley‐Cox,
Coupland and Brindle, 2015). Researcher undertakes thematic perception test to identify the
impact of economic downturn upon the micro financial institution which are operated in Mysore.
Thematic perception test represents the pictorial view of the results which are derived through
questionnaire. This aspect facilitates better understanding towards the results of survey. In this,
researcher frames theme of all the questions of survey along with the statistical graph or
presentation. Through this, researcher is able to identify the extent to which micro financial
institution is affected due to downturn.
13

Accessibility issues
Accessibility issues represent the problems which researcher has faced during their
research study. Mostly researcher faces difficulty in the collection of data which is the essential
aspect of the research program. In the present study, researcher has faced difficulty in collecting
the primary data through the survey technique (Jackson, 2015). Moreover, few respondents do
not fill the questionnaire to the full extent. In addition to this, researcher also faces trouble in
collecting the suitable amount of information from secondary data sources. Moreover, most of
the research papers which are published by other researcher are unable to give the appropriate
information which addresses research issues.
Besides this, unavailability of latest books and journals has also created difficulty in
front of the researcher in the collection of secondary data. All these accessibility issues having
high level of influence upon the effectiveness of the research outcome. Further, authenticate
information is also the main accessibility issue which is faced by the researcher. Moreover, most
of the websites are unauthenticate as they do not any copyright of their information. Thus, it is
also the main issue which closely impacts the effectiveness of the research study and its results.
Ethical issues
Researcher also requires considering the ethical aspects while they conduct research
study. Ethical aspects or consideration increase the effectiveness of the research study. In
accordance with the ethical aspects researcher have also maintained the confidentiality of the
respondents. Researcher ensures the respondents that they do not disclose the identity of them.
Most of the respondents do not prefer to disclose their identity. Thus, researcher requires
following all such ethical considerations. In addition to this, researcher does not compel or force
to the respondents or manager in relation to filling of questionnaire (Carson and et.al, 2014).
Researcher has encouraged the managers to fill the questionnaire who are selected as a sample.
By this, researcher have followed or maintained all the ethical aspects in their research study.
Research limitations
In this research study, researcher has gathered primary data from the 10 manager of the
top micro financial institutions. It is one of the main limitations of the research study because
outcomes of the research are limited to 10 managers. If researcher collected data from more than
10 managers then they become able to represents the more realistic view about the impact of
global recession upon the small scale financial institution. Further, availability of sufficient
14

amount of the financial resources is also the main factors. Financial resources are also the main
factor which restricts the area of the research which is highly associated with the effective
research study. In addition this, time is also the main aspect which closely affects the value or
importance of research study. In the present era, time plays a vital role in building and sustaining
competitive advantage over others. Researcher does not have large amount of time to conduct the
research study upon the impact of global downturn on the growth and development aspect of
micro financial institution. All the above mentioned limitation affects also places impact upon
the outcome of the research study
Reliability and validity
Reliability of the research result is also the main aspect which raises the effectiveness of
the research study. To assess the impact of global downturn upon the micro institution researcher
have gathered data from the sources which are properly references. In addition to this, researcher
has considered authenticate or copyrighted websites to collect data (Neuman, 2005). This aspect
clearly reflects that researcher have collected data from the reliable sources. In addition to this,
research study and outcome of the research is based on the reliable data. Therefore, another
researcher or person can also make use of such data who wants to conduct the research study on
similar topic.
15

CHAPTER 4: DATA ANALYSIS AND INTERPRETATION
In order to find out the suitable solution of research problem researcher has undertaken
the thematic perception test. In this researcher have analyzed the collected data by making
appropriate themes. It is the most effective techniques which help in analyze the qualitative data
in an effective manner. It facilitates better understanding about the data which are derived with
the help of questionnaire. Through this, researcher is able to present his findings in the effective
manner.
Interpretation and analysis of the results of questionnaire are enumerated below:
Theme 1 Manger are strongly agree that micro finance institutions of Mysore are growing
continuously in recent past
Responses No of respondents % of respondents
Strongly agree 5 50.00%
Agree 3 30.00%
Strongly disagree - -
Disagree 2 20.00%
Total 10 100
16

