Role of Microbusinesses in Poverty Elimination

This thesis assesses the relation between poverty reduction and microfinance in Province of Punjab-Pakistan. It evaluates the impact of microbusinesses in poverty elimination.

Running head: THESIS 0
ROLE OF MICROBUSINESSESS IN POVERTY ELIMINATION
EXPERIENCE FROM THE PROVINCE OF PUNJAB - PAKISTAN
SEPTEMBER 17, 2019
STUDENT DETAILS:

THESIS 1
Contents
1. First chapter: Introduction...................................................................................................................3
1.1 Background of study....................................................................................................................5
1.2 Research Questions-..........................................................................................................................8
1.3 Research objectives-..........................................................................................................................8
1.4 Motivation of study...........................................................................................................................9
1.5 Problem statement.....................................................................................................................10
1.6 Research Gap...................................................................................................................................12
1.7 Significance of research...................................................................................................................12
1.8 Research rationale............................................................................................................................13
1.9 Contribution of research..................................................................................................................13
1.10 Scope of research...........................................................................................................................14
1.11 Dissertation structure-....................................................................................................................15
1.11.1 Introduction:...........................................................................................................................15
1.11.2 Literature Review:..................................................................................................................16
1.11.3 Research Methodology:..........................................................................................................16
1.11.4 Data Analysis and Findings:...................................................................................................17
1.11.5 Conclusion and Recommendation:.........................................................................................17
Chapter 2: Literature Review.....................................................................................................................18
2.1 Introduction.....................................................................................................................................18
2.2 Problem of poverty in Province of Punjab-Pakistan..................................................................19
2.1.1 Types of poverty.......................................................................................................................22
2.1.2 vulnerability and poverty..........................................................................................................23
2.1.3 Poverty and social capital.........................................................................................................25
2.1.4. Causes of poverty....................................................................................................................25
2.1.5 Measures to remove poverty-....................................................................................................30
2.2 Microfinance and its effectiveness...................................................................................................31
2.2.1 Microfinance......................................................................................................................31
2.2.2 Effectiveness of microfinance in elimination of poverty....................................................33
2.2.3 Role of microfinance institutions in poverty-elimination..........................................................34
2.3 Impact of small and medium enterprises on elimination of poverty................................................36

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2.4 Efforts made by government to reduce poverty from province of Punjab-Pakistan.........................42
2.5 sustainable microfinance programs and models-.............................................................................48
2.5.1 Microfinance programs in province of Punjab-Pakistan...........................................................48
2.5.2 Proposed Islamic microfinance models.....................................................................................52
2.6 Credit delivery mechanism or Microcredit-.....................................................................................55
2.7 Meaning and explanation of Variable-.............................................................................................59
2.7.1 Independent Variables..............................................................................................................60
2.7.2 Dependent Variable..................................................................................................................61
2.7.3 Mediating Variable...................................................................................................................63
2.7.4 Moderating Variable.................................................................................................................64
2.8 Theoretical framework.....................................................................................................................64
2.9 Conceptual framework-...................................................................................................................66
2.10 Hypothesis Development...............................................................................................................67
2.11 Chapter Summary..........................................................................................................................68
Chapter 3: Research Methodology............................................................................................................70
3.1 Introduction.....................................................................................................................................70
3.2 Overview of research planning-.......................................................................................................70
3.3 Underpinning Theories to Support the Hypothesis Relationship in Research Model.......................73
3.4 Theoretical Framework Using and Integrating the Underpinning Theory........................................75
3.5 Research philosophy........................................................................................................................76
3.6 Research approach...........................................................................................................................79
3.7 Research design...............................................................................................................................82
3.8 Research strategy.............................................................................................................................85
3.9 Data collection method....................................................................................................................87
3.10 Sampling method...........................................................................................................................89
3.11 Data analysis method.....................................................................................................................90
3.12 Ethical consideration.....................................................................................................................90
3.13 Chapter Summary..........................................................................................................................92
References.................................................................................................................................................93
Appendix.................................................................................................................................................101

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1. First chapter: Introduction
There are more than one billion Persons in all over the world, who live in the poverty (World
Bank data 2010). Therefore, ending the poverty is considered as very urgent task for all the
nations, specifically developing nations. In developing nations, a major cause of poverty
perceived is credit constraint forced upon the poor people. Coleman (1999) stated the situation of
poverty deception. According to this “the poor people frequently search themselves in the
malicious stage; making at the subsistence level creates it critical for accumulating savings and
assets, in this way creating it critical either for investing in productive sources or for getting
access to the credit in formal capital marketplace, resulting in lower productivity as well as
continued poverty”. Thus, rendering cheaper credit to deprived people or microfinance has been
regarded as the device for the financial development as well as reduction in poverty. In the
previous period, this has changed from the grass root’s movement to the international sector with
in excess of one hundred ninety million customers.
This thesis assesses the relation between poverty reduction and microfinance in Province
of Punjab-Pakistan. This paper analyses the hypothesis that access to microfinance as well as
household financial prosperity are definitely connected. When the literature review has stated
that the microfinance is very beneficial for microbusiness, the experiential finding differs highly
as the outcome of numerous methods utilised for accessing the influence of microfinance. In
assessing the financial health of the household, the research appear utilises the expenditure
pointers, involving household per real capital expenditure, actual food expenditures per capita as
well as non-food expenditures per capita. The access to microfinance is evaluated as the whole

THESIS 4
amount of borrowings of household. The thesis of this paper is that with the well-structured as
well as synchronised established microfinance system running in the proper judicial as well as
policies framework, the poor people can be capable for getting out of continuing poverty trap,
which outbreaks the lives. By means of the relevant literature review and conceptual framework
on the poverty, the microfinance services are important tools to address the issue of the rural
poverty in most developing nations. The significance of the microfinance in social-economic
expansion really has been established in practices by the decisions of United Nations to name
2005 as Microfinance’s global year.
Even though there are some practical evidence that microfinance may give contribution to
improve the life of rural deprived people. It is stated by evidence that the microfinance services
like saving, insurance, cash-transfer, along with entrepreneurial training are very attractive to
client’s class. The regulations as well as administration is deemed to constrain the operations of
marketplace however in a matter of the rural microfinance provision the rational amount of
supervision as well as administration is explored to be essential, specifically for securing the
mostly illiterate poor people, from moneylending rate of interest. In every chosen nation as well
as the other developing nations, the administrative control as well as supervision of microfinance
functions is existing, in the direct or indirect way. Subsequently, the microfinance has provided
upon larger level as the policy device for ending poverty as well as promoting the small
organisation’s development, as well as assessing the impact on reduction of poverty is essential
for make sure that restricted means have been spent resourcefully. Henceforth, the research paper
would assess the connection between poverty reduction and microfinance. Specially, the research
paper tries to give response whether and to what level the credit access can be helpful in
increasing financial welfare of household. The following parts are divided in 5 chapters. In the

THESIS 5
first chapter, the issue, purpose, area of study, research aim, objectives of research, as well as
research question are stated (Flick, 2015). In second chapter, the research is conducted by the
creation of the framework of research methodology. The current literature as well as study upon
microfinance and poverty is reviewed in third chapter. Also in chapter three, the microfinance
approaches in the different regions of the country, are selected randomly. The chapter four
assesses the microfinance’s contribution to the rural poverty lessening under numerous types of
the services that involve savings, credit, insurance, as well as amount transfer. In next part, the
researcher has provided recommendation to improve the microfinance services to assess the
whole impact on rural poverty to be realized (Alvesson & Sköldberg, 2017).
1.1 Background of study
The poverty is considered as one of the main issue that is challenged by Pakistan in the
present world. This is rightly said that poverty is a big fear for the people everywhere in the
world. Approximately, sixty per cent of population of Pakistan reside in rural areas. According to
an analysis, poverty has increased thirty per cent to forty per cent since the last periods. In this
way, it can say that about forty per cent of the population of nation is earning their living below
poverty line. In this way, the people are depressed of the fundamental needs of life. The
population of Pakistan lack Proper healthcare services and education. There is biggest question
on the survival of people in Pakistan. The population of Pakistan is forced to think upon its
survival because of no job and education. The biggest reason is poverty. The poverty in Pakistan
has risen because of various elements. The main element is absence of education. Various people
in Pakistan do not know about new and updated technologies to run the business. The people do
not have proper knowledge and understanding in rural area of Pakistan. This is the reason of big

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losses in business and low earning. This problem led poverty in Pakistan. It can see that
the import of Pakistan is more than in comparison of the export. The Pakistan does not have
more exports. Even Pakistan imports raw material from other countries. In this way, it is very
much essential to cut down import and to have advantages from the natural sources of country.
This will also give opportunity to the local people to earn. In Pakistan, the order situation as well
as current laws is also disheartening various depositors and the people, who have already made
investment, are not having any profit. In addition, the corruption is prevailing everywhere in the
country. It is overwhelming the rights of the common people. It is correct to say, “It is true that
no one is over laws, however, the powers may create someone imperceptible.” The same has
been applied in case of Pakistan wherever all the powerful people are plundering. No one will
raise the question upon it.
In Pakistan, the parents do not send their children to school. They chose the work of labour
for them. The parents are required by their children to support the family by generating income
for family. In this way, the children get started to earn in earlier age, in place of going school.
The circumstances where the people and families lack essential resources to be consumed, it may
create difficulties for them. They cannot fulfil their necessities such as clothing and food.
Poverty is a condition wherein people cannot afford fundamental requirements of human being
like shelter, foodstuff, clothes, teaching, nutrition as well as better health services. This paper
examines the relation of financial development to the poverty as well as unemployment. In this
paper, various approaches as well as strategies are discussed to reduce poverty and make the
development in economy of Pakistan. For the development, it is required that the industry should
be categorised into more productive industry and less productive industry. This is obvious that
more productive sector renders more job. By adopting the proper approaches as well as

THESIS 7
strategies, the less productive sector can become the more productive sector. In this way, the
different opportunities for the jobs would be enhanced. In this study, the researcher has outlined
the problem of poverty in province of Punjab-Pakistan. This study also state that it is essential to
solve this problem. There is big role of microbusiness in eliminating the poverty from Pakistan.
The SMEs are very useful in reduction of poverty for the reason that they generate opportunities
of job or unemployment. The main concern of the paper is how to strengthen the SMEs. This
paper also discusses that which strategies can be helpful to reduce poverty form province of
Punjab-Pakistan. This paper assesses the SMEs and its comparison with different medium and
larger enterprises. The Small and Medium Enterprises are best source of providing job
opportunities along with income generation opportunities. Poverty will never end until and
unless real solutions are implemented. There is the requirement of political stability. This paper
also underpins that government of Pakistan should think upon the economic justice. It is required
that there should be equity between men and women at every level or stage involving the
wages. The government should control the problem of overpopulation, as this is one of the key
causes of poverty in a nation. Further, this paper also outlines on the significance of
industrialization to be promoted along with equal allocations of means.
1.2 Research Questions-
This thesis is specifically aimed at the assessment of role of microbusiness in poverty
elimination from the province of Punjab – Pakistan. Following are the general research
questions-
 Why the poverty is a problem in province of Punjab-Pakistan?
 What is meaning and effectiveness of microbusiness?

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 What is impact of SMEs on poverty in area of Punjab-Pakistan?
 How government of Pakistan makes efforts to reduce poverty?
 Which sustainable programs and models are helpful in reduction of poverty?
 What are the models of different credit delivery mechanism?
1.3 Research objectives-
It is important for a researcher to assess specific research objective. A main motive is to find
out significance of microfinance in end of poverty. The specific motive of thesis is to evaluate
impact of microbusiness in poverty elimination from province of Punjab – Pakistan.This section
helps to successfully fulfil the objectives of research. A major aim of research is to analyse a role
of microfinance in reduction of poverty (Quinlan, et. al, 2019). There are some general
objectives of research. They are discussed as below:
 To discover the problem of increasing poverty in area of Punjab-Pakistan
 For understanding the meaning and effectiveness of microfinance
 To know the influence of small & medium enterprises upon poverty in province of
Punjab-Pakistan
 To know efforts made by government in reducing poverty
 To explore sustainable microfinance programs and models
 To discover the mechanism of credit delivery
1.4 Motivation of study

THESIS 9
This study evaluated the role of microbusiness in elimination of the poverty from
province of Punjab-Pakistan, a topic that is relatively unexplored in a literature section. This
section sets the background for the researcher to do research about the concern of research. It
also renders the motivation to do research regarding the problem of research. It also sets the
outline for researcher to renders the framework of further research. This section discusses the
three factors that motivate the researcher to conduct the research for particular concern. The first
factor is that the problem of poverty is increasing in province of Punjab-Pakistan over the past
decade. Another factor is that there is a significance of SMEs because almost ninety per cent of
the overall business is made from Small and Medium Enterprises (microbusiness) in Pakistan. A
last factor is poor economy of nation. There is poor economy of Pakistan because of increasing
poverty. Henceforth, these three factors have motivated investigator to do research to discover a
role of microbusiness in elimination of poverty from the province of Punjab-Pakistan. Further, it
is also found by researcher that the research has been already conducted on relation between
poverty and role of Small and Medium Enterprises (microbusiness) in nations like India.
However, this is motivation for an investigator to do research for establishing connection
between Small and Medium Enterprises (microbusiness) in province of Punjab-Pakistan and
poverty. Additionally, an importance of finding measures, techniques, programs, and models to
eliminate poverty from Pakistan also encourages researcher to conduct research effectively and
properly.
1.5 Problem statement
Poverty is biggest problem that is faced by Pakistan in present time. This problem is
interrelated with various factors that are having indirect relationship along with direct relation

THESIS 10
with poverty (Al-Shami, et. al, 2017). This paper is good try to analyse as well as discuss the
elements related to poverty. This is great contribution from the researcher to do best for the
nation. Poverty does not affect only the Pakistanis; however, this has the effect on other nations
of world. Today it can see that people of Pakistan are searching job and earning sources
everywhere in the world. They get involvement in illegal activities. It can also see that some of
them are involved in terror activities. In this way, it is very risky for other nations of the world.
In addition, Punjab has lowest poverty rate in Pakistan as it is divided into southern parts as well
as northern parts of the province. Sialkot is in the wealthy northern part of province. On the other
hand, Rajanpur District is in the southern part of province. In Sialkot, the poverty rate is 5.63 per
cent. In contradiction of this, the poverty rate of Rajanpur is 60.05%. In this way, as per the latest
report of the World Bank, global poverty ratio is improving little by little in the area. There is not
any exemption of this.
This section explains the main issue of poverty in province of Punjab-Pakistan. With a help
of literature, it can see that there are some certain main issues as well as challenges faced by
Pakistan. The study outlines the problem of poverty ‘the part of microbusiness in end of
poverty’. It also states various helpful approaches as well as strategies to end the poverty. This
study also signifies the efforts made by Pakistan government to reduce poverty from province of
Punjab-Pakistan. The basic responsibilities as well as obligations of the nation are to fulfil the
fundamental requirements of the individuals. The fundamental requirements of people are
shelter, foodstuff along with clothing. While the requirements of human being are not fulfilled,
then it can be biggest problem. This problem is considered as socio-economic issue. Pakistan is
facing these problems at great level. The actual concern is not the presence of the existence of
this problem in the societies. However, an extent to which they are given attention as well as

