Impact of Micro-Credit on the Livelihood of Rural Women of Mymensingh District in Bangladesh

Abstract

The main focus on the present study was to determine the change in livelihood status of women beneficiaries of NGOs at Bangnamari village of Gauripur Upazila under Mymensingh district. A sample size of 80% women was drawn from randomly selection of 100 women at study areas. The findings showed that most of the respondents were economically active but not well educated. It was found that the yearly average income and expenditure of the households were Tk. 68656.25 and Tk. 64542.92 respectively. Data indicated that a total of 75% was Muslim and 25% was Hindu respondents. The joint and nuclear family were 61% and 39% respectively. Contribution of NGOs in changing the livelihood status 75%, 25% and 13% were BRAC, GREEMINBANK and ASA; respectively. The average change in livelihood status score was 13.94. The largest proportion (62 percent) of women belonged to medium, compared to 25 percent and 13 percent belong to low and high change in livelihood status categories through BRAC, GB and ASA respectively. Results of t-test on change of livelihood status in three dimensions namely ‘change of farm and house hold materials’, ‘change of housing, health and sanitation’ and ‘change of annual family income’ in terms of ‘before’ and ‘after’ involvement were found highly significant. Out of 10 selected characteristics such as education, family size, farm size, and household income, income of respondents, savings, and access to credit, employment, health knowledge and social participation. The regression coefficient of these values was 0.06, -0.51, 0.03, 0.09, 0.02, 0.00, 0.12, 0.06, 0.02 and 0.24, respectively. Annual income from credit availability, communication with GB employee and staff and attitude towards micro-credit program of GB were positively significant and only age and non-localize behavior were negatively significant with dependent variable of change in livelihood status. Family size, farm size, organizational participation and attitude towards community did not show any significant relationship with change in livelihood status. Problems faced by beneficiaries in respect of ‘low price of different products (35- High), lack of improved seeds (34-High) and high interest rate (30-High) respectively. One of them lack of sufficient amount of credit’ was the most serious problem. However, the present study was conducted carefully with a view to identifying the genuine information from the respondents as well as to find out the impact of microcredit on women in changing their livelihood.