On the basis of the above mentioned figure 50% managers who work at micro finance
institution of Mysore strongly agree that micro financial institutions are continuously growing.
During the period of 2003- 2008 the growth rate of micro financial institution was 21%. In the
recent past, large number of borrowers or rural people prefers to take financial assistance from
micro financial institutions of Mysore. It provides opportunity to rural people to cover their
dream into reality. In addition to this average growth portfolio of micro financial institution is
34%. This aspect clearly reflects that micro financial institutions grew in the recent past. Micro
financial institution charges lower interest rate from the borrowers. Due this, rural people as well
as entrepreneur prefer to take financial support from the micro financial institution.
In addition to this, 30% managers of micro financial institution agree that before 2008
micro financial institution operates in Mysore showed growing trend. Whereas 20% accounts
that micro financial institution did not show growing trend. Along with the micro financial
institution there are also some private lenders who offer financial assistance to the borrowers at
lower cost. This aspect reflects that micro financial was not growing with the high rate of
percentage in the recent past. As per the above table it has been assessed that micro financial
institutions who offer financial services in Mysore showed growing trend.
17
Strongly
agree
Agree Strongly
disagree
Disagree
0
0.1
0.2
0.3
0.4
0.5
0.6
% of respondents

Theme 2 Large number of manager agree that micro finance institution have contributed in
poverty reduction
Responses No of respondents % of respondents
Strongly agree 4 40.00%
Agree 4 40.00%
Strongly disagree 1 10.00%
Disagree 1 10.00%
Total 10 100
The above table clearly shows micro financial institutions makes remarkable contribution
in reducing the poverty. From the results of questionnaire it has been analyzing that 40%
managers strongly agree on the aspect that financial services deliver by the micro financial
institutions provides assistance in poverty reduction. Moreover, micro financial institution offers
financial support or assistance at a very reasonable rate. This aspect encourages more investment
in the economy and there develop lots of employment opportunity. Through this, small scale
financial institutions are able to offer employment to the large number of people and thereby
make contribution in poverty reduction.
Along with it, 40% managers agree that micro financial institutions provide support to
government by providing employment opportunity. In addition to this, micro institutions also
help in raising living standard of people by encouraging investment from the entrepreneur or
innovators. In contrary to this, 2% managers does not support that micro institutions make
18
Strongly agree Agree Strongly disagree Disagree
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
35.00%
40.00%
45.00%

support in poverty reduction. One of the manager claimed that there are also so many factors
which helps in reducing poverty such as inflation, effective fiscal policies etc.
Theme 3 Deflation or recession has high level of influence upon the micro finance institutions
operate in Mysore
Responses No of respondents % of respondents
Inflation 2 20.00%
Deflation or recession 7 70.00%
Both 1 10.00%
Total 10 100
19
Inflation Deflation or recession Both
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%

On the basis of given results it has been identifying that recession is the main factor
which closely affects the working and growth aspects of micro financial institutions. Recession
reflects the situation of slowdown in the economical aspects such as income, buying of the
customers etc. During this period, people prefer to make purchase of only high necessity good
rather than luxurious products. Recession is the main cause due to these entrepreneurs is
hesitating to make more investment in their projects. In addition this, during the period of
recession unemployment rate is also very high. This is the main factor due to which 70%
manager claimed that recession is the main factor which adversely influence the growth of micro
financial institutions of Mysore.
In contrary to this, 2% managers claimed that inflation is the main aspect which has high
level upon the growth of micro financial institutions. During inflation, purchasing power of the
customer is increasing with a very rate. In this, competition between the firms is increasing with
a very high rate. Thus, entrepreneurs are hesitate to make investment in the business activities
and functions and there by impacts the micro financial institutions. In addition to this, 1%
managers claimed that both inflation and deflation have high level of influence upon the growth
and development aspect of micro financial institutions.
Theme 4 Micro finance institutions play a vital role in women empowerment
Responses No of respondents % of respondents
Yes 7 70.00%
No 3 30.00%
Total 10 100
20