THESIS 11
resolved. When these problems are not met timely, then it can be resulted occurred into the form
of different behaviour, drug-abuse, trafficking, corruption, deficiency, illiteracy, as well as
various social ills. As for as the large scale enterprises are taken into consideration, they are in
main position because of the capital however if the financing issue of Small and Medium
Enterprises are removed. They may execute much better in comparison of large-scale enterprises.
It is only possible if the government of Pakistan follows the strategies, policies as well as
approaches for strengthen of Small and Medium Enterprises in Pakistan. Various authors and
economists have written so much over the problem of poverty in Pakistan and best possible
strategies to reduce poverty from province of Punjab-Pakistan. However, in Pakistan the problem
of poverty is still same. The poor people always remain poor there. In this way, the Poverty is of
great concern in Punjab-Pakistan as this is the developing nation. The problem of poverty is very
alarming as it is low figure ever noted in a history of the nation.
1.6 Research Gap
There are certain limitations of research that researcher faces while conducting research.
A research gap generates difficulties for doing research in some efficient manners. There were
number of citizens of province of Punjab-Pakistan, who counterattacked in relation to research
concern. There are some people who were not so interested or less interested in taking
participation. In addition of this, the absence of sample size and absence of appropriate data
collection method, the researcher faces so many problem to analyze the role of microbusiness in
eliminating poverty from affected areas of Punjab-Pakistan. In relation to the observation
technique, the introvert persons as well as extrovert people were not capable to share some
innovative ideas in relation to research concern. The beliefs of persons were covered by the

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louder voice of extroverted people. The improper questionnaires were not because of the
hugeness about the research problem.
1.7 Significance of research
This research would discover an impact of microbusiness in eliminating the poverty from
the province of Punjab–Pakistan. The investigator would also be capable to know an impact over
the economy of nation. It will also be helpful in knowing the ways, measures as well as
techniques to reduce the poverty from affected fields of Punjab–Pakistan. It will be useful in
assessing the impacts of small and medium enterprises on elimination of poverty form Punjab-
Pakistan. The research would help in identifying the causes of scarceness in Pakistan. In this
way, this will open the way to acknowledge the requirements of ending poverty which would add
on to development of people along with country.
1.8 Research rationale
This research is beneficial for researchers to develop the understanding about in relation to
part of microbusiness in reduction of poverty. This research is also essential for small business
owners to determine the impacts of microbusiness in reduction of poverty. It can be also
effective for the poor people to understand the way to get out of the poverty (Suci & Hardi,
2019). The exploration of the role of microbusiness has revealed that it has been playing a
significant part in the reduction of poverty from certain affected areas. It is also discovered that
microbusiness can be helpful for the development of Punjab-Pakistan. In addition, there is great
impact of small and medium enterprises on ending or reducing of poverty from Pakistan. This

THESIS 13
thesis puts focus on various essential measures to get the solutions of problem of poverty in
Pakistan. These measures have been playing an important role in creating good structure in
nation. They are required for improve the entire education system, communication system, water
facility and transportation system of nation and the world while regarded as the whole. The
research will discover every influencing factor on person affecting from poverty. These measures
used by the government of Pakistan are the rationale of the research.
1.9 Contribution of research
This paper has made great contribution in developing the understanding and proper knowledge
regarding the part of microfinance in the reduction of poverty from province of Punjab-Pakistan.
This paper is very useful as well as helpful for the reader. With the help of this study, the reader
can have proper evaluation of a problem of poverty in area of Punjab-Pakistan. While the reader
has adequate detailed understanding on this topic, then the results come out to be productive. In
this way, the knowledge of reader is enhanced in relation to know the impact of microbusiness
on the reduction of poverty. It also states impact of efforts of government to reduce the poverty
from Pakistan. There is also a great contribution of this study to put focus on development of
sustainable programs to reduce the poverty.
1.10 Scope of research
This research is made on a problem of business’s performance that is partially as well as
funded by the microfinance organisations in Pakistan by implementing the primary method,
survey through questionnaire and interview. The study puts focus on the ways to improve the

THESIS 14
functions and financial activities of small and medium enterprises in province of Punjab-
Pakistan. An impact of small and medium enterprises on poverty from the affected area of
Punjab-Pakistan is also assessed properly. The primary data collection methodology would be
conducted get pre-described objectives and aim of research. The researcher will conduct survey
on the people of 3 districts as respondents, who borrowed fund from the Punjab Rural Support
Program. The analysis of all the above parts is based on the primary survey of the borrowers of
Punjab Rural Support programs. That will be carried out in the three districts of Southern part of
the Punjab province, i.e. Multan, Khanewal and Sahiwal. In addition, the researcher will use
simple random sampling technique to choose targeted population from area of Punjab-Pakistan.
The focus of study will be to measure the impact of these funds on the social and financial
conditions of the respondents. It also evaluates impact of measures provided by government, the
efforts of government as well as related authorities, and effect of training provided by
microfinance institutions on capability or talent of entrepreneurs to be innovative. In subsequent
of this, the study would initiate the efforts for searching proper determinants of the above-
discussed problem quantitative way along with in qualitative way. However, the researcher also
considers people taking advantages from the Punjab Rural Support Program.
1.11 Dissertation structure-
The research structure is used to meet research in the methodological way. The research
structure is defined below-
1.11.1 Introduction:

THESIS 15
The introduction chapter is first section of the research study that would entail topic of
research, research background, research question, and objectives of research, aim of research as
well as importance of research to establish the knowledgeable as well as positive base related to
the research concern (Kumar, 2019). The introduction chapter also develops the detailed
understanding in relation to research limitation that a researcher faces during the research.
Therefore, this chapter can be very useful for the researcher to get guidelines for the researcher.
By following this, the researcher can explore the concern of research in the effective way.
1.11.2 Literature Review:
The literature review is next part of research. This chapter is performed to define the
concern of research by implementing different concepts, theories, and approaches (Luqman, et.
al, 2016). Fundamentally, the literature review is the summary of present, published data upon
the concern. The literature review renders the detail, summary, along with assessment of all
sources. This is usually represented as the different section of the graduate dissertation or thesis.
The information should be creating credible academic resources. By utilising the literature
review, a researcher can enable to make assessment of present information regarding research
issue and also evaluate at what level, this has been explored till the date. In the chapter of
literature review, the wider range of articles, book along with journals are reviewed as they are
helpful in making conceptual understanding in relation of topic of research. This is very useful
for a researcher to know gap of knowledge as well as to develop the basis for applying primary
research methods (Houston & Reuschke, 2017).

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1.11.3 Research Methodology:
The next chapter is research methodology chapter. In the research methodology chapter,
the different strategies and methods are discovered to conduct research study in the
methodological along with moral way. In addition, in this section numerous research strategies,
data collection method, research philosophies, method of data analysis, methods of sampling and
research design is described and verified to ensure reliability along with rationality of outcomes
of research. Moreover, the research techniques are reasonable as per the objectives of research
and aim of research, and matter as this is significant to attain the valid results (Macasaet, et. al,
2019).
1.11.4 Data Analysis and Findings:
In the chapter of data analysis and findings, the investigator will assess the data related to
problem of research (Silverman, 2016). This paper facilitates significant and effective method for
the investigator in relation to separating gathered data and evaluates them in against of objective.
In this case, this chapter can direct the investigator that how to organize as well as how to assess
information rationally by utilising the proper method to analyse data. By using this, researcher
can demonstrate data in a methodological way for getting the valid results.
1.11.5 Conclusion and Recommendation:

THESIS 17
The conclusion as well as recommendation chapter permits investigator to precise
complete research study by following the findings of research. This chapter also establishes the
connection between findings and research objectives to attain the valid as well as relevant result.
This also facilitates recommendations related to the role of microbusiness in reduction of
poverty. Lastly, the concluding chapter is very advantageous to define the logical implications to
direct next investigator to conduct the research.

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Chapter 2: Literature Review
2.1 Introduction
The next part is literature review. Literature review highlights views of various authors who
are related to problem of research. This section also describes the theoretical literature review,
theoretical framework regarding a study, and role of microbusiness in poverty elimination in the
province of Punjab – Pakistan. This section of dissertation aims to consider the present status of
the poverty as well as current social approaches in Pakistan. For the Pakistani government, the
poverty is considered as key concern. The administration of Pakistan takes this concern as very
serious matter. There is the continuous research upon policy measurement from domestic as well
as global organizations in Pakistan that stated the reduction in the poverty (Ameen, 2015). The
government of Pakistan has rendered various social approaches in previous three decades for
helping the country to decrease the poverty. In addition to government of country, there are some
organisations at national and international level. These international as well as national
organisations are very helpful as they provide contribution to reduce the poverty. On the other
hand, there is no or less research existed on efficiency of the social approaches, as well as at a
requirement of the area of social policies specifically. Inconsistency amongst the rural as well as
municipal population is other significant element that has been determined in almost all
researches on the poverty. It can see that there are some social approaches in Pakistan that are
consider rural area of Pakistan. In this way, the problem of social approaches needs more
exploration in a nation (Abrar, Riaz & Alam, 2018). This is very essential for making new social

THESIS 19
approaches that may be advantageous for the citizens. Additionally, this particular section also
discusses Small & Medium Enterprises and the related problems where this is important for a
present study to discover the relation amongst poverty, family-businesses, as well as invention,
private enterprise as well as gender inequality with Small & Medium Enterprises along with
micro-financing.
2.2 Problem of poverty in Province of Punjab-Pakistan
Recently, the multidimensional poverty is considered as the matter of numerous
organisational, experiential along with theoretic discussion. Even though there is no definition of
poverty internationally, the financial dimension of poverty depended on earning along with
consumption data have normally been utilised for assessing the level of poverty. According to
World Bank, there are 2 types of poverty. Firstly, poorer people are people who survive on
below 1.25 dollars per day. Next type is merely poor people who survive on below 2 dollars per
day based on per capita consumption. When dollar-in-day amount can be the helpful
investigation for policy makers along with researcher, it does not consider the lived reality of
sentimental of poor people and related susceptibility risks including absence of nutrition, gender
inequality, as well as poor health. Financial dimension of poverty states the organizational
characteristics of poverty however, don’t consider social, emotional dimension and cultural
dimension of poverty. It impedes all kinds of agency to poor by avoiding the existence
approaches, social policies, and resistance approaches. There are certain qualitative displays of
poverty like deficiency, vulnerability, powerlessness, and insufficiency. They rise from earning
poverty and poor people’s incapability to leverage the essential means for fulfilling the
fundamental requirements (Khan, et. al, 2015).

THESIS 20
Ever since the influential work of Sen, it is identified that poverty is considered as
multidimensional occurrence. As well, the exceptional accessibility of proper information has
increased interests in multidimensionality of poverty. By the innovative involvement, Sen (1976)
considered the poverty measurements cover following steps-
 Recognition of poor people,
 The incorporation of features of poorer people in general indicator that enumerates the
scope of poverty. The recognition normally uses the income cut-off called the poverty
line (Mustapa, Mamun & Ibrahim, 2018). It assesses whether the income of person
attains the sufficient level or not. Pakistan’s planning commission uses the definition to
estimate a poverty line. As per the definition, “Calorific necessity approach where all the
people are categorised as poorer, who don’t have proper earning for allowing
consumption form constant with least necessity of calorie (Idris & Agbim, 2015). This is
also expected that the household earning will be equivalent to poverty-line not just have
proper foodstuff for fulfilling minimum nutrition needs however for fulfilling non-food
requirements.
Further, the second step that is included in a procedure of dimension of poverty is accretion.
This is normally attained by choosing the poverty measure or poverty index. For a purpose of
aggregation, Pakistan’s Planning Commission uses the poverty measure advised by Greer, Foster
and Thorbecke (1984). The measures include Poverty Gap, Headcount ratio, a Squared Poverty
Gap. It is realized by various thinkers that besides the money-metric measures, it is also required
to consider some different poverty measurements. The first fact is that the quality of earning
information is not good in various developing nations. The consistency as well as
trustworthiness of Poverty statics of Pakistan is debateable. In some last years, various data

THESIS 21
related Federal Bureau of Statistics has made changes. These changes in the method data
collection can influence the consistency and comparability of the survey information.
Correspondingly, various non-comparable data sources regarding design, reporting of season and
method, are utilised in various formal documents to evaluate poverty tendencies. The utilisation
of unparalleled data has influenced data consistency unfavourably.
The next point that is majorly concerned with methodological aspect as well as theoretical
aspect is regarding the multidimensionality of welfare. In Pakistan, the poverty has various
dimensions. The poor have not only lower earning however they also lack admittance to the
fundamental requirements like health, education, fresh water to drink as well as suitable
sanitation. This dissertation relates Alkire & Foster (2007) approach to measure the
multidimensional poverty, for the reason that this is simple to apply, as well as it integrates the
identification evaluation utilising dual cut-off. Firstly, the traditional dimension recognises
whether the people are deprived in relation to the dimension. The second defines how broadly
underprivileged the people should be in order to be regarded poor. The main purpose is to
implement different methodologies for estimating multi dimensional poverty in area of Punjab-
Pakistan. The dissertation also puts focus on significance of the dimension due to attractiveness
of the methodology to search the effects of all dimensions in the complete poverty. The report
also renders the directions for the policy makers, for considering all the dimensions in best
manner. In addition, in Pakistan, this It is normally estimated that the decreasing trend in poverty
between 1970 and 1980, was reversed in year 1990. The poverty was 26.6 percent in year 1993.
Further, it was increased to 32.2 percent in year 1999 (Naqvi, et. al, 2017). In addition, during
this period, the number of poor improved by 12 million persons. From year 1999, the financial
development has decelerated. In this way, the development spending has continued to reduce, as

THESIS 22
well as nation has experienced the simple deficiency. Thus, this is highly likely that in Pakistan,
the prevalence of poverty higher than in year 1999.
2.1.1 Types of poverty
The poverty is the multifaceted concept inclusive of financial elements, political elements
as well as social elements. There are mainly two types of poverty. These 2 categories are
absolute as well as relative poverty. Firstly, the absolute poverty is state of severe scarcity of
fundamental needs of human being. The absolute poverty is considered as the extreme poverty. It
is also known as abject poverty. The absolute poverty includes the insufficiency of fundamental
food, health, education, clean water, shelter, as well as information. The people who face
absolute poverty tend to struggle to live. In this poverty, many child deaths have been
experienced from avoidable diseases such as cholera, malaria, as well as water adulteration
related diseases. Absolute Poverty is normally exceptional in developed nations. It is experienced
by very poor. It is condition where the income of family is not adequate to fulfil the basic needs.
In this type of poverty, the people live on little money, such as 1/2 $ in a day.
Alternatively, relative poverty refers to financial inequality in the place or community
wherever the individuals live. Henceforth, this is the measurement of income disparity. For
instance, the family may be considered poor if this may not afford vacation, or may not purchase
gifts for the children at festivals like Christmas. In general, the relative poverty is evaluated as
the proportion of people having less income than certain fixed amount of average earning. This
type of poverty is applicable to the wealthy nations or developed nations such as United
Kingdom. In the relative poverty, the income of household is not more than some fixed amount
of money.

THESIS 23
2.1.2 vulnerability and poverty
There are certain qualitative signs of poverty like susceptibility, deficiency, feebleness,
along with insufficiency that rises through earning poverty. This study states the gap in a proper
way. The evaluation renders the costly idea of long-lasting poverty, which considers feeling of
vulnerability as well as its related risks practiced by extreme poor people. Further, presenting
from the present literature, the poverty is defined as the procedure in which individuals are
subject to continued corporeal, communal, financial, political, emotional and/or mystical
deficiency that renders intensification to the mixture of physical faintness, professed separation,
along with emotions of sick-being, hopelessness and vulnerabilities (Abbas & Shirazi, 2015).
As per the meaning provided by World Bank, the vulnerability can be featured in the
literature in various manners. In development and economic literature, the vulnerability is
described as a ‘possibility of today’s risk of being in poverty or for coming under category of
deep poverty’. In this way, the vulnerability is considered as a possibility of having the
upcoming losses in well-being as well as prospect of families and individuals becoming poor in
upcoming time or a vision of ongoing to be poor in case of residing in poverty. The vulnerability
to income shocks accompanied by health deficiencies and nutrition deficiencies can be
considered as measure of the expanded poverty notion. In addition, the vulnerability is
recognised by World Bank as ‘the significant consideration in relation to reduction policies
related to poverty’. The main reason is that the vulnerability risks affect the actions as well as
conducts of individuals and families. It can say that in comparison of poverty, the vulnerability is
dynamic perception because it defines the occasions and processes that lead population to be
included and excluded in the poverty. Additionally, the vulnerability is ‘uncertainty and feeling

THESIS 24
in welfare of families, people, and groups in the face of the changing atmosphere’. The reduction
in wellbeing may lead various causes. These causes can be natural disaster, ecological damages,
financial shock, political rejection, and social rejection. Susceptible population also vary in the
resilience to risk along with abilities to handle risk. They are constrained by incapability to have
living and by psychological effect and social effect of exclusion. Thus, the susceptibility may be
policies prompted in context to poverty (such as enhanced risks arising from governments forced
severity procedures) or marketplace persuaded (such as increasing indebtedness as the outcome
of enhanced borrowings). Further, it is also connected with the ownership of assets. It is clear the
people are less vulnerable who have more assets. On the other hand, the lesser assets signify the
higher vulnerabilities.
Furthermore, the poverty reduction approaches are required to put focus on increasing the
abilities amongst poorer to allow them for leveraging financial opportunity. Scarcity has lesser to
do with usefulness and preference. However, it is considered as deficiency of abilities to take
participation in opinionated procedures as well as financial activities. The main issue is that how
the poor people may have abilities to end poverty. Existing financial wisdom argues that assets
accumulation as well as access to capital is main elements in generating abilities amongst the
poorer. The attractiveness of marketplace lead strategies to end poverty like BoP and
microfinance approaches based on assumptions that the strategies may provide necessary
abilities. It is also argued that leveraging social capital, which presents in deprived groups, can
enable them to create the abilities required for accessing external resources from the
organisations. It is also argued that Bop method has prospective to both hold current social-
capital within disadvantaged groups when increasing the social capital by having means from

THESIS 25
outer group as well as networks. For example, in comparison to other nation of similar income,
there is more poverty in Pakistan.
2.1.3 Poverty and social capital
In absence of the financial capital as well as assets, the social relationship of poor plays a
significant part in enduring livelihoods. In existence economy, the rural groups are featured from
collectivism standards, sharing standards of sources of community. Certain evidence suggests the
communities with strong social networks are capable to end vulnerability as well as poverty. The
networking generates the social capital. The social capital states general goodwill along with
sources, which rise from networking of relations within the communities. In this way, the social
capital is considered as multidimensional notion that contains relational elements, organisational
elements, as well as cognitive elements. The networking connections as well as configurations
establish organisational social capital. The connections are networking are nurtured by the
communication and shared connotations that create cognitive element of the social capital.
Therefore, the relational social capital means the scope of of faith, mutuality, along with
collaboration amid people in the network.
2.1.4. Causes of poverty
There are various factors to describe the reasons to increase the poverty in past periods.
However, the bad governance is a main reason to increase the causes of poverty in province of
Punjab-Pakistan. This bad governance has not only led to vulnerability, however also decreases
the business-faith that in turn interprets in the low investment level as well as development. The
issues related to bad governance have resulted in inefficiency in establishment of different social
services that has had severe inferences for human-faith in the country. The lack of public

THESIS 26
confidence in the local organisations, involving the police as well as magistrates, have battered
the legality and directly contributed to worsening situations of public-safety, legislatures, as well
as orders in year 1990. There are some causes of poverty that are categorised in below mentioned
three types-
A. Economic Causes-
1. Joblessness- it is considered as main cause of the poverty. Joblessness states no income
source as well as results in the poverty. The unemployment rate is 5.5 per cent in
Pakistan.
2. No or less foreign investment- because of backwardness, the political instability, as well
as improper obtainability of organisation, it is not possible to draw attention towards the
foreign investment. The foreign investment is 1.8 billion dollars in Pakistan. Lesser
foreign investment sates the absence of employment opportunities along with increasing
poverty.
3. Malicious poverty cycle- the vicious circle of poverty can be main motive of poverty.
There are various developing nations like Pakistan are came under category of the
malicious poverty cycle. The poor nation remains poor always because of malicious
poverty cycle.
4. Low income of nation- The low level of national income also led poverty at great level.
The low level of national earning means lower level of savings. It also signifies the lower
level of investment. These factors play important role in the poverty.
5. Enhance the utility charges- The utility charges such as water, electricity, bill of
telephones and water are enhancing daily in Pakistan. It may result in the poverty.

THESIS 27
6. Lower per capita earning- In Pakistan, per capita earning is as lower as 1095 dollars. The
low per capita earning refers to the lower investment level and lower level of saving. It
may result in the poverty.
7. Utilisation of regressive technologies- In the developing nations such as Pakistan, the
production technologies are not new as well as updated. Because of the old
manufacturing methods, the efficiency level is lower. The lower production level refers to
the narrowness of marketplace along with lessening the export, and enhances the import.
8. Poor loan facilities- The loans are required by the poor population for participating in the
financial functions for ending poverty. However, the accessibility of loan is not needed.
The poor people have no admittance to the credit. This is just for rich property owners.
The loan providing conditions are not so easy so credit is not provided timely.
9. Backward agricultural segment- people have only followed old style of farming in
agriculture industry. They are not using new and modern commercial ways. Due to
utilisation of old manufacturing techniques, there is no more increment in the production.
It reduces the poor farmer’s earning.
10. Inappropriate allocation of earning- Another cause of poverty is improper allocation of
resources in Pakistan. This situation leads to increase the gap between rich and poor.
Because of unwanted allocation of earning, poor population is not able to get
participation in the financial functions to end the poverty.
11. Lower level of Efficiency- because of the utilisation of old techniques and inefficiency of
labours, the production levels in is lower in Pakistan in comparison of developed nations.

THESIS 28
The per annum production value of labours of Pakistan is very lower in comparison of
other developed countries.
12. Lower level of saving- the lower level of saving is a reason of lower income. It leads to
lesser return along with lesser investment. Because of these reasons, the people remain poor
always. It can be reason of no development in Pakistan.
13. Tax application- the government of Pakistan imposes tax for raising the revenue. The tax
imposition decreases the disposable earning of persons. In this way, the absence of
disposable earning means lower savings as well as lower investment.
14. Price rises- High rate of inflation is considered as one of the additional reason of
poverty. Because of this reason, there is not sufficient money for purchasing the services as
well as goods in enough quantity. The increase in price also reduces the investment as well as
saving of poor people. In this way, they remain poor always.
15. Lower rate of creation of capital- In Pakistan, the capital creation rate is so low. The
lower rate of capital creation states the lower employment chances, lower level of output
along with shortfall in the payment. It results in poverty. This must be in excess of twenty per
cent. However, in Pakistan, it is five per cent.
16. Non-productive expenses- the government is required to spend unproductive expenses
on social head as well as for creating the stronger defence. In this way, it can say that higher
expenses are also the great reason of poverty.
B. Social causes
The social causes of poverty are discussed below-

THESIS 29
1. Lower standard of living- the burden of international nations in the financial functions,
the backward standard and inadequate amenities decrease the standard of living of
persons. It results into poverty in province of Punjab-Pakistan.
2. Corruption and fraudulence- the corruption along with fake management activities is
great reason of poverty. The officer gets the big amount of illegitimate cash for illegal
along with legal work. The meaningless payment decreases the saving of poor.
3. Illiteracy- Lack of training along with education is main reason of poverty. It decreases
capabilities of working. Most of the times, workers remain unemployed or
underemployed because of illiteracy. In addition, the absence of skills in entrepreneur
also decreases the profit. It results in poverty. The rate of literacy is fifty-seven per cent
in Pakistan.
4. Not updated Infrastructure- the other reason of poverty is infrastructure. The
infrastructure is very poor in Pakistan. The education level is not so good there. The
technologies are also not so updated. The bad health, inefficient labour along with bad
transportation system, and poorer communication system are caused in scarcity in
Pakistan. These things do not attract towards the investment.
5. Increase in population – the pressure of population is caused poverty. The current
population do not have sources to have their necessities in their lives. In this way,
increase in population would lead to poverty in Pakistan.
c. Political issue
1. Legislatures along with orders- Law as well as order condition is at the bad levels. The
great part to save population is wasted in expensive judicial procedures.

THESIS 30
2. Control by landlords- Big landlords control the complete economy. They cannot initiate
and continue the social welfare. In government, the landlords may have actions, which
are in their own interest.
3. Instable governance- the poor government along with unpredictability in approaches of
government is other reason of poverty. The Pakistani government does not get success in
establishing this policy, which leads to decrease the poverty.
4. Nepotism- Nepotism is considered as murder of capabilities along with skills. It means
the opportunities of employment as per the relationship, not as per the worth. In a case,
when population is poor however is capable, it remains poor because of this reason.
2.1.5 Measures to end poverty-
Various economists have rendered some measures to remove poverty. These measures are
discussed as below-
 Breaking vicious poverty circle- It is possible that poverty can be ended or decreased by
ending vicious poverty circle.
 Control on inflation- for ending the poverty, the government of Pakistan is required to
have control over inflation
 Utilisation of new production technologies- In respect of the utility charges, it is
required to use new as well as updated production techniques.
 Easy credits- it is required by the government of Pakistan that it should create additional
as well as simple options to make available the credits to population.

THESIS 31
 Reduction in tax rates- the government can reduce the tax rate to reduce poverty
 Enhance rate of capital creation- the government should increase the rate
of capital creation to end the problem of poverty
 Development of farming sector- the developed agriculture as well as industrial sector
would decreases the poverty in Pakistan.
 More saving- it is one of the best measures to reduce the poverty in Pakistan.
 Allocation of additional funds - it is required by the government that it should distribute
additional funds for education for increasing the rate of literacy.
 Proper law- there should be proper legislatures along with policies in favour of public
as well as nation to reduce the poverty.
 Check on nepotism- this is essential measure for ending the problem of poverty in
province of Punjab-Pakistan (Shabbir, 2018).
 Facilities to the investor- it is essential that the government must render more amenities
to the investors to enhance the investment for decreasing the unemployment (Mackey &
Gass, 2015).
2.2 Microfinance and its effectiveness
2.2.1 Microfinance
Micro finance is the type of financial services aimed at people along with small business
that lack access to traditional banking as well as different services. The microfinance covers

THESIS 32
microcredit, provisions of small loan to the poor people; saving account and checking account;
micro insurance as well as payment system. The microfinance is a provision of savings account,
loan, money transfer, insurance and different banking service to customer who lack access to
out-dated financial facilities, normally because of poverty. Micro finance services are important
for low-income and unemployed people. The reason is that these people suffer more because of
the poverty. These people have limited financial means. The unemployed people do not have
sufficient earning sources for conducting the business with out-dated financial organisation. In
this way, the micro loans are given for the development of MSEs that do not have the collateral
in against of which standard loan can be raised. It is required by the borrower to make payment
of interest on borrowed amount; however, rate of interest is negligible. In addition, the micro
loans are provided to the people who reside in developing nations as well as working there in
different trades like, carpentry, conveyance along with fishing (Adnan, et. al, 2015).
Moreover, the microfinance is collection of banking services, relatively of lower
monetary amounts, made particularly to fulfil needs of banking of the low-earning individuals
and unemployed people. It also permits the individuals to have proper small loans for
business securely, and in the way that is constant with moral practices of lending. Even though
they are available everywhere in the world, majority of micro financing activities take place in
the developing countries including Pakistan. Various MFIs particularly put focus on assisting
females. It is known as the banking services rendered to lower income people or families and
unemployed people who will have no any access to the financial facilities. Thus, microfinance
permits the groups or individuals to take on reasonable small businesses loan securely, and in the
way that is constant with moral key practices. Mostly, all micro financing activities take place
developing countries like Pakistan. Further, as same as to traditional lenders, the micro financiers

THESIS 33
charge the loan interest. It is estimated by World Bank that there are more than five hundred
million persons who have taken advantages form the micro financing activities.
2.2.2 Effectiveness of microfinance in elimination of poverty
Poverty is big concern for the economy of nation. There are various people, who are
suffering from the poverty in developing nations as well as least developed nations. First goal of
seventeen Sustainable Development Goals is to remove the scarcity as whole from everywhere in
the world. The approaches based on market play an important role in reducing poverty form
developing nations including Pakistan. The microfinance is very important approach for the
developing nations. The main purpose of microfinance approaches is to end poverty by rendering
more opportunities to poor population for the entrepreneurship. These approaches are also
helpful in promoting the empowerment (specifically amongst females) when increasing the
social capital in poor population. Microfinance is main key approach to solve problem of
poverty. In addition of these approaches, the provisions of smaller loan to poor help them to get
out of poverty. These microfinance approaches and provisions of smaller loan became popular
from previous twenty years. These approaches and provisions are giving benefits to poor
population in more than sixty nations (Galema et al., 2012).
Further, in the opinion of policy makers as well as supporters, the microfinance promotes
entrepreneurship and enhances earning generating activities. Therefore, they are useful to reduce
the poverty. It helps the government of Pakistan to empower poor people (particularly females in
developing nations). With the help of microfinance activities, the poor people can access the
health services along with education. It creates social capital amongst poor along with
susceptible groups. It is found that microfinance led to advancing level of acknowledgment

THESIS 34
amongst already needy groups and exacerbated financial, environmental, and social
susceptibilities. From past years, ‘microfinance-meltdown’ have noted in Pakistan. More
distressingly, it can see that various people commit suicide in developing nations like Pakistan
because of not repaying microfinance loans in time. In this way, this concern raises some
significant questions. Firstly, does microfinance enable entrepreneurship amongst disadvantaged
groups, which may get them out of poverty? It is also a matter of consideration that how do
groups borrowing affect the social relationship amongst people in group?
2.2.3 Role of microfinance institution in poverty-elimination
Microfinance institution is considered as corporation, which renders the financial sources
to the needy and poor people. It covers wider fields to include the judicial framework, visions,
purposes, methodologies, as well as sustainability, which are distributed to render financial
sources to the poor people and the people who do not have financial approaches. In most of
situations, the microfinance institutions as well as public corporations execute the operations and
manufacture the sources for poor people by taking assistance of government along with different
informal and formal corporations. The micro financing organizations support the functions in
great number. It can be helpful in fulfilling fundamental requirements such as open the bank
savings account to start-up capital for smaller business entrepreneur as well as microfinance
sustainable programs, which explain investment norms. These programs can focus on various
practices like cash flow statement, accounting, and technical as well as specialized skills. There
are various examples where the people who look for support and assistance from microfinance
institutions, are necessarily required to take the fundamental class of cash-management. The
sessions include knowledge of rate of interest, cash flow statement, and formation of financial

THESIS 35
agreements. The people also get understanding for way of opening of savings accounts and its
effectiveness. They can have understanding in relation to making budget as well as managing
debts (Mahmood & Qayyum, 2018).
Furthermore, the government of Pakistan looks for getting the aim of becoming the
upper-class income economy by year 2025. The government also looks for assisting
microfinance corporations to be developed. This is very difficult part of efforts to enhance the
economic inclusion as well as reduce the poverty. At the time of developing the Vision 2025 by
Pakistani government, the significance of the development approaches for the small businesses is
highlighted. The vision 2025 also puts focus on the specific requirements for improving access to
finance as well as creating financial learning abilities. It is also helpful in simplifying the
regulations to create this simpler for the individuals to set-up and build the effective businesses.
By supporting this, the State Bank of Pakistan (SBP) considers the microfinance as ‘essential for
comprehensive and supportable financial development of the nation’. Later, in 2017, the
microfinance sector of Pakistan had in excess of forty credited organisations running in about
one hundred six regions.
Additionally, the microfinance institutions of Pakistan are serving 5.2 million mortgagors
with the portfolio of loan of 1.6 billion US dollars in year 2017 as per the microfinance strategy,
dimensions, as well as outreach. More than half of the loans are provided to the female
mortgagors. In addition, approximately fifty-five per cent puts focus on the rural fields of
Pakistan. From certain previous years, the size of loan has also been enhancing, with present
average size worth 397 US dollars or 44,000 PKR. In the similar period, there is increasing
dependence on smartphone to make the payment and to access to two hundred million people of
Pakistan. As per the GSMA intelligence, mobile phone subscription outnumbers bank account