According to the response of respondents it has assessed that the small scale financial
institutions plan an important role in empowering women. As per the results 70% managers
claimed that micro financial institution offers employment opportunities to women. They
encourage them to implement their unique or innovative ideas. Thus, micro financial institutions
play a vital role in developing the feeling of self dependency among women. Whereas 30%
managers said that there is no role of micro financial in the empowerment of women. Moreover,
government have also introduced program which places more emphasis upon the empowerment
of women. Nevertheless, large number of respondents claimed contribution of micro financial
institution is high in the empowerment of women.
Theme 5 Micro finance institution makes contribution in the growth and development of
economy
Responses No of respondents % of respondents
Yes 7 70.00%
No 3 30.00%
Total 10 100
21
Yes No
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%

The outcomes of the researcher show that small scale financial institutions makes vital
contribution in the economic growth and development. 70% manager of the micro financial
institution claimed that such institution provides assistance to government by developing the
economical aspects. Stability in production, employment rate, GDP etc is the main factors which
represent the growth and development aspect of economy. Micro finance institution provides
financial support at the very concessional rates. This factor encourages high level of investment
within the economy.
Besides this, it also provides opportunity to entrepreneur to offer unique product or
services. Through this, they also raise the standard of living of the people and thereby make
contribution in the economic growth and development. In contrary to this, 30% manager said that
22
Yes No
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%

financial support is not only the element which makes contribution in the economic growth and
development. There are several other factors which have high level of influence upon aspects of
economic growth and development such as political and economic conditions or policies etc.
Theme 6 Managers are aware about the global economic downturn
Responses No of respondents % of respondents
Yes 7 70.00%
No 3 30.00%
Total 10 100
23
Yes No
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%

As per the views of respondents it has been identifying that manager are aware about the
global economic downturn and its impact upon the working of micro financial institutions. On
the basis of respondents views 70% managers had faced the situation of economic downturn
which closely hampers the growth and development aspect of micro institutions. In contrary to
this, 30% managers are not highly aware from the impact of global economic downturn.
Moreover, they may not have the practical experience of the impact of recession which were
facing by the other micro companies during the period of 2008.
Theme 7 Managers are strongly agree that global economic downturn has severe consequences
on economic growth
Responses No of respondents % of respondents
Strongly agree 6 60.00%
Agree 2 20.00%
Strongly disagree 1 10.00%
Disagree 1 10.00%
Total 10 100
24
Strongly agree Agree Strongly disagree Disagree
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%

On the basis of the above mentioned table 60% managers strongly agree that global
recession has severe consequences upon the economic growth of micro finance institutions. In
this micro institutions are not in position to expand their branches and offer the financial services
on the wide basis or aspect. National income and GDP are also the factors which are highly
associated with growth of the micro financial institutions. On other hand, only 20% manager of
top financial institutions does not agree this aspect.
Theme 8 There is the high level of interrelationship between the economic downturn and growth
of micro finance institutions
Responses No of respondents % of respondents
Yes 7 70.00%
No 3 30.00%
Total 10 100
25
Yes No
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
70.00%
80.00%

As per the results of survey it can be said that there is the high interrelationship exist
within the global recession and growth of micro institutions. 70% managers have supported this
aspect because during the period of recession borrower does not approach micro institution for
the financial services. Due to this aspect there is no growth opportunity are available to micro
finance institutions. On the basis of this aspect it can be said that recession having negative
impact upon the micro institution. In contrary to this, 30% managers of top micro institutions are
not support this aspect.
Theme 9 Manger agree that economic downturn places negative impact upon the growth of
micro financial institutions of Mysore
Responses No of respondents % of respondents
Strongly agree 3 30.00%
Agree 6 60.00%
Strongly disagree - -
Disagree 1 10.00%
Total 10 100
26