THESIS 36
from 2 to 1. Further, according to the National Financial Inclusion Strategy, the Pakistani
government has made the PMIC to provide direct finance to target population. It also offers
financing as well as help to different microfinance moneylenders. The Pakistan Microfinance
Investment Corporation is registered as the investment-financing corporation in year 2016. Now,
the Pakistan Microfinance Investment Corporation is running under non-finance banking
corporation regulations regulated by Pakistan Securities & Exchange Commission. It was
developed as the joint initiative backed through the Department for International Development of
United Kingdom and Pakistan Poverty Alleviation Funds (Mustafa, et. al, 2018).
2.3 Impact of small and medium enterprises on elimination of poverty
Small and Medium Enterprises have great significance in financial development,
employment opportunities, along with poverty elimination in economy of nation. It is very
important to consider the Small and Medium Enterprises to improve economy of country. There
are different authors who define Small and Medium Enterprises in different manner (Hameed, et.
al, 2017). According to some authors, Small and Medium Enterprises are considered as capital
assets. On the other hand, some author considers it as skills as well as turnover. As per the
statistical meaning, small and medium enterprises are featured by GDP contribution, amount,
and employment opportunity rendered by corporations, export, and national economy
contribution. The Small and Medium Enterprises are considered as the enterprises that have
lesser than one hundred workers and the turnover of less than fifteen million euro. As per the
definition given by UNIDO, the Small and Medium Enterprises are defined regarding number of

THESIS 37
workers that are classified in developed economy and developing economy. The classification of
Small and Medium Enterprises in developing countries is mentioned below-
 Micro firms with lesser than five workers
 Small firm having 5 to 9 workers
 Medium firms having twenty to ninety-nine workers
 Large firms with one hundred or more than one hundred workers.
Further, classification of Small and Medium Enterprises in industrialized nations is provided
below-
 Small firms with ninety-nine or below ninety-nine workers
 Medium firms with one hundred to five hundred workers
 Large firms with five hundred or above five hundred workers
The different economists have described the small & medium enterprises in different way.
As per the views of economists, the SMEs sector is very significant sector to create the job
opportunities. This sector is important because it is a main contributor of livelihood for poor
population. In this way, the significance of SMEs is recognised everywhere in the world. The
enhanced productivity development has significant role to play for human well-being and to end
poverty. The small & medium enterprises not just play significant part in development of the
economy, however also act for the organisational changes. The productivity development
signifies the innovation in nation’s economy. The small & medium enterprises also increase
specialization level.

THESIS 38
In Pakistan, have significance in advancement of technical innovations, sourcing to larger
sectors, and cottage sector. They are helpful in encouraging the social development. The small &
medium enterprises are great source in expanding economy of developing countries including
Pakistan. They are base of social development, financial development, and employment. The
economy of Pakistan along with different developing nations is the direct likeness of the SMEs
sector. The small & medium enterprises represent above ninety per cent of all private business.
The contribution of the SMEs in Gross Domestic Product of Pakistan is also very good. It is very
significant to identify the contribution of the small & medium enterprises towards financial
diversification, incomes generation, job formation, as well as reduction of poverty. The Pakistani
government has been making efforts as well as resources to the advancement of development of
entrepreneurship along with small and medium enterprises. For an instance, government of
Pakistan has developed Small and Medium Enterprise Development Authority (SMEDA) in year
1998. Its main purpose was the development of this sector.
As well, the effective networking of small and medium enterprises in Pakistan is pre-
requisite for a expansion of strong mechanization. It is declared by Pakistani government that the
small and medium enterprises are significant drivers of development of economy of Pakistan.
The small and medium enterprises have very important part to play in value addition as well as
employment generation of jobs in Pakistan. The small and medium enterprises sector is labour
intensive so this is helpful in rendering employment in non-agriculture sector of Pakistan. The
small and medium enterprises of Pakistan create 90% of commercial entities. They render eighty
per cent of the jobs in non-agriculture sector, and twenty-five per cent of whole exports. SME
sector in Pakistan comprises of furniture, metal-product, art-silk, stones, carpets, sport products,
dairy, fishery, foodstuff along with catering, along with slaughtering. Additionally, Pakistan’s

THESIS 39
industrial subdivision is purely diversified (Chandio, Yuansheng & Koondher, 2015). The large
scale sectors are placed urban fields of Pakistan. In contradiction of this, the small and medium
enterprises are placed within smaller towns as well as rural zones. The small and medium
enterprises that are placed in rural zones have great significance for the hiring provisions to the
poor people of rural fields. Henceforth, the small and medium enterprises are very helpful to
develop Pakistan economy. In this way, new and organised small and medium enterprises sector
is desirable at great level. The developing nations have been securing advantages of the export
sector.
In the present time, the importance of Small and medium enterprises for contribution in
financial development as well as economy’s development has been recognized. The Small and
medium enterprises have important part in hiring labours in great number (Usman & Tasmin,
2016). They provide more employment in comparison of big multinational companies. Due the
features of small-scale entities, the SMEs act as the agents. The Small and medium enterprises
sector is considerable source for policymakers to develop economy and nation. It can say that
they are main source of prospective employment in lower earning economy. This is a significant
reason for which the Small and medium enterprises are considered as engine of development to
attain development objectives in developing nations such as Pakistan. The government is taking
actions or necessary step to encourage the Small and medium enterprises. Therefore, it can be
easy to get social objectives along with financial objectives by developing the Small and medium
enterprises. Small and medium enterprises are great source to reduce poverty as whole. The cost
is very much low to create the job in Small and medium enterprises. In this way, this is not costly
to hire people. The SMEs are labour intensive in comparison of multinational companies.
Subsequently, the Small and medium enterprises are depended on the rural areas along with

THESIS 40
small urban zones. In this way, the development of these enterprises can be very useful for
financial satiability, development, as well as employment. The Small and medium enterprises are
very helpful in developing economy of Pakistan for long term. They improve efficiency of local
marketplace by using the rare resources in a productive way. In this way, it is very essential to
develop the Small and medium enterprises to reduce poverty from province of Punjab-Pakistan
with the help of recommended approaches. The developed small and medium enterprises create
employment and ensure financial development in nation. The SMEs also enhance the
entrepreneurship and completion. It would be beneficial for the company because it increases
effectiveness, modernisation, as well as development in productivity. In addition, it is required to
adopt proper development approaches. These development approaches encourage the labour
intensive sectors. It is also found that small and medium enterprises promoted development of
nation with lower level on earnings inequality in Pakistan. The fascination of rural surplus labour
as well as reduction in urban joblessness because of establishment of small and medium
enterprises helped the economy to growth with lower disparity. Further, it is recommended that
there should be amalgamation of labour marketplace as well as development of Small and
medium enterprises.
Moreover, a structure of SMEs is essentially required to be developed and encouraged at
different level. At the first level, this is necessary to make advancement in small and medium
enterprises in numbers. An advancement should be in relation to a development of enterprise
communities, as well as co-operative and self-employed entities. They would be helpful in
financial development. Finally, SMEs would be helpful in improving life style of people. At next
stage, it is required to put focus on the recreation of states-owned small and medium enterprises
and advancement of non-public sector. For this, it is required that there must be proper merger

THESIS 41
and acquisitions, joint-partnership, as well as amalgamation arrangements. Later, at third level, it
is required to put focus on the declaration of small and medium enterprises promotional law to
signify enhancement. Furthermore, for an application of small and medium enterprises
promotional law, it is required to make focus on advancing approaches as well as methods
concerning the development. It is also required to put focus on the removal of organisational
obstacles that hinder the growth.
In a starting stage, the growth will be increased, however; this is projected to quicken to full
boom after making various improvements. There are 2 main factors that may work properly for
growth of small enterprises and medium enterprise. A key objective of developing community
enterprises is for rendering solutions for transferring the rural surplus labour force to non-
agricultural sector that would enhance earning of farmers. Further, it will help to establish the
solid base for attainment of an approach for gradual improvements as well as advancements.
Furthermore, Pakistan is required to put focus on the development of non-public sector of nation.
As per Small and Medium Enterprises Development Authority, SMEs create approximately
ninety per cent of the enterprises in Pakistan (Hassan, et. al, 2015). The SMEs employ about
approximately eighty per cent of non-agricultural labours. They contribute in providing about
forty per cent of GDP per annum. In this way, they continue to produce numerous jobs as well as
new opportunities for skilled young people of Pakistan. As per the present statistics of SMEs in
Pakistan, new government is required to make policies along with required to take initiatives to
develop an economy of nation. In this way, the government of Pakistan is required to provide
important values for expansion of SMEs and related structure. Finally, it would be resulted in
incorporating issue of small business advancement. It puts focus on strategic planning for the
financial development, social development and technical development. The economists suggest

THESIS 42
that the financial policy makers must put focus on the development of formal financial
marketplace to overcome financial restraints faced by small & medium enterprises sector. It is
also suggested that the lending processes should be simplified. The credit rights should be
encouraged time to time. It also required that the policy makers should reduce the credit costs for
a better development of the SMEs sector in Pakistan. Additionally, they are required to put focus
on the development of formal financial marketplace to end the financial challenges faced in
Pakistan. In this way, it is advised that the new government should also follow this procedure in
proper and arranged manner. It is also recommended to use proper labour intensive expansion
approaches for more development as well as for equal allocation of earnings in Pakistan (Oalabi,
2016).
2.4 Efforts made by government to reduce poverty from province of Punjab-Pakistan
In Pakistan, the poverty majorly occurs in the rural areas. The southern Punjab is poor
area. In addition, the rural zones of Baluchistan, Sindh, Khyber Pakhtunkhwa are very poor areas
of nation. The main reason is that the nation has poorer infrastructure. There is no access to
healthcare services as well as education in these affected areas. From corner to corner in the
province of Punjab-Pakistan, the poverty is greatly changed in south Punjab and rural areas of
Sindh. While the comparison is made with other nations like India, Malaysia, China, Thailand,
and Indonesia, it is found that Pakistan has comparatively higher variations in development along
with inflation between 2000 and 2010. One common feature amongst Pakistan and chosen
nations is that poverty is greatly the rural occurrence. India, Malaysia, China, Thailand, and
Indonesia have witnessed the decrease in poverty over previous 2 decades when in Pakistan, this
has been altering as year 1990. The other chosen nations considered the reduction in poverty in

THESIS 43
urban and rural fields while in Pakistan, this reduced in urban areas. In history, it is found that
Pakistan has not witnessed the material reduction in poverty. This has altered significantly. It has
been a matter for the last period while first a nation witnessed the reduction in poverty from 2000
to 2006. Subsequently, a level of poverty is likely to have overturned due to higher inflation,
slower financial development, as well as flash flood of year 2010. In recent time, it is found that
poverty has been seen in rural zones of Pakistan. It can see that two-third of poor population live
in rural zones. From certain previous years, the sharper decrease of above 11.5 % points in
poverty is greatly distributed shocks to great financial development. Mainly, the great financial
development is accredited to certain best shocks. These positive shocks involve the debts re-
scheduling, financial help, remittances of employees, and direct international investment. On the
other hand, the internal shocks involve macroeconomic stability as well as political stability that
allowed government to increase the progressive expenses specifically in the rural fields on some
numerous social sector programs like community’s service, advancement in rural areas, and
development in agriculture sector, safety net, and human welfare along with good governance.
Further, the poverty is not the modern sensation. This is considered as the biggest
considerable issue faced by various countries in the world since decades. The international
organisations as well as government are set for coping with the problem by utilising the
individual sources. It can see that there is no quick and positive resolution for this problem.
Pakistan is facing the problem of poverty from long time. Various strategies are planned by the
Pakistani government to reduce the poverty issue. These strategies are in the implementation
stage. The top 6 SDGs targets set for reduction of multidimensional poverty internationally. In
this way, it can see that how the problem of poverty is sensible. Moreover, there are 2 poverty
reduction programmes such as Community Investment Fund and Benazir Income Support

THESIS 44
Programme. These two programs are running in Pakistan to for the elimination of poverty at
great level. This study examines the impacts of Community Investment Fund (CIF) and Benazir
Income Support Programme (BISP) over 6 years. Further, this study also evaluates the utilisation
of financing under both programmes. The main effects of these two programmes are reduction in
poverty. In this way, the expenses, as well as earning per annum are one of the best signs to
assess the interventions. It is also found that there are also some gaps in Community Investment
Fund (CIF) and Benazir Income Support Programme (BISP). Therefore, the Poverty Score Card
is utilised for giving ranks to the households based on the poverty level. The beneficiary’s list
with zero poverty score was attained from Sindh Rural Support Organization to assess the
outcomes of the poverty scorecard 2015. Form the assessment, it is found that approximately
forty per cent beneficiaries came out of fundamental poverty band as well as shifted to greater
types. It is also recommended to improve these two programmes from the better results. It is
advised that in place of Benazir Income Support Programme, Community Investment Fund
should be operated for the people who are poorer.
There is long history of Pakistan in relation to making struggle to reduce poverty. The
poverty reduction approaches including Social Action Programme 1990 were not proved so
effective. The Social Action Programme 1990 was not succeeding in getting desirable changes to
reduce poverty issue from province. The Pakistani government considered this matter very
seriously and took necessary actions in year 1990. The government of Pakistan developed the
Pakistan Interim Reduction Strategy Paper in 2001. A main purpose of the Interim Reduction
Strategy Paper was to reduce poverty. The intention of government was to restore financial
stability. Further, in 2013, the Pakistani government launched the Pakistan Rural Support
Programme for three years. The key objective of launching of Pakistan Rural Support

THESIS 45
Programme was to outline the well-organised approach to decrease poverty with the help of 4
pillars. These four pillars include various facet of poverty (Regmi, 2018). There are higher
financial development, good governance along with combining decentralization, investment in
human-capital, and taking poor from backward areas to the developed areas. It was launched to
create remarkable development in decreasing current inequalities. The Pakistan Interim
Reduction Strategy Paper was initiated between 2003 and 2006 for maintain the financial
development (Tariq, et. al, 2015). Pakistan Interim Reduction Strategy Paper recognised 5 main
areas. These areas are small and medium entities, housing along with construction, agriculture
sector, IT services and exporting activities. The governmental policies maintain the increasing
level of development and decreasing level of poverty in Pakistan. It would not just assist for
reducing level of poverty; however, it also helps to make opportunities for the employment. This
is essentially required to make favourable atmosphere for the financial activities of private
sector. The bad governance can be one of causes of poverty. It causes lower assurance in
business subdivision that leads to the lower investment. This reduces the growth, and worsens
the laws along with order situations in the country. It also makes interference in the financial
activities and better quality life. In modern approaches as well as assurances of the government
to make growth of society, the government sets the aim to reduce rate of child mortality, and
increase rate of life expectancy. Asian Development Bank approves the administrative
approaches of Pakistan to decrease the poverty. For decreasing the problem of poverty in
coastline societies, the Asian Development Bank had rendered loan of 41million dollars for
Sindh Coastal Community Development project. This project got success and positive results by
rendering fundamental amenities like clean water, toilet, build school-structure, development of
transportation and security against the flood by domestic areas. This project managed seven

THESIS 46
hundred sixty communities’ entities in approximately seven hundred three villages. Asian
Development Bank contributed to the project for rural Pakistani females. It was helpful in
improving the lifestyle of various people residing in rural zones mainly in ten rain-affected areas
of Punjab. Furthermore, there is huge population of cows in Punjab because biogas task plants
were rendered to the people who had personal cattle. It supported them to make sure that biofuel
supplies have been made for the plants on regular basis. In this way, total biogas plants were
about two thousand five hundred seventeen. By taking help of World Bank as well as its
partners, Asian Development Bank provided loan along with mechanical grant support of four
million dollars for urgent requirement (Abbas, et. al, 2018).
Additionally, the government of Sindh has initiated 2 projects. These projects are Benazir
Income Support Programme (BISP) and Union Council Based Poverty Reduction Programme.
These programmes are helpful in eliminating the poverty from province of Punjab-Pakistan. In
2009, they are initiated by assistance of Sindh Rural Support Organization. The Union Council
Based Poverty Reduction Programme was initiated in Shikarpur and Kashmore Kandhkot that
was subsequently expanded to Jacobabad. The programme seeks to cushion the higher as well as
verifiable impacts on poverty for the particular geographical field (such as union council) and
involves functions targeting specific band of poorest, poor along with non-poor. Among the
numerous elements, the main interference was CIF. The major purpose of Community
Investment Fund is demands-driven person as well as group livelihood sub-tasks for advantages
of poor population. The target people were retrieved at district level. They are chosen as per the
proportion of low earning populations, involving the proportion of ST, SC, and OBC. The
participating recognition of poor people was made based on their status and level of village.
Further, the funds were also distributed by considering the poverty level.

THESIS 47
Moreover, Benazir Income Support Programme became effective from October 2008.
The main aim of Benazir Income Support Programme was to render assistance and support to the
poor people to cushion the adverse impacts of increasing price of fuel as well as foodstuff. The
main objective of the BISP was to render food-consumption as well as the fundamental
requirements to the risky and poor segments of societies. Alike Community Investment Fund, the
door-to-door survey utilising PSC was made to know the number of poor population. In this
study, it is stated that the projects such as BISP as well as CIF have significant part to play in
ending poverty from Province. This is a reason that government is required to advance the
projects in all over the country as the Community Investment Fund is running in some zones of
area of Sindh. Further, a government is also required to search a reason of the unexpected values
before more financing and changing a method of finance in manner to render extreme out of this.
The better administration is essential for addressing the issues. There is the requirement to make
the specific approach for these projects. It can see that Community Investment Fund is very
famous and effective model. It is required by the central government to run the model with more
sources and good administration through a nation. Thus, the individual annual financing is
required to be made in yearly budget (Khan, 2016).
2.5 sustainable microfinance programs and models-
2.5.1 Microfinance programs in province of Punjab-Pakistan
The microfinance programmes are important foremost strategies to reduce poverty.
Microfinance programmes have been normally considered as the development strategy that may
increase financial performance of the poor. Pakistani government has created various efforts to
end poverty from nation. The Microfinance loan is effective way; however, poverty is still

THESIS 48
continued in rural communities. This study assesses a part of microfinance concerning poverty
reduction specifically in province of Punjab-Pakistan. The method to target disadvantaged class
and to support groups living under poverty line has great past. There are various examples of the
successful projects in Pakistan. These are Karachi, Aga Khan Rural Support Program in north
area, Orangi Pilot Project, Baluchistan Rural Support Program, the National Rural Support
Program, and Sarhad Rural Support Corporation in certain areas of Pakistan. These rural support
programmes targeted empowerment of people at grass roots level by various corporations,
capital creation along with skills development. This strategy is very helpful for the rural poor
population in Pakistan.
As government keeps changing, rural development programs were developed with
fundamentally same objects. They include People Works Programmes, Rural Works Program,
Integrated Rural Development Program, Tameer-e-Watan Program along with 5-Point Program.
In the series of programs, the current government developed Khushhal Pakistan Program that is
further described. Among additional prominent developments, NGOs are RSPs. The RSPs
involve NRSP, AKRSP, PRSP, BRSP, RSRP, as well as TRDP. The RSPs based on
organizational model contains three main elements. These are programs, desired members, as
well as supporting organizations. The RSP strategy is very essential to take together the
participatory programs that serve requirements of beneficiaries or participants by fostering
community corporations at the grass root levels. It serves as supportive organization that renders
intervention by the community organizations. The intervention or "package" is tailored for
attaining the requirements of rural groups throughout the process of participatory recognition,
development, application and administration that is undertaken by community organizational
stage. Generally, the RSP uses the threefold strategy to affect social mobilization or association,

THESIS 49
creation of capital by usual saving, as well as human resource development to enhance
dimensions of the rural people.
1. Khushhal Pakistan Program (KPP)- The Khushhal Pakistan Program is considered as
smaller public work program. This program was developed for about 2 years. It was
launched for January 2000 to December 2001. The budget to initiate this program was 20
billion rupees; however, this budget was increased in the end of financial year 2002. The
Khushhal Pakistan program is helpful in financing the public work having cost between
0.05 million to 5 million rupees per arrangement in rural fields as well as .05 million to 8
million rupees per arrangement in the urban fields. It targets the formation of
employment by a construction of important local infrastructure in lower-income
municipalities along with rural fields. This is applied by the 3-tier governmental structure
in teamwork with local groups and people. The Khushhal Pakistan program is good try
by Pakistani government to include local individuals in recognition, administration along
with application of the smaller projects.
2. National Rural Support Program- National Rural Support Program is launched in year
1991. National Rural Support Program is considered as biggest Rural Support Program in
Pakistan in relation to the team as well as development functions. This program is not for
the profit organizations that are registered as per section-42 of Companies Ordinance
1984 (Sabbor, et. al, 2015). The main purpose of launching of the National Rural Support
Program is to reduce poverty by connecting the viewpoints of people, as well as by
undertaking the advance activities in a country. This has presence in seventy-two towns
in 4 different outlying areas such as Azad Jammu & Kashmir throughout area offices
along with local offices. In addition, this program is presently functioning in excess of

THESIS 50
3.5 million poor families managed in the network of 225,913 community’s entities. It can
see that NRSP Micro finance Bank is very first entity for rendering the financial services
to agricultural marketplaces and rural zones in Pakistan.
In addition, National Rural Support Program develops significant capabilities,
assistances, as well as talent of males and females who reside in villages. This program is
also enabling them to express the aspiration and affect the sources they require to fulfil
the recognised requirements. The key objective of the program is to reduce poverty from
area. It also enables individuals to break a level of poverty that starts with absence of
opportunities. The key target of National Rural Support Program is to raise the nation-
wide networking of grass roots level entities to make able rural groups to plan, apply as
well as handle developmental functions and programs for an objective of giving
assurance of productive employment, improvement in lifestyle of groups and individuals
and reduction of poverty (Siddique, Majeed & Shaheen, 2016)..
Besides, the National Rural Support Program is framed in a way so that it puts focus on
supportive organizations that render social direction to various groups. The directing
views of this program are to manage the rural people by developing social capital base at
domestic stage from having savings as well as adopting credit schemes. In this way after
interaction of various shareholders, the National Rural Support Program states part as that
of organiser. This leads groups as well as different partners to keep their relations
exclusive with National Rural Support Program. Additionally, general principles of this
program prevent it from adopting the defined packages approach. The main mission of
this program is to recognise as well as sustain the activities of groups that intend to do

THESIS 51
personally as per prioritized requirements. The only dependable meter is to assess the
desire of groups to get consistent work (Adil, et. al, 2017).
3. Punjab Rural Support Program- in a public sector, the government has launched
various rural development programs. There are certain programs that have sharing task
approach. In a same way, in private sector non-government organizations have also
developed poverty alleviation programmes in countryside zones of Pakistan. The Punjab
Rural Support Program is one of them that reduce poverty. The Punjab Rural Support
Program was started in year 1998. A program is running by government from last 10
years. For its continuation, the interaction with the groups is continued. It is essentially
required to evaluate the impact of program in Lahore and to discover that whether it was
effective or not effective. In addition, the Participatory Rapid Appraisal methods such as
Focus Group Interview as well as others were utilised.
There are various objectives of the Punjab Rural Support Program. A key objective of
Punjab Rural Support Program is to end poverty and to enhance life style of poor
population from rural areas. Other objectives of this program are to-
1. State a practise of saving in rural people including males as females both
2. Address organisation system of community organization at a grass-root level
3. Increase administrative, practical, as well as vocational talent for the population of
rural areas
4. Render credits for microfinance entities, agriculture input, as well as livestock
manufacturing in easy term as well as condition and it would enhance earning of people
of rural areas.

THESIS 52
5. Assist the population of rural areas to establish physical infrastructure along with
social sector service. These services include clean water, health care services, and others
6. Empower rural groups to have self-initiative for the personal growth as well as make
productive connection with line department located in the area (Ali & Erenstein, 2017).
2.5.2 Proposed Islamic microfinance models
In Pakistan, the Islamic Microfinance states that the financing sector of Pakistan is still not
developed (Ahmad, et. al, 2018). The financing sector of Pakistan is in initial stage of
development. The product’s ranges have been limited only with credit products. In addition, the
geographical obtainability of products is greatly focussed in Punjab. There is also a problem
related to funds. Consequently, there are certain limitations in Islamic microfinance in Pakistan.
The government of Pakistan can fill this gap by taking use of proposed models. These proposed
models have greater influence on attainment of requirements of the individuals as well as groups.
These models contribute to the development of economy and nation (Sabbor, et. al, 2015). The
microfinance models are discussed below-
1. Islamic Model for micro financing- Islam has significant role in elimination of poverty
for the reason that the Islam model considers the needs of clients and client valuation.
Islam is able to present the poverty score amongst products and individuals, which meet
the needs of clients within a time. As per the Islam model, the microfinance instruments
are categorised into two types. First is microfinance instruments that are not for
marketing, profits, or charity. Secondly, other microfinance instruments are based on
profits to reduce poverty.

THESIS 53
2. Model based on charity to reduce poverty - Sadqa, Zakat, and Qard-e-Hassana and
Waqaf are the products that are fundamental requirements of consumption as well as
food for the survival. As per the Sharia law, for paying the zakah, the particular rate is
2.5%. It is mandatory to be followed. There are detailed explanations for the allocation
to have control over inflation as well as similar allocation of wealth. In addition, in case
of sadaqa and waqf, there is flexibility for beneficiaries. The sadaqa as well as Zakat are
resolution for the issue of poverty along with basic problem related to the sustainability.
A main purpose of zakah is to provide solution for the Muslims and get them out of
financial crises by rendering the requirements of life.
3. Insurance model - Boli Committee variations: The insurance model is the difference of
committee system, and casual methods widespread in Pakistan. Under the committee
system, the committee participants pool in the particular per month contribution for
making the fund. In this way, one member attains whole fund per month. The cycle
comes to end while all the members have had the try once. It is not considered as the
method to make profit. On the other hand, it is method to make sure that the member
have proper access to the sizeable funds for the particular time. The order of getting
money is usually conducted through drawings lot.
4. Model based on poverty for reducing poverty issue- normally; there are 3
fundamental kinds of Islam model based on profit. They are partnership, trade base
mode, as well as rental base mode.
5. Model based on Waqf- the Waqf is considered as the dedication of the resources with
the help of God. The natural resources may differ, from agricultural land to dedication of
services as well as period by the people. All the means may be describes as Waqf as long

THESIS 54
as this is for the motive of charity. Normally, Waqf is noticeable in a way of group
mosque, money donation, as well as dedication of lands for a purpose of charity. The
base of model based on Waqf is sources that are given away as waqf and required to be
used correctly for making changes among the people who need them. The first theoretical
hurdle that should be checked in a framework is to develop that Islamic MFPs are a
justified manner of utilising waqf fund. In this way, this model is used only for the
purpose of charity. Further, the beneficiaries of these resources should be the needy
people.
6. Co-Operative models- the co-operative model is also a beneficial model for developing
countries. It is considered as intentional connection on the basis of social needs, financial
needs as well as cultural needs of communities. This model is mutually-owned.
Additionally, it is constitutionally controlled entity. The base enterprise is that all the
communities have proper as well as sufficient human resources and financial resources
that can be managed by community itself. The Co-operative members can be users or
holders who belong from different section of the similar group. The entities may be
developed as well as well-established organisations such as other normal banks. On the
other hand, the ownership would be in the hand of co-operative members to control the
authority of organisation.
7. Takaful Model- normally, the Takaful means assuring each other. This is considered
as Shariah compliant substitute to the insurance. The practical detail along with modality
of rendering Takaful to the people lies out of the extent of Micro Note, however this is
significant to state a significance of starting Takaful model completely for rendering
Shariah compliant insurance, in place of whole life-insurance, which considers with

THESIS 55
credit products in micro finance. Even though, various initiatives have been made from
time to time to set this model again in a proper as well as effective way in Pakistan. It is
required to set up as per the microfinance level. Takaful at the microfinance level is
required to be done so much. In addition, it is also required that health services along
with nutrition services should be in place to be claimed by the clients in a quick way
(Alam, 2018).
2.6 Credit delivery mechanism or Microcredit-
The micro credit is considered as extension of micro loans (smaller loans) to needy
borrower who does not have steady employment and demonstrable credit past. The micro
credit can be considered as the part of micro finance that provides wide range of economic
services like services of opening of savings accounts to poor population. The updated mechanism
of credit delivery or micro credit is normally regarded to have created with Grameen-Bank. From
year 2012, the micro credit is extensively utilised in developing nations like Pakistan. This is
represented as covering "huge potential as the device for elimination of poverty." The
mechanism of credit delivery has been established to make try to address various problems
related to non-poverty. There are various entities based on internet, have established platform to
provide change form of peer to peer lending wherever the loans are not created in an exclusive
way of direct loan, however as aggregation of various smaller loans having small rate of interest.
The micro credit is considered as best device or method, which can be useful in reducing
feminization of poverty in nations like Pakistan. Further, the significant principle of micro credit
is lending to females with NGOs as well as financial institutions like WWB, BancoSol and Pro
Mujer. Pro Mujer had launched new approach for combining micro credits with health services.