As per the above figures economic downturn or recession place negative impact upon the
operations and activities of micro financial institutions. 60% manager agrees that condition of
economic downturn proves to be more disastrous for an organization. Moreover, before the
financial crisis which occurred in East Asia and Latin America micro institution had offered
financial service to rural and poor more effectively. Nevertheless, during the period of economic
27
Strongly agree Agree Strongly
disagree
Disagree
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
% of respondents

downturn small scale institutions are unable to offer the financial services to the backward
people of society. It is the main cause due to which 30% manager of top micro institutions
strongly support this aspect.
Theme 10 Economic downturn having high level of impact upon the growth of micro finance
institutions of Mysore
Responses No of respondents % of respondents
High level 6 60.00%
Moderately 2 20.00%
Lower level 2 20.00%
Total 10 100
28
High level Moderately Lower level
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
% of respondents

On the basis of the results of questionnaire it has been assessed that economic downturn
having adverse impact upon the growth and development of micro finance institutions of
Mysore. During this period, most of the branches of Mysore are not able to manage their
expenses and there by compelled to wind up the financial institutions. This is the main factor due
to which 60% managers of micro institutions claimed that economic downturn having high level
of influence upon the growth of small scale financial institutions.
Theme 11 There is the high level of difference between the of growth of financial institutions in
Mysore pre and post recession
Responses No of respondents % of respondents
Yes 7 70.00%
No 3 30.00%
Total 10 100
29

30
Yes No
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
% of respondents

The above table shows that there is a significant difference between the growths of
financial institutions that operate in Mysore. 70% managers have claimed that before 2007-08
there is the high growth and development had seen in the micro financial institutions. During this
period, large number of the borrowers prefers to take loan from the small scale financial
institutions. Furthermore, there are several branches of micro finance institutions had opened
during the period of 2007-08 which reflects the growth of micro financial institutions. Whereas
after recession which occurred in 2008 had compelled micro financial institution to close their
many of branches due to high slowdown in economy. Nevertheless, 30% respondents claimed
that there is no significant difference had occurred in the micro financial institutions of Mysore
pre and post recession.
31

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS
From this research project it has been concluded that micro financial institution plays a
significant role in the growth and development of economy. It can be concluded that micro
finance institution offers monetary services to entrepreneur and small business enterprises.
Through this, they encourage people to implement their ideas and there by raises the standard of
living of the people of society. Thus, by improving the standard of the people or society micro
institutions make contribution in the development aspect of economy. Thus, small scale financial
institute provides financial assistance to backward people of the society who are unable to fulfill
their financial needs or requirement by approaching bank.
On the basis of this aspect it can be inferred that micro financial institutions offer
employment opportunity to wide segment of people and thereby make contribution in poverty
reduction. It can be inferred that small scale financial institution offer monetary services to their
customers at very concessional rate rather than other financial institutions such as bank etc. It is
one of the main cause due to which large number of people prefer to take loan from micro
institutions rather than other. Besides this, financial institution had failed to meet the financial
need of poor people. Thus, by garbing such opportunity micro institutions have started to offfer
the financial assistance to the wide group of people. This aspect clearly reflects that micro
finance institutions of all over the world including Mysore are operated in the growing trend.
Furthermore, it can be articulated that global recession has high level of influence upon
the growth and development of micro finance institution. Moreover, recession shows slow
growth rate in the economy and there by discourage the investment in the market. In recession,
there is high level of slowdown in the production of goods or services. In addition to this,
purchasing power of the customer is also decreases during the period of global recession. Along
with it, entrepreneur and other people are not able to pay interest to micro institution due to
lower growth in the income aspect of people. This aspect also place adverse impact upon the
growth and development of micro finance institution.
On the basis of the outcomes of research study it can articulated that micro financial
institutions of Mysore are continuously growing in the recent past. Lower interest rate and easy
system of financial services have attracted large number of customers to take loan from small
financial institutions rather than other money lenders. Micro finance institutions were growing
with 21% in the period of 2003-2008. During this, rural people prefer to take financial services
32