THESIS 56
It can see that the health of customers is essential for the better results of micro credit. However,
the Grameen Bank was one who made try foe lending the females as well as males at same rate.
As a result, 95% females are making loan. The females continue to frame 75% of the micro
credit beneficiaries wide reaching (Ali, et. al, 2017).
Further, it is claimed by the supporters of micro finance that proving credits to poor
population will render the extra earning sources, hiring opportunities as well as access to the
loans having low rate of interest. The credit delivery mechanism enables the poor population to
discharge from commands of domestic moneylenders as well as loans shark. The local
moneylenders charge higher rate of interest. The obtainability of financial services to poor
population can help them in dealing with susceptibilities because of the poverty. It also help the
women to get new opportunities related to business. In this way, the micro finance is very helpful
in making social capital for needy people for the reason that micro finance institutions motivated
the people lending and were desiring to take ‘social solidarity’ as security. It is essentially
required to advance the sustainable microfinance programmes to access the poor families. It puts
focus on chosen non-earnings dimension of poverty, particularly those connected with risks,
helplessness, as well as assets. The major implication of this study is to advance micro finance
product, service as well as delivery mechanism. Following are the requirements-
 Fulfil the requirements of product- the requirements of client can be matched by
developing financial services, goods as well as methods of delivery mechanisms
 Widening the range of services as well as products: the increased housing facilities as
well as advanced education amenities are professed as pathway out of poverty for poor
population

THESIS 57
 Matching size of loan with the needs of clients: Poor borrower needs supple as well as
appropriate goods with sufficient size, and manageable repayment.
 Assess the requirement of personal loan- evaluate the personal loan needs is
required to offer alternative to higher borrower transactional cost related to families
lending systems
 Assess the financial flow along with repayment cycle- by considering more closely at a
match amid loans and cycle of repayment, and families financial flows along with
investment flows
 Enhance the flexibility of products- by making focus on the emergency loans, it will be
helpful for the clients to recover from these occasions in a quick manner as they continue
to make payment of loans as well as stay in program
 Enhance opportunity of own savings- the credit delivery mechanism or micro credit
plays a significant part in case of personal savings. It will be helpful in dealing with
expected as well as surprising risks and daily financial stresses.
 Enhance services to susceptible non-poor families: the financial stress occasions as
well as financial shocks may push the susceptible non-poor families below the poverty
line when they are in best condition to take risk as well as make investment in
employment making entities.
Following are the Implications of the policies-
 The significance of viewpoint of clients in advancing outreach, impacts, as well as
sustainability of micro finance programme that needs the mindfulness of financial

THESIS 58
objectives of poor families, way of managing resources along with activities in financial
portfolios, and way of handling the risk in daily functions.
 The broad role for financial services to support livelihood of poorer: The perception
of livelihood is broad and effective in comparison of the development of entities. It takes
mix of resources, financial activities, and abilities of people and families into the
consideration. In this way, the sources within families are fungible. This is very
significant to identify that the people would use micro finance services for the various
objectives.
 A difficult relation amongst risk taking lenders and risk to micro finance enterprises
portfolio: Products, services, as well as method of delivery that are made for advancing
the ability of people to handle the risks in the lives, and to decrease risks of getting loans,
may lead to best option of repayment, few drop-outs, as well as low operating cost.
 The part of micro finance for donor investment in micro finance program: The
established part of microfinance to decrease susceptibility for the individuals and families
puts focus on the role for continued donor investment in micro finance program.
Additionally, the impacts of microcredit are the matter of debate. It is stated by Supporters of
credit delivery that it decreases poverty by generating higher employment opportunities and
higher earning sources. It is anticipated to lead to advanced nutrition and health conditions. The
credit delivery mechanism is also helpful in improving the level of education of kids of
borrowers. This mechanism is also supported by saying that micro credit authorises females as
whole. On the other hand, it is also argued that the micro credit is helpful for the recipient to
proceed from well-being program. On the other hand, opponent of credit delivery mechanism

THESIS 59
that the microcredit has not enhanced income states it. However, it has driven poorer families in
the debts deception. Because of this, the poor people can do suicide. It is also argued by them
that the loan is often utilised for long-lasting consumer products, rather than productive
investments. They also said that it does not empower females. They also opposed the statement
that the micro credit is helpful in advancing the health services, education services along with
nutrition services. Nevertheless, the available evidence put focus on a fact that microcredit has
facilitated formation and development of business in most of the cases. It has produced self-
employment; however, it has not essentially enhanced income after the payment of interest. In
certain matters, it has driven borrower in trap of debt. It is also not proved that the micro credit
has not empowered females. Therefore, the credit delivery mechanism and microcredit has
attained positive results. In this way, the micro credit is only the element affecting the success of
smaller business, whose success is affected to the greater level by how much the economy or the
specific marketplace develops (hameed, 2017).
2.7 Meaning and explanation of Variable-
Numerous dependent variables and independent variables have been used by different
research studies (Sial, Noreen & Awan, R2015). For explaining the issue of research in effective
way, the researcher defines independent variables along with dependent variables in this section.
It is noted that the independent variables are credit, training, and different services, microfinance
institutes, innovation (marketing, manufacturing, as well as production), parts of members of
family. In addition, the dependent variables are state of poverty (absolute poverty, growth rate of
earning of entrepreneurs, change in social status of businessperson), level of education, and
gender of entrepreneurs in this thesis. Besides, the dependent variables as well as independent

THESIS 60
variables, there are some moderating variables along with mediating variables. It is equally
important to explain the nature of all the variables to have proper understanding for the model
utilised for this thesis (Aleemi & Azam, 2015). The variables are discussed below-
2.7.1 Independent Variables
The main target of this study is to know the impact of microbusiness in reduction of
poverty, gender inequality, and social background of the borrower (Gullifer & Tirado, 2017). It
is clear from the objectives as well as aims of research that the independent variable includes
microbusiness. As per the view of Zwilling, the microbusiness is considered as kind of small
business that is featured as owner operated with 5 or below 5 employees. Moreover, the sales of
these enterprises are not in excess of 250,000 dollars. These businesses have significantly lower
cost of the e-commerce entry. It also requires lesser capital for starting the business. Thus, this
research has studied the manners where the microbusiness in chosen research area contributes
towards the reduction of poverty, decrement in level of gender discrimination, as well as
improvement in the social status of entrepreneurs. To attain the objective of business, the
researcher explains some independent variables, like amount of capital provided by the
microfinance, training rendered form microfinance institutions, other social as well as financial
services rendered by the institutes, innovation followed by entrepreneurs, and participation of
members of family.
2.7.2 Dependent Variable

THESIS 61
The dependent variable (criterion variable) is poverty. As per this variable, the role of
predictor has been assessed. As per the meaning given by UNESCO, the poverty is described as
situation when the income of family is insufficient to fulfil basic need of human being. The basic
requirements can be different in different nations. The level of poverty is assessed typically
based on family rather than addressing it individually. Moreover, poverty is also adjusted for the
number of people in family. The dependent variables evaluate the influence of the independent
variables upon the test units. It can also say that the dependent variables are considered as the
variables, which are completely dependent upon independent variables. The dependent variables
are also considered as predicted variables. The dependent variable is named as predicted variable
because it is the value that is predicted and assumed by the predictor variables or independent
variables The dependent variables can be helpful in estimating the impact of microfinance on
poverty. This can be adjusted as per the number of family members. The other variable is gender
of entrepreneur that also affects the poverty.
Dependent variables
Poverty It is assessed as per national poverty line. If the family earning of
entrepreneur is lining above the poverty line, in that case this 1
otherwise 0
Earnings
Growth rate
of Borrower
This is assessed by the period when first time entrepreneur got
loans by microfinance business

THESIS 62
Gender of
Entrepreneur
In case of female it is one, else 0
Change in
social status
It will be 1 otherwise 0
Independent variables
Borrowing
amount
In term of Pakistani Rs
Trainings Trainings rendered by Microfinance, Yes =1 otherwise zero
Other
services
If yes one otherwise 0
Facilities
rendered by
Government
If yes one otherwise 0
Innovation Three dimensions of this variable are-
V1 = Innovation in sale (Yes then one otherwise 0),
V2= innovation in management (Yes then one otherwise 0),
V3 = Innovation in productions (Yes then one otherwise 0)
involvement
of members
of Family
family member’s number
another Yes then 1, else 0

THESIS 63
variable that
renders
positive
environment
towards the
businesses
2.7.3 Mediating Variable
The mediator variable is considered as variable that causes mediation in
independent variables as well as dependent variables (Jain, Sathar & Haque, 2015). In different
terms, the mediator variable develops the relation between the independent variable and
dependent variable. The procedure of whole mediation is described as whole intervention caused
by mediator variable. It is found that the microfinance means the financial services that are
particularly targeted at the small businesses and people, which have lack of access to predictable
banks. In this way, the mediator variable is very important for this research model for the reason
that it is very helpful in defining that how the microbusiness is helpful in reducing the poverty.
The microbusiness also affects the social status as well as gender discrimination. Therefore, the
microbusiness tends to attained funds from the micro banks. Further, they carry out the functions
and facilitate the various activities. Therefore, this is the significant variable in describing the
relation between dependent variable as well as predictor variable (Suleri, Javed & Ramay, 2018).

THESIS 64
2.7.4 Moderating Variable
The moderator variable is normally stated as M. The moderating variable is
third variable. It puts the impact on the strength of the relation between the dependent variable as
well as independent variable. In correlation, moderator variable affects the correlation of the
different variables. In this thesis, the moderating variable is the NGO and government sector.
The above-mentioned variables are chosen for a motive of evaluating the strength of relation
between criterion variables (poverty, gender discrimination and social status) and the predictor
(microbusiness). The government sector is accountable to motivate the investment in SMEs that
contributes towards financial growth. In this way, the poverty can be reduced. The initiatives that
are considered by the governmental entities tend to affect the relation between poverty as well as
microfinance. For the reason that they can either be motivating or strict (faridi, 2016).
2.8 Theoretical framework
The theoretical framework renders the literature theories. In this thesis, these literature
theories are applied as per the various opinions. There are four fundamental theories related to
local finance. The local Finance theories mainly discuss two fields. These are the theories related
to microenterprise finance and rural finance as well as in lower earning urban neighbourhoods.
Therefore, the local finance theories create the base for the conceptual framework. It may include
supply-leading finance theory, informal credit market, imperfect data paradigm as well as saving
of poor people.
Further, it is stated by the Imperfect Information Paradigm that the banking organisations
may not create cost effective differences between the high-risk applicants and low-risk in
marketplace. The required resources are expensive. They have certain limitations to compete

THESIS 65
with different commercial finance providers. Next, the supply leading finance theory is oldest
theory. The supply leading finance theory suggests three elements namely the government of the
developing nations, incorporation of technologies and problem in implementation of new
technology. The government of developing countries is accountable for the financial
development of nation. The incorporation of technology is required in agricultural sector for
encouraging development. In addition, it is not possible for the direct farmers to afford the credit
cost for implementation of modern techniques. In this way, supply lending finance theory enable
the financial instruments as well as organisations to support the capital development in the
sectors.
In addition, the theoretical concern is considered as the informal credit marketplace concern. It is
stated by the theoretical concern that the asymmetric information is presented in the
marketplaces. This information is significant for the banking organisations to charge the high
rate of interest. It is found that the asymmetric Information states that the asymmetric
information is presented wherever one contracting person has more related data in relation to the
transactions being entered. As well, other party is created disproportionateness. This provides
that the banking institutions do not have the quality of the risk profile of the candidates. The
banking institutions create the high interest rate to be charged.
2.9 Conceptual framework-
In this thesis, the researcher examines whether the microfinance has important role in
social welfare of the Pakistani individuals. The term social well-being states the financial
conditions as well as social conditions. In a case of expanding financial conditions, then the
social conditions like health, life style as well as education would also be enhanced. In Pakistan,

THESIS 66
the micro banks offer the micro credit (Makhijani, et. al, 2015). The micro credit is categorised
into two types. These two types are business based micro credit as well as Agri-based micro
credit. The Agri based finance is offered to Invest in the Agricultural Farms. On the other hand,
the finance based on business is provided to be invested in start-up of the new business or in
expand of current business. For this thesis, the conceptual framework is mentioned below-
2.10 Hypothesis Development
After conducting literature review on impact of microfinance on poverty mitigation in
second chapter, certain hypothesis have established to analyse impacts of microfinance on
poverty mitigation. These hypothesis are discussed below-
HYPOTHESIS 1: Small & medium enterprises and poverty

THESIS 67
The researcher has discussed the impacts of microfinance on basic needs. Poverty is very
dangerous; it deprives individuals of their right to have basic needs. It is noticed that there are
SMEs have great impacts on reduction of poverty. By following proper approaches as well as
strategies, the poor population of affected areas, can get basic needs be reducing poverty (Usman
& Tasmin, 2016).
H0: There is impacts of SMEs on reduction of poverty
H1: There is impact of SMEs on reduction of poverty
HYPOTHESIS II: efforts of government and poverty
The researcher has discussed the impacts of microfinance on reduction of poverty. It is
identified that it can be possible to reduce poverty from affected areas by the efforts of
government. The microfinance can be used in combination to reduce poverty from affected
areas.
H0: no effort has been made by government of Pakistan to reduce poverty
H1: the effort has been made by Pakistani government to end poverty
HYPOTHESIS III: sustainable programs and poverty
The researcher has discussed the impact of sustainable programs on reduction of poverty.
It is recognised by the researcher that the sustainable programs as well as models have role in
generating more jobs opportunities as well as employment in reduction of poverty.
H0: There is no significant role of sustainable programs in reduction of poverty

THESIS 68
H1: There is significant role of sustainable programs in reduction of poverty
2.11 Chapter Summary
In concluding section, the researcher has reviewed concept of problem of poverty in
province of Punjab-Pakistan, impacts of SMEs on poverty, microfinance as well as its
effectiveness, role of impact of microbusiness in elimination of poverty from Pakistan, various
quantitative as well as qualitative variables. The researcher also discusses efforts made by
government to reduce poverty, sustainable micro finance programmes and models. Moreover, it
has also been identified that small and medium enterprises can play significant part in a
development of developing nations such as Pakistan. However, it required certain policies to
implement to eliminate poverty. It is also required that targets must be fixed by government and
specific agencies. It can say that micro finance institutions should not work on informal basis. In
addition, the allocation of the loans must be based on regular basis. It is also recognised that
government is not required to subsidize micro finance institutions too much. Moreover, various
variables have influence on performance of client of micro finance institutions. It is also
recommended that the micro finance institutions are not required to arrange training related to
business for the clients. In this way, it is found that the poverty is not so bad but to stay poor is
really bad. It is actually bad to remain in poverty always. In developing nations like Pakistan, the
poverty is increasing time to time. Therefore, the government is required to take essential and
effective steps reduce this. The government must render credit facilities. It should utilise labour
intensives manufacturing technologies for decreasing the poverty.

THESIS 69
Chapter 3: Research Methodology
3.1 Introduction
The next chapter of this thesis is introduction of research methodology. The introductory
chapter of research methodology develops information along with understanding regarding the
methods to conduct research. The researcher uses numerous methods to perform the research in
the procedural manner. This chapter is very useful for researcher because it renders the support
to collect data as well as proper knowledge from greater number of respondents along with
resources to fulfil the research project. This study is based on role of microfinance in reduction
of poverty from province of Punjab-Pakistan. Various factors are essential to conduct research.
These factors are related to the small and medium enterprises in Pakistan. Therefore, the primary
data is required to be collected by researcher. As a result, this research study is related to analyse
the impact of small and medium enterprises in reduction of poverty from province of Punjab-
Pakistan. This chapter facilitates detailed understanding in relation to techniques, methodologies
as well as approaches to conduct research in the systematic way. This is very helpful for the
researcher to render help in collecting data from the great number of members as well as sources
to attain the research project.
3.2 Overview of research planning-
The study or the research would include the demographic as well as the socio-economic
viewpoint, as the matter of research has been to explored the role of microbusiness in reduction

THESIS 70
of poverty from province of Punjab-Pakistan, which has a direct impact on the social as well as
economic aspects of the world. The demographic approach will be helpful in analysing the
proportion of the population that is majority impacted by poverty and the social aspect. This
study will render real impact of microbusiness on reduction of poverty or the society being
impacted by poverty (Memon, et. al, 2017). As the sustainable microfinance programmes,
schemes, approaches as well as strategies being impacted by the microbusiness that will render
us with the future generation and thus, the economic view or aspect would also be explored. The
inclusion of the education, basic needs as well as living standard will have impacts on achieving
the results. It will be discussed in the detailed way-
Activity Duration Time Resources Cost
Initiating
Project - Project
detail attained
as well as
research started
One week 12th August
2019
Word
document,
100 $
Recognising
aim of research
as well as
objectives of the
research
One week 19th August
2019
previous
research on this
topic as well as
Online
documents and
50 $
Review
literature on
Two weeks 26th August Conducted
survey as well
500 $

THESIS 71
related concern 2019 as interview
with targeted
people
Recognition of
Research
Methodologies
1 week 13th Sep 2019 Assessing
different
research
methodologies
as per previous
approach
100 $
Data Sampling
as well as
collection of
data
1 week 20th September
2019
Conducting
research
interview for
primary data
250 $
Data Analysis
Tools and data
analysis
techniques
1 day 27th September
2019
Qualitative and
quantitative
analysis with
the help of
primary data.
Techniques
400 $
Getting
Conclusion
3 days 28th September
2019
Personal
insighta utilised
for getting
150 $

THESIS 72
conclusion over
the research
Submission of
thesis
1 day 1st October 2019 Research
submitted to
authority
utilising
submission
documentation
as well as
complete report
of research cost
200 $
Table 1: Research planning for study
3.3 Underpinning Theories to Support the Hypothesis Relationship in Research Model
The development of the small and medium enterprises in Pakistan does not benefit the
whole population, because a percentage of the population is excluded from access of services of
small and medium enterprises. In this relation, the microfinance sector has developed the
development policy for stating deficiency of the traditional system. They can be helpful in
reducing the microfinance activities. it mainly puts focus on the developing nations wherever the
financial system is not sufficiently developed as well as where the important proportion of the
population does not utilise the formal financial services.
H1: There is impact of small & medium enterprises on reduction of poverty

THESIS 73
To test this hypothesis, the researcher has found by conducting survey that there is great
impact of small & medium enterprises on reduction of poverty. The small and medium
enterprises provide the solution to transfer the rural surplus labour force to non-agricultural
sector that will increase the earning of farmer. The small & medium enterprises generate the
employment in Pakistan to reduce the poverty.
H2: There is no impact of SMEs on reduction of poverty
This second hypothesis argues that SMEs has no important on reduction of the poverty.
Small & medium enterprises can be useful in reduction of poverty from the Pakistan. However, it
does not have important effect on reduction of income inequality. It is required by SMEs to put
focus on ending of income inequality (Yousfani, et. al, 2019).
H3: No effort has been made by Pakistani government to reduce poverty
It is found by the researcher that the government of any nation can make effort to end the
poverty. In Pakistan, the poverty is biggest issue to be concerned. The government of Pakistan
did not put focus on the problem of unemployment, gender inequality, lower national income as
well as increment of utility charges. These were the reason of origin of poverty in Pakistan
(Hirashima, Tominaga & Ikeda, 2019).
H4: The efforts have been made by government of Pakistan to reduce poverty
The fourth hypothesis argues that there is strong relationship between the efforts of
government of Pakistan and reduction in poverty. By conducting survey, it is found by researcher
that the government of Pakistan is now aware of this big issue of poverty. The Pakistani
government has been developed programs as well as models to reduce the poverty.

THESIS 74
H5: There is no significant role of sustainable programs in reduction of poverty
It is found by the researcher that there is relationship between the sustainable programs
and the poverty. The sustainable programs are very critical to be implemented because of the
funding problem or issue related to finance.
H6: There is significant role of sustainable programs in reduction of poverty
The sixth hypothesis argues that there is strong relation between the sustainable programs
as well as poverty. The programs such as Khushhal Pakistan program, national rural support
program as well as Punjab rural support program have proved very effective to reduce the
poverty from Pakistan. These programs are very good tried by the Pakistani government, to
include local people, administration along with implementation of the small projects (Mollah, et.
al, 2019).
3.4 Theoretical Framework Using and Integrating the Underpinning Theory
This study examines the impact microbusiness on poverty by facilitating the role of
microfinance institutions as well as moderating role of NGOs and Government in reduction of
poverty. It can be supported by the Marxian theory of poverty as well as social-democratic
theory (ZahidMahmood, Abbas & Fatima, 2017). Exactly, the Marxian theory of poverty creates
a base on a fact that poverty is related to the situation where the people find difficulties. The
Marxian theory of poverty may be helpful for researcher to assess that microbusiness is regarded
to be as one of the keystones for any societies. The main reason is that the micro-business does
not render opportunities of jobs as well as employment to people of different background. This
sector contributes pointedly in generating revenues that are invested in the society’s people.

THESIS 75
However, the business also faces considerable issues in the manner of absence of capital along
with financial inclusion that is rendered to the large-size business. As per this point of view, the
Marxian theory of poverty is related to the research concern as individuals of the society like
entrepreneurs also have options for getting assistance from NGO, government as well as
microfinance institutions in order to play the part in mitigating problem of poverty.
Further, it is found that the Social Democratic theory of poverty is suitable for this study.
It is stated by Social Democratic theory of poverty that poverty is a struggle on the basis of
various classes. It is also suggested by Social Democratic theory of poverty that the struggle as
well as action of the class can be the main element behind the reduction of poverty from societies
in Pakistan. In this viewpoint, it may be addressed that while entrepreneurs with microbusinesses
aim to strengthen the businesses by sources of microfinance institutions, NGO’s support as well
as government, these stakeholders of the societies may be useful in reducing poverty from
societies. Moreover, the following study can also be supported through the Gareth Morgan. The
theory is based on the requisite need for the new mind-set. The theory believes that extraordinary
changes in businesses can be brought by technology. The reason for this is that the theorists had
a strong viewpoint that the management problems can be better addressed by technology
oriented processes. The theory is very suitable as a researcher also thinks that the technologies
may be helpful in micro business to eliminate the administrative concern as well as sustainability
and attractiveness may be difficult for reduction of poverty (Memon, Magsi, & Magsi 2015).
3.5 Research philosophy
The research philosophy considers resources, scope along with development of
understanding. In different terms, it can say that the research philosophy is belief in relation to

THESIS 76
the information about the phenomenon that should be collected, evaluated, as well as used.
Although, the idea of formation of knowledge can be made by considering that, the investigator
is engaged in creation of understanding and information as part of conducting investigation. The
researcher collects the primary data by conducting survey as well as interview. According to this,
the responds develop the understanding along with information in detail. In this way, it is
required that the researcher should use research philosophy very carefully as well as properly. In
the selection of research philosophy, the researcher uses different values along with different
assumptions (Manaf, 2017). Research philosophy has significant role to play in the research
methodology. There is important role of research philosophy because it is important for
investigator in refining as well as stipulating the methods regarding the research that are to be
used in a study. The research philosophies describe the exclusive research strategy for the
utilisation. Subsequently, the understanding of research philosophy will enable the investigator
to assess the numerous methods and to ignore improper utilisation. In this way, it can say that the
research philosophy is very useful to ignore the needless works by recognising limitations of
specific approaches at earlier phase. Additionally, the research philosophy helps the researcher to
be practicable, creative, and innovative in either utilisation of research methodologies or
collection of research methodologies.
All the levels of research process is based on the assumption regarding the sources and
scope of knowledge as well as information. The research philosophy will define significant
assumptions of authors. These assumptions can be helpful to create the base of research
strategies. As per the problem of research, the research philosophies can be described in the
numerous categories. These types are positivism, interpretivism and realism research philosophy.
Hence, the research strategies, research methods and approaches will be differing on the basis of

THESIS 77
different views. It will be depended on the significance and practicality to get aims of the
research or objective of research. The philosophical approach enables researcher to take decision
related to the research approach to be adopted. The researcher will be able to know why this
approach is required to be followed. Therefore, the positivism philosophy is used to define
factual data as per the measurement as well as observation. It also permits the investigator to
discover the truth as per statistical data and facts. Alternatively, the realism philosophy is
extremely based on the certainty and the human beliefs. It is considered as per the
circumstances.
To conduct the research about assessment of role of microbusiness in reduction of
poverty from province of Punjab-Pakistan, research philosophy is very significant because it
develops the proper understanding as well as detailed information or data for the researcher
about the research issue or concern related to research. In this way, it can say that the selection of
appropriate research philosophy can be important section in the research methodology chapter.
In dissertation, the term ‘philosophy’ is considered as advancement of information, data, or facts.
The research philosophy is a particular way of developing the knowledge to define philosophical
paradigm. The collected knowledge and information is depended on numerous assumptions
based on the view of population, like the practical consideration at the time of selection of
research issue or research matter. Additionally, the selection of appropriate along with correct
research philosophy facilitates the researcher to assess the methods and to collect the estimate.
With the help of research philosophy, the researcher interprets the information by using the
research procedure. The selection of particular research philosophy is based on the practical
implications taken by researcher. There is substantial philosophical difference amongst various
readings. These differences describe the facts along with data such as assessment of the role of

THESIS 78
microbusiness in reduction of poverty from province of Punjab-Pakistan. The researcher to get
appropriate conclusions related to part of microbusiness in reduction of poverty from province of
Punjab-Pakistan uses the interpretivism philosophy (Malik, Nazli & Whitney, 2015). The
interpretivism philosophy would be useful for investigator to conduct the detailed information
regarding research concern by gathering views the standpoints of the members. In this thesis, the
researcher will use positivism research philosophy. Researcher uses positivism research
philosophy effectively. The positivism research philosophy has great relevancy for this research
because an investigator develops hypothesis in this thesis. The realism research philosophy is
not helpful for an investigator. Further, positivism research philosophy is relevant to be used
because there is a need of implementing highly ordered methodologies like developing and
proving hypothesis by assessment of the outcomes in a simple way (Mayor, 2015).
3.6 Research approach
The research approach means to the plan and process to define different steps to be used
by following broad rules to systematic data collection methodologies as well as analysis and
interpretation of data. The plans along with processes involve the numerous decisions. These
decisions should not be made to make a sense for the researcher to create the sense of
presentation. The selection of research approach is so significant. The researcher should be alert
at the time of selection of research approaches. It is required that research approaches should be
justified with chosen research techniques as well as designs to conduct research. By using the
research approach, an investigator will be capable to state different facts, figures, information,
and data in a logical along with methodological manner. It can say that knowledge of research
approach is vibrant section of technical study regardless the area of research. In research

THESIS 79
methodology chapter, it is required by the investigator that he or she define the main differences
between the deductive as well as inductive research approaches. Moreover, it would be helpful
for a researcher to explain research approach followed in this study by breaking down opinion or
view in various points.
The selection of research approach is significant to justify chosen research design and
techniques. By using the research approach, the researcher could be enabled to state facts and
figures in a systematic way. Further, different kinds of research approaches can be used by
researcher like inductive and deductive. It also allows a researcher to justify the utilization of
specific data gathering as well as evaluation technique for research. This is important for a
researcher to enhance detailed understanding regarding use of different method as it can be
effective to meet research aim and objectives. In addition, the deductive approach is appropriate
for the researcher because of the relevancy with positivism philosophy. On other hand, the
inductive approach is proper because of relevancy with interpretivism research philosophy. Thus,
the deductive approach is used to make hypothesis associated with research concern. To prove
hypothesis, the researcher requires to collect set of data for accepting as well as ignoring
hypothesis. However, inductive approach defines flexibility as there is no need to make
hypothesis in relation to research issue.
In addition, the research approach is so important to conduct research as this states
position for researcher in collecting and assessing the data. The research approaches validate
appropriateness of the finding. The approaches also make the interpretations of information. The
research approaches are useful in formulating the agenda to ensure the changes as well as
reformation. The research approaches are helpful because they develop the collaboration with the
participants in conducting test or checking theories and explanations. Research approaches are

THESIS 80
also helpful in identifying variables to conduct study. The research approaches are useful in
collection of variables in the questions or theories. The main significance of research approach is
that they ensure the standards of rationality and dependability. They are helpful in observing and
evaluating the data numerically. Research approaches are useful in using unbiased approach and
in getting statistical processes. Research approaches collect quantitative data. The research
approaches integrates the information at numerous levels of examination and states visual image
of a process in the research. They establish the practices of quantitative research (Saleem,
Shabbir & Khan, 2019).
Further, numerous research approaches can be used by researcher. The research
approaches are inductive approach and deductive approach. These research approaches allow a
researcher to validate use of particular data collection methods as well as data analysis methods
for research. The research approaches such as deductive approach as well as inductive approach
are helpful to enhance depth knowledge about the use of numerous methodologies, as they may
be effective for getting the research aims along with research objectives. In addition, the
deductive approach is suitable for the researcher due to relevancy with positivism philosophy. It
is clear that deductive approach is used to create the hypothesis in respect of research concern or
issue. To prove the hypothesis, the researcher needs deductive approach to collect set of data and
facts for avoiding adopting hypothesis. However, inductive approach is very flexible to be used.
In the inductive approach, there is no need to develop the hypothesis regarding problem of
research. Thus, while researcher has developed the set of hypotheses for the research, then this is
required to be accepted or denied at the time of making research process. In this situation, the
deductive approach will be useful. In deductive approach, the role of microbusiness in reduction
of poverty from province of Punjab-Pakistan is assesses by developing the hypotheses that are

THESIS 81
checked at the time of research process. Otherwise, the inductive approach does not involve the
hypotheses. It starts with the research questions along with the objectives or aim of research that
are needed to be achieved at the time of research process (Flick, 2015). In this way, the
researcher in place of the deductive approach applies the deductive approach. The key motive of
selection of this approach is that the deductive approach is useful in developing the hypothesis in
relation to issue of research ‘the role of microbusiness in reduction of poverty from province of
Punjab-Pakistan’. This research approach helps the researcher to develop the hypothesis by
enhancing understanding regarding problem or concern of research. It is clear that the inductive
approach is not proper because it is relevant with interpretivism research philosophy rather than
positivism research philosophy. By taking help of deductive research approach, the researcher
would be capable to get proper as well as valid results. In this way, the deductive approach is
useful for the researcher to gather facts for getting specific results in relation to impacts of
microbusiness (SMEs) in reduction of poverty from province of Punjab-Pakistan. It is clear that
the deductive approach is very suitable to be used by the researcher because the researcher has
developed hypothesis to respond the research questions.
3.7 Research design
Research design is a set of processes and methods that are used to gather and analyse the
measures of variables stated in a research problem. The research design is a plan to render
answer of questions related to research. The research design is a plan to define methods and tools
to be chosen by researcher. It provides an outline to combine various factors related to study in
the proper manner to manage the issue effectively. The research design is very useful for
investigator to ensure availability of evidence to consider research problem in a proper way. The

THESIS 82
researcher faces various problems in doing research. Therefore, the research design is very
helpful for researcher. With the help of well-established research design, the researcher will be
able to get pre-determined results. This study recognises the specific as well as general issue of
research in the sample way. With the help of research design, the researcher can be able to
review the issues of previous research studies. Additionally, it states the hypotheses (like the
topic related to the research concern) in a proper as well as effective manner. The research
designs define data as well as knowledge in effectively, which will be helpful for researcher to
check the hypotheses. The researcher will be able to explain the way to collect the information.
In this way, the research designs addresses the methodologies of the evaluation to be applied to
the data in taking decision whether or not the hypotheses are correct or incorrect.
The researcher according to the research issue selects research design. In the research
design, numerous variables, methods of collection of data, as well as method of utilising the
collected and analysed data along with factors are described in research design. Usually, research
design is incorporated in overview of research methods. Research design differs in length on the
base of research design uses by researcher. However, the researcher will be able to understand
that what to do by conducting literature review (Metrine & Omoro, 2019). This section may
provide outline of the own paper. The important of the research design is that it does not promote
partiality in data. The research design is also useful in increasing faith over the data collected as
well as analysed by researcher (Javed, Syed & Turner, 2018). The research design that creates
fewer margins of mistakes in experimental research can be exhibited at its best. The research
design has various fundamental of research design. These factors of the research design can be
best way to select right research design, correct data collection methodology for a research.