from micro institution which is operated in Mysore. Besides this, it can be seen in the report
large number of manager agreed that micro finance institutions play a vital in poverty reduction.
They offer financial services to rural and small sized business organization at very concessional
rate. Through this, small scale financial institution encourages investment within an economy
and there by create as well as offer several employment opportunities to people. This aspect
shows that micro finance organizations play a crucial in poverty reduction. From this research
report, it has been concluded that global recession which occurred in period of 2008 had placed
disastrous impact upon the growth and development of micro finance institutions. During this
period of several micro finance institutions which are operated in Mysore are compelled to close.
Moreover, in global recession people are hesitating to take loan due to instability of the income
aspect. Due to this aspect, people do not take loan during the period of global recession. In this,
micro finance institutions are not capable to meet their daily expenditure and there by compelled
to close their business activities and operations.
Along with it, micro financial institution plays an important in empowering the women.
According to the outcomes of research study it can be concluded that micro institutions provide
opportunity to women to execute their unique or innovative ideas. Through this, small scale
financial institution is able develops self dependency among women. In addition to this, it can be
inferred that micro finance institution makes remarkable contribution in the growth and
development aspect of economy. Micro finance institutes offer financial assistance to the rural
people at very concessional rate. Through this, farmers are able to adopt latest technology in
producing the grains. Besides this, small scale financial institutions are also help in poverty
reducing and women empowerment. All theses aspect helps in increasing GDP rate of the nation
by ensuring stability in production and income aspect. On the basis of all these aspects it can be
stated that micro finance institution plays a crucial role in developing the conditions of economy.
Besides this, it can be inferred that there are many sub areas of Mysore are not yet
developed. In addition to this, large number of people of Mysore prefers to take monetary
support from micro institutions rather than other formal institutions. Moreover, in Mysore
income level and background of people is not highly sound. In this, micro institutions provide
opportunity to entrepreneur to implementation their ideas by framing effectual policies and there
by helps ion developing the economical aspects of Mysore. In addition this, micro finance
institution also give high return on fixed deposit due to which large number of people give
33

priority to micro institutions as compared to others. Thus, it can be stated that growth aspect of
micro finance institution is very high in Mysore. Nevertheless, global economic downturn had
negatively affected the growth aspect of micro finance institutions. Moreover, working aspects or
operations micro financial institutions are not only limited to national market but also they are
operated at internal level. Thus, any changes which take place in global economical aspects
closely affect the working of small scale financial institutions.
It can be seen in the research project that condition of global recession adversely affects
the economic growth and development aspect. Moreover, during the period of inflation micro
institutions are not able to expand their business operations and activities. Besides this, they are
not in position to offer financial services to the wide segment of people. Thus, in recession micro
institution are unable to offer the financial services to rural people or lower segment group of
people and there by discourage investment within the economy. Investment aspect is highly
associated with the employment opportunity and production aspect of the economy. Therefore,
recession which takes place at global level negatively affects the economy of nation. On the basis
of the outcomes of research it be stated that there is high level of interrelationship exist between
economic downturn and growth of the micro finance institution. High level of positive cor-
relationship exists between the economic situation and the growth aspect of micro institutions. If
economical conditions are positive then micro financial institutions are also growing in the same
direction and vice versa.
Further, it can be articulated that before the occurrence of global financial crisis micro
financial institutions had offered commendable financial services to rural people of East Asia
and Latin America. Nevertheless, financial crisis which occurred in 2008 impose problems in
front of micro finance institutions. Within this period several branches are unable to serve the
customers on a wide geographical level. In addition to this, several branches of micro finance
institution of Mysore are unable to meet their daily operating expenditures. Due to this aspect,
several branches are forced to close and there adversely affected the money supply within an
economy. Thus, is can be concluded that growth of the micro financial institutions is highly
associated with the economic conditions. Growth pattern of small sized financial institution is
increase or decrease in the same direction as changes take place in the economical conditions.
Thus, it can be said that global economic downturn have high level of influence upon the
business activities and functions of micro institutions which are operated in Mysore. Besides
34

this, it can be concluded that situation of economic growth places positive impact upon the
development aspect of Mysore in recent days. Condition of economic growth creates several
employment opportunities to poor people and thereby raises their standard of living. In addition
to this, situation of economic growth motivate people of Mysore to implement their ideas and
make contribution in the development of their city.
RECOMMENDATIONS
 On the basis of the findings of research study it is recommended to micro finance
institution of Mysore that they need to frame competent strategies and policies in relation
to their business activities. Through this, they are able to cope with the situation financial
crisis which will occur at global level. With the help of sound strategic framework micro
finance institutions are become able to serve the rural and lower segment people more
effectively and efficiently in the situation of financial crisis.
 Besides this, during the period of recession micro finance institutions require to make
efforts in relation to the encouragement of investment. By encouraging investment within
an economy micro finance institution can easily survive within an economy at the time of
recession.
 Furthermore, micro finance institution of Mysore needs to open up their branches in the
rural area. Through this, rural people are able to approach such institution for getting the
financial assistance in an effective manner.
 Along with it, small scale financial institution should organize educational campaign to
develop awareness among the rural and backward people of society about the financial
services offered by them. By this, micro institutions are able to develop stability in the
production activities and thereby make contribution in the growth and development of
economy.
35

36

REFERENCES
Books and Journals
Ahlin, C., Lin, J. and Maio, M., 2011. Where does microfinance flourish? Microfinance
institution performance in macroeconomic context. Journal of Development Economics.
95(2). pp. 105-120.
Alem, M. and Townsend, R. M., 2014. An evaluation of financial institutions: Impact on
consumption and investment using panel data and the theory of risk-bearing. Journal of
econometrics. 183(1). pp. 91-103.
Borio, C., 2014. The financial cycle and macroeconomics: What have we learnt?. Journal of
Banking & Finance. 45. pp. 182-198.
Boyer, T. and Blazy, R., 2014. Born to be alive? The survival of innovative and non-innovative
French micro-start-ups. Small Business Economics. 42(4). pp. 669-683.
Brau, J. C. and Woller, G. M., 2004. Microfinance: A comprehensive review of the existing
literature. Journal of Entrepreneurial Finance, JEF. 9(1). pp. 1-27.
Carson, V. and et.al., 2014. A qualitative examination of the perceptions of parents on the
Canadian Sedentary Behaviour Guidelines for the early years. International Journal of
Behavioral Nutrition and Physical Activity. 11(65). pp. 1-8.
Chang, S. S. and et.al., 2009. Was the economic crisis 1997–1998 responsible for rising suicide
rates in East/Southeast Asia? A time–trend analysis for Japan, Hong Kong, South Korea,
Taiwan, Singapore and Thailand. Social science & medicine. 68(7). pp. 1322-1331.
Chor, D. and Manova, K., 2012. Off the cliff and back? Credit conditions and international trade
during the global financial crisis. Journal of International Economics. 87(1). pp. 117-
133.
Coale, A.J. and Hoover, E.M., 2015. Population growth and economic development. Princeton
University Press.
Creswell, J.W., 2013. Research design: Qualitative, quantitative, and mixed methods
approaches. Sage publications.
Dahiya, B.S., 2016. Impact of economic development on regional structure of urban systems in
India. In Spatial Diversity and Dynamics in Resources and Urban Development. Springer
Netherlands.
37