THESIS 83
Furthermore, the research design has various features. Firstly, the main feature of
research design is its objectivity. It is essential that results of research design should not be
biased. They are required to be free from partiality and biasness. The other feature is reliability.
While the researcher has conducted regular research, it is expected by the researcher to get
similar outcomes all the time. The research design is required to mention that how the
research question can be made to ensure the norms to get proper outcomes. Additionally, the
validity is another characteristic of research design. Various tools are available for conducting
the research design. It is also required that the questionnaire should be made as per the research
design in a legal way. In addition, of this, it also ensures the generalization. This feature of
research design says that result of research design should be applied to whole population rather
than targeted audience. There are numerous types of research design. The research design
involves three types such as descriptive research design, exploratory design along with casual
research design. The researcher to attain complete data regarding issues of research uses the
descriptive design. The descriptive design is useful in describing the incidence. By using the
descriptive research design, the researcher shows interest in describing matters as well as
conditions in the study. The descriptive design is a research design that is used to gather and
assess the data. In this way, by implementing this research design, the research can describe his
views and opinion. The second research design method is casual research design. The casual
research design is used by researcher to put impacts on the effects along with causes in relation
to the numerous variables. In addition, the next research design is exploratory research design.
This design signifies primary research. In exploratory research design, the researcher defines the
research concern or issue by creating the hypothesis. The exploratory research design is useful
because it is based on opinion as well as views of population. This method signifies that thinking

THESIS 84
of researcher is essential. It is mainly depended on private inclination in relation to particular
case.
In this thesis, the researcher will use the exploratory research design. For doing research
in a proper manner, exploratory research design can be useful. The exploratory research design is
very helpful for researcher because it is useful to collect depth information regarding the part of
microfinance in reduction of poverty from province of Punjab-Pakistan. These research design
namely exploratory research design is helpful for a researcher to get views as well as opinions of
targeted people or group about the research information. In this way, the exploratory research
design is advantageous to get proper and effective results. Therefore, the researcher does not use
the casual research design and exploratory research design. The researcher is not using casual
research design because there is no any requirement of developing the causes along with effects
relationship between various variables. In this way, the previous research study will be helpful in
conducting the survey, in analysing the outcomes and in having the knowledge of research gap.
3.8 Research strategy
The research Strategy is systematic plan of action. The research strategy renders way to
thinking along with effort to enable the researcher to do research in effective manner and on
schedule to make quality results and inclusive reporting. Research strategy is a nut and bolt of
presentation for describing basis for the research as well as experimentation. The researcher will
conduct appropriate study to fulfil predetermined outcomes. The research strategy will state the
extremely important stage in processes to conduct research in relevant field. The research
strategy is significant factor that allows researcher to assess research problem by creating
responses to the research question in the effective manner. By using research strategy, a

THESIS 85
researcher will be able to collect facts as well as data, and assess information for reaching at
particular results. To get research aims and objectives of research, the investigator may use
numerous kinds of research strategies. These strategies include survey through questionnaires,
observation, experiment, literature review, interviews, focused group, and case study. For this
dissertation, the investigator applies the research strategy such as survey through questionnaire
because the research strategies allow the researcher for collecting the effective and proper
amount of information related to the impacts of microbusiness on the reduction of poverty from
province of Punjab-Pakistan. By using survey through questionnaire, the researcher will be
capable to collect data and facts in least time and price. This research strategy increases the
quality of research between key shareholders. in contradiction of this, an application of this
strategy assists the investigator to collect depth knowledge regarding research problem and
enables the researcher to develop information along with knowledge. As the outcome, the
survey is useful for collecting correct research aims and research objectives in the specific time.
It facilities valid and constant outcomes.
A survey is conducted in three districts of Southern part of the Punjab province, i.e.
Multan, Khanewal and Sahiwal to get the view of them to more exploration. It will be helpful in
conducting research by getting data on the specific matter and by proving to readers how study
fits in great field of research. Based on condition, the survey is useful in assessing data and
suggesting the reader on most relevant or appropriate sturdy. Usually, the research strategy
‘survey’ is useful in identifying wherever the gap present in how a problem has evaluated.
Additionally, survey provides framework of selected sources on a matter. The survey
through questionnaire can be data summary. The key motive of this research study is to place the
work in a context of the contribution to understanding the research issue being assessed. It

THESIS 86
establishes and defines all the works to the other people in a consideration. It recognises the new
ways to understand the past or previous research. The researcher would be able in finding the
gap that is presented in the literature. Therefore, survey through questionnaire is important
because it defines how a research is connected with previous research in the statistic. This
describes the originality and significance of a research problem. The survey is useful in creating
sense of relation with reader or participant so he or she can trust that an investigator has done the
homework. As a result, the investigator can render credit for due diligence. Thus, by the use of
this, the investigator may have fact finding and the fact checking mission (Khanam, et. al, 2018).
3.9 Data collection method
The data collection method is very helpful for investigator to collect information in a
methodological manner by using numerous means to get the aims along with aims of the
research (Oladele & Ward, 2016). The practicable data collection processes allow the researcher
to generate data related to issue of research. By using the data collection method, the researcher
can get proper outcomes regarding problem of research. Additionally, there are 2 kinds of the
research methods. Tehse are primary data collection method and secondary data collection
method. The primary data is considered as data collected from by the investigator at first time.
For a collection of primary data, the researcher uses interview, survey by the questionnaire,
group discussion, and case study along with action research. Alternatively, the secondary data is
gathered from other researcher and the organisation to attain the aims of research and motives of
research. Moreover, the secondary data means published data that is accessible by a researcher to
get proper information of facts. Various resources are helpful for the researcher for attaining

THESIS 87
information. These sources include journals, articles, websites, governmental report, newspaper,
magazines, and books.
The study is based on impact of microbusiness in reduction of poverty from province of
Punjab-Pakistan. The researcher will use the primary data collection method. In this matter, the
primary data collection sources are advantageous to create direct relation with members to attain
the beliefs in relation to problem of research. By using this, the researcher would be able to
gather facts from different sources. These sources include books, journals, articles and sites to
enhance reliability of the research outcomes. The primary data may be gathered from the focus
group, interview and surveys through a questionnaire. In this paper, the researcher uses primary
data collection method. The reason is that it is necessary to collect proper and appropriate data
regarding the problem research. It is advantageous for a researcher to collect facts from
government, government reports, and organisations regarding impact of microbusiness on the
poverty’s reduction. The secondary data collection method is useful in saving the efforts and
expenses. The secondary data collection method is cheap. In this way, the investigator researcher
will be capable to make out what is the shortcomings as well as the benefits. The primary data
collection method is also useful in selecting that what data is needed to be collected. Thus, the
primary data collection method is so useful. The primary data collection method is quick to
conduct. Primary data collection method may be present while secondary data may not be
achieved at all.
3.10 Sampling method
Sampling method refers to the method to select right participants for a research. By using
sampling method, the researcher can select right participants to get appropriate answers. The

THESIS 88
sampling methods include non-probability as well as probability sampling strategy. With the
help of this, the researcher can get accurate facts and data from numerous sites and reports. The
probability sampling refers to a method that is operated as per the random selection of
participants. Probability sampling provides the same probability to choose participants.
Alternatively, non-probability sampling method refers to a method in which the investigator has
not similar probabilities to choose different resources. This sampling method means the method
where it is not possible to select odd number of sample. Alternatively, investigator may assess
odd in probability sampling method. In addition, probability sampling method involves random
selection. In contradiction of this, the non probability sampling method does not involve random
selection. This is based on the subjective judgement of the researcher. It can be understanding
form an example. Such as, one person has the 10% chance for selection and other person has
50% chances of selection, then it is considered as non probability sampling in which researcher
evaluated odd at all. In this research paper, the researcher uses non probability sampling strategy.
According to non probability method, the participants can be selected according to their
understanding, talent along with knowledge.
3.11 Data analysis method
Along with data collection, the data analysis is also very significant. With a help of data
analysis method, the researcher can assess the data to get proper along with effective outcomes in
relation to the problem of research. There are various options available to a researcher. These
options are contents analysis, disclosures analysis, and statistical analysis along with informal
analysis (Ghalib, Malki & Imai, 2015). A researcher collects data to conduct effective
assessment of gathered data. In this research, a researcher uses survey method to analyse the

THESIS 89
data. By using data analysis method, the investigators can evaluate information in effective
manner. The survey method can be effective because it helps to interpret the impact of
microfinance on lessening of poverty from province of Punjab-Pakistan. For this, survey through
questionnaires are used to assess the result by the survey method as reader can develop
understanding in relation to impacts of micro business on poverty’s reduction. A researcher will
assess different functions as well as the impact of SMEs on the reduction of poverty. Therefore,
for a proper evaluation, the data would be evaluated by taking the help of survey. The researcher
will conduct the survey on the population of three districts of Southern part of the Punjab
province, i.e. Multan, Khanewal and Sahiwal. This survey strategy states that the reliable as well
as useful data. The researcher searches positive relationship between SMEs and poverty’s
reduction.
3.12 Ethical consideration
The research in relation to subject matter, will involve certain ethical difficulties. Ethical
issues include educational laws as well as policies that are required to be considered while
conducting the research and choice of data collection method. Survey is required to be
considered as per the law pertaining to privacy or secrecy of information. A researcher is also
required to adopt morals of having approval previous to rendering survey questionnaires. The
analysis of the information requires to be done by adopting laws. Ethical law along with that
needs to be followed in research includes the Data Protection Act. As per Data Protection Act, it
is required keep the data in relation to the survey respondents private. In this way, the respondent
will be secure at the time of conduction of survey (Khan, 2016).
Weakness of study-

THESIS 90
 Because of shortage of time, this is problematic for an investigator to find out primary
data for reviewing literature. In absence of sufficient amount of primary data, it is hard to
reach a conclusion
 The concluding paper is required to be final if sufficient cash was distributed to collect
primary data by conducting survey as well as interviews.
Strength of study-
 It is required by researcher to conduct researcher on the basis of years of research and
study conducted in past by different researcher who mention role of microbusiness in
reduction of poverty from province of Punjab-Pakistan (Ndungo, Olweny & Memba,
2019).
 To support the claim of research, the primary data are required to be collected as well
as assessed that create study so exact
 Even though, various considerable studies on subject matter were made before the
study. However, this study is rationalized as well as corrects in relation to original
finding of research. The previous study has noted that the problem of poverty in
general
 As evident from literature review and aims of research, SMEs can be developed more
by using various effective approaches as well as strategies.
3.13 Summary of chapter

THESIS 91
In concluding section, an investigator has rendered detailed clarification in relation to the
methods, tools and processes that would be adopted by the researcher in a specific research. The
researcher aims to plan the research according to the deductive research approach. Furthermore,
this study also aims to follow the primary research method wherever the quantitative aspect of
the research would be included. The investigator would focus on use of primary source of data
collection method where the research methods like survey questionnaire will be conducted. The
researcher plans to take sample from the population of three districts from southern area of
Punjab-Pakistan specifically Khanewal, Sahiwal and Multan who have borrowed capital from
PRSP. Furthermore, the systematic random sampling will be utilized for the collection of
samples for quantitative data. The purposive sampling technique would be considered for the
objective of conducting survey.

THESIS 92
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THESIS 103

THESIS 104
Appendix
Questionnaire
Name of Place ………………..
Name …………………………
1 Gender
 Male ☐
 Female ☐
2. Area
 Urban ☐
 Rural ☐
3. Age
 18- 24 years ☐
 25-30 years ☐
 31-36 years ☐
 37-42 years ☐
 43 years and above ☐
4. Marital Status

THESIS 105
 Single ☐
 Married ☐
 Separated/divorces ☐
 Widow ☐
5. Major Source of Family Income?
 Wage ☐
 Pension ☐
 Social assistance ☐
 Income from business ☐
 Income from agriculture ☐
 Income from rent ☐
 Other (specify) ☐
6. Highest Level of Education Achieved:
 Primary ☐
 Matric ☐
 FA/FSc ☐ Bachelors ☐
 MA/MSc ☐
 Others ☐
7. Which type of Assets you have?
 House ☐

THESIS 106
 Agricultural land ☐
 Jewelry ☐
 Others (Please specify) ☐
8. Current Working Status:
 Student ☐
 Working in Public Sector ☐
 Working in Private Sector ☐
 Self Employed ☐
 Not Currently Working ☐
9. At the moment, you would consider your current income classified as:
 Lower Class ☐
 Lower Middle Class ☐
 Upper Middle Class ☐
 Upper Class ☐
10. Are you running any business?
Yes ☐
No ☐
11. If yes, then what is (are) the source(s) of your business capital?
 Self ☐
 Friends &Relatives ☐
 Partnership ☐

THESIS 107
 loans from banks & finance institutions other than microfinance ☐
 Microfinance ☐
 Others ☐(Please specify)..........................................
12. Have you some knowledge about the operations of Microfinance Institutions?
 Yes ☐
 No ☐
13. If yes, how did you get to Know about Microfinance Institutions (MFIs)?
 Friends ☐
 Family ☐
 Media ☐
 MFI official ☐
 Hand bill ☐
 Online ☐
14. Have you ever benefited from any services of Microfinance Institution(s)?
 Yes ☐
 No ☐
15. Which products of Microfinance Institutions have you benefited from?
 Credits ☐
 Financial & Management training ☐
 Others ☐ (please specify).....................
16. Has the availability of MFIs contributed to the enhancement of your

THESIS 108
 managerial skill ☐
 financial management skill and ☐
 overall business knowledge ☐
 none of the above ☐
 Any other please specify
17. Would you please tell that any government institution or NGO approached you
about the services of Microfinance?
 Yes 
 No ☐
 Do not know ☐
18. If yes! Is it possible for you to mention any service provided by the government in
terms of microfinance?
 Yes ☐
 No ☐
 Do not know ☐
19. If yes! Then can you explain the nature of the service?
---------------------------------------------------------------
20. Have you know any government institution which is providing the facility of credit?
 Yes ☐
 No ☐

THESIS 109
 Do not know ☐
21. If yes! Then have you availed this facility?
 Yes ☐
 No ☐
 Do not know ☐
22. If yes! Then what is the amount of that credit facility
-------------------------------------------------------------
23. Is it possible for to recall about any help or services provided by any NGO
 Yes ☐
 No ☐
 Do not know ☐
24. If yes! Then can you explain the nature of the service?
---------------------------------------------------------------
25. Have you know any NGO which is providing the facility of credit?
 Yes ☐
 No ☐
 Do not know ☐
26. If yes! Then have you availed this facility?
 Yes ☐

THESIS 110
 No ☐
 Do not know ☐
27. If yes! Then what is the amount of that credit facility
-------------------------------------------------------------
28. Are you satisfied with the services provided by the Government
 Yes ☐
 No ☐
 Do not know ☐
29. If yes then how much you satisfied
 10% ☐
 More than 10% and Less than 50% ☐
 More than 50% and Less than 75% ☐
 More than 75% and less than 100% ☐
 100%
30. Are you satisfied with the services provided by any NGO
 Yes ☐
 No ☐
 Do not know ☐
31. If yes then how much you satisfied

THESIS 111
 10% ☐
 More than 10% and Less than 50% ☐
 More than 50% and Less than 75% ☐
 More than 75% and less than 100% ☐
 100% ☐
32. Have you ever applied for credit facility from any MFI?
 Yes ☐
 No ☐
(Name of MFIs ……………………)
33. If yes then what percentage of loan applied was granted?
 100 percent ☐
 75-99 percent ☐
 50-74 percent ☐
 Less than 50 percent ☐
 Others ☐
34. How long does it take to access credit from your MFI?
 Less than a week ☐
 1-2 weeks ☐
 2 -3 weeks ☐
 3-4 weeks ☐

THESIS 112
 More than 4 weeks ☐
35. How many Microfinance Institutions do you work with? And mention the names if
possible
 None ☐
 1 ☐
 2 ☐
 3 ☐
 4 ☐
 5 and above ☐
36. Do you access more credit from MFIs than?
 traditional banks ☐
 Family ☐
 Friends ☐
 only get from MFIs ☐
37. In your family who received the loan from MFIs
 Male family member ☐
 Female family member ☐
If male then what is the relation with you…………………………….
If female then what is the relation with you…………………………..

THESIS 113