Drezner, D. W., 2014. The System Worked: Global Economic Governance during the Great
Recession. World Politics. 66(01). pp. 123-164.
Fletschner, D. and Kenney, L., 2014. Rural women’s access to financial services: credit, savings,
and insurance. In Gender in Agriculture. Springer Netherlands.
Frankel, F.R., 2015. India's Green Revolution: Economic Gains and Political Costs. Princeton
University Press.
Goudarzi, H. and Ramanarayanan, C. S., 2011. Empirical Analysis of the Impact of Foreign
Institutional Investment on the Indian Stock Market Volatility during World Financial
Crisis 2008-09. International Journal of Economics and Finance. 3(3). pp. p214.
Hippisley‐Cox, J., Coupland, C. and Brindle, P, 2015. Concerns on “Validation of a Data
Collection Tool and Stroke Risk Predictor”. International Journal of Stroke. 10(7).
pp.E82-E82.
Jackson, S., 2015. Research methods and statistics: A critical thinking approach. Cengage
Learning.
Karlan, D. and Valdivia, M., 2011. Teaching entrepreneurship: Impact of business training on
microfinance clients and institutions. Review of Economics and Statistics. 93(2). pp .510-
527.
Khan, S. and Thimmaiah, N., 2015. Economic Reforms and Sources of Productivity Growth in
Selected Organised Manufacturing Labour Intensive and Capital Intensive Industries in
India-A Comparative Study. Economic Affairs. 60(2). pp.301.
Kothari, V. B., 2010. Executive Greed: Examining Business Failures that Contributed to the
Economic Crisis. Palgrave Macmillan.
Krause, D. and Ellram, L. M., 2014. The Effects of the Economic Downturn on Interdependent
Buyer–Supplier Relationships. Journal of Business Logistics. 35(3). pp. 191-212.
Kremers, H. M. and Çakir, B., 2014. Issues in Setting Up a Study and Data Collection. In
Understanding Evidence-Based Rheumatology. Springer International Publishing.
Machado, J. T. and Mata, M. E., 2015. Pseudo Phase Plane and Fractional Calculus modeling of
western global economic downturn. Communications in Nonlinear Science and
Numerical Simulation, 22(1), 396-406.
McMillan, J.H. and Schumacher, S., 2014. Research in education: Evidence-based inquiry.
Pearson Higher Ed.
38

Neuman, W.L., 2005. Social research methods: Quantitative and qualitative approaches (Vol.
13). Boston: Allyn and Bacon.
Peters, G. P. and et.al., 2012. Rapid growth in CO2 emissions after the 2008-2009 global
financial crisis. Nature Climate Change. 2(1). pp. 2-4.
Shawver, Z. and et.al., 2016. An examination of the WHOQOL-BREF using four popular data
collection methods. Computers in Human Behavior. 55. pp.446-454.
Shepherd, J. and Page, N., 2015. The economic downturn probably reduced violence far more
than licensing restrictions. Addiction. 110(10). pp. 1583-1584.
Venkatesh, S. and Vanishree, M. R., 2014. Feminization among elderly population in India: role
of micro financial institutions. Global Journal of Finance and Management. 6(9). pp.
897-906.
VenuGopal, B. and Rao, C. R. P., 2014. Micro finance Institution: Challenges and Issues. Online
Journal ISSN. 2347. pp. 9671.
Yadav, R. K., 2014. Significance of microfinance institutions in rural development of India.
International Letters of Social and Humanistic Sciences. (10). pp. 84-90.
Zou, S., 2015. Political risk assessment: a review and a new approach. In Proceedings of the
1993 Academy of Marketing Science (AMS) Annual Conference. Springer International
Publishing.
39

40

APPENDIX
QUESTIONNAIRE
Demographic information
 Name:_____________
 Age:____________
1. Do you agree to fact that micro finance institutions of Mysore are growing continuously in
recent past?
 Strongly agree ( )
 Agree ( )
 Disagree
 Strongly disagree
2. Do you think that micro finance institution have contributed in poverty reduction?
 Strongly agree ( )
 Agree ( )
 Disagree
 Strongly disagree
3. Which economic condition has high level of influence upon the micro finance institutions
operate in Mysore?
 Inflation ( )
 Deflation or recession ()
 Both ( )
4. Is micro finance institutions plays a vital role in women empowerment?
 Yes ( )
 No ( )
5. Had micro finance institution make contribution in the economic growth and development?
 Yes ( )
 No ( )
6. Are you aware about the global economic downturn?
 Yes ( )
 No ( )
7 Do you think global economic downturn has severe consequences on economic growth?